History
The Seized Property Management Act came into
effect on September 1, 1993. It authorizes the Minister
of Public Works and Government Services to: provide
consultative and managerial services of seized property
connected to criminal offenses to law enforcement agencies;
dispose of this property when the Courts declare forfeiture;
and share the proceeds of the disposition in accordance
with government regulations.
What is the Seized Property Management
Directorate?
The Seized Property Management Directorate (SPMD) of
Public Works and Government Services Canada (PWGSC)
manages assets seized under Canada's Proceeds of Crime
legislation. It is the only legislated body in Canada
to manage seized assets connected with proceeds from
crime.
SPMD works with police officers and Crown prosecutors
on cases involving seizure, restraint and forfeiture
by providing expertise for efficient and effective asset
management and disposal.
What SPMD Does
Created under the Seized Property Management Act,
the Directorate performs a variety of functions related
to the management of seized property. Because of the
nature of its services, SPMD must work closely with
municipal, federal and provincial law enforcement agencies
related to the police's actions and seizures. Once proper
legal documents are signed by the appropriate judicial
authority and provided by the police force or the prosecutor,
SPMD takes possession and control of the reported seized
assets. It also arranges for necessary transportation
of movable assets and assumes payment of invoices related
to the seized and restrained assets.
Services include:
- Pre-seizure
- Financial analysis of property before a seizure
and recommendations to police force on the viability
of proceeding with the seizure;
- Analysis and evaluation of the best method to
protect and maintain the value of the assets,
and evaluation of the costs associated with asset
management;
- Coordinating services such as towing, storing
and inspection, as needed.
- Post Seizure (For assets seized or under restraint)
- Inspection, administration, storage, protection
and maintenance of seized or restraint property;
- Settling of third-party claims (i.e. from tenants
and financial institutions) on seized property
in consultation with the Department of Justice;
- Appraisal and inspection of property on a regular
basis.
- Advances of funds to preserve property.
- Forfeiture
- After legal proceedings are completed, if the
sentencing of the accused includes forfeiture
of assets, SPMD begins the asset disposal process
through public sales and utilizes the services
of both government and industry as appropriate;
- Coordinating the sharing of proceeds with provincial
and foreign governments in accordance with the
Forfeited Property Sharing Regulations of the
Seized Property Management Act;
- Overseeing resolution of financial conflicts
and legal proceedings;
- Returning non-forfeited assets to their owner(s).
The Process From Start to
Finish
After a law enforcement agency investigation is completed,
the police involved in the case and the Department of
Justice make the final decision on the seizure of assets,
laying of charges and prosecution.
Moveable assets are seized by police under a special
search warrant authorized by a judge or justice. Real
property is addressed through a restraint order signed
by a judge or justice.
Custody of seized assets is then turned over to the
SPMD, which engages the appropriate professionals to
manage, maintain, and safeguard the assets while legal
proceedings are underway.
If the accused is found guilty, part of the sentencing
may include the forfeiture of the assets. If there are
no appeals after the 30-day appeal period, SPMD begins
the process of disposing of the assets normally through
public sales.
Proceeds of the sales, net of costs and expenses associated
with the management of assets, are deposited in the
Seized Property Proceeds Account, established per the
Seized Property Management Act. The money is
then shared with the involved jurisdictions according
to the Forfeited Property Sharing Regulations.
Types of Assets
Seized property takes many forms and encompasses anything
acquired as proceeds of crime, or anything used to commit
a crime. SPMD takes into account the specific requirements
of each case to manage and maintain the value and condition
of the assets.
Seized property may include:
- Cash, stock market shares, foreign currency, loans,
RRSPs, bank accounts, life insurance, personal loans
and mortgages;
- Vehicles, motorcycles, boats and aircraft;
- Real estate, farms, mobile homes;
- Businesses;
- Personal property such as jewelry, lottery tickets;
- Animals, including race horses and cattle.
Managing Seized Businesses
After SPMD does an appraisal of a business in the pre-seizure
stage, it usually contracts out with industry and government
for the services of appropriate professionals for the
best management approach. SPMD is responsible for managing
the business in accordance with the provisions of the
restraint order during the time the case is before the
court.
Disposal of Assets
After a 30-day appeal period, SPMD normally disposes
of forfeited movable assets through public sales. Assets
are often stored in SPMD's warehouse facilities across
the country. Where SPMD does not have its own facility,
services are contracted from public or private service
providers who must meet specific quality and security
requirements.
Cash is usually reported and forwarded to SPMD within
90 days of seizure. It is then deposited in the Seized
Property Deposit and Trust Account until a ruling is
passed. If forfeited, it is transferred to SPMD Proceeds
Account where it is then shared among the jurisdictions
involved according to the Forfeited Property Sharing
Regulations.
Real property is disposed of through the real property
services function of Public Works and Government Services
Canada using professional services within the industry,
as required.
Statistics
The total value of items seized or restrained was:
- $13 million in 1993-94
- $35 million in 1994-95
- $38 million in 1995-96
- $31 million in 1996-97
- $33 million in 1997-98
- $45 million in 1998-99
- $35 million in 1999-2000
- $36 million in 2000-01
- $39 million in 2001-02
- $71 million in 2002-03
Net proceeds from disposal were:
- $1.5 million in 1993-94
- $4.8 million in 1994-95
- $8.5 million in 1995-96
- $10.3 million in 1996-97
- $15.6 million in 1997-98
- $19.6 million in 1998-99
- $12.7 million in 1999-2000
- $8.2 million in 2000-01
- $8.3 million in 2001-02
- $12.8 million in 2002-03
Care must be used in interpreting the above statistics.
There is no correlation between the value of goods seized
in a given year and the value of the net proceeds for
that year for any or all of the following reasons:
- Not all the goods seized in a given year are disposed
of in that year;
- In the event of a "not guilty" verdict,
assets are returned to the owner;
- Deduction of costs from the proceeds of crime are
used for the management of the assets while they are
under SPMD management;
- Some assets may depreciate if a criminal proceeding
lasts for a considerable period of time;
- A defendant's business, living and legal expenses
may be paid from their seized property, which reduces
the value of assets that may ultimately be forfeited
to the government;
- Sometimes material cannot be safely sold, and must
be destroyed such as in the case of drug-related equipment.
For further information:
Seized
Property Management Act
Forfeited
Property Sharing Regulations
Seized
Property Disposition Regulations
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