Thank you. Bonjour, monsieur le président.
My name is Nicholas Trudel. I'm the Director General of the Specialized Services Sector within Public Services and Procurement Canada. I've been responsible for the seized property management directorate, which I will refer to as SPMD, since 2014. My intention today is to give you a brief overview of the organization and the extent of our involvement, with regard to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
SPMD was created in 1993 to support law enforcement agencies across Canada and abroad with the management of seized and restrained assets.
SPMD provides several critical services to stakeholders. The directorate provides consultative advice at the pre-seizure, post-seizure, and post-forfeiture stages. At the pre-seizure stage, this involves providing financial, logistical, and risk analysis to stakeholders, which includes consideration of the overall financial viability of seizing an asset. At the post-seizure stage, sound asset stewardship practices are applied to protect, maintain, and report on seized assets. During the post-forfeiture stage, when directed by the courts, the disposal of the assets occurs by either public sale, donation, recycling, destruction, or return of the assets to the accused.
SPMD also administers the sharing of net proceeds with stakeholders. Proceeds are generated by disposing of seized assets or collecting fines ordered by the courts, in lieu of forfeiture. The sharing occurs with jurisdictions that have had a law enforcement agency participating in the investigations of offences. From 1993-2017, SPMD shared a total of $337 million in net proceeds, which includes $243 million with the Receiver General of Canada, $89 million transferred to provinces and territories, and $5 million shared with foreign governments.
The legislative authority governing SPMD includes the Seized Property Management Act and its regulations, the Controlled Drugs and Substances Act, and the Criminal Code of Canada, as well as the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
SPMD's authority under the PCMLTFA relates primarily to sections 18 and 22 of the act. Section 18(1) authorizes seizures of currency or monetary instruments by law enforcement agents with reasonable grounds. Section 18(2) requires the return of seized currency or monetary instruments where a penalty has been paid, unless the assets are suspected to be proceeds of crime under the Criminal Code or funds for use in financing terrorism. Section 22(1) requires that forfeited currency or monetary instruments be sent to the Minister of Public Services and Procurement, and section 22(2) requires that seized currency, monetary instruments, and penalties be sent to the Minister of Public Services and Procurement.
I'm happy to answer any questions you may have about SPMD's role.