Backgrounder

May 17, 2007

The Remedies for Organized Crime and Other Unlawful Activities Act (Civil Remedies Act) enables the Attorney General to ask the court for a civil order forfeiting the proceeds or instruments of unlawful activity to the Crown.

A proceed is property or money acquired as a result of unlawful activity. An instrument is property that is likely to be used to engage in unlawful activity in the future. The law permits a civil court, at the request of the Attorney General, to freeze, seize and forfeit to the Crown any type of property that is determined to be a proceed or an instrument of unlawful activity. Property includes all types of assets, such as real estate, cars and cash. Unlawful activity is not limited to activities covered by the Criminal Code. For example, it could include contraventions of other federal and provincial laws.

Under the Civil Remedies Act, the court can grant an interim order to freeze property pending the outcome of the forfeiture proceeding. If government lawyers can prove that the property in question is a proceed or an instrument of unlawful activity, the court can issue orders forfeiting the property to the Crown. The act then enables victims of the unlawful activity that leads to forfeiture to submit a claim for compensation against the forfeited property.

The process for civil forfeiture under the Civil Remedies Act begins when a designated institution, such as a police service or government ministry, submits a case to the reviewing authority, an independent Crown counsel in the Ministry of the Attorney General. That counsel decides whether the statutory criteria in the Civil Remedies Act have been met. Once that is confirmed, the case information is forwarded to the ministry's Civil Remedies for Illicit Activities (CRIA) Office, which is responsible for enforcing the act.

Civil forfeiture focuses solely on the connection between property and unlawful activity, and is not dependant on any criminal charges or convictions. The standard of proof required for civil forfeiture is the same as it is in all civil actions — a balance of probabilities.

Ontario's CRIA office is recognized nationally and internationally for its precedent-setting work. CRIA has successfully argued for the forfeiture of property on all of its 84 cases to date. Since November 2003, the province has collected on forfeitures totalling $3.6 million. The province currently also has $11.3 million in property frozen under the act, pending completion of civil forfeiture proceedings.

Distribution of Forfeited Funds

Forfeited property is normally liquidated and deposited into a special purpose account. The legislation enables direct victims of the unlawful activity, municipal corporations and prescribed public bodies to submit a claim for compensation or cost recovery against the forfeited property.

The legislation also allows for a grant program for distribution of funds remaining after victim compensation and cost recovery by the Crown. The purpose of the grant program is to support programs and initiatives that assist victims of unlawful activity, and enhance the ability of designated institutions to prevent unlawful activities that result in victimization.

In order to be considered for a grant, those designated institutions must meet the established criteria and include a project proposal outlining how the grant will assist victims of unlawful activities or prevent unlawful activities that result in victimization.

All applications are screened and assessed by the approval committee, which includes members from the Civil Remedies for Illicit Activities office, the Ministry of the Attorney General, and the Ministry of Community Safety and Correctional Services. The Attorney General continues to consult with stakeholders in this process.

Under the Civil Remedies Act, the government has, so far, distributed approximately $1 million in compensation to direct victims of unlawful activity. Earlier this year, a total of $763,000 in grants was awarded to 10 law enforcement agencies across Ontario including West Grey Police Service, for initiatives to assist victims of unlawful activity and prevent unlawful activities that result in victimization.

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