Freezing Assets of Corrupt Foreign Officials Act

Authoritative text

Current to May 26, 2026 Published by the Minister of Justice at the following address: http://laws-lois.justice.gc.ca CONSOLIDATION Freezing Assets of Corrupt Foreign Officials Act S.C. 2011, c. 10 OFFICIAL STATUS OF CONSOLIDATIONS Subsections 31(1) and (2) of the Legislation Revision and Consolidation Act, in force on June 1, 2009, provide as follows: Published consolidation is evidence 31 (1) Every copy of a consolidated statute or consolidated regulation published by the Minister under this Act in either print or electronic form is evidence of that statute or regulation and of its contents and every copy purporting to be published by the Minister is deemed to be so published, unless the contrary is shown. Inconsistencies in Acts (2) In the event of an inconsistency between a consolidated statute published by the Minister under this Act and the original statute or a subsequent amendment as certified by the Clerk of the Parliaments under the Publication of Statutes Act, the original statute or amendment prevails to the extent of the inconsistency. LAYOUT The notes that appeared in the left or right margins are now in boldface text directly above the provisions to which they relate. They form no part of the enactment, but are inserted for convenience of reference only. NOTE This consolidation is current to May 26, 2026. Any amendments that were not in force as of May 26, 2026 are set out at the end of this document under the heading “Amendments Not in Force”. TABLE OF PROVISIONS An Act to provide for the taking of restrictive measures in respect of the property of officials and former officials of foreign states and of their family members Short Title 1 Short title Interpretation 2 Definitions Her Majesty 3 Binding on Her Majesty Orders and Regulations 4 Orders and regulations 5 Permits 6 Duration 7 Tabling of order Duty To Determine 8 Determination Disclosure 9 Report Offences 10 Offence and punishment 11 Proceedings 12 Consent of Attorney General required Rights of Persons Who Are Subject to an Order or Regulation 13 Application Application for a Certificate 14 Mistaken identity 15 Reasonable expenses Freezing Assets of Corrupt Foreign Officials TABLE OF PROVISIONS General 16 No civil liability 17 Existing equities maintained 18 Proceedings not precluded 19 Regulations Review and Report 20 Review S.C. 2011, c. 10 An Act to provide for the taking of restrictive measures in respect of the property of officials and former officials of foreign states and of their family members [Assented to 23rd March 2011] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: Short Title Short title 1 This Act may be cited as the Freezing Assets of Corrupt Foreign Officials Act. Interpretation Definitions 2 (1) The following definitions apply in this Act. Canadian means a person who is a citizen within the meaning of the Citizenship Act or a corporation incorporated or continued by or under the laws of Canada or of a province. (Canadien) entity means a corporation, trust, partnership, fund, an unincorporated association or organization or a foreign state. (entité) foreign state means a country other than Canada, and includes (a) any of its political subdivisions; (b) its government and any of its departments, or the government or any department of any of its political subdivisions; and Interpretation Section 2 (c) any of its agencies or any agency of any of its political subdivisions. (État étranger) Minister means the Minister of Foreign Affairs. (ministre) person means an individual or an entity. (personne) politically exposed foreign person means a person who holds or has held one of the following offices or positions in or on behalf of a foreign state and includes any person who, for personal or business reasons, is or was closely associated with such a person, including a family member: (a) head of state or head of government; (b) member of the executive council of government or member of a legislature; (c) deputy minister or equivalent rank; (d) ambassador or attaché or counsellor of an ambassador; (e) military officer with a rank of general or above; (f) president of a state-owned company or a stateowned bank; (g) head of a government agency; (h) judge; (i) leader or president of a political party represented in a legislature; or (j) holder of any prescribed office or position. (étranger politiquement vulnérable) prescribed means prescribed by regulation. (Version anglaise seulement) property means any real, personal, movable or immovable property. (bien) Property of a person (2) For the purposes of this Act, the property of a person includes property controlled, directly or indirectly, by the person. Her Majesty Sections 3-4 Her Majesty Binding on Her Majesty 3 This Act is binding on Her Majesty in right of Canada or a province. Orders and Regulations Orders and regulations 4 (1) If a foreign state, in writing, asserts to the Government of Canada that a person has misappropriated property of the foreign state or acquired property inappropriately by virtue of their office or a personal or business relationship and asks the Government of Canada to freeze property of the person, the Governor in Council may (a) make any orders or regulations with respect to the restriction or prohibition of any of the activities referred to in subsection (3) in relation to the person’s property that the Governor in Council considers necessary; and (b) by order, cause to be seized, frozen or sequestrated in the manner set out in the order any of the person’s property situated in Canada. Conditions (2) The Governor in Council may make the order or regulation only if the Governor in Council is satisfied that (a) the person is, in relation to the foreign state, a politically exposed foreign person; (b) there is internal turmoil, or an uncertain political situation, in the foreign state; and (c) the making of the order or regulation is in the interest of international relations. Restricted or prohibited activities (3) Orders and regulations may be made under paragraph (1)(a) with respect to the restriction or prohibition of any of the following activities, whether carried out in or outside Canada: (a) the dealing, directly or indirectly, by any person in Canada or Canadian outside Canada in any property, wherever situated, of the politically exposed foreign person; (b) the entering into or facilitating, directly or indirectly, by any person in Canada or Canadian outside Orders and Regulations Sections 4-8 Canada, of any financial transaction related to a dealing referred to in paragraph (a); and (c) the provision by any person in Canada or Canadian outside Canada of financial services or other related services in respect of property of the politically exposed foreign person. Exclusions (4) An order or regulation made under subsection (1) may exclude, individually or by class, any person, property or transaction from the application of the order or regulation. Permits 5 (1) The Minister may issue to any person in Canada or Canadian outside Canada a permit to carry out a specified activity or transaction, or any class of activity or transaction, that is restricted or prohibited by order or regulation made under section 4. The permit may be subject to any terms and conditions that are, in the opinion of the Minister, consistent with this Act and any order or regulations made under section 4. Suspension, revocation, etc. (2) The Minister may amend, suspend, revoke or reinstate the permit. Duration 6 An order or regulation made under section 4 in respect of a politically exposed foreign person ceases to have effect on the day that is five years after the day on which it comes into force unless the Governor in Council, by order, extends it for the period specified in the order. It may be extended more than once. Tabling of order 7 A copy of each order or regulation made under section 4 must be tabled in each House of Parliament within 15 days after it is made. It may be sent to the Clerk of the House if the House is not sitting. Duty To Determine Determination 8 Each of the following entities must determine on a continuing basis whether it is in possession or control of property that they have reason to believe is the property Duty To Determine Sections 8-9 of a politically exposed foreign person who is the subject of an order or regulation made under section 4: (a) authorized foreign banks, as defined in section 2 of the Bank Act, in respect of their business in Canada or banks to which that Act applies; (b) cooperative credit societies, savings and credit unions and caisses populaires regulated by a provincial Act and associations regulated by the Cooperative Credit Associations Act; (c) foreign companies, as defined in subsection 2(1) of the Insurance Companies Act, in respect of their insurance business in Canada; (d) companies, provincial companies and societies, as those terms are defined in subsection 2(1) of the Insurance Companies Act; (e) fraternal benefit societies regulated by a provincial Act in respect of their insurance activities and insurance companies and other entities engaged in the business of insuring risks that are regulated by a provincial Act; (f) companies to which the Trust and Loan Companies Act applies; (g) trust companies regulated by a provincial Act; (h) loan companies regulated by a provincial Act; (i) entities that engage in any activity described in paragraph 5(h) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act if the activity involves the opening of an account for a client; (j) entities authorized under provincial legislation to engage in the business of dealing in securities or to provide portfolio management or investment counselling services; and (k) other entities of a prescribed class of entities. Disclosure Report 9 (1) Every person in Canada and every Canadian outside Canada must, without delay, disclose to the Commissioner of the Royal Canadian Mounted Police Disclosure Sections 9-11 (a) the existence of property in their possession or control that they have reason to believe is the property of any politically exposed foreign person who is the subject of an order or regulation under section 4; and (b) information about a transaction or proposed transaction in respect of property referred to in paragraph (a). Immunity (2) No criminal or civil proceedings lie against a person for disclosure made in good faith under subsection (1). Offences Offence and punishment 10 (1) Every person who wilfully contravenes an order or regulation made under section 4 (a) is guilty of an indictable offence and is liable to imprisonment for a term of not more than five years; or (b) is guilty of an offence punishable on summary conviction and is liable to a fine of not more than $25,000 or to imprisonment for a term of not more than one year, or to both. Offence and punishment (2) Every person who wilfully contravenes section 8 or 9 (a) is guilty of an indictable offence and is liable to imprisonment for a term of not more than five years; or (b) is guilty of an offence punishable on summary conviction and is liable to a fine of not more than $25,000 or to imprisonment for a term of not more than one year, or to both. Proceedings 11 (1) Any proceedings in respect of an offence under this Act may be tried and determined by the court having jurisdiction at the place in Canada where the offence was committed or at the place in Canada in which the person charged with the offence is, resides or has an office or place of business at the time of commencement of the proceedings. Proceedings if Canadians outside Canada (2) If a Canadian is alleged to have committed, outside Canada, an offence under this Act, any proceedings in respect of that offence may, whether or not that person is in Canada, be commenced in any territorial division in Canada and the accused may be tried and punished in Offences Sections 11-14 respect of that offence in the same manner as if the offence had been committed in that territorial division. Appearance (3) For greater certainty, the provisions of the Criminal Code relating to requirements that an accused appear at and be present during proceedings and the exception to those requirements apply to proceedings commenced under subsection (2) in any territorial division. Consent of Attorney General required 12 Proceedings with respect to an offence under this Act may be commenced only with the consent of the Attorney General of Canada. Rights of Persons Who Are Subject to an Order or Regulation Application 13 (1) A person who is the subject of an order or regulation made under section 4 may apply in writing to the Minister to cease being the subject of the order or regulation on the grounds that the person is not a politically exposed foreign person. Recommendation (2) If the Minister has reasonable grounds to believe that the applicant is not a politically exposed foreign person, the Minister must recommend to the Governor in Council that the order or regulation be amended or repealed, as the case may be, so that the applicant is no longer the subject of the order or regulation. Notice if application rejected (3) The Minister must give notice without delay to the applicant of any decision to reject the application. Application for a Certificate Mistaken identity 14 (1) A person claiming not to be a politically exposed foreign person may apply to the Minister in writing for a certificate stating that they are not a politically exposed foreign person who is the subject of an order or regulation made under section 4. Application for a Certificate Sections 14-19 Certificate — time frame (2) If the Minister determines that the person is not a politically exposed foreign person, the Minister must issue a certificate to the applicant as soon as feasible. Reasonable expenses 15 (1) A person who is the subject of an order or regulation made under section 4 may apply to the Minister in writing for a certificate to exempt property from the application of the order or regulation if the property is necessary to meet the reasonable expenses of the person and their dependants. Certificate — time frame (2) If the Minister determines that the property is necessary to meet the reasonable expenses of the applicant and their dependants, the Minister must issue a certificate to the applicant as soon as feasible. General No civil liability 16 A person who, in relation to any property that is the subject of an order or regulation made under section 4, acts reasonably in taking, or omitting to take, measures to comply with the order or regulation is not liable in any civil action arising from having taken or omitted to take the measures if they took all reasonable steps to satisfy themselves that the property was property that is the subject of the order or regulation. Existing equities maintained 17 All secured and unsecured rights and interests in any property that is the subject of an order or regulation made under section 4 that are held by a person, other than the politically exposed foreign person who is the subject of the order or regulation, are entitled to the same ranking that they would have been entitled to had the order or regulation not been made. Proceedings not precluded 18 The making of an order or regulation under section 4 does not preclude the commencement of proceedings under any Act of Parliament other than this Act, or any civil proceedings, in respect of any property that is subject of the order or regulation. Regulations 19 The Governor in Council may make regulations for carrying out the purposes and provisions of this Act, including regulations prescribing anything that by this Act is to be prescribed. Review and Report Section 20 Review and Report Review 20 (1) Within five years after this section comes into force, a comprehensive review of the provisions and operation of this Act and of the Special Economic Measures Act must be undertaken by such committee of the Senate and of the House of Commons as may be designated or established by the Senate and the House of Commons for that purpose. Report (2) The committees referred to in subsection (1) must, within a year after a review is undertaken pursuant to that subsection or within such further time as may be authorized by the Senate or the House of Commons, as the case may be, submit a report on the review to Parliament, including a statement of any changes that the committees recommend.