Criminal Code and CDSA - Section 2 and Section 462.3 CC

Organized Crime and Property

• Organized crime can be described in two places: Section 2 of the Criminal Code and Section 2 of the Controlled Drugs and Substances Act (CDSA)
• The difference between the two definitions is that the Criminal Code definition includes any property linked to an indictable offence, whereas the CDSA definition is limited to designated drug offences

Possession of Proceeds of Crime

• Section 462.3 of the Criminal Code: no person shall possess any property or proceeds of crime knowing that all or part of the property or proceeds was obtained or derived directly or indirectly as a result of the commission of an offence in Canada
• Proceeds of crime: any property, benefit, or advantage within or outside Canada, obtained or derived directly or indirectly as a result of the commission of a designated offence
• Designated offence: any offence prosecuted as an indictable offence under the Criminal Code or any other Act of Parliament, excluding prescribed offences by regulation
• Penalty: dual procedure offence, indictable if the value of the property or proceeds exceeds $1,000

Money Laundering

• Section 462.31 of the Criminal Code: makes it an offence to be involved in any way with the laundering of proceeds of crime, such as using, transferring, or transporting funds raised through criminal activity
• Amended in 2019 to make it a crime to be reckless as to whether all or part of the property or proceeds was obtained or derived from criminal activity
• Penalty: up to 10 years imprisonment, up to 6 months fine, up to $2,000, or both (summary)

Indicators of Criminality

• Elastic vs. banks: use of paper bands to bundle money, specific markings or folds, and use of shrink wrap or masking agents
• Existence of legitimate paperwork versus card numbers, addresses, phone numbers, and email addresses

Financial Investigative Units

• Memoranda of understanding with FIUs in 109 countries
• Can send and receive queries from foreign FIUs, but only with permission

Money Laundering Process

• Process used by criminal organizations or white-collar criminals to disguise the origin of money to make it appear legitimate
• Can involve setting up a cash-based business, mixing in legitimate money with criminal proceeds, and making it difficult for tax authorities or police to track the source of the funds

Agents and Judicial Authorizations

• An agent: a person who acts on behalf of a law enforcement agency or under the direction of the agency
• Identity of an agent cannot be protected
• Agents make notes, sign contracts, and testify
• Paid by the law enforcement agency for their services, or may provide services without payment

Judicial Authorizations

• CDSA 11(1): production order
• Criminal Code 487(1): search warrant
• Part VI authorization under the Criminal Code (wiretap): section 184
• Charter sections 8, 9, 10, and 24

Firearms and Weapons

• Definition of a weapon in the Criminal Code: anything used, designed to be used, or intended for use in causing death or injury, or for threatening or intimidating
• Definition of a firearm in the Criminal Code: a barrelled weapon from which any shot, bullet, or other projectile can be discharged, capable of causing serious bodily injury or death
• Non-restricted firearms: commonly used for hunting or sporting purposes, do not require registration, but require a possession and acquisition licence (PAL)
• Restricted firearms: include handguns, firearms designed or adapted to fire after being reduced, and certain modified rifles or shotguns
• Prohibited firearms: fully automatic, converted automatic, modified rifles or shotguns with certain lengths, and certain handguns

Search and Seizure

• CC 487(1): search warrant
• Public safety seizure: CC 117.04(1) and CC 117.04(2)
• Procedure to enter, seize, and prohibit a person from possessing weapons, where a peace officer is satisfied that it is not desirable for the person to possess any weapon, prohibited device, or ammunition due to public safety concerns