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Ottawa, October 2, 2001
2001-082

New Measures to Combat Terrorist Financing

Related Document:

• United Nations Suppression of Terrorism Regulations (ASCII) (Canada Gazette site)

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 Canada’s ability to shoulder our international responsibility to combat terrorist activities and to cooperate effectively with our international partners."

The regulations strengthen the Government’s 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 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.

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.

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