Seized Property Management Act

An Act respecting the management of certain property seized or restrained in connection with certain offences, the disposition of certain property on the forfeiture thereof and the sharing of the proceeds of disposition therefrom in certain circumstances Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: Short title This Act may be cited as the Seized Property Management Act. Definitions In this Act, Attorney General means the Attorney General of Canada and the lawful deputy of the Attorney General of Canada; (procureur général) designated drug offence[Repealed, 1996, c. 19, s. 85] designated offence has the same meaning as in subsection 462.3(1) of the Criminal Code; (infraction désignée) designated substance offence[Repealed, 2001, c. 32, s. 73] enterprise crime offence[Repealed, 2001, c. 32, s. 73] Her Majesty means Her Majesty in right of Canada; (Sa Majesté) judge means a judge within the meaning of section 552 of the Criminal Code; (juge) justice means a justice within the meaning of section 2 of the Criminal Code; (juge de paix) management order means an order made under subsection 7(1); (ordonnance de prise en charge) Minister means the Minister of Public Works and Government Services; (ministre) offence-related property has the meaning given that expression by subsection 2(1) of the Controlled Drugs and Substances Act or by subsection 2(1) of the Cannabis Act; (biens infractionnels) prescribed means prescribed by the regulations; (Version anglaise seulement) Proceeds Account means the Seized Property Proceeds Account established by subsection 13(1); (compte des biens saisis) proceeds of crime has the same meaning as in subsection 462.3(1) of the Criminal Code; (produits de la criminalité) proceeds of disposition means, in the case of forfeited property other than money, the proceeds of sale on the disposition of the property, and in the case of forfeited property that is money, the amount of the forfeited money; (produit de la disposition) restrained property means any property that is the subject of a restraint order made under section 83.13, 462.33 or 490.8 of the Criminal Code, section 14 of the Controlled Drugs and Substances Act or section 91 of the Cannabis Act; (biens bloqués) seized property means any property seized under the authority of any Act of Parliament or pursuant to any warrant or any rule of law in connection with any designated offence; (biens saisis) terrorism offence has the same meaning as in section 2 of the Criminal Code; (infraction de terrorisme) Working Capital Account means the Seized Property Working Capital Account established by subsection 12(1). (fonds de roulement) Purposes of Act The purposes of this Act are to authorize the Minister to provide consultative and other services to law enforcement agencies in relation to the seizure or restraint of property in connection with designated offences, or property that is or may be proceeds of crime or offence-related property; to authorize the Minister to provide consultative and other services to any person employed in the federal public administration or by a provincial or municipal authority in relation to the seizure, restraint, custody, management, forfeiture or disposal of property by means of or in respect of which an offence or violation is committed, that is used in any manner in connection with the commission of an offence or violation, or that is intended for use for the purpose of committing an offence or violation; to authorize the Minister to manage property seized or restrained under any Act of Parliament or of the legislature of a province by a person employed in the federal public administration or by a provincial or municipal authority, forfeited under any Act of Parliament or of the legislature of a province, or paid under subsection 18(2) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act; to authorize the Minister to dispose of property referred to in paragraph (b) when it is forfeited to Her Majesty and, with the consent of the government of the province, when it is forfeited to Her Majesty in right of a province; where property referred to in paragraph (c) is forfeited to Her Majesty and disposed of, or where a fine is imposed pursuant to subsection 462.37(3) of the Criminal Code, to provide authority for the sharing, in certain circumstances, of the proceeds of disposition therefrom or the fine, as the case may be, with jurisdictions the law enforcement agencies of which participated in the investigations of the offences that led to the forfeiture or the imposition of the fine; and if property referred to in paragraph (c) is forfeited to Her Majesty in right of a province and disposed of by the Minister with the consent of the government of the province, to provide authority for the sharing of the proceeds of disposition in accordance with directions given by that government. Minister to be responsible for management of property On taking possession or control thereof, the Minister shall be responsible for the custody and management of all property that is seized under a warrant issued under section 83.13, 462.32, 462.321 or 487 of the Criminal Code, section 11 of the Controlled Drugs and Substances Act or section 87 of the Cannabis Act on the application of the Attorney General and that the Minister is appointed to manage under subsection 83.13(3), 462.331(2) or 490.81(2) of the Criminal Code, subsection 15.1(2) of the Controlled Drugs and Substances Act or subsection 93(2) of the Cannabis Act, as the case may be; subject to a restraint order made under section 83.13, 462.33 or 490.8 of the Criminal Code, section 14 of the Controlled Drugs and Substances Act or section 91 of the Cannabis Act on the application of the Attorney General and that the Minister is appointed to manage under subsection 83.13(3), 462.331(2) or 490.81(2) of the Criminal Code, subsection 15.1(2) of the Controlled Drugs and Substances Act or subsection 93(2) of the Cannabis Act, as the case may be; seized or restrained under any Act of Parliament or of the legislature of a province if the Minister agrees to be responsible for the custody and management of the property; forfeited under subsection 14(5) or 39.03(5), seized under subsection 18(1) or 39.06(1) or paid under subsection 18(2) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act; forfeited under subparagraph 715.34(1)(e)(i) of the Criminal Code; if the Minister agrees to be responsible for its custody and management, forfeited under any Act of Parliament, other than under subsection 14(5) or 39.03(5) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act or subparagraph 715.34(1)(e)(i) of the Criminal Code or forfeited under any Act of the legislature of a province; or subject to a management order. Responsibility continues after forfeiture Where property referred to in subsection (1) that is in the possession or under the control of the Minister is forfeited to Her Majesty, the Minister shall continue to be responsible for the custody and management thereof until the property is disposed of. Additional responsibility In addition to being responsible for the custody and management of property referred to in subsections (1) and (2), the Minister shall be responsible, until the property is disposed of, for the custody and management of all proceeds of crime, offence-related property and property that was the subject of an application under section 83.14 of the Criminal Code, that were forfeited to Her Majesty as a result of proceedings conducted by the Attorney General and that were not in the possession or under the control of the Minister prior to their forfeiture. Application of other Acts Nothing in this section precludes the operation of the Criminal Code, the Controlled Drugs and Substances Act, the Cannabis Act or any other Act of Parliament in respect of any property that is in the possession or under the control of the Minister. Transfer of property Every person who has control of any property that is subject to a management order issued under subsection 83.13(2), 462.331(1) or 490.81(1) of the Criminal Code, subsection 15.1(1) of the Controlled Drugs and Substances Act, subsection 93(1) of the Cannabis Act or subsection 7(1) of this Act shall, as soon as practicable after the order is issued, transfer the control of the property to the Minister, except for any property or any part of the property that is needed as evidence or is necessary for the purposes of an investigation. Minister to report location Where the Minister takes control of property pursuant to subsection (1) and detains the property in a location other than the location referred to in the report required to be filed pursuant to paragraph 462.32(4)(b) of the Criminal Code, the Minister shall prepare a report in the prescribed form identifying the location of the property and cause the report to be filed in the prescribed manner with the clerk of the court that issued the warrant. [Repealed, 2015, c. 3, s. 152] Application for management order The Attorney General, or any other person with the written consent of the Attorney General, may apply to any judge or justice for a management order in respect of any seized property, other than a controlled substance as defined in subsection 2(1) of the Controlled Drugs and Substances Act or cannabis as defined in subsection 2(1) of the Cannabis Act. Order under section 490 of the Criminal Code An application for a management order in respect of any seized property may be heard at the same time as an order is sought under paragraph 490(1)(b) of the Criminal Code in respect of the seized property. Management order Where an application for a management order is made, the judge or justice hearing the application shall make an order allowing the Minister to take possession and control of, and to manage or otherwise deal with, the seized property referred to in the order if the judge or justice is of the opinion that the seized property may be required for the purposes of any provision respecting forfeiture in any Act of Parliament. Power to manage The power of the Minister in respect of any seized property that is the subject of a management order includes the power to make an interlocutory sale of perishable or rapidly depreciating property; the power to destroy, in accordance with subsections (2.1) to (2.4), property that has little or no value; and the power to have property, other than real property or a conveyance, forfeited to Her Majesty in accordance with subsection (2.5). Application for destruction order Before the Minister destroys property that has little or no value, he or she shall apply to a court for a destruction order. Notice Before making a destruction order, a court shall require notice in accordance with subsection (2.3) to be given to and may hear any person who, in the court’s opinion, appears to have a valid interest in the property. Manner of giving notice A notice shall be given in the manner that the court directs or that may be specified in the rules of the court; and specify the effective period of the notice that the court considers reasonable or that may be set out in the rules of the court. Destruction order A court shall order that the property be destroyed if it is satisfied that the property has little or no financial or other value. Forfeiture order On application by the Minister, a court shall order that the property, other than real property or a conveyance, be forfeited to Her Majesty and disposed of or otherwise dealt with in accordance with the law if a notice is given or published in the manner that the court directs or that may be specified in the rules of the court; the notice specifies a period of 60 days during which a person may make an application to the court asserting their interest in the property; and during that period, no one makes such an application. When management order ceases to have effect A management order ceases to have effect when the property that is the subject of the management order is returned in accordance with the law, destroyed or forfeited to Her Majesty. For greater certainty For greater certainty, if property that is the subject of a management order is sold, the management order applies to the net proceeds of the sale. Conditions A management order may be subject to such conditions as the judge or justice making the order thinks fit. Application to vary conditions The Minister may at any time apply to a judge or justice to cancel or vary any condition to which a management order is subject. Ministerial powers In carrying out the purposes of this Act, the Minister may provide consultative and other services to law enforcement agencies in relation to the seizure or restraint of any property in connection with designated offences, or any property that is or may be proceeds of crime or offence-related property; provide consultative and other services to any person employed in the federal public administration or by a provincial or municipal authority in relation to the seizure, restraint, custody, management, forfeiture or disposal of property subject to the Criminal Code, the Controlled Drugs and Substances Act, the Cannabis Act and any other Act of Parliament, manage any property referred to in any of subsections 4(1) to (3) in the manner that the Minister considers appropriate including, without restricting the generality of the foregoing, by advancing money at a commercial rate of interest to maintain the ongoing operation of the property, satisfy the terms of any order concerning environmental, industrial, labour or property standards to which the property is subject, or make improvements to the property to preserve the property and its economic worth; notwithstanding any other Act of Parliament, but subject to the regulations and to the provisions of the Financial Administration Act relating to public money, dispose of any property referred to in any of subsections 4(1) to (3) that is forfeited to Her Majesty; if property is forfeited to Her Majesty in right of a province, dispose of the property on behalf of Her Majesty in right of the province with the consent of the government of that province, and share the proceeds of disposition in accordance with directions given by that government; notwithstanding subsection 734.4(2) of the Criminal Code and sections 125 and 126 of the Excise Act, where property referred to in any of subsections 4(1) to (3) is forfeited to Her Majesty, share the proceeds of disposition therefrom in accordance with this Act, the regulations and any agreement entered into pursuant to section 11; notwithstanding subsection 734.4(2) of the Criminal Code and sections 125 and 126 of the Excise Act, if a fine, or any portion of a fine, imposed under subsection 462.37(3) of the Criminal Code in relation to proceedings commenced at the instance of the Government of Canada is paid or recovered or if a penalty is paid under subsection 18(2) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, share the amount of the fine or penalty in accordance with this Act, the regulations and any agreement entered into under section 11; at the request of the Attorney General, receive from foreign governments all moneys that are to be transferred to Canada pursuant to any agreement entered into pursuant to section 11 and share those moneys in accordance with the regulations; contract for the services of any person; and do any other thing that the Governor in Council may consider to be incidental to, or necessary or expedient for, carrying out the purposes of this Act. Sharing within Canada Where a law enforcement agency in Canada has participated in the investigation of an offence that leads to the forfeiture to Her Majesty of property under section 83.14, subsection 462.37(1), (2) or (2.01) or 462.38(2), subparagraph 462.43(c)(iii) or subsection 490.1(1) or 490.2(2) of the Criminal Code, subsection 16(1) or 17(2) of the Controlled Drugs and Substances Act or subsection 94(1) or 95(2) of the Cannabis Act, the forfeiture to Her Majesty pursuant to subsection 490(9) of the Criminal Code of any property that is or was the subject of a management order, or the imposition of a fine pursuant to subsection 462.37(3) of the Criminal Code in relation to proceedings commenced at the instance of the Government of Canada, the Minister shall, in accordance with the regulations, share the proceeds of disposition of that forfeited property, or any amount paid or recovered on account of the fine, as the case may be. Proceeds of Crime (Money Laundering) and Terrorist Financing Act If the participation of a law enforcement agency in Canada has led to the forfeiture to Her Majesty of property under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act or the payment of a penalty under subsection 18(2) of that Act, the Minister shall, in accordance with the regulations, share the proceeds of disposition of that forfeited property or the penalty, as the case may be. Sharing outside Canada The Attorney General may, with the approval of the Governor in Council and in accordance with the regulations, enter into an agreement with the government of any foreign state respecting the reciprocal sharing of the proceeds of disposition of property forfeited to Her Majesty under section 83.14, subsection 462.37(1), (2) or (2.01) or 462.38(2), subparagraph 462.43(c)(iii) or subsection 490.1(1) or 490.2(2) of the Criminal Code, subsection 16(1) or 17(2) of the Controlled Drugs and Substances Act or subsection 94(1) or 95(2) of the Cannabis Act, or property that is or was the subject of a management order and that was forfeited under subsection 490(9) of the Criminal Code and the proceeds arising from the disposition of property by that foreign state, and amounts paid or recovered on account of fines imposed under subsection 462.37(3) of the Criminal Code in relation to proceedings commenced at the instance of the Government of Canada, penalties paid under subsection 18(2) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and amounts paid or recovered on account of fines imposed in lieu of forfeiture under the laws of that foreign state, if law enforcement agencies of that foreign state, or of Canada, as the case may be, have participated in the investigation of the offence or offences that led to the forfeiture of the property or the imposition of the fine or if the law enforcement agencies' participation led to the forfeiture of the property or the payment of the penalty under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. Seized Property Working Capital Account established There is hereby established in the accounts of Canada an account to be known as the Seized Property Working Capital Account. Charges to Working Capital Account There may be paid out of the Consolidated Revenue Fund and charged to the Working Capital Account expenses incurred by the Minister in respect of any property referred to in any of subsections 4(1) to (3) that is in the possession or under the control of the Minister; and advances made by the Minister pursuant to paragraph 9(b). Credits to Working Capital Account There shall be paid into the Consolidated Revenue Fund and credited to the Working Capital Account amounts recovered by the Minister as a result of expenses referred to in subsection (2); and amounts repaid or recovered as a result of advances made by the Minister pursuant to paragraph 9(b). Appropriation There is hereby appropriated for the purposes of subsection (1) the amount of fifty million dollars. Amount may be changed The amount referred to in subsection (4) may be amended by an appropriation Act. Seized Property Proceeds Account established There is hereby established in the accounts of Canada an account to be known as the Seized Property Proceeds Account. Credits to Proceeds Account There shall be paid into the Consolidated Revenue Fund and credited to the Proceeds Account the net proceeds, calculated in the prescribed manner, received from the disposition of any property referred to in any of subsections 4(1) to (3) that is forfeited to Her Majesty and disposed of by the Minister; amounts paid or recovered as a fine imposed pursuant to subsection 462.37(3) of the Criminal Code in relation to proceedings commenced at the instance of the Government of Canada; and subject to the regulations, amounts received from the governments of foreign states pursuant to agreements entered into pursuant to section 11. Charges to Proceeds Account There shall be charged to the Proceeds Account such amounts as are approved by the Treasury Board and as are recovered by the Minister in respect of operating expenses incurred by the Minister in carrying out the purposes of this Act, other than expenses charged to the Working Capital Account pursuant to paragraph 12(2)(a); [Repealed, 2024, c. 15, s. 314] amounts paid pursuant to sections 10 and 11; amounts paid under section 5.6 of the Special Economic Measures Act; and amounts paid under section 4.4 of the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law). If costs are greater than proceeds If the proceeds of disposition available to Her Majesty from the forfeiture of any property under subsection 462.37(1), (2) or (2.01) or 462.38(2), subparagraph 462.43(c)(iii) or subsection 490(9) of the Criminal Code, subsection 16(1) or 17(2) of the Controlled Drugs and Substances Act or subsection 94(1) or 95(2) of the Cannabis Act are insufficient to cover the outstanding amounts charged to the Working Capital Account under subsection 12(2), and any interest on it, in respect of the property, there is to be charged to the Proceeds Account and credited to the Working Capital Account, or to interest revenue, as the case may be, an amount equal to the amount of the shortfall. Advances to Proceeds Account Where the amount standing to the credit of the Proceeds Account is not sufficient for the payment of any amount required to be charged to the Proceeds Account pursuant to section 13, the Minister of Finance may, on a request therefor by the Minister, authorize the making of an advance to the Proceeds Account in an amount sufficient to meet the payment. Repayment of advance An advance made pursuant to subsection (1) shall be credited to the Proceeds Account and repaid in such manner and on such terms and conditions, including the payment of interest, as the Minister of Finance may fix. Idem The repayment of an amount advanced pursuant to subsection (1) shall be charged to the Proceeds Account. Credit of excess to account At the prescribed times, all amounts credited to the Proceeds Account that are not shared under sections 10 and 11, less the amounts that are reserved for future losses and for ongoing expenses, shall be credited to the prescribed account in the accounts of Canada. Advances are debts owing Advances made pursuant to paragraph 9(b) and any interest thereon are debts owing to Her Majesty and may be recovered as such in any court of competent jurisdiction or in any manner provided for by law. Indemnity Subject to the regulations, the Minister may indemnify any person referred to in paragraph 9(g) against any claim made against the person in respect of anything done, or omitted to be done, in good faith by the person in relation to any property referred to in any of subsections 4(1) to (3) that is in the possession or under the control of the Minister. Regulations The Governor in Council may make regulations respecting the disposal by the Minister of any property referred to in any of subsections 4(1) to (3) on its forfeiture to Her Majesty; respecting, for the purposes of sections 10 and 11, the sharing of the proceeds of disposition of any property referred to in any of subsections 4(1) to (3) that is forfeited to Her Majesty, and amounts paid or recovered on account of fines imposed under subsection 462.37(3) of the Criminal Code in relation to proceedings commenced at the instance of the Government of Canada, including, without restricting the generality of the foregoing, regulations respecting the amounts to be shared, or the manner of determining those amounts, and the times at which and the manner in which those amounts shall be shared; determining, for the purposes of paragraph 13(2)(a), the amounts that may be deducted from the proceeds of disposition of property for the purpose of calculating the net proceeds thereof, and the manner of determining those amounts; respecting the indemnity that may be granted pursuant to section 18 and the terms and conditions under which that indemnity may be granted; prescribing anything that by this Act is to be prescribed; and generally, for carrying out the purposes of this Act. Review after three years On the expiration of three years after the coming into force of this Act, the provisions contained herein shall be referred to such committee of the House of Commons, of the Senate, or of both Houses of Parliament as may be designated or established by Parliament for that purpose. Report to Parliament The committee designated or established by Parliament for the purpose of subsection (1) shall, as soon as practicable, undertake a comprehensive review of the provisions and operation of this Act and shall, within one year after the review is undertaken or within such further time as the House of Commons may authorize, submit a report to Parliament thereon including such recommendations pertaining to the continuation of those sections and changes required therein as the committee may wish to make. [Amendments] [Repealed, 1996, c. 19, s. 93] Coming into force This Act shall come into force on a day to be fixed by order of the Governor in Council. [Note: Act in force September 1, 1993, see SI/93-176.]