An Act to amend the Criminal Code (identity theft and related misconduct)

This bill was last introduced in the 40th Parliament, 2nd Session, which ended in December 2009.

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

This enactment amends the Criminal Code to create offences of identity theft, trafficking in identity information and unlawful possession or trafficking in certain government-issued identity documents, to clarify and expand certain offences related to identity theft and identity fraud, to exempt certain persons from liability for certain forgery offences, and to allow for an order that the offender make restitution to a victim of identity theft or identity fraud for the expenses associated with rehabilitating their identity.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Criminal CodeGovernment Orders

June 16th, 2009 / 3:45 p.m.
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Liberal

Brian Murphy Liberal Moncton—Riverview—Dieppe, NB

Mr. Speaker, this is when I should say I am a lawyer. I am not a real estate lawyer and never was. However, I know the mortgage corporations and land title companies are very vigilant with respect to identity issues. I do know as well that law societies across the country are very vigilant about issues regarding identity.

I have not experienced this, but I have read about it. When it comes to land titles systems, most jurisdictions require that each document of identification for an individual be on the registry, which is a bit anomalous and bit hard to explain. I understand that some people, particularly in provinces like Quebec, have a religious birth certificate and a civil identification document, which may be very different in name. In most land titles systems both documents must be registered to ensure there is no confusion, there be absolute certainty who an individual is and there not be fraud.

Criminal CodeGovernment Orders

June 16th, 2009 / 3:45 p.m.
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Liberal

Larry Bagnell Liberal Yukon, YT

Mr. Speaker, as an experienced member of the justice committee, I would like to ask the member to comment on this.

The parliamentary secretary gave a good outline of the bill and we are all in favour of this. We want to get it through as quickly as possible. However, he made a frightening comment at the end, that there was more of the same coming from the government.

As the House knows, the government had a number of failed justice bills. It had a number that had to be amended because of such a poor agenda. It has made Canada more dangerous in some way by insisting on mandatory minimums in areas where it has shown that it is not successful. It has taken away judicial discretion where that could have led to less recidivism and better treatment.

The government seems to lack the enthusiasm for the things that would make Canada safer, such as improved resources for treatment in the jails, moneys to deal with the root causes of crime that would help offenders not reoffend. Over 50% of crimes are for addiction or to pay for addictions. There seems to be a lack of enthusiasm for items that would actually reduce crime.

Criminal CodeGovernment Orders

June 16th, 2009 / 3:45 p.m.
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Liberal

Brian Murphy Liberal Moncton—Riverview—Dieppe, NB

Mr. Speaker, I would have to agree with the member for Yukon. As much as we might be in favour of the bill, let us analyze it. There are good parts of the bill. It defines what the offence is so the police can go after the wrongdoers. It would give police and officials wider powers with respect to surveillance interception. That is something attorneys general across the country have been asking for in general. There is also a review of how the legislation is working. It is not necessarily a large jail sentence that makes legislation effective and society safer.

The member for Yukon was a very diligent member of the justice committee, fighting for the rights of aboriginals and the rights of northern Canadians. He knows that 90% of the bills sent forward from the government, after a five o'clock press conference, were about tougher sentences.

We are sitting here three and a half years later and we are just getting to the auto theft bill, which would give police the proper tools to combat that. We really have not done as much as we should with respect to impaired driving, or at least we got to it very late. We are here today, three and a half years later, dealing with commercial fraud, identity theft, identity fraud, which affect people from St. John's to Vancouver Island, to way up north, of all ages and all walks of life. It is something that should have been done earlier.

My advice to the government, through the member's comment, is to get off the five o'clock newscasts and get into the House and even into the Senate, which it often slams, and get some of this legislation done, which affects every day Canadians in a meaningful way.

Criminal CodeGovernment Orders

June 16th, 2009 / 3:50 p.m.
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Liberal

Keith Martin Liberal Esquimalt—Juan de Fuca, BC

Mr. Speaker, in my colleague's previous capacity as a lawyer, he managed to delve into the lives of individuals, both victims and those who were convicted. I want to ask his opinion on two enormous issues that have not been dealt with in the House but should be.

First is the incidence of fetal alcohol syndrome and fetal alcohol effects. It is estimated that 50% of individuals who are in federal institutions have FAS or FAE. It is leading cause of preventable brain damage by birth in children.

Second, if one wanted to do one thing that could reduce youth crime, for example by 60%, and have the most profound impact on keeping our country more secure, it is an early learning head start program for children. It is worked in places like Ypsilanti, Michigan, which has a 35 year retrospective experience with this program.

In his previous capacity as a lawyer, does my colleague not think we should work with the provinces to develop an initiative to reduce FAS and FAE? Also does he not think the federal government has a role to work with provinces to implement a national early learning head start program?

Criminal CodeGovernment Orders

June 16th, 2009 / 3:50 p.m.
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Liberal

Brian Murphy Liberal Moncton—Riverview—Dieppe, NB

Mr. Speaker, you may wonder what this has to do with identity theft. The overall crime fighting agenda of the government is certainly in issue. I want to pay homage both to my friend from Esquimalt—Juan de Fuca and my predecessor, Claudette Bradshaw, who, in founding Headstart in greater Moncton, was very aware of the effects of fetal alcohol syndrome.

The justice committee heard from police forces across the country and during its visits to western police authorities. They said that the prevention of crime was a huge issue. To find the people who are afflicted with this, treat them, intervene and integrate them into society as early as possible is clearly the best way to get away from crimes such as identity theft, car theft and all the other things we have talked about happening at a later stage.

Clearly the member is on the right track. A responsible and passionate government would be proactively thinking about early intervention, child care and early childhood development. So far I have heard very little from the Conservative government in this respect. It thinks that every middle-class parent who chooses to keep his or her child at home is a good thing. I was one of those children growing up. It is not a bad thing but it is not the whole picture.

A whole segment of society has been left out, which, in some cases, gets involved with crime. It would be so much better for the government, the ministers in the front row, to be aware of how to combat crime. The answer is getting to it early.

Criminal CodeGovernment Orders

June 16th, 2009 / 3:50 p.m.
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NDP

Jim Maloway NDP Elmwood—Transcona, MB

Mr. Speaker, I noticed one very important point that I thought should be brought to our attention. The RCMP normally takes the view that this is a civil matter. I have lots of examples of credit card theft. The person goes to the RCMP, is told to take a number, that 20 people have been in before the individual and it will get around to it when it gets around to it because it is a civil matter.

To the extent that this bill would give the RCMP more powers to get involved in this kind of activity is a very good thing and we should proceed with it as quickly as possible. When people who do this kind of stuff realize there are really no consequences, they will repeat what worked for them the first time.

Could the member further his comments on that?

Criminal CodeGovernment Orders

June 16th, 2009 / 3:55 p.m.
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Liberal

Brian Murphy Liberal Moncton—Riverview—Dieppe, NB

Mr. Speaker, I agree that moving this from the realm of a civil dispute to an activity covered by the Criminal Code puts the onus on the police to investigate it and prefer charges.

It delves into another issue that is prevalent, though. The government has promised more resources and officers. Its answer seems to be that it gave the money to the provinces and it is their problem if policemen are not on the streets. However, there is an underlying issue with respect to police forces across the country, which is recruitment and retention.

We are not the government on this side yet and we have to tell the government there is a problem. The Minister of Justice had better start talking to the Minister of Public Safety to ensure all the laws are promulgated and can be adequately serviced by police forces across the country. I hear that they are not adequately resourced and there are issues with respect to recruitment and retention, which the government is not addressing, and that is a shame.

Criminal CodeGovernment Orders

June 16th, 2009 / 3:55 p.m.
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Bloc

Réal Ménard Bloc Hochelaga, QC

Mr. Speaker, I first want to thank the office of my party’s whip for allowing me to spend the next 20 minutes speaking to an exciting bill about identity theft.

This bill is a singular phenomenon in our legislative process. It came from the Senate first. I do not understand why the government did not lay it before this House and the dynamic Standing Committee on Justice and Human Rights. True, we do have a number of bills to analyze, but it seems to me that it would have been a sign of great deference if we, in our capacity as agents, as representatives and spokespeople for the public, could have had this bill laid before us first.

Identity theft is on the rise in Canada as it is in other countries. This phenomenon can produce some extremely awkward situations for our fellow citizens. Only this morning, I met someone whose credit card had been cloned. Someone had thus had $5,000 stolen from their credit card. It is easy to imagine not only how insecure this can make a person feel, but also what problems they may have in resolving the situation with the financial institutions. Even though most of them agree to reimburse a person who has been the victim of what is, to say the least, a distressing act, it is still an extremely difficult thing to experience and resolve.

The purpose of Bill S-4, which went first to the Senate before being introduced in the House, is to combat identity theft. When we talk about identity theft, we are talking about the unauthorized collecting and use of personal information, ordinarily for criminal purposes. This is nominative information, such as name, date of birth, address, credit card number, social insurance number, or any other personal identification number that can be used to open a bank account, obtain a credit card, have mail forwarded, subscribe to a cell phone service, lease a vehicle or equipment or an office, and even get a job.

With its usual wisdom and judgment, the Bloc Québécois will support this bill, which seems to it to be reasonable and to properly represent Quebec’s interests. We are opposed to bills that do not reflect the values and aspirations of Quebec. We fiercely oppose any bill that attempts to intrude into areas under provincial jurisdiction.

Bill S-4 will mainly create three new offences. First, obtaining and possessing another person’s identity information with the intent of using it in a misleading, deceitful or fraudulent manner in the commission of a crime is an offence liable to imprisonment for a term of not more than five years. Trafficking in identity information is the second offence. Here we are talking about an offence that targets people who sell information to a third party, knowing or being reckless as to whether it might be used for criminal purposes. The third offence, in addition to obtaining and possessing identity information or trafficking in identity information, relates to possession or illegally trafficking in identity documents issued by the government or that contain information about another person.

Those are the three main offences created by Bill S-4. I would note again that identity theft and the use of personal information for purposes other than those consented to by the person for whom it is intended are on the rise in Canada.

This certainly has to do with the development of our means of communication and new technologies.

Other changes have been made to the bill. If I had my druthers, I would be talking about the conflict in the Middle East, but I am afraid it would not be relevant to what we are debating here and so I will not.

The Criminal Code provides for other offences under Bill S-4. A new offence of redirecting mail or causing it to be redirected is created.

There is also the new offence of the possession of a Canada Post mail key. Such a key would obviously be counterfeit.

Additional forgery offences are proposed, such as trafficking in forged documents and the possession of forged documents with intent to use them.

Another new offence is the re-naming of personation, which is called identity fraud.

The final offence that is added is a further refinement of the meaning of fraudulently personating another person.

I think it is probably my responsibility to mention that the bill provides for two exceptions which shield people from forgery charges if they produce counterfeit documents for secret government operations. This protects public servants who shadow people, engage in electronic eavesdropping or infiltrate groups. These public servants would be protected under this bill when they are tasked by responsible law enforcement agencies with creating and using secret identities in connection with their jobs. If they are hauled before the courts for unauthorized duplication, counterfeiting, forgery, or the appropriation someone’s personality, they have a defence that will make them immune.

The Bloc Québécois does not doubt that this bill is necessary. There is even a burning need for it. We all know people among our friends or in our families who have experienced unauthorized use of their credit card or debit card or some other people who have had their identity appropriated for nefarious ends.

Identity theft is becoming very widespread. The Canadian Council of Better Business Bureaus estimated that consumers, banks, credit card companies, stores and other businesses lost $2.5 billion as a result of identity theft or the cloning of credit cards or other cash substitutes of this kind.

In 2006, Phone Busters received some 7,800 calls from victims of identity theft reporting total losses of over $16 million for themselves or for businesses. The scope of the problem is apparent.

According to a survey Ipsos-Reid did in 2006, one Canadian in four—so about 25% of the population or 5.7 million Canadians—said they had been a victim of identity theft.

We might wonder why we need the Criminal Code to fight identity theft effectively.

When it is a matter of organized crime, importing and exporting stolen vehicles, drugs, when lengthy investigations are necessary, when we want to address the smuggling of certain products, then we can understand that criminal law is probably the best route under the circumstances. But when it comes to identity theft, credit card cloning and phenomena that often have to do with ownership or the real ownership of identity papers, might civil law not be the better route?

The former Privacy Commissioner told a House of Commons committee that the real solution to identity theft would require civil sanctions. She said:

Civil sanctions... are very easy to prove and easy for citizens [to understand].

She was of course referring to civil law as opposed to criminal law. As we know, criminal law is far more complex because, for each offence, there must be proof that the individual not only intended to plan or to take a criminally reprehensible action, which is termed mens rea, but also actually performed that act, which is termed actus reus. In civil law, the proof is far easier to establish, because it is not proof beyond all reasonable doubt, but proof by balance of probability.

The Privacy Commissioner said:

Civil sanctions... are very easy to prove and easy for citizens [to understand]. Small claims courts [there is one in Quebec and I imagine also in English Canada]...may provide a more easily accessible deterrent to the growing industry of ID theft. This means, of course, that I think the federal government has to work closely with the provinces, because a lot of what happens in terms of ID theft falls within provincial jurisdiction.

This poses a problem, because on matters of civil law, the federal government needs to work closely with the provinces, especially Quebec. Quebec is not only the main place where French is spoken in Canada, but also the only province with a civil law system.

That means that the government will have to be flexible, courteous, kind, open and skilful. I must say that these are not qualities the government has been known for in intergovernmental relations.

We need only consider the cavalier way in which the federal government treated Quebec's demand for financial compensation in connection with the harmonization of the sales tax and the GST. The National Assembly of Quebec had even passed a unanimous motion. We need only look at how the government has handled cultural issues and the reconveyance of land adjacent to the National Assembly of Quebec and on the Plains of Abraham.

This is a government that has chosen the federalism of confrontation. It has chosen to be completely insensitive to complaints and, in some cases, even demands that were unanimously supported by the National Assembly of Quebec.

We could go on and on about the Conservative government's insensitivity to the provinces' complaints. If my colleague, the likeable and charming member for Rosemont—La Petite-Patrie, were here, he would certainly give the example of the Kyoto protocol, which has to do with greenhouse gases, and the battle that Quebec and the National Assembly of Quebec waged together. We repeatedly called on the government to honour the promise made by former Prime Minister Chrétien and the treaty he had signed, so as to respect the efforts of a number of industries that had fought very effectively against greenhouse gases.

But the government did not want to respect the strategy of the Government of Quebec.

We need only think of Senate reform. We know that Quebec's National Assembly is worried about Senate reform. We can certainly have different complaints about this institution given that it is not a democratic chamber. We might also say that the Senate is an outdated institution that is ill-suited to a modern parliamentary system. However, we cannot act unilaterally.

The former intergovernmental affairs minister in the Quebec National Assembly, Benoît Pelletier, was my professor of constitutional law. I remember his lectures with a great deal of nostalgia. He was a very good professor and I was a very good student. I remember that the course was on Mondays at 8:30 a.m., too early in some respects. Professor Pelletier would arrive and was able to present his material in a very interesting and lively way. I owe my considerable knowledge of the Canadian Charter of Rights and Freedoms to him.

Naturally we had differences of opinion and I exercised my prerogative as a student to express mine in the middle of a class on the unilateral repatriation of the 1982 Constitution which, as you know, was opposed by the Quebec National Assembly. Even the former leader of the Liberal party, Claude Ryan, who could hardly be suspected of sympathizing with the sovereignists, had joined with the Quebec National Assembly to denounce the extremely cavalier way in which the matter had been handled.

All that to say that the Senate and the Quebec National Assembly do not want us to review the selection process for judges unless the provinces can formally participate. We know that the role of the Senate, the upper chamber, is to provide the necessary regional balance within the federation.

A little while ago, I was giving a tour of the House to some visitors from Australia, and I believe I explained to them why the House of Commons has a green carpet and the Senate has a red one. First of all, the Senate is the chamber of the monarchy. The Queen never sets foot in the House of Commons. She instead goes to the Senate, as does her representative, the Governor General, who goes to the Senate to ratify legislation.

This is done in the Senate, and not in the House of Commons. The House of Commons is the house of the people, and traditionally, the green symbolizes the meadows, which is where the people first gathered to oppose the monarchy they felt was too authoritarian and self-congratulatory.

These are examples of how the government did not listen to what we would have liked it to hear from Quebec regarding Senate reforms, the GST or cultural issues. I do not want to skip too quickly over the issue of culture.

The current government chose to recognize Quebec as a nation. We know that Quebec is a nation: we have our own history; we have our own vernacular, the French language; we have a different legal system; we have common aspirations; and we have control over institutions and territory. Those are the main characteristics of a nation. The government recognized Quebec as a nation, but in the absence of concrete action to back this up, we have trouble seeing how we can take it seriously.

I remind the House that the member for Joliette, the Bloc Québécois House leader, is an extremely eloquent man, who shows restraint at all times and is not known for excess. Except, perhaps, when it comes to food. But in general, he is an exceptionally controlled man. Now, when the member for Joliette introduced a bill calling for federally regulated companies to comply with Bill 101, we would have liked to have the support of the government and the official opposition. That would have been a very nice recognition of the fact that Quebec is a nation.

Since my time has expired, I will be pleased to respond to any questions my colleagues might have.

Criminal CodeGovernment Orders

June 16th, 2009 / 4:15 p.m.
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NDP

Jim Maloway NDP Elmwood—Transcona, MB

Mr. Speaker, the hon. member's speech was good as usual, although this time I have some differences to take up with him on some of his points.

When people are victims of identity theft or credit card abuses, they are already under a lot of stress when they find out about this issue. Then when they go to the police, they are told that it is a civil matter, that they need to take a number and they will be dealt with at some point.

When the member suggests perhaps there is some body of evidence out there that perhaps civil courts could handle issues like this, in real terms people will not be encouraged or happy to be told that. They will have to take someone to small claims court, but if it is an identity theft situation, they may not even know the person who stole the identity in the first place.

Another issue is the credit card companies do not want to tell people what happened with their cases. They put the cone of silence around the situation and do not report back to them, so they may never know who used their cards. We should require credit card companies to report back to people and let them know who did what and give a resolution of the case.

It is very important we have this federal legislation so the police forces cannot step aside—

Criminal CodeGovernment Orders

June 16th, 2009 / 4:15 p.m.
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Conservative

The Deputy Speaker Conservative Andrew Scheer

The hon. member for Hochelaga.

Criminal CodeGovernment Orders

June 16th, 2009 / 4:15 p.m.
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Bloc

Réal Ménard Bloc Hochelaga, QC

Mr. Speaker, there are two parts to the question raised by my colleague. There is of course the evidence I quoted, given by the former Privacy Commissioner, who found that it would no doubt be more effective to resort to civil law in matters of personal information and transactions, and that this is closer to a civil reality than a commercial reality. In that regard, I agree with the former Privacy Commissioner's testimony.

It is also true that identity theft could lead to criminal prosecution. That is why this bill has been introduced by the Department of Justice. When such offences occur, the crown attorney must lay charges and sentences are handed down, the maximum of which is 10 years. Obviously, we agree that the Criminal Code has a role to play in a number of circumstances.

As for the notion of financial institutions disclosing the identity of the guilty parties, that cannot be resolved through the Criminal Code, but rather through internal regulations and practices established by the financial institutions.

Criminal CodeGovernment Orders

June 16th, 2009 / 4:20 p.m.
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Liberal

Larry Bagnell Liberal Yukon, YT

Mr. Speaker, I thank the member for a wide-ranging discussion. I agree that the option to proceed civilly would be good. There should be criminal charges of course, but to proceed civilly would also give the defendant the chance to recoup some of his or her money if he or she did not get it civilly.

The Canadian Chamber of Commerce suggested that another offence be added to the bill, and that was impersonating another person with the intent to solely obtain information pertaining to that person. Does the member agree with that suggestion?

Criminal CodeGovernment Orders

June 16th, 2009 / 4:20 p.m.
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Bloc

Réal Ménard Bloc Hochelaga, QC

Mr. Speaker, when we talk about the crime of personation as identity theft, part of this bill could definitely satisfy the Canadian Chamber of Commerce. It was my understanding that this amendment was proposed by the Senate. We can examine this in committee to see just how far the scope of this offence extends, but I think it is pretty close to what the hon. member for Yukon has suggested.

Criminal CodeGovernment Orders

June 16th, 2009 / 4:20 p.m.
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Bloc

Christian Ouellet Bloc Brome—Missisquoi, QC

Mr. Speaker, I would like to congratulate my colleague from Hochelaga, who gave us an eloquent exposé on the bill and on the current relations between the Quebec government and federal government.

I have three short questions I would like to put to him. First, does he think that we should follow the example of the United States, where, currently, the rate of fraud through identity theft is the highest?

Second, could legislation of this type apply to the identity theft people face with health insurance cards, in Quebec in particular? This type of fraud is widespread and costs the government dearly. Could the government make use of this legislation to eliminate this scourge?

My last question to him concerns civil law compared with criminal law. I have the impression that, in civil law, the sentences are always less harsh and the punishment less severe and that civil law would not discourage people from committing identity theft to the same extent as criminal law.

Criminal CodeGovernment Orders

June 16th, 2009 / 4:20 p.m.
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Bloc

Réal Ménard Bloc Hochelaga, QC

Mr. Speaker, as regards the last part of the question, it is true that in civil law there is greater likelihood of a fine being imposed than imprisonment and that punishment is generally less severe when the trial takes place before the Quebec court, for example, or in a civil proceeding rather than a criminal one.

I am less familiar with the American example. There was a small explanatory note on the American model, but because I do not have in-depth knowledge of it I am going to reserve judgment, with my colleague's permission, to avoid stepping off the path of prudence I usually follow when I do not know something.

As to health insurance, in my opinion, it would be covered by this sort of bill since it concerns nominative information. The provisions of the bill could be used to instigate proceedings.