QUICK TAKEAWAY
Financing of Terrorism: As the charge indicates, financing of terrorism is providing the financial means to carry out terrorist activities. The Government of Canada states there is not much difference between terrorists and other criminals when it comes to finances, adding a successful terrorist group "is one that is able to build and maintain an effective financial infrastructure." Shortly after the 9/11 terrorist attacks in 2001, Canada amended the Criminal Code, introducing the Anti-terrorism Act (ATA). According to s.83.03 of the Code, if you help finance a terrorist enterprise, you can be jailed for up to 10 years. Canada also enacted the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). A key objective of the Act is to "detect and deter money laundering and the financing of terrorist activities." Those convicted of violating the PCMLTFA can face fines of up to $500,000 and/or a prison term of up to five years.
Table of Contents:
What is Financing of Terrorism?
According to the Government of Canada there are two primary sources of financing for terrorist activities â 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 in 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. To combat terrorism, Canada amended the Code, the Official Secrets Act, the Canada Evidence Act, the Proceeds of Crime Act and a number of other acts, passing the ATA.
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 trafficking, fraud, theft and robbery.
You can be charged with financing of terrorism under s.83.02 of the ATA 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 launderingConcealing the origins of money obtained illegally 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) Act was expanded to include terrorist financing and is now the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, which 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.
What is Needed to Convict
To win a conviction, the Crown prosecutorLawyers who prosecutes charges on behalf of the Crown must establish the crime constitutes terrorist activity and you knowingly provided financial support. The Crown will rely on financial records and a paper trail to support their case. The court must be convinced that your participation was motivated by “a political, religious or ideological purpose, objective or cause” and may consider whether you:
- used a name, word, symbol or other representation that identifies with, the terrorist group;
- frequently associated with the terrorist group;
- received any benefit from the organization; or
- repeatedly engaged in activities at the instruction anyone within the terrorist group.
Financing of Terrorism is an Indictable Offence
The charge of financing of terrorism under the Anti-terrorism Act is an indictable offenceIndictable offences are more-serious criminal offences, which carries harsh penalties. Charges under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act are considered a hybrid offenceAn offence prosecuted either as a summary conviction or as an indictable offence, which mean the prosecutor can proceed by an indictable offence or as a summary convictionUsed for lesser offences, which comes with less severe penalties.
Penalty for Financing of Terrorism
If you are convicted of providing financial support to a terrorist group you can expect to be sent to prison for up to 10 years.
Prison sentences for a conviction under the ATA are served consecutively to other jail terms you receive for any “offence arising out of the same event or series of events.” The exception would be if you commit a crime that results in a lifetime prison term.
Under the PCMLTFA, you face a fine of up to $250,000 or imprisonment for a term of not more than two years less a day, or to both if the Crown proceeds by summary conviction.
If there is a conviction on indictment you face a fine of up to $500,000 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.
TorontoLawyersNear Me
Emily Dixon
Charney Law
Aaron B. Harnett, Barrister
Alice Barton LL.B.
Peter Copeland
Rusonik, O'Connor, Robbins, Ross & Angelini Llp
Glossary of Legal Terms
Crown prosecutor
Lawyers who act for the federal, provincial and territorial governments and prosecute people accused of crimes on behalf of the Crown.
Hybrid offence
Hybrid offences fall between a summary and an indictable offence. The Crown prosecutor chooses whether to treat the offence as a summary or indictable offence.
Indictable offence
Indictable offences are the most serious offences under the Criminal Code and they come with more serious punishments, up to a maximum penalty of life in prison.
Money laundering
The process of concealing the origins of money obtained illegally by passing it through a complex sequence of banking or commercial transactions.
Summary conviction
Summary convictions are used for lesser offences with penalties, fines and short jail time. They reflect the majority of offences as defined in the Code.
Terrorism
An offence motivated by “a political, religious or ideological purpose, objective or cause" with the intention of intimidating the public. Activities within this context include the use of violence, endangering the health and safety of the public and interference with essential services, facilities or systems.
