Financing of Terrorism

According to the Government of Canada there are two primary sources of financing for terrorist activities: financial support from countries, organizations or individuals and "revenue-generating activities" that may be linked to legal or criminal fronts. Like any criminal organization, terrorists need financial support to carry out their objectives. A successful organization must develop sources of funding and a way to hide the links to those providing the support while ensuring funds are available to commit acts of terrorismAn offence aimed at intimidating the public. Terrorism is described in the Criminal Code as an act committed "in whole or in part for a political, religious or ideological purpose, objective or cause" with the intention of intimidating the public, or compelling a government or international organization to do or refrain from doing any act. To combat terrorism, Canada amended the Code, the Foreign Interference and Security of Information Act , the Canada Evidence Act , the Proceeds of Crime (Money launderingConcealing the origins of money obtained illegally) and Terrorist Financing Act and a number of other acts, passing the Anti-Terrorism Act in 2001. Under the Code, terrorism includes acts that cause death or serious bodily harm to a person by the use of violence; endanger a person's life; cause a serious risk to the health or safety of the public or any segment of the public; cause substantial property damage, whether to public or private property; or cause serious interference with or serious disruption of an essential service, facility or system, whether public or private. Financing of terrorist groups can include legitimately earned income, such as membership dues and appeals to the public. Donors may not be aware they are contributing to a terrorist organization, according to the Government of Canada. Illegal means of obtaining funds can include kidnapping, extortion, narcotics traffickingInfluencing the movements of a person in order to exploit them, fraud, theft and robbery. You can be charged with financing of terrorism under s.83.02 of the Criminal Code if you directly or indirectly provide or collect property intending it to be used in a terrorist act. You can also be charged if you invite others to provide or collect property to be used in terrorism under s.83.03 . Using property for the purpose of facilitating or carrying out a terrorist activity, or possessing property intending that it be used for terrorist activity could also lead to charges under s.83.04 . Money laundering is a key element of organized criminal activity, including terrorism. The Government of Canada states that it is a multi-billion problem. The United Nations describes money laundering as "any act or attempted act to disguise the source of money or assets derived from criminal activity." To combat the problem, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act has three key objectives: to implement specific measures to detect and deter money laundering and the financing of terrorist activities and to facilitate investigations and prosecution of the related offences; to respond to the threat posed by organized crime by providing law enforcement officials with the information they need to deprive criminals of the proceeds of their criminal activities, while protecting individual privacy; and to help fulfill Canada's international commitments to fight multinational crime.

To win a conviction, the Crown prosecutorA lawyer who conducts a criminal prosecution on behalf of the public. must establish that you wilfully and without lawful justification provided, collected, or made available property or financial services, knowing or intending that they would be used, in whole or in part, to carry out a terrorist activity or to benefit a person facilitating such an activity. The Crown will rely on financial records and a paper trail to support their case.

What counts as a "terrorist activity" is defined in s.83.01 of the Criminal Code and covers a broad range of serious acts. The key question for the financing offences is whether you knew or intended that the money or resources would fund such an act, not whether you personally held any political or ideological belief.

Charges under ss.83.02, 83.03 and 83.04 of the Criminal Code are indictable offences, which carry harsh penalties. Indictable offences are the most serious category of criminal charge in Canada.

Charges under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act are a separate matter governed by a different federal statute, not the Criminal Code. Those offences are hybrid, which means the prosecutor can choose to proceed by indictable offenceA more serious type of Canadian criminal offence. or by summary convictionUsed for lesser offences. Summary conviction comes with less severe penalties.

If you are convicted of a financing of terrorism offence under the Criminal Code, you can face imprisonment for up to 10 years.

Prison sentences for a conviction under the Anti-terrorism Act are served consecutively to other jail terms. Specifically, the sentence must be served on top of: (a) any other punishment for an offence arising out of the same event or series of events; and (b) any other sentence you are already serving at the time the terrorism sentence is imposed. The only exception is when the other sentence is life imprisonment.

Under the PCMLTFA, you face a fine of up to $2,500,000 or imprisonment for a term of not more than two years less a day, or both, if the Crown proceeds by summary conviction. If there is a conviction on indictment you face a fine of up to $5,000,000 or up to five years in prison, or both. A conviction will also result in collection of your DNA, which will be held in the DNA Data Bank.

Proceedings require Attorney General consent under s. 83.24.

The terrorism provisions also include a consecutive-sentencing rule in s. 83.26. That is a sentence-structure rule, not a separate offence.