Possession of Property Obtained by Crime

The Criminal Code calls this offence "possessionHaving knowledge and control of something — not only physically holding it, but also an item kept somewhere else that you know about and control. of property obtained by crime." People often call it "possession of stolen goods," but the law is broader than that. It can cover stolen property, but it can also cover other property, things, or proceeds that came from a serious criminal offence — whether that offence happened in Canada or anywhere else in the world.

In plain terms, it is an offence to have something that you know was obtained by, or came from, a serious criminal offence that would be treated as indictable (the more serious type) in Canada. For example, this may include an item you know was stolen.

Legal source: Criminal Code section 354(1).

"The Crown" is the prosecutor — the government lawyer who brings the charge. To convict you, the prosecutor must prove, beyond a reasonable doubtThe standard that must be exceeded to find someone guilty, that:

1. you had possession of the property, thing, or proceeds; and
2. you knew that all or part of it was obtained by, or came from, an indictable offenceA more serious type of Canadian criminal offence..

Under Canadian law, possession does not only mean holding something in your hands. It can also mean you had some knowledge and control of the item, even if it was kept somewhere else.

There is a special rule for motor vehicles, or motor-vehicle parts, where the vehicle identification number (VIN) has been removed or partly removed. If the Crown proves the VIN was tampered with, the court may presume the vehicle or part was obtained through a serious criminal offence — unless you can point to evidence that suggests otherwise. This rule is specific to vehicles and vehicle parts. It is about what the court may assume from the evidence. It is not a defence you can raise.

The Code has an exception for a peace officerPeople involved in upholding justice, or someone acting under a peace officer's direction, who has the property as part of an investigation or in the course of their duties.

This is a specific exception written into the law. It is not a general defence that applies to everyone.

Canada deals with criminal charges in two main ways:

• Summary convictionUsed for lesser offences — the process used for less serious cases, with lower maximum penalties.
• Indictable — the process used for more serious cases, with higher maximum penalties.

This offence is hybrid, which means the prosecutor chooses which of those two ways to proceed, based on the case. An indictable prosecution generally carries more serious penalties than a summary one.

The penalty is split by the value of what was involved.

• Over $5,000, or a testamentary instrument such as a will: if the prosecutor proceeds by indictment, the maximum is 10 years in prison. Lower maximums apply if the case proceeds by summary conviction.
• $5,000 or less: if the prosecutor proceeds by indictment, the maximum is 2 years in prison. Lower maximums apply if the case proceeds by summary conviction.

TraffickingInfluencing the movements of a person in order to exploit them in property obtained by crime is a separate, related offence. It deals with selling, giving, transporting, sending, delivering, or otherwise dealing with property that came from crime. It has its own rules and penalties and should be checked on its own page.