Proceeds of Crime Sales

Year
2004
Number
A1
Sponsor(s)
Delta

WHEREAS police departments are experiencing increasing demands for service, as both the amount and complexity of police work has increased as a result of court challenges, technology pressures, major crime investigations and organized crime; AND WHEREAS municipalities cannot continue to sustain increased policing costs through one source of revenue property tax: THEREFORE BE IT RESOLVED that the Union of BC Municipalities request that the Province and the federal government review legislative and non-legislative options in order to increase the ability to seize items that are proceeds of crime and to further ensure the funds from the disposition of these goods are distributed in an equitable manner directly to municipalities and regional districts to aid in covering policing costs.

Provincial Response

MINISTRY OF PUBLIC SAFETY AND SOLICITOR GENERAL The Forfeited Crime Proceeds Fund governs the disbursement of the forfeited crime proceeds in British Columbia. The province manages the Forfeited Crime Proceeds Fund in accordance with the Special Accounts Appropriation and Control Act. The funds are used to facilitate the administration of criminal justice and law enforcement in the province. Criteria stipulating how funds in the Forfeited Crime Proceeds Fund can be disbursed are outlined in a protocol agreement between the Solicitor General, the Attorney General and the Minister of Finance. One of the criteria stipulates that the monies must not be directly returned to agencies responsible for specific investigations or prosecutions. This criterion is intended to avoid a conflict of interest situation with police concentrating resources and efforts on criminal cases that may cause proceeds of crime to be viewed as revenue. British Columbia will continue to press the federal government for changes to federal criminal law and related statutes to better provide for the forfeiture of proceeds of crime. At the provincial level, British Columbia will also introduce civil forfeiture legislation to ensure that people do not profit from illegal activity, such as illegal drug production and trafficking.

Federal Response

MINISTRY OF PUBLIC SAFETY AND EMERGENCY PREPAREDNESS Stripping criminals of their profits, and impairing their ability to mount large-scale operations, is a key element in the fight against organized crime. As you are likely aware, my Portfolio is actively engaged in the enforcement of Criminal Code provisions concerning the proceeds of crime, through the Integrated Proceeds of Crime Initiative IPOC. This multi-departmental program provides the specialized investigative and prosecutorial expertise to target illicit proceeds of crime, especially those generated by major organized crime groups. IPOC has proven successful in disrupting and impairing the activities of these crime groups in communities across the country. Cooperation with local police agencies is an important aspect of IPOCs work, and this support is needed to ensure continued innovation and success. Any legislative changes to the current Criminal Code regime would fall under the responsibility of the Minister of Justice of Canada. I must emphasize that IPOCs focus is the disruption and incapacitation of organized crime groups, and not revenue generation for the government. Nonetheless, it may be helpful for you to review how the sharing of revenues from forfeitures to the federal government is handled. Under the Seized Property Management Act SPMA, the Minister of Public Works and Government Services and the Attorney General of Canada share joint responsibility. Public Works and Government Services Canada PWGSC manages property seized in relation to federal prosecutions, disposes of forfeited property, and tracks the costs and revenues associated with each case. At the end of the fiscal year, PWGSC compiles a list of closed cases and determines the net amount of revenues available for sharing. As set out in the Forfeited Property Sharing Regulations of the SPMA, it is the Attorney General of Canada who recommends the percentage of available revenues to be shared with the provinces and territories 90, 50, 10, depending on the contribution of each police force to the investigation that resulted in forfeiture. This determination is made on a case-by-case basis. These sharing percentages are then used by PWGSC to calculate the sharing payments for each province and territory. Memoranda of Understanding with the provinces and territories, concerning the sharing of revenues, fall primarily within the purview of the Attorney General of Canada.

Convention Decision
Endorsed as Amended