Thank you very much, Mr. Chairman.
I'm pleased to be here on Bill C-27, the identity theft bill. It has received widespread support. I've been quite encouraged by the response we have had to the bill, and why not, Mr. Chairman? We are trying to catch up with changes in technology. There have been very many rapid changes, as you know. Our job is to try to stay on top of them.
I was in Montreal a couple of months ago and indicated the government's intention to introduce a bill on identity theft. One reporter said to me, “Is this your attempt to stay ahead of the bad guys?” I said, “Look, I want to make sure we catch up with the bad guys.”
What happens is with changes in technology...you've got wording that's been in the Criminal Code since 1892, in some cases--and it wasn't new in 1892, as I like to point out to people; it was adopted then.
Our challenge as legislators is to try to make sure that the legislation stays up to date. In fairness, we've always had a number of identity-based offences. Those offences that are in the Criminal Code include impersonation, forgery of identity documents, and secondary offences such as fraud. We also have some offences to protect specific forms of identification, such as the Canadian passport.
This bill makes changes to modernize these long-standing offences, but its main focus is the creation of new offences that focus specifically on abuses of identification and identity information. These new offences do not depend on whether other crimes are committed with the information, and they can be applied before the offenders have a chance to misuse it.
We believe this is important for several reasons. First, it recognizes that in the modern era, identity crimes generate a couple of groups of victims. The harm to victims of secondary offences has always been addressed by such offences as fraud, but there is also harm to those whose identity has been misused and misappropriated. Reputations, creditworthiness, and even criminal liability may be affected. False information can spread quickly, and we should realize it's not just across Canada but across international borders as well. These victims suffer harm whether or not other crimes are committed with the identity information. That damage, as I'm sure you're aware, can be very difficult to correct.
The bill recognizes these victims in two ways. The new offences criminalize the actual taking and trafficking in victims' identities, which means the police can investigate and intervene at an earlier stage, without waiting for offenders to actually use those identities for other crimes.
We are also proposing an amendment to allow the cost of repairing or restoring identity to be included in restitution orders.
Second, the proposed new measures will close gaps created by new technologies and new crimes.
Physical documents are property and taking them is theft, but simply copying electronic information is not addressed by traditional property offences. In serious cases, digital identities have been taken en masse and then criminally trafficked as a new form of illicit and valuable commodity. Credit card information is skimmed directly from cards or taken from databases and sold internationally, using e-mail and the Internet.
Criminal groups have also learned to specialize and to cooperate with one another. One may steal or fabricate information; another may produce physical or electronic documents for sale; the end users of the identities then commit other crimes with them. In transnational schemes, offenders can carry out key functions on websites offering the open sale of false identities in countries where legislation or law enforcement is weak.
The proposed amendments respond to both these problems. For the first time in Canada, we are proposing a definition and offences based on the underlying concept of identity information. These will apply to taking or copying the actual information itself and not just documents containing the information.
Adding specific offences also means that every stage of the process is addressed, including obtaining information, making illicit documents, trafficking in both the documents and information, and illicit use of the documents or information. This is the aspect of this bill that I have had law enforcement agencies across this country point out to me as a step in the right direction, because it's a complete package that we have to talk about. We have to get everybody all the way along. This ensures that the criminal law applies, even if only part of the scheme takes place here in Canada. I think that's very important.
Third, from a more practical standpoint, the new offences enable law enforcement agencies to become engaged in earlier aspects of the criminal enterprise, and I think this is what they like so much about it. These new offences will provide additional deterrence focused specifically on identity crime. They will provide an additional tool against criminal activity, including major frauds, crimes related to immigration, smuggling of immigrants, trafficking in persons, money laundering, organized crime, and terrorism.
And fourth, identity-related crime, as you know, is an expanding problem at the international level. Credit cards may be copied or skimmed here in Canada and that information can be transferred abroad in minutes. Long before the cardholder or card issuer is even aware that the information has been compromised, it can be used to commit crimes and fraud in other parts of the world. The government has been actively engaged in raising this issue in international fora for some time. A few other countries have enacted identity crime offences or are considering them.
By bringing forward these amendments, Canada will be sending a strong signal to other countries that we take the problem seriously and that we are committed to doing something about it. The proposed maximum sentences for the major offences also ensure that the UN Convention against Transnational Organized Crime, which Canada ratified in 2002, will allow us to seek mutual legal assistance, extradition, and other forms of international cooperation in cases where an offence is transnational in nature and involves a criminal organization.
I would propose to leave some of the more technical amendments for your questions, of course, but let me now turn to what I believe are the key amendments in this package.
The first of these would form a new section 56.1 and would criminalize the procurement, possession, transfer and sale or offering for sale of specific physical identity documents. At present, simply possessing or trafficking in another person's identity documents is not a crime, and we believe it should be, subject to the appropriate exceptions. We have thought very carefully about those exceptions, and you'll see them listed in the bill. I think they all make sense.
As an added safeguard, the offence also allows for other lawful excuses of a more general nature. For example, a person caught trying to enter Canada with a collection of different passports might trigger an investigation, but obviously a parent in possession of a child's passport would have a lawful and reasonable excuse.
The second key amendment expands the existing offence of uttering forged documents. This would now include trafficking in forged documents and the possession of forged documents with the intent to traffic or use them. This is subject to the definition of document, which includes both physical and electronic documents.
The third key amendment and a most important change in this package is composed of three elements: the establishment of a new definition of identity information; a new offence of identity theft; and the modernization and expansion of the old offence of personation, resulting in a new offence of identity fraud.
Existing criminal law does not extend to merely taking or copying personal information or trafficking in it as an illicit commodity unless other offences are committed with it. The proposed new identity theft offence deals primarily with obtaining or possessing identity information in circumstances that show intent to commit one of a series of other related offences.
A similar offence will be established to cover trafficking in such information, knowing or believing it will be used for one of those same offences. To address the problem of false identity information being used to deceive others, the proposed offence of identity fraud focuses on the misuse of identity information for an improper purpose, such as evading criminal liability or to gain some advantage for the offender or to disadvantage the victim. This is an expansion of the existing personation offence, adding scenarios related to the offender's misuse of the information in ways other than actual impersonation.
Finally, in proposing these amendments the government realizes that officials from legitimate investigative agencies often must conceal their identities or impersonate others in the course of undercover investigations. To address this, legitimate investigative agencies are excluded from the new offences for otherwise unlawful conduct undertaken in the course of their duties or employment.
The proposed exemptions do not change the status quo or extend new investigative powers. I want to be clear about that. They merely ensure that our capacity to ensure the law and protect Canadians is not adversely affected by the changes we are proposing.
Mr. Chairman, this concludes my summary of the legislation.
I am here with the officials to respond to any questions or comments you may have.
