New Measures to Combat Terrorist Financing

October 2, 2001

The government announced today the implementation of tough new regulations aimed at suppressing the financing of terrorism and at freezing the assets of listed persons.

The regulations respond to the threat of international terrorism by strengthening the Government’s authority to freeze the assets of terrorist groups or individuals involved in terrorist activities and the movement of these assets.

Until today, our measures covered only property owned or controlled by or on behalf of the Taliban, Osama bin Laden or his associates. The new regulations will go further by giving the Government the authority to freeze assets of other terrorists and terrorist organizations, consistent with UN resolution 1373. They include:

A New Listing Provision: The regulation establishes a list of any persons and organizations that have committed, attempted to commit or participated in a terrorist act or facilitated the commission of a terrorist act;

Freezing of Assets: No person in Canada or Canadian outside Canada will be permitted to knowingly deal, directly or indirectly, with any asset owned or controlled by a listed person;

Prohibition of Terrorist Fund Raising: Prohibits the provision and collection of funds to listed persons;

A New Reporting Requirement: Any person who deals in assets they believe are owned or controlled by a listed person must report this information to the Royal Canadian Mounted Police and Canadian Security Intelligence Service;

A New Compliance Regime for Financial Institutions: Financial institutions must determine if they have any assets that belong to a listed person. Federally regulated financial institutions must confirm their compliance with this requirement and disclose the results to the Office of the Superintendent of Financial Institutions, while provincially regulated institutions must report their information to their provincial regulator or supervisor.

These regulations take effect immediately. They implement a key measure in the UN Resolution 1373, which calls on all member states to freeze the assets of those who commit, attempt to commit or facilitate terrorist acts, and to prohibit the provision and collection of funds for terrorist activities.

These regulations are a first step. They will be shortly followed by new legislative measures to implement other elements of the UN Convention for Suppression of Terrorist Financing and United Nations Resolution 1373.