On March 24, Transparency International Canada Chair and President, Susan Côté-Freeman, testified on behalf of TI Canada at the Standing Senate Committee on Foreign Affairs and International Trade. Ms. Côté-Freeman was called as a witness on Bill S-217 - An Act respecting the repurposing of certain seized, frozen or sequestrated assets.
While the intent of the Bill is noble and in many ways needed with its focus on addressing grand corruption and helping refugees who are victims of corruption, TI Canada raises several questions and concerns about Bill S-217.
First is the Bill’s singular focus on refugees, particularly in the preamble. TI Canada recognizes poor governance and corruption can lead to forced displacement of persons. However, the Bill should broaden its examples of victims of corruption and potentially worthy recipients of repurposed funds such as civil society organizations and journalists.
Second, the Bill appears to assume that meaningful sums or assets are being frozen in Canada under the Special Economic Measures Act, the Freezing Assets of Corrupt Foreign Officials and under our own Magnitzky Law, which S-217 builds on. TI Canada is not aware that large sums or assets have, to date, been seized under these laws.
Third, TI Canada urges Senators to explore the constitutional division of powers involving forfeiture laws. These have previously been considered by the Courts, including the Supreme Court of Canada, in the context of provincial civil forfeiture laws.
Fourth, TI Canada encourages Parliament to integrate concrete mechanisms of accountability for any repurposed funds so they do not fall into corrupt hands, thus undermining the intent of the Bill.
Finally, TI Canada notes that for the Bill to be effective in the seizure and repurposing of assets, authorities need to know what kleptocrat assets are in Canada. Canada needs a publicly accessible beneficial ownership registry to help make this Bill work.
Read the full TI Canada opening statement here.
Read Bill S-217 here.
Watch the full Standing Senate Committee hearing here.