Declaration of Emergency Committee on May 3rd, 2022

[Julien Brazeau]

Again, the reporting requirements are specific to the proceeds of crime, money laundering and terrorist financing, which is a federal regime. The registration requirement is with FINTRAC for purposes of PCMLTFA, so there is no overlap with any other registration requirements that may exist provincially.

[Gwen Boniface]

Madam Jacques, going back to the international....

Mr. Brazeau, you may want to speak on that. I'd like to have a little more information on which jurisdictions you look at. You mentioned the European Union and Australia. Could you just give us a little more detail around that? I'm particularly interested in New Zealand, given what they were dealing with almost concurrently with our situation.

[Julien Brazeau]

I can't speak specifically, necessarily, to what countries were facing at the time. I can say that Canada is part of what we call the Financial Action Task Force, which is the body that sets standards around anti-money laundering and anti-terrorist financing. That body has identified, in the past, crowdfunding platforms and payment service providers as representing certain levels of risk. As I said, some jurisdictions have already moved to ensure that payment service providers are subject to the types of disclosures and registration that our PSPs are now subject to.

With regard to crowdfunding platforms, we are the first jurisdiction that I know of to put these provisions in place.

[Gwen Boniface]

When you refer to the task force, I'm assuming that is a Five Eyes or something—a larger number of countries involved in that. Have they done any reports on crowdfunding particularly that would be helpful to this committee and that are public?

[Julien Brazeau]

I'll have to take a look and circle back to confirm whether they have a report that we can share.

[Gwen Boniface]

Okay. That would be helpful.

Can you tell me whether or not there are, or are intended to be, any conversations with our American colleagues in terms of issues around crowdfunding and how that may work going into the future, given the experience you had through this declaration of emergency?

[Julien Brazeau]

I'm might ask my colleagues at FINTRAC to speak directly to that, given that they oversee compliance on a going-forward basis.

[Donna Achimov]

We have an international supervisory forum where we share leading practices and experiences. It's still early days, so we will certainly continue to have dialogue to understand how other jurisdictions are making this work.

As my colleague Mr. Brazeau said, we are the first who are looking at crowdfunding. We are the ones who are experiencing some of this, and we will be sharing leading practices from a supervisory perspective. It's early days. The regulations came into force through the Canada Gazette on April 27. We're in the process of registering, providing information and doing outreach, so it's still very early days in the process. However, our conversations are based on sharing leading practices.

[Gwen Boniface]

Thank you.

[The Joint Chair, NDP, Matthew Green]

We will go to Senator Carignan.

[Claude Carignan]

Thank you.

My question is for Ms. Jacques.

I'm looking again at the order to cease dealings, a form of restraint order, and I'm trying to find a good or service that would not be covered.

It looks like people's mortgages are included, as well as life insurance, RRSPs, TFSAs and education savings accounts for children.

The only thing not included is insurance on vehicles that are not at the unlawful assembly site.

However, house insurance and business insurance are included. Is that correct?

[Isabelle Jacques]

It was very broad and it included vehicle insurance.

[Claude Carignan]

Okay.

What was the wording of this section based on?

Ordering a cessation of dealings in all economic aspects that affect a person's life seems to be a rather fanciful approach to deterring them from committing an offence.

Where did this source of law come from? What country might have inspired this? China, Russia?

[Isabelle Jacques]

We didn't base it on anything from other country.

The situation we were in was exceptional. The government decided to invoke the Emergencies Act, which had never been done before.

The measures were therefore targeted, short-term, and invoked for a specific reason.

[Claude Carignan]

So you thought that the criminal sentences people might be subject to were inadequate.

I requested the list of offences committed. There was mischief, charges were laid and the notices of violation were issued.

For mischief, the maximum sentence is 10 years in prison. Counselling others to commit an offence has a maximum sentence of two years in prison as does obstructing a police officer. A driving prohibition order can lead to10 years in prison. Uttering threats is punishable by a maximum of five years in prison. Possession of a weapon for dangerous purpose, 10 years. Dangerous driving of a motor vehicle, maximum 10 years.

You didn't think that was enough of a deterrent? All their economic activity had to be frozen to get people to leave Wellington Street?

[Isabelle Jacques]

The government wanted to take some measures.

It was an emergency. Some measures were introduced to try to deal with the situation. As we saw, that's what happened very quickly. I therefore believe that it had a positive impact.

[Claude Carignan]

Okay.

I have no further questions, Mr. Chair.

[The Joint Chair, NDP, Matthew Green]

Thank you very much.

We will have Mr. Brock for five minutes.

[Larry Brock, Conservative, Brantford—Brant, ON]

Thank you, Mr. Chair.

Ms. Jacques, three days after the Emergencies Act was issued, on February 17, the Coastal GasLink northern B.C. work site came under attack, with heavy machinery smashed beyond repair, bulldozers smashed, security trucks pockmarked with holes made by axes, people in disguise attacking workers and leaving them severely assaulted and injured, and millions and millions of dollars in damage.

To what extent were those responsible for funding that illegal activity, directly or indirectly...did they have their accounts seized, frozen?

[Isabelle Jacques]

Unfortunately, I'm not able to answer that question. I do not have that information.

[Larry Brock, Conservative, Brantford—Brant, ON]

You accept the fact that this particular order was applicable all through Canada, correct?

[Isabelle Jacques]

It was applicable throughout Canada, yes.

[Larry Brock, Conservative, Brantford—Brant, ON]

Right, so can—

[Isabelle Jacques]

But I do not have details—

[Larry Brock, Conservative, Brantford—Brant, ON]

—you undertake to the committee to make inquiries as to what steps the government took to address those illegal activities in B.C. under the auspices of the Emergencies Act?