I am not aware of that, no.
Evidence of meeting #27 for Finance in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was rcmp.
A video is available from Parliament.
Evidence of meeting #27 for Finance in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was rcmp.
A video is available from Parliament.
2:40 p.m.
General Counsel and Vice-President, Canadian Bankers Association
I am not aware of that, no.
2:40 p.m.
Conservative
Adam Chambers Conservative Simcoe North, ON
Would you be able to maybe check and confirm that answer with your members and provide that at a future date?
2:40 p.m.
General Counsel and Vice-President, Canadian Bankers Association
Sure. If there was an individual circumstance of that nature, I would be happy to.
2:40 p.m.
Conservative
Adam Chambers Conservative Simcoe North, ON
Thank you.
Just for clarity, that's important. We have been told—Canadians have been told, this committee has been told, the general public has been told—that the decision to freeze a bank account rested solely with the financial institutions themselves. Do you feel that's an appropriate characterization of the procedure?
2:40 p.m.
General Counsel and Vice-President, Canadian Bankers Association
I would say we acted primarily on information provided by the RCMP that was then validated through looking at the bank records.
2:40 p.m.
Conservative
Adam Chambers Conservative Simcoe North, ON
Okay. Just to clarify that point in particular, if the RCMP provided information about an individual who is a banked individual at one of your members, the extent to which you followed through on that was basically if that individual did have accounts, those accounts were affected and that individual was affected, right? I'm just trying to understand how much investigation or discussion with the RCMP went on, or was it, “Here's the name. We have the name and we will implement the freezing”?
2:40 p.m.
General Counsel and Vice-President, Canadian Bankers Association
The name was provided along with details of the circumstance and then the banks would look at their particular records and they could validate whether there was activity that was suggestive of the circumstances that were described.
2:40 p.m.
Conservative
Adam Chambers Conservative Simcoe North, ON
Okay. Thank you.
Once an account is frozen and eventually unfrozen, are there any permanent markers or indications on a client's file to indicate that they had previously had their accounts frozen?
2:40 p.m.
General Counsel and Vice-President, Canadian Bankers Association
There would be something in the file indicating that a freeze had taken place, but if you're asking how that impacts the relationship, that would depend on the particular risk scenario of any bank. There wouldn't be a blanket approach.
2:40 p.m.
Conservative
Adam Chambers Conservative Simcoe North, ON
Okay, and do you anticipate banks reviewing the relationships with these individuals on an ongoing basis in terms of the risk relationship?
2:45 p.m.
General Counsel and Vice-President, Canadian Bankers Association
I would anticipate that they have probably already done that, and if anyone has any concerns about the impact on their relationship with their financial institution, they should contact their financial institution.
2:45 p.m.
Conservative
Adam Chambers Conservative Simcoe North, ON
Okay. Thank you.
Have you been given any guidance or instruction by the RCMP or any other government official—I'm thinking about the Privacy Commissioner—about how long you are to keep records that either are generated by your institution or passed to you from the RCMP about individuals?
2:45 p.m.
General Counsel and Vice-President, Canadian Bankers Association
We have not received that type of guidance. There are obligations under privacy legislation to hold information only for the purpose for which it was provided and only for as long as necessary.
2:45 p.m.
Conservative
Adam Chambers Conservative Simcoe North, ON
Okay. Thank you. In exchange for your carrying out your obligations, what assurances or protections were financial institutions given by the government?
2:45 p.m.
General Counsel and Vice-President, Canadian Bankers Association
We did receive verbal guidance from the government on the scope of the legislation and how it would apply so that we could ensure that it was implemented within the intended narrow scope, and there is also immunity provided under the order itself.
2:45 p.m.
Conservative
Adam Chambers Conservative Simcoe North, ON
So as I understand it, you could not be sued or held responsible for any mistake in applying the rule. Thank you.
I have a final question. Prior to February 14, or say the 15th, did your members have any conversations or discussions with the government or the RCMP prior to the Emergencies Act coming into force?
2:45 p.m.
General Counsel and Vice-President, Canadian Bankers Association
Several of our members did have discussions with the Department of Finance. We were given a heads-up that this was coming but we did not have the specific details. We received the regulations at the same time the general public did.
2:45 p.m.
Conservative
Adam Chambers Conservative Simcoe North, ON
Thank you very much.
Mr. Chair, I believe that's my time.
Thank you for your willingness to answer the questions.
2:45 p.m.
General Counsel and Vice-President, Canadian Bankers Association
Thank you.
2:45 p.m.
Liberal
The Chair Liberal Peter Fonseca
Thank you, MP Chambers.
We are moving to the Liberals.
MP MacDonald, you have the floor for six minutes.
2:45 p.m.
Liberal
Heath MacDonald Liberal Malpeque, PE
Thank you, Chair.
Thank you to the guests here today.
I just want to say that all through COVID-19 and leading up to what we're talking about today, collaboration with the big banks has been unprecedented as far as I can remember, so I want to thank you for that, because I think rolling out those programs during COVID-19 was extremely important and your help was appreciated.
It's been said that the existing laws didn't allow the federal government to follow the money regarding illegal blockades and occupations, particularly involving crowdfunding platforms and payment service providers. Do you agree with that assessment, that the existing laws were not sufficient in targeting the financing that was sustaining the illegal activity?
2:45 p.m.
General Counsel and Vice-President, Canadian Bankers Association
Insofar as they weren't covered by FINTRAC, I would have to agree with that.
2:45 p.m.
Liberal
Heath MacDonald Liberal Malpeque, PE
Do you believe there are gaps we need to fill in our current laws and regulations regarding funds being used for illegal activity? Can you provide us in detail what we have learned that is relevant going forward? I'm assuming with crowdfunding and these types of resources that this will not be the last we see of this type of activity.
2:45 p.m.
General Counsel and Vice-President, Canadian Bankers Association
I can't speak to the Emergencies Act itself, but when you talk about reporting, yes, it does make sense. If you look at it, when we deal with our obligations under the proceeds of crime legislation, they continue to expand the application of that legislation to ensure that they are covering all of the appropriate players.
2:45 p.m.
Liberal
Heath MacDonald Liberal Malpeque, PE
On the previous question related to your freezing other accounts or the investigation of any accounts, how many of those accounts are still frozen at the current time?