Proceeds of Crime (Money Laundering) and Terrorist Financing Act (S.C. 2000, c. 17)

Searches

Marginal note:Search of person

• 39.04 (1) If an officer suspects on reasonable grounds that they have secreted on or about their person goods that have not been declared in accordance with section 39.02 or that are proceeds of crime as defined in subsection 462.3(1) of the Criminal Code or are goods relating to money laundering, to the financing of terrorist activities or to sanctions evasion, the officer may search

  • (a) any person who has arrived in Canada, within a reasonable time after their arrival in Canada;

  • (b) any person who is about to leave Canada, at any time before their departure; or

  • (c) any person who has had access to an area designated for use by persons about to leave Canada and who leaves the area but does not leave Canada, within a reasonable time after they leave the area.

• Marginal note:Person taken before senior officer

  (2) An officer who is about to search a person under this section shall, on the person’s request, without delay take the person before the senior officer at the place where the search is to take place.

• Marginal note:Discharge or search

  (3) A senior officer before whom a person is taken under subsection (2) shall, if the senior officer believes there are no reasonable grounds for suspicion under subsection (1), discharge the person or, if the senior officer believes otherwise, direct that the person be searched.

• Marginal note:Search by same sex

  (4) No person shall be searched under this section by a person who is not of the same sex, and if there is no officer of the same sex at the place where the search is to take place, an officer may authorize any suitable person of the same sex to perform the search.

Marginal note:Customs Act

39.05 Paragraphs 99(1)(a) to (c.1), (e) and (f), subsection 99(4) and paragraph 99.1(2)(b) of the Customs Act apply, with any modifications that the circumstances require, to goods that must be declared under section 39.02.

Seizures

Marginal note:Seizure and forfeiture

• 39.06 (1) If an officer has reasonable grounds to believe that goods are proceeds of crime as defined in subsection 462.3(1) of the Criminal Code or are related to money laundering, the financing of terrorist activities or sanctions evasion, the officer may seize as forfeit the goods.

• Marginal note:Notice of seizure

  (2) An officer who seizes goods under subsection (1) shall

  • (a) if the goods were not imported or exported as mail, give the person from whom they were seized written notice of the seizure and the right to review and appeal set out in sections 39.14 and 39.21;

  • (b) if the goods were imported or exported as mail and the address of the exporter is known, give the exporter written notice of the seizure and the right to review and appeal set out in sections 39.14 and 39.21; and

  • (c) take the measures that are reasonable in the circumstances to give notice of the seizure to any person or entity that the officer believes on reasonable grounds is entitled to make an application under section 39.23 in respect of the goods.

• Marginal note:Service of notice

  (3) The service of a notice under paragraph (2)(b) is sufficient if it is sent by registered mail addressed to the exporter.

Marginal note:Power to call in aid

39.07 An officer may call on other persons to assist the officer in exercising any power of search, seizure or retention that the officer is authorized under this Part to exercise, and any person so called on is authorized to exercise that power.

Marginal note:Recording of reasons for decision

39.08 If an officer decides to exercise powers under subsection 39.06(1), the officer shall record in writing reasons for the decision.

Marginal note:Report to President

39.09 If the goods have been seized under section 39.06, the officer who seized them shall without delay report the circumstances of the seizure to the President.

Transfer to the Minister of Public Works and Government Services

Marginal note:Forfeiture under subsection 39.03(5)

• 39.1 (1) An officer who retains goods forfeited under subsection 39.03(5) shall send the goods to the Minister of Public Works and Government Services.

• Marginal note:Seizure

  (2) An officer who seizes goods shall send the goods to the Minister of Public Works and Government Services.

Forfeiture

Marginal note:Time of forfeiture

39.11 Subject to sections 39.14 to 39.22, goods seized under subsection 39.06(1) are forfeited to His Majesty in right of Canada from the time of the contravention in respect of which they were seized, and no act or proceeding after the forfeiture is necessary to effect the forfeiture.

Review and Appeal

Marginal note:Review of forfeiture

39.12 The forfeiture of goods seized under this Part is final and is not subject to review and is not to be set aside or otherwise dealt with, except to the extent and in the manner provided by sections 39.13 and 39.14.

Marginal note:Corrective measures

39.13 The Minister, or any officer delegated by the President for the purposes of this section, may, within 90 days after a seizure made under subsection 39.06(1), cancel the seizure if the Minister is satisfied that there was no contravention.

Marginal note:Request for Minister’s decision

39.14 A person or entity from which goods were seized under subsection 39.06(1), or the lawful owner of the goods, may, within 90 days after the date of the seizure, request a decision of the Minister as to whether the goods are proceeds of crime as defined in subsection 462.3(1) of the Criminal Code or are related to money laundering, to the financing of terrorist activities or to sanctions evasion by giving notice to the Minister in writing or by any other means satisfactory to the Minister.

Marginal note:Extension of time by Minister

• 39.15 (1) If no request is made under section 39.14 within the period provided in that section, the person, entity or lawful owner referred to in that section may apply to the Minister in writing or by any other means satisfactory to the Minister for an extension of the time for making the request.

• Marginal note:Content

  (2) An application shall set out the reasons why the request was not made on time.

• Marginal note:Burden of proof

  (3) The burden of proof that an application has been made under subsection (1) lies on the person, entity or lawful owner claiming to have made it.

• Marginal note:Notice of decision

  (4) The Minister shall, without delay after making a decision in respect of an application, notify the applicant in writing of the decision.

• Marginal note:Conditions for granting application

  (5) The application is not to be granted unless

  • (a) it is made within one year after the end of the period provided in section 39.14; and

  • (b) the applicant demonstrates that

    • (i) within the period provided in section 39.14, they were unable to act or to instruct another person to act in their name or had a bona fide intention to request a decision,

    • (ii) it would be just and equitable to grant the application, and

    • (iii) the application was made as soon as circumstances permitted.

Marginal note:Extension of time by Federal Court

• 39.16 (1) The person, entity or lawful owner referred to in section 39.14 may apply to the Federal Court to have their application under section 39.15 granted

  • (a) within the period of 90 days after the Minister dismisses that application, if it is dismissed; or

  • (b) after 90 days have expired after that application was made, if the Minister has not notified the person, entity or lawful owner of a decision made in respect of it.

• Marginal note:Application process

  (2) The application shall be made by filing in the Federal Court a copy of the application made under section 39.15, and any notice given in respect of it. The applicant shall notify the Minister that they have filed the application immediately after having filed it.

• Marginal note:Powers of the Court

  (3) The Court may grant or dismiss the application and, if it grants the application, may impose any terms that it considers just or order that the request made under section 39.14 be deemed to have been made on the date the order was made.

• Marginal note:Conditions for granting application

  (4) The application is not to be granted unless

  • (a) the application under section 39.15 was made within one year after the end of the period provided in section 39.14; and

  • (b) the applicant demonstrates that

    • (i) within the period provided in section 39.14, they were unable to act or to instruct another person to act in their name or had a bona fide intention to request a decision,

    • (ii) it would be just and equitable to grant the application, and

    • (iii) the application was made as soon as circumstances permitted.

Marginal note:Notice of President

• 39.17 (1) If a request for a decision is a made under section 39.14, the President shall without delay serve on the person, entity or lawful owner who requested it written notice of the circumstances of the seizure in respect of which the decision is requested.

• Marginal note:Evidence

  (2) The person, entity or lawful owner may, within 30 days after the notice is served, furnish any evidence in the matter that they desire to furnish.

Marginal note:Decision of Minister

• 39.18 (1) Within 90 days after the expiry of the period referred to in subsection 39.17(2), the Minister shall decide whether the goods are proceeds of crime as defined in subsection 462.3(1) of the Criminal Code or are related to money laundering, to the financing of terrorist activities or to sanctions evasion.

• Marginal note:Deferral of decision

  (2) If charges are laid with respect to a money laundering offence, a terrorist activity financing offence or a sanctions evasion offence in respect of the goods seized, the Minister may defer making a decision but shall make it in any case no later than 30 days after the conclusion of all court proceedings in respect of those charges.

• Marginal note:Notice of decision

  (3) The Minister shall, without delay after making a decision, serve on the person, entity or lawful owner who requested it a written notice of the decision together with the reasons for it.

Marginal note:Return of goods

39.19 If the Minister decides that the goods are not proceeds of crime as defined in subsection 462.3(1) of the Criminal Code and are not related to money laundering, to the financing of terrorist activities or to sanctions evasion, the Minister of Public Works and Government Services shall, on being informed of the Minister’s decision, return the goods or an amount of money equal to their value at the time of the seizure, as the case may be.

Marginal note:Confirmation of forfeiture

39.2 If the Minister decides that the goods are proceeds of crime as defined in subsection 462.3(1) of the Criminal Code or are related to money laundering, to the financing of terrorist activities or to sanctions evasion, the Minister may, subject to the terms and conditions that the Minister may determine, subject to any order made under section 39.24 or 39.25, confirm that the goods are forfeited to His Majesty in right of Canada.

Marginal note:Appeal to Federal Court

• 39.21 (1) A person, entity or lawful owner who makes a request under section 39.14 for a decision of the Minister may, within 90 days after being notified of the decision, appeal the decision by way of an action in the Federal Court in which they are the plaintiff and the Minister is the defendant.

• Marginal note:Ordinary action

  (2) The Federal Courts Act and the rules made under that Act that apply to ordinary actions apply to actions instituted under subsection (1) except as varied by special rules made in respect of such actions.

• Marginal note:Delivery after final order

  (3) The Minister of Public Works and Government Services shall give effect to the decision of the Court on being informed of it.

• Marginal note:Limit on amount paid

  (4) If the goods were sold or otherwise disposed of under the Seized Property Management Act, the total amount that can be paid under subsection (3) shall not exceed the proceeds of the sale or disposition, if any, less any costs incurred by His Majesty in right of Canada in respect of the goods.