Finance Minister Paul Martin
Minister of Foreign Affairs John Manley
New Measures to Combat Terrorist Financing
October 2, 2001
Finance Minister Paul Martin and Foreign Affairs Minister John Manley today
announced the implementation of tough new regulations aimed at suppressing the
financing in Canada of terrorism and at freezing the assets of listed persons.
The regulations implement a key measure in United Nations Resolution 1373, which
was unanimously adopted by the UN Security Council on September 28, 2001. The
Council calls on all member states to freeze without delay the assets of those
who commit or attempt to commit terrorist acts or facilitate the commission
of terrorist acts. It also calls on members to prohibit the provision and collection
of funds for terrorist activities.
"The ability to freeze assets is a powerful tool in combatting terrorist
financing," Minister Martin said. "By cutting off terrorists from
access to funding, their activities are impaired."
"This UN resolution is an important milestone in the fight against terrorism
and a critical tool for international action," Minister Manley said. "The
regulations will enhance Canadas ability to shoulder our international
responsibility to combat terrorist activities and to cooperate effectively with
our international partners."
The regulations strengthen the Governments authority to freeze the assets
of terrorist groups or individuals involved in terrorist activities and the
movement of these assets. The measures 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 Fundraising: The regulation 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
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.
Minister Martin noted that financial institutions have been fully cooperative
thus far and the new regulations will clarify how regulated financial institutions
will keep the Government apprised of their findings.
The regulations take effect immediately and will be followed by new legislative
measures to be introduced shortly to implement other elements of the UN Convention
for Suppression of Terrorist Financing and United Nations Resolution 1373.