IRFAN added to Canadian governments list of “listed entities”

April 29, 2014 | By: .(JavaScript must be enabled to view this email address) Mark Blumberg
Topics: News, What's New from the Charities Directorate of CRA, Canadian Charity Law, Global Giving

The Globe and Mail this morning had an article on the International Relief Fund for the Afflicted and Needy – Canada which is also known as IRFAN – Canada.  CRA had revoked the charitable status of IRFAN - Canada.   IRFAN - Canada is appealing that decision to the Federal Court of Appeal.  Today the Canadian government in the Canada Gazette added IRFAN - Canada as a "listed entity".   We have posted material on IRFAN - Canada before including the letters to IRFAN - Canada from the CRA with respect to the CRA's concerns.   It will be interesting to see how this story develops and the status of the appeal.

Here is a press release from the Canadian government on IRFAN:

Government of Canada Lists IRFAN-Canada as terrorist entity

It is now a criminal offence to knowingly deal in the property or finances of this entity

April 29, 2014      Ottawa      Public Safety Canada

The Honourable Steven Blaney, Minister of Public Safety and Emergency Preparedness, today announced that the Government of Canada has listed the International Relief Fund for the Afflicted and Needy-Canada (IRFAN-Canada) as a terrorist entity under the Criminal Code.

IRFAN-Canada is a not for profit organization operating in Canada. Between 2005 and 2009, IRFAN-Canada transferred approximately $14.6 million worth of resources to various organizations associated with Hamas, a listed terrorist entity under the Criminal Code.

The law mandates severe penalties for persons and organizations that deal in the property or finances of a listed entity. In addition, it is a crime to knowingly participate in, or contribute to, any activity of a listed entity for the purpose of enhancing the ability of the entity to facilitate or carry out a terrorist activity. This offence and related offences are set out, in full, in the Criminal Code.

The actions of IRFAN-Canada meet the legal threshold set out in the Criminal Code, which requires the existence of reasonable grounds to believe that the entity has knowingly participated in or facilitated a terrorist activity or is knowingly acting on behalf of, at the direction of, or in association with such an entity.

Quick Facts

The listing process requires extensive analysis of intelligence and/or criminal information.
Between 2005 and 2009, IRFAN-Canada transferred approximately $14.6 million worth of resources to various organizations associated with Hamas.
The Canada Revenue Agency (CRA) revoked IRFAN-Canada's charitable status in 2011. CRA's findings indicated that IRFAN-Canada provided resources to operating partners that were run by officials of Hamas, openly supported and provided funding to Hamas, or have been listed by various jurisdictions because of their support for Hamas.

Quotes

“The Government of Canada is unwavering in its commitment to protect Canadians from the threat of terrorism. By listing IRFAN-Canada, we are sending the strong message that Canada will not tolerate terrorist activities including the financing of terrorist groups. IRFAN-Canada has knowingly financed Hamas, a listed terrorist entity, for many years. The well intentioned and charitable Canadians who sought to support humanitarian relief through this organization deserve better.”
– Steven Blaney, Minister of Public Safety and Emergency Preparedness

Related Products

The names of listed entities under the Criminal Code can be found on the Public Safety Canada Web site at http://www.publicsafety.gc.ca under National Security, Counter-Terrorism.

Contacts

Jason Tamming
Press Secretary
Office of the Minister of Public Safety and Emergency Preparedness
613-991-2924

Media Relations
Public Safety Canada
613-991-0657

Follow Public Safety Canada (@Safety_Canada) on Twitter.

For more information, please visit the website http://www.publicsafety.gc.ca.

Date Modified: 2014-04-29

Here is a note of the Public Safety website of the Canadian government about IRFAN:

International Relief Fund for the Afflicted and Needy - Canada

Also known as
International Relief Fund for the Afflicted and Needy, International Relief Fund for the Afflicted and Needy (Canada), IRFAN, IRFAN – Canada, IRFAN Society

Description
The International Relief Fund for the Afflicted and Needy-Canada (IRFAN-Canada) is a not for profit organization operating in Canada. Between 2005 and 2009, IRFAN-Canada transferred approximately $14.6 million worth of resources to various organizations with links to Hamas.

Date listed
2014-04-28

Date reviewed
N/A

Here is an excerpt from the Canada Gazette on IRFAN released today:

----------------

EXTRA Vol. 148, No. 1

Canada Gazette

Part Ⅱ

OTTAWA, TUESDAY, APRIL 29, 2014

Registration

SOR/2014-97 April 24, 2014

CRIMINAL CODE

Regulations Amending the Regulations Establishing a List of Entities

P.C. 2014-466 April 24, 2014

Whereas the Governor in Council, on the recommendation of the Minister of Public Safety and Emergency Preparedness, is satisfied that there are reasonable grounds to believe that the entity referred to in the annexed Regulations Amending the Regulations Establishing a List of Entities has knowingly carried out, attempted to carry out, participated in or facilitated a terrorist activity or is knowingly acting on behalf of, at the direction of or in association with such an entity;

Therefore, His Excellency the Governor General in Council, on the recommendation of the Minister of Public Safety and Emergency Preparedness, pursuant to subsection 83.05(1) (see footnote a) of the Criminal Code (see footnote b), makes the annexed Regulations Amending the Regulations Establishing a List of Entities.

REGULATIONS AMENDING THE REGULATIONS ESTABLISHING A LIST OF ENTITIES

AMENDMENT

1. Section 1 of the Regulations Establishing a List of Entities (see footnote 1) is amended by adding the following at the end of that section:

International Relief Fund for the Afflicted and Needy – Canada (also known among other names as International Relief Fund for the Afflicted and Needy, International Relief Fund for the Afflicted and Needy (Canada), IRFAN, IRFAN – Canada and IRFAN Society)

COMING INTO FORCE

2. These Regulations come into force on the day on which they are registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issues

The Regulations support the Government of Canada’s efforts to protect Canadians against the threat of terrorism. The listing of terrorist entities facilitates the prosecution of perpetrators and supporters of terrorism and plays a key role in countering terrorist financing.

Background

On December 18, 2001, Bill C-36, the Anti-terrorism Act, received Royal Assent. The Anti-terrorism Act provides the Government of Canada with the ability to create a list of entities. Under the Criminal Code, the Governor in Council may, on the recommendation of the Minister of Public Safety and Emergency Preparedness, establish a list of entities if the Governor in Council is satisfied that there are reasonable grounds to believe that the entity has knowingly carried out, attempted to carry out, participated in or facilitated a terrorist activity; or is knowingly acting on behalf of, at the direction of or in association with an entity that has knowingly carried out, attempted to carry out, participated in or facilitated a terrorist activity.

An entity is defined in the Criminal Code as a person, group, trust, partnership or fund or an unincorporated association or organization. A listed entity is included in the definition of terrorist group in the Criminal Code so offences applicable to terrorist groups apply to these entities. However, unlike terrorist groups that are not listed, a prosecution related to a listed entity does not require the Crown to demonstrate that the entity has, as one of its purposes or activities, facilitated or carried out a terrorist activity.

The Criminal Code makes it an offence, among others, to knowingly

participate in or contribute to, directly or indirectly, any activity of a terrorist group for the purpose of enhancing the ability of any terrorist group to facilitate or carry out a terrorist activity; or
instruct, directly or indirectly, any person to carry out any activity for the benefit of, at the direction of or in association with a terrorist group for the purpose of enhancing the ability of any terrorist group to facilitate or carry out a terrorist activity.

The Criminal Code provides for a thorough and fair mechanism for reviewing the listing of an entity. A listed entity may apply to the Minister of Public Safety and Emergency Preparedness requesting that it no longer be a listed entity. In such cases, the Minister of Public Safety and Emergency Preparedness would determine whether there are reasonable grounds to recommend to the Governor in Council that the applicant no longer be a listed entity. The entity may have the decision reviewed by the Federal Court.

Objectives

The listing of an entity means that the entity’s property can be the subject of seizure/restraint and/or forfeiture. In addition, institutions, such as banks and brokerages, are subject to reporting requirements with respect to an entity’s property and must not allow those entities to access the property nor may these institutions deal with or otherwise dispose of the property.

Description

Section 1 of the Regulations Establishing a List of Entities is amended by

Adding the International Relief Fund for the Afflicted and Needy – Canada to the list of terrorist entities and its aliases: International Relief Fund for the Afflicted and Needy, International Relief Fund for the Afflicted and Needy (Canada), IRFAN, IRFAN – Canada, IRFAN Society

“One-for-One” Rule

The “One-for-One” Rule does not apply to this proposal, as there is no change in administrative costs to business.

Small business lens

The small business lens does not apply to this proposal, as there are no costs (or insignificant costs) on small business.

Consultation

All concerned departments have been consulted through the Interdepartmental Coordinating Committee on Listings.

Rationale

The listing of entities under the Criminal Code enhances Canada’s national security, strengthens the Government’s ability to take action against terrorists and gives effect to international obligations including the implementation of the United Nations International Convention for the Suppression of the Financing of Terrorism and United Nations Security Council resolution 1373. In addition, the listing of an entity is a means for the Government to inform Canadians of the Government’s position with regard to a particular entity.

Implementation, enforcement and service standards

Compliance is ensured by criminal law sanctions. For instance, everyone who knowingly participates in or contributes to any activity of a terrorist group for the purpose of enhancing the ability of any terrorist group to facilitate or carry out a terrorist activity is guilty of an indictable offence and liable to imprisonment. The definition of terrorist group includes a listed entity.

Listing a terrorist entity sets in motion requirements for reporting suspicious terrorist financing transactions and requires anyone to disclose to the Royal Canadian Mounted Police and the Canadian Security Intelligence Service the existence of any property in his or her possession or control that he or she knows is owned or controlled by or on behalf of a terrorist group. As noted previously, the definition of a terrorist includes a listed entity.

In addition, bodies that are subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act must also report the information to the Financial Transactions and Reports Analysis Centre of Canada. The costs to banks, financial institutions, and individuals in meeting these requirements are not significant due in large part to the existence of electronic banking systems while there are significant benefits of the Regulations for the security of Canada and Canadians.

Contact

Public Safety Canada
269 Laurier Avenue West
Ottawa, Ontario
K1A 0P8
Telephone: 613-944-4875 or 1-800-830-3118
Fax: 613-954-5186

Footnote a
S.C. 2005, c. 10, subpar. 34(1)(f)(iii)
Footnote b
R.S., c. C-46
Footnote 1
SOR/2002-284

Here are some other links that may be of interest:


 

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Mark Blumberg is a partner at the law firm of Blumberg Segal LLP in Toronto and works almost exclusively in the areas of non-profit and charity law.

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