Bill C-689

2nd Session, 41st Parliament,

62-63-64 Elizabeth II, 2013-2014-2015

house of commons of canada

BILL C-689

An Act to enact the Global Human Rights Accountability Act and to make related amendments to the Special Economic Measures Act and the Immigration and Refugee Protection Act

Whereas human rights and the rule of law are integral to international law and Canada has repeatedly asserted its commitment to promoting international justice and respect for human rights;

Whereas signatory States to international human rights agreements have committed themselves to the obligations and responsibilities set out in those agreements;

Whereas Sergei Magnitsky, a Moscow lawyer who uncovered the largest tax fraud in Russian history, was detained without trial, tortured and consequently died in a Moscow prison on November 16, 2009;

Whereas no thorough, independent and objective investigation has been conducted by Russian authorities into the detention, torture and death of Sergei Magnitsky, nor have the individuals responsible been brought to justice;

Whereas the unprecedented posthumous trial and conviction of Sergei Magnitsky in Russia for the very fraud he uncovered constitute a violation of the principles of fundamental justice and the rule of law;

Whereas the United States of America has adopted legislation imposing sanctions against the individuals complicit in the Sergei Magnitsky case, and motions calling for similar sanctions have been adopted by the European Parliament, the Parliamentary Assembly of the Organization for Security and Cooperation in Europe, the Parliamentary Assembly of the Council of Europe, the British House of Commons, the Dutch House of Representatives and the Italian Chamber of Deputies;

Whereas motions unanimously adopted by the House of Commons of Canada on March 25, 2015, and by the Senate of Canada on May 5, 2015, condemn the mistreatment of Sergei Magnitsky as “a violation of the principles of fundamental justice and the rule of law” and call for sanctions against individuals “who were responsible for the detention, torture or death of Sergei Magnitsky or who have been involved in covering up the crimes he exposed”;

And whereas the motions adopted by the House of Commons and by the Senate also call for sanctions against any foreign nationals responsible for violations of internationally recognized human rights in a foreign country, when authorities in that country are unable or unwilling to conduct a thorough, independent and objective investigation of the violations;

Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

SHORT TITLE

1. This Act may be cited as the Global Magnitsky Human Rights Accountability Act.

ENACTMENT OF THE GLOBAL HUMAN RIGHTS ACCOUNTABILITY ACT

2. The Global Human Rights Accountability Act is enacted as follows:

An Act to provide for the taking of restrictive measures in respect of foreign nationals responsible for gross violations of internationally recognized human rights

SHORT TITLE

1. This Act may be cited as the Global Human Rights Accountability Act.

INTERPRETATION

2. (1) The following definitions apply in this Act.

“Canadian” means a person who is a citizen within the meaning of the Citizenship Act or a corporation incorporated or continued by or under the laws of Canada or of a province.

“entity” means a corporation, trust, partnership, fund, an unincorporated association or organization or a foreign state.

“foreign national” means an individual who is not

(a) a Canadian citizen; or

(b) a permanent resident under the Immigration and Refugee Protection Act.

“foreign state” means a country other than Canada, and includes

(a) any of its political subdivisions;

(b) its government and any of its departments, or the government or any department of any of its political subdivisions; and

(c) any of its agencies or any agency of any of its political subdivisions.

“Minister” means the Minister of Foreign Affairs.

“person” means an individual or an entity.

“prescribed” means prescribed by regulation.

“property” means any real, personal, movable or immovable property.

(2) For the purposes of this Act, the property of a person includes property controlled, directly or indirectly, by the person.

HER MAJESTY

3. This Act is binding on Her Majesty in right of Canada or a province.

ORDERS AND REGULATIONS

4. (1) The Governor in Council may, if satisfied based on reliable and appropriate evidence that the circumstances described in subsection (2) have occurred,

(a) make any orders or regulations with respect to the restriction or prohibition of any of the activities referred to in subsection (4) in relation to the foreign national’s property that the Governor in Council considers necessary; and

(b) by order, cause to be seized, frozen or sequestrated in the manner set out in the order any of the foreign national’s property situated in Canada.

(2) The circumstances referred to in subsection (1) are the following:

(a) a foreign national is responsible for, or complicit in, extrajudicial killings, torture or other gross violations of internationally recognized human rights committed against individuals in any foreign country who seek

(i) to expose illegal activity carried out by government officials, or

(ii) to obtain, exercise, defend or promote internationally recognized human rights and freedoms, such as the freedoms of religion, expression, association and assembly, and the rights to a fair trial and democratic elections;

(b) a foreign national acts as an agent or on behalf of a foreign state in a matter relating to an activity described in paragraph (a);

(c) a foreign national who is a government official of a foreign state, or a senior associate of such an official, is responsible for, or complicit in, ordering, controlling, or otherwise directing, acts of significant corruption, including the expropriation of private or public assets for personal gain, corruption related to government contracts or the extraction of natural resources, bribery or the facilitation or transfer of the proceeds of corruption to foreign jurisdictions; or

(d) a foreign national has materially assisted, sponsored, or provided financial, material or technological support for, or goods or services in support of, an activity described in paragraph (c).

(3) The Governor in Council may take into account information obtained by other countries and non-governmental organizations that monitor violations of human rights.

(4) Orders and regulations may be made under paragraph (1)(a) with respect to the restriction or prohibition of any of the following activities, whether carried out in or outside Canada:

(a) the dealing, directly or indirectly, by any person in Canada or Canadian outside Canada in any property, wherever situated, of the foreign national;

(b) the entering into or facilitating, directly or indirectly, by any person in Canada or Canadian outside Canada, of any financial transaction related to a dealing referred to in paragraph (a); and

(c) the provision by any person in Canada or Canadian outside Canada of financial serv­ices or other related services in respect of property of the foreign national.

5. An order or regulation made under section 4 in respect of a foreign national ceases to have effect on the day that is five years after the day on which it comes into force unless the Governor in Council, by order, extends it for the period specified in the order. It may be extended more than once.

6. A copy of each order or regulation made under section 4 must be tabled in each House of Parliament within 15 days after it is made. It may be sent to the Clerk of the House if the House is not sitting.

DUTY TO DETERMINE

7. Each of the following entities must determine on a continuing basis whether it is in possession or control of property that they have reason to believe is the property of a foreign national who is the subject of an order or regulation made under section 4:

(a) authorized foreign banks, as defined in section 2 of the Bank Act, in respect of their business in Canada or banks to which that Act applies;

(b) cooperative credit societies, savings and credit unions and caisses populaires regulated by a provincial Act and associations regulated by the Cooperative Credit Associations Act;

(c) foreign companies, as defined in subsection 2(1) of the Insurance Companies Act, in respect of their insurance business in Canada;

(d) companies, provincial companies and societies, as those terms are defined in subsection 2(1) of the Insurance Companies Act;

(e) fraternal benefit societies regulated by a provincial Act in respect of their insurance activities and insurance companies and other entities engaged in the business of insuring risks that are regulated by a provincial Act;

(f) companies to which the Trust and Loan Companies Act applies;

(g) trust companies regulated by a provincial Act;

(h) loan companies regulated by a provincial Act;

(i) entities that engage in any activity described in paragraph 5(h) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act if the activity involves the opening of an account for a client;

(j) entities authorized under provincial legislation to engage in the business of dealing in securities or to provide portfolio management or investment counselling services; and

(k) other entities of a prescribed class of entities.

RIGHTS OF PERSONS WHO ARE SUBJECT TO AN ORDER OR REGULATION

8. (1) A person who is the subject of an order or regulation made under section 4 may apply in writing to the Minister to cease being the subject of the order or regulation on the grounds that the person is not a foreign national.

(2) If the Minister has reasonable grounds to believe that the applicant is not a foreign national, the Minister must recommend to the Governor in Council that the order or regulation be amended or repealed, as the case may be, so that the applicant is no longer the subject of the order or regulation.

(3) The Minister must give notice without delay to the applicant of any decision to reject the application.

APPLICATION FOR A CERTIFICATE

9. (1) A person claiming not to be a foreign national may apply to the Minister in writing for a certificate stating that they are not a foreign national who is the subject of an order or regulation made under section 4.

(2) If the Minister determines that the person is not a foreign national, the Minister must issue a certificate to the applicant as soon as feasible.

10. (1) A person who is the subject of an order or regulation made under section 4 may apply to the Minister in writing for a certificate to exempt property from the application of the order or regulation if the property is necessary to meet the reasonable expenses of the person and their dependents.

(2) If the Minister determines that the property is necessary to meet the reasonable expenses of the applicant and their dependents, the Minister must issue a certificate to the applicant as soon as feasible.

GENERAL

11. A person who, in relation to any property that is the subject of an order or regulation made under section 4, acts reasonably in taking, or omitting to take, measures to comply with the order or regulation is not liable in any civil action arising from having taken or omitted to take the measures if they took all reasonable steps to satisfy themselves that the property was property that is the subject of the order or regulation.

12. All secured and unsecured rights and interests in any property that is the subject of an order or regulation made under section 4 that are held by a person, other than the foreign national who is the subject of the order or regulation, are entitled to the same ranking that they would have been entitled to had the order or regulation not been made.

13. The making of an order or regulation under section 4 does not preclude the commencement of proceedings under any Act of Parliament other than this Act, or any civil proceedings, in respect of any property that is the subject of the order or regulation.

14. The Governor in Council may make regulations for carrying out the purposes and provisions of this Act, including regulations prescribing anything that by this Act is to be prescribed.

REVIEW AND REPORT

15. (1) Within five years after this section comes into force, a comprehensive review of the provisions and operation of this Act and of the Special Economic Measures Act must be undertaken by the committee of the Senate and of the House of Commons that may be designated or established by the Senate and the House of Commons for that purpose.

(2) The committees referred to in subsection (1) must, within a year after a review is undertaken pursuant to that subsection or within the further time that may be authorized by the Senate or the House of Commons, as the case may be, submit a report on the review to Parliament, including a statement of any changes that the committees recommend.

RELATED AMENDMENTS

Special Economic Measures Act

3. (1) The portion of subsection 4(1) of the Special Economic Measures Act before paragraph (a) is replaced by the following:

4. (1) The Governor in Council may, if he or she is satisfied, based on reliable and appropriate evidence, that the circumstances described in subsection (1.1) have occurred,

(2) Section 4 of the Act is amended by adding the following after subsection (1):

Immigration and Refugee Protection Act

4. Subsection 35(1) of the Immigration and Refugee Protection Act is amended by striking out “or” at the end of paragraph (b), by adding “or” at the end of paragraph (c) and by adding the following after paragraph (c):