FINA Committee Meeting

Meeting No. 50

Thursday, April 13, 2000

The Standing Committee on Finance met at 9:10 a.m. this day, in Room 536, Wellington Building, the Chair, Maurizio Bevilacqua, presiding.

Members of the Committee present: Maurizio Bevilacqua, Roy Cullen, Roger Gallaway, Albina Guarnieri, Richard Marceau, Lorne Nystrom and Paul Szabo.

Acting Members present: Hec Clouthier for Nick Discepola, Ian Murray for Roger Gallaway, Jim Abbott for Richard Harris, David Pratt for Sophia Leung, Julian Reed for Gary Pillitteri, Judy Sgro for Karen Redman.

In attendance: From the Legislative Services: Susan Baldwin. From the Library of Parliament: Jean Soucy, Researcher; Marion Wrobel, Senior Analyst.

Witnesses: From the Department of Finance: Charles Seeto, Director, Financial Sector Division. From the Department of Justice: Stan Cohen, Senior Counsel, Human Rights Law Section; Paul Saint-Denis, Senior Counsel, Criminal Law Policy Section. From the Royal Canadian Mounted Police: Lou Goulet, Staff Sergeant, Proceeds of Crime Branch.

The Committee resumed consideration of Bill C-22, An Act to facilitate combatting the laundering of proceeds of crime, to establish the Financial Transactions and Reports Analysis Centre of Canada and to amend and repeal certain Acts in consequence. (See Minutes of Proceedings, Tuesday, April 11, 2000, Meeting No. 46)

Mr. Gallaway moved, – That the Committee adjourn until May 2, 2000.

After debate, the question being put on the motion, it was negatived on the following recorded division.

The Committee proceeded to Clause-by-Clause consideration of the Bill

Clause 1 stood.

The Chair called Clause 2.

Roger Gallaway moved, -- That Bill C-22, in Clause 2, be amended

(a) by replacing line 6 on page 1 with the following:

"2. (1) The definitions in this section apply in"

(b) by adding after line 23 on page 2 the following:

"(2) For greater certainty, a reference in this Act to the House of Commons includes a reference to such committee of the House as may be designated or established by it, pursuant to its rules, to review matters relating to the business and activities of the Centre."

After debate, the question being put on the motion, it was defeated.

Clause 2 carried.

Clause 3 carried.

Clause 4 carried.

The Chair called Clause 5,

Roy Cullen moved, -- That Bill C-22, in Clause 5, be amended by replacing line 19 on page 3 with the following:

"(b) cooperative credit societies, savings and credit"

After debate, the question being put on the amendment, it was adopted.

Roy Cullen moved, -- That Bill C-22, in Clause 5, be amended by replacing, in the French version, line 22 on page 4 with the following:

"province qui se livrent à l'acceptation de dépôts ou ven-"

After debate, the question being put on the amendment, it was agreed to.

Clause 5, as amended, carried.

By unanimous consent, Clauses 6 to 48 carried, severally.

The Chair called Clause 49,

Roy Cullen moved, -- That Bill C-22, in Clause 49, be amended by replacing line 3 with the following:

"(c) notwithstanding section 56 of the Public Service Staff Relations Act, in accordance with the mandate approved by the Treasury"

After debate, the question being put on the amendment, it was agreed to.

Clause 49, as amended, carried.

Clauses 50 to 54 carried, severally.

The Chair called Clause 55,

Roy Cullen moved, -- That Bill C-22, in Clause 55, be amended by replacing line 13 on page 26 with the following:

"spect of a financial transaction or"

After debate, the question being put on the amendment, it was agreed to.

Clause 55, as amended, carried.

Clauses 56 to 64 carried, severally.

The Chair called Clause 65,

Roy Cullen moved, -- That Bill C-22, in Clause 65, be amended by replacing, in the French version, lines 25 and 26, page 36 with the following:

« organismes compétents chargés de l'application de la loi tout renseignement dont il prend »

After debate, the question being put on the amendment, it was agreed to.

Clause 65, as amended, carried.

Clauses 66 to 69 carried, severally.

The Chair called Clause 70,

Roy Cullen moved, -- That Bill C-22, in Clause 70, be amended by replacing lines 29 to 31 on page 37 with the following:

Audit

"70.(1) All receipts and expenditures of the Centre are subject to examination and audit by the Auditor General of Canada.

(2) The Auditor General of Canada and every person acting on behalf of or under the direction of the Auditor General of Canada shall not use or disclose any information referred to in subsection 55(1) that they have obtained, or to which they have had access, in the course of exercising powers or performing duties and functions under this Act or the Auditor General Act, except for the purposes of exercising those powers or performing those duties and functions."

After debate, the question being put on the amendment, it was agreed to.

Clause 70, as amended, carried.

Clause 71 carried.

Clause 72 carried.

The Chair called Clause 73,

Roy Cullen moved, -- That Bill C-22, in Clause 73, be amended by adding after line 28 on page 38 the following:

"(e.1) specifying the information to be contained in a report under section 7 or subsection 9(1);"

After debate, the question being put on the amendment, it was agreed to.

Clause 73, as amended, carried.

Clause 74 carried.

Clause 75 carried.

Clause 76 carried.

The Chair called Clause 77,

Roy Cullen moved, -- That Bill C-22, in Clause 77, be amended by replacing line 20 on page 40 with the following:

"cised due diligence to prevent its commis-"

After debate, the question being put on the amendment, it was agreed to.

Clause 77, as amended, carried.

Clause 78 carried.

The Chair called Clause 79,

Roy Cullen moved, -- That Bill C-22, in Clause 79, be amended by replacing line 40 on page 40 with the following:

"due diligence to prevent its commission."

After debate, the question being put on the amendment, it was agreed to.

Clause 79, as amended, carried.

Clauses 80 to 96 carried, severally.

The Chair called Clause 97,

Roy Cullen moved, -- That Bill C-22, in Clause 97, be amended by replacing lines 6 to 21 on page 46 with the following:

(a) subsection 7(3) of that Act is amended by adding the following after paragraph (c.1):

(c.2) made to the government institution mentioned in section 7 of the Proceeds of Crime (Money Laundering) Act as required by that section;

(b) subparagraph 9(2.1)(a)(i) of that Act is replaced by the following:

(i) any disclosure of information to a government institution or a part of a government institution under paragraph 7(3)(c), subparagraph 7(3)(c.1)(i) or (ii) or paragraph 7(3)(c.2) or (d), or

(c) subsection 9(2.3) of that Act is amended by striking out the word "o" at the end of paragraph (a) and by adding the following after paragraph (a):

(a.1) the detection, prevention or deterrence of money laundering; or

(d) subparagraph 9(2.4)(c)(i) of that Act is replaced by the following:

(i) any information that the organization has relating to a disclosure to a government institution or a part of a government institution under paragraph 7(3)(c), subparagraph 7(3)(c.1)(i) or (ii) or paragraph 7(3)(c.2) or (d) or to a request made by a government institution under either of those subparagraphs,

After debate, the question being put on the amendment, it was agreed to.

Clause 97, as amended, carried.

Clause 98 carried.

Clause 99 carried.

Clause 1 carried.

The Title carried.

The Bill, as amended, carried.

ORDERED, -- That the Chair report Bill C-22, An Act to facilitate combatting the laundering of proceeds of crime, to establish the Financial Transactions and Reports Analysis Centre of Canada and to amend and repeal certain Acts in consequence, with amendments, to the House as the Second Report of the Committee.

At 10:09 a.m., the Committee adjourned to the call of the Chair.

Pat Steenberg

Clerk of the Committee