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Bill C-371

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First Session, Forty-second Parliament,
64-65-66 Elizabeth II, 2015-2016-2017
HOUSE OF COMMONS OF CANADA
BILL C-371
An Act respecting the prevention of radicalization through foreign funding and making related amendments to the Income Tax Act
FIRST READING, October 17, 2017
Mr. Clement
421370


SUMMARY
This enactment makes it an offence for a religious, cultural or educational institution to accept money or other valuable consideration from a foreign state if the Governor in Council is satisfied that there are reasonable grounds to believe that the foreign state promotes religious intolerance, subjects its citizens to torture or other cruel punishment or engages in activities that support radicalization. Institutions are also prohibited from accepting money or other valuable consideration from entities and individuals that have certain links to such a foreign state.
In addition, the enactment makes related amendments to the Income Tax Act to provide that the acceptance of money or other valuable consideration in contravention of the Prevention of Radicalization through Foreign Funding Act is a ground on which the Minister of National Revenue may refuse or revoke the status of registered charity or association.
Available on the House of Commons website at the following address:
www.ourcommons.ca


1st Session, 42nd Parliament,
64-65-66 Elizabeth II, 2015-2016-2017
HOUSE OF COMMONS OF CANADA
BILL C-371
An Act respecting the prevention of radicalization through foreign funding and making related amendments to the Income Tax Act
Preamble
Whereas religious, cultural and educational institutions play a central role in the lives of many Canadians;
Whereas some foreign states and some entities and individuals abroad provide those institutions with funding through donations or gifts;
Whereas funding could flow from foreign states, entities or individuals that support or promote extremism, radicalization or terrorism and that seek to influence those institutions;
Whereas Canada’s multicultural society, democratic system and national security are threatened by such funding;
And whereas the Parliament of Canada recognizes that measures must be taken to deter and prevent funding from foreign states, entities and individuals that are associated with extremism, radicalization or terrorism;
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

Short title
1This Act may be cited as the Prevention of Radicalization through Foreign Funding Act.

Interpretation

Definitions
2The 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. (Canadien)
entity means a corporation, trust, partnership or fund or an unincorporated association or organization. (entité)
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;
(c)any of its agencies or any agency of any of its political subdivisions; and
(d)any sovereign or other head of the foreign state or of any political subdivision of the foreign state while acting as such in a public capacity.
It does not include a country with which Canada is party to an extradition agreement or whose name is set out in the schedule to the Extradition Act, or a country that is designated under subsection 109.‍1(1) of the Immigration and Refugee Protection Act. (État étranger)
institution means an entity that is engaged primarily in religious, cultural or educational activities. (institution)
Minister means the Minister of Foreign Affairs. (mi­nistre)
radicalization means the process by which a person comes to support terrorism or extremist ideologies associated with terrorist groups. (radicalisation)

Her Majesty

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

Purpose of Act

Purpose
4The purpose of this Act is to deter and prevent an individual, entity or foreign state that supports, promotes or is associated with radicalization from funding an institution through donations or gifts.

Foreign States Set Out in Schedule

Schedule
5On the recommendation of the Minister made after consultation with the Minister of Public Safety and Emergency Preparedness, the Governor in Council may, by regulation, set out in the schedule the name of a foreign state if the Governor in Council is satisfied that there are reasonable grounds to believe that, in the ten-year period immediately before the recommendation is made, the foreign state
(a)has sentenced individuals to punishment based on their religious or spiritual beliefs or practices, including in relation to their renunciation of a religion;
(b)has subjected individuals to torture or other cruel, inhuman or degrading treatment or punishment or had laws that provide for such punishment; or
(c)has engaged in, attempted to engage in or facilitated activities that promote radicalization.
Removal from schedule
6(1)On the recommendation of the Minister, the Governor in Council may, by regulation, remove from the schedule the name of a foreign state.
Limitation
(2)The Minister may recommend that the name of a foreign state be removed from the schedule only if, after consulting with the Minister of Public Safety and Emergency Preparedness, the Minister is satisfied that there are reasonable grounds to believe that, in the ten-year period immediately before the recommendation is made, the foreign state did not engage in conduct referred to in any of paragraphs 5(a) to (c).
Review of schedule
7(1)Two years after the day on which this Act comes into force and every two years after that, the Minister, in consultation with the Minister of Public Safety and Emergency Preparedness,
(a)must review the schedule to determine whether there are still reasonable grounds under section 5 for the name of a foreign state to be set out in the schedule and make a recommendation to the Governor in Council as to whether it should remain set out in the schedule or be removed; and
(b)must review the schedule to determine whether there are reasonable grounds under section 5 to add the name of a foreign state to the schedule and, if so, make a recommendation to the Governor in Council that it be set out in the schedule.
Effect of review
(2)The review does not affect the validity of the schedule.
Completion of review
(3)The Minister must complete the review no later than 120 days after the day on which it is commenced. After completing the review, the Minister must, without delay, cause a notice to be published in the Canada Gazette that the review has been completed.
Application by foreign state for removal from schedule
8(1)On application in writing by a foreign state whose name is set out in the schedule, the Minister must, after consulting with the Minister of Public Safety and Emergency Preparedness, decide whether there are reasonable grounds to recommend to the Governor in Council that the name of the foreign state be removed from the schedule.
Notice of decision to applicant
(2)The Minister must, without delay, give notice to the foreign state of his or her decision.
New application
(3)A foreign state whose name is set out in the schedule may not make another application under subsection (1) until the Minister has next completed a review under subsection 7(1), unless there has been a material change in its circumstances since it made its last application.

Prohibitions

Prohibition — receipt of gift by institution
9(1)It is prohibited for an institution to accept or agree to accept money or other valuable consideration, including by gift, donation or bequest or legacy, knowing that it is from
(a)a foreign state whose name is set out in the schedule, a senior official of such a foreign state, a member of the official’s immediate family or an associate of the official;
(b)a foreign state whose name is set out on the list established under subsection 6.‍1(2) of the State Immunity Act, a senior official of such a foreign state, a member of the official’s immediate family or an associate of the official;
(c)an entity that is owned or controlled by, or acting on behalf of, a foreign state referred to in paragraph (a) or (b);
(d)a senior officer of an entity referred to in paragraph (c), a member of the officer’s immediate family or an associate of the officer;
(e)an individual or entity that has been convicted of an offence under the Special Economic Measures Act or an entity that is owned or controlled by, or acting on behalf of, such an individual or entity;
(f)an individual, entity or foreign state that has advocated or promoted genocide, as defined in subsection 318(2) of the Criminal Code, or the commission of subversive or hostile activities against Canada, or that has expressed support for a listed entity, as defined in subsection 83.‍01(1) of that Act;
(g)an individual or entity that has been convicted of an offence under this Act; or
(h)an individual or entity that has committed an act outside Canada that, if committed in Canada, would constitute an offence under subsection 83.‍221(1) of the Criminal Code.
Prohibition — receipt of gift on behalf of institution
(2)It is prohibited for an individual or entity in Canada and any Canadian outside Canada to accept or agree to accept money or other valuable consideration, including by gift, donation or bequest or legacy, knowing that it is from a foreign state, entity or individual referred to in subsection (1) and intending that it be used, or knowing that it will be used, in whole or in part, to fund activities of an institution.
Deemed donation
(3)An offer to enter into a gratuitous contract or a contract without consideration or with a merely nominal consideration, respecting either real or personal property or immovables or movables, is deemed to be a donation for the purposes of this section if it is made by a foreign state, entity or individual referred to in subsection (1).

Offences and Punishment

Offence
10(1)Every individual or entity that contravenes subsection 9(1) or (2) commits an offence.
Punishment — individuals
(2)Every individual who commits an offence under subsection (1) is liable
(a)on conviction on indictment, to a fine not exceeding $500,000 or to imprisonment for a term not exceeding ten years, or to both; or
(b)on summary conviction,
(i)for a first offence, to a fine not exceeding $50,000 or to imprisonment for a term not exceeding one year, or to both, and
(ii)for a subsequent offence, to a fine not exceeding $100,000 or to imprisonment for a term not exceeding two years, or to both.
Punishment — entities
(3)Every entity that commits an offence under subsection (1) is liable
(a)on conviction on indictment, to a fine not exceeding $500,000; or
(b)on summary conviction,
(i)for a first offence, to a fine not exceeding $50,000, and
(ii)for a subsequent offence, to a fine not exceeding $100,000.
Liability of officers, etc.
11(1)If an entity commits an offence under this Act, any director, officer, agent or mandatary of the entity who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to the offence and liable on conviction to the punishment provided for by this Act for an individual who commits the offence, whether or not the entity has been prosecuted or convicted.
Offence by employee, agent or mandatary
(2)In a prosecution for an offence under this Act, it is sufficient proof of the offence to establish that it was committed by an employee or agent or mandatary of the accused, whether or not the employee, agent or mandatary is identified or has been prosecuted for the offence, unless the accused establishes that the offence was committed without the accused’s knowledge or consent and that the accused exercised due diligence to prevent its commission.
Limitation period
12Proceedings by way of summary conviction under this Act may be instituted at any time within two years after the day on which the Minister becomes aware of the acts or omissions that constitute the alleged offence.
Proceedings
13(1)Any proceedings in respect of an offence under this Act may be tried and determined by the court having jurisdiction at the place in Canada where the offence was committed or at the place in Canada in which the individual or entity charged with the offence is, resides or has an office or place of business at the time of commencement of the proceedings.
Proceedings — Canadians outside Canada
(2)If a Canadian is alleged to have committed, outside Canada, an offence under this Act, any proceedings in respect of that offence may, whether or not the Canadian is in Canada, be commenced in any territorial division in Canada, and the accused may be tried and punished in respect of that offence in the same manner as if the offence had been committed in that territorial division.
Appearance
(3)For greater certainty, the provisions of the Criminal Code relating to requirements that an accused appear at and be present during proceedings and the exception to those requirements apply to proceedings commenced under subsection (2) in any territorial division.

Regulations

Regulations
14The Governor in Council may make regulations
(a)specifying exceptions to the application of this Act or the regulations or a provision of this Act or the regulations, including in relation to pension payments to any individual in Canada or any Canadian outside Canada;
(b)respecting applications referred to in subsection 8(1);
(c)for the purposes of section 9, defining the terms “immediate family” and “associate”; and
(d)generally, for carrying out the purposes and provisions of this Act.
R.‍S.‍, c. 1 (5th Supp.‍)

Related Amendments to the Income Tax Act

15(1)The definition relevant offence in subsection 149.‍1(1) of the Income Tax Act is amended by striking out “or” at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following after paragraph (b):
(c)is punishable under the Prevention of Radicalization through Foreign Funding Act; (infraction pertinente)
(2)Subsection 149.‍1(4.‍1) of the Act is amended by striking out “and” at the end of paragraph (e), by adding “and” at the end of paragraph (f) and by adding the following after paragraph (f):
(g)of a registered charity, if it accepts a gift from a foreign state set out in the schedule to the Prevention of Radicalization through Foreign Funding Act or from an individual or entity referred to in subsection 9(1) of that Act.
(3)Subsection 149.‍1(25) of the 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):
(d)the charity or association has accepted a gift from a foreign state set out in the schedule to the Prevention of Radicalization through Foreign Funding Act or from an individual or entity referred to in subsection 9(1) of that Act.


Schedule

(Sections 5 to 9)
Foreign States

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