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First
Session, 51st General Assembly 5 Charles III, 2026 |
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AN ACT RESPECTING
CIVIL FORFEITURE OF PROPERTY |
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Received and Read the First Time................................................................ |
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Second
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Committee..................................................................................................... |
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Third
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Royal Assent................................................................................................. |
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HONOURABLE HELEN CONWAY OTTENHEIMER, KC Minister of Justice and Public Safety and Attorney General |
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Ordered to be printed by
the Honourable House of Assembly |
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EXPLANATORY NOTES This Bill would enact the Civil Forfeiture Act. The Bill would ˇ authorize the Supreme Court, on the application of the Director of Civil Forfeiture, to make an order forfeiting to the Crown the whole of an interest in property that is proceeds of unlawful activity, the portion of an interest in property that is proceeds of unlawful activity or property that is an instrument of unlawful activity; ˇ authorize the Supreme Court, on application of the Director of Civil Forfeiture, to make one or more prescribed interim preservation orders in relation to the whole or the portion of an interest in property that is proceeds of unlawful activity or the property in which the whole or the portion of an interest in property is held; ˇ authorize the Supreme Court, on the application of the Director of Civil Forfeiture, to make an order requiring a person to disclose to the Director of Civil Forfeiture information or records in the custody or control of the person where the information or records are reasonably required by the Director of Civil Forfeiture to exercise powers or perform duties or functions under the Act; ˇ authorize the Supreme Court, on application of the Director of Civil Forfeiture, to make unexplained wealth orders; ˇ require the Supreme Court, where the Supreme Court finds that property is an instrument of unlawful activity and the person is an uninvolved interest holder with respect to the property, to make the orders necessary to protect the interest in property held by the uninvolved interest holder; ˇ authorize the Supreme Court, on application of the Director of Civil Forfeiture, to make one or more prescribed orders related to forfeiture orders and protection orders; ˇ establish a scheme of administrative forfeiture to the Crown and disposal by the Director of Civil Forfeiture of specified property without having to commence forfeiture proceedings in the Supreme Court; ˇ establish presumptions relating to proving, for the purposes of proceedings under the Act, that property is proceeds of unlawful activity or an instrument of unlawful activity; ˇ appoint a Director of Civil Forfeiture and prescribe the powers, duties and functions of the Director of Civil Forfeiture; and ˇ establish a special purpose account in the Consolidated Revenue Fund called the civil forfeiture account and prescribe the money the Director of Civil Forfeiture is required to pay into the account and the payments that the Director of Forfeiture is permitted to make from the account. A BILL AN ACT RESPECTING CIVIL FORFEITURE OF
PROPERTY Analysis 1. Short title PART
I 2. Interpretation 3. Purpose 4. Application 5. Labrador Inuit rights PART
II 6. Application for forfeiture order 7. Parties and notification 8. Response shall identify interest in property 9. Forfeiture order 10. Relief from forfeiture 11. Effective date of forfeiture order PART
III 12. Interim preservation order 13. Interim preservation order made without notice 14. Receiver manager 15. Application of Personal Property Security Act PART
IV 16. Order to produce information or records required by director 17. Order made without notice 18. Court file may be sealed PART
V 19. Unexplained wealth order 20. Application for unexplained wealth order 21. Grounds for unexplained wealth order 22. Extensions 23. Conduct examination 24. Prohibition PART
VI 25. Protection order 26. Orders related to forfeiture orders and protection orders PART
VII 27. Application of Part 28. Subject property forfeited to Crown 29. Notice of administrative forfeiture proceedings 30. Law enforcement agency entitled to possession 31. Notice to known interest holders 32. Notice of dispute by claimed interest holder 33. Where director receives notice of dispute 34. Settlement where forfeiture disputed 35. Where no notice of dispute received 36. Effective date of forfeiture under this Part 37. Innocent failure to deliver notice of dispute 38. Notice of remaining proceeds 39. Notice of interest in remaining proceeds 40. Where director receives notice of interest 41. No compensation payable PART
VIII 42. Proceedings under Act 43. Standard of proof 44. Failure to seek forfeiture in sentencing does not prevent forfeiture 45. Amending pleadings after unexplained wealth order 46. Proof of unlawful activity 47. Where no conviction or finding of unlawful activity 48. Determination respecting proceeds of unlawful activity 49. Proceeds of unlawful activity - property of members of criminal organizations 50. Presumption - criminal organization offence 51. Proceeds of unlawful activity - cash or negotiable instruments 52. Instruments of unlawful activity - motor vehicle, vessel, aircraft or other conveyance 53. Instrument of unlawful activity - refusing to stop or fleeing from police 54. Non-compliance with unexplained wealth order PART
IX 55. Director 56. Powers, duties and functions of director 57. Information sharing 58. Notice to produce information 59. Requirement to not disclose existence of notice 60. Annual report 61. Filing notices in registries PART
X 62. Establishment of civil forfeiture account 63. Allocation of funds 64. Payment out of civil forfeiture account 65. Application for compensation 66. Payment to eligible victim 67. Manner of payment 68. Reconsideration of decision 69. Repayment of excess compensation received PART
XI 70. Where possession unlawful 71. Forfeited property free from other interests 72. Protection from liability 73. Provincial Offences Act 74. Limitation period 75. Fees and forms 76. Regulations 77. SNL2015 cA-1.2 Amdt. 78. Commencement Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows: Short title 1. This
Act may be cited as the Civil Forfeiture
Act. PART I Interpretation 2. (1) In this Act (a) "civil forfeiture account" means the special purpose account established under subsection 62(1); (b) "claimant" means a person referred to in subsection 37(1); (c) "controlled substance" has the same meaning as in the Controlled Drugs and Substances Act (Canada); (d) "conviction" means a conviction (i) that is not subject to appeal or further appeal, or (ii) for which no appeal is taken; (e) "court" means the Supreme Court; (f) "criminal organization" has the same meaning as in the Criminal Code; (g) "criminal organization offence" has the same meaning as in the Criminal Code; (h) "department" means the department presided over by the minister; (i) "director" means the Director of Civil Forfeiture appointed under subsection 55(1); (j) "dispute period" means, in relation to a subject property, a period which ends on the later of the following dates: (i) 60 days after the date on which notice is published in accordance with subsection 29(3), or (ii) 60 days after notice is considered to have been received by all known interest holders under subsection 31(2); (k) "eligible victim" means a person who (i) suffered a financial loss as a direct result of any unlawful activity that resulted in forfeiture under this Act of property or the whole or a portion of an interest in property, (ii) did not directly or indirectly engage in the commission of the unlawful activity, and (iii) satisfies any criteria that may be prescribed in the regulations; (l) "financed vehicle" means personal property that is (i) a serial numbered good, and (ii) is subject to a specified security interest in the whole or a portion of an interest in the personal property; (m) "financial institution" means (i) a savings institution, (ii) a trust company, or (iii) a class of persons or entities prescribed in the regulations; (n) "finding of guilt" includes a finding of guilt by a court, whether or not the court orders an absolute or conditional discharge under section 730 of the Criminal Code, but does not include a finding of guilt where (i) the finding is subject to appeal, or (ii) an appeal is being taken in respect of the finding of guilt; (o) "forfeiture order" means an order made under subsection 6(1) or (2); (p) "instrument of unlawful activity" means any of the following: (i) property that has been used to engage in unlawful activity that, in turn, (A) resulted in or was likely to result in the acquisition of property or an interest in property, (B) caused serious bodily harm to a person, or (C) could have resulted in serious bodily harm to a person, (ii) property that is likely to be used to engage in unlawful activity that may (A) result in the acquisition of property or an interest in property, or (B) cause serious bodily harm to a person, or (iii) property that is realized from the disposition of property referred to in subparagraph (i) or (ii); (q) "interest in property" or "interest in the property" means a right, title, interest, estate or claim to or in property; (r) "interim preservation order" means an order made under subsection 12(4); (s) "judge" means a judge of the court; (t) "known interest holder" means, in relation to a subject property, a person to whom the director is to give notice of forfeiture of the subject property under subparagraphs 29(1)(b)(i), (ii), (iii) or (iv); (u) "law enforcement agency" means (i) the Royal Newfoundland Constabulary, (ii) the Royal Canadian Mounted Police, and (iii) another agency or organization prescribed in the regulations; (v) "minister" means the minister appointed under the Executive Council Act to administer this Act; (w) "notice of dispute " means a notice referred to in subsection 32(1); (x) "notice of interest" means a notice referred to in subsection 39(1); (y) "off-road vehicle" means off-road vehicle as defined in the Off-Road Vehicles Act; (z) "personal property registry" means the Personal Property Registry established under the Personal Property Security Act; (aa) "police officer" means (i) a police officer as defined in the Royal Newfoundland Constabulary Act, 1992, and (ii) an officer as defined in the Royal Canadian Mounted Police Act (Canada); (bb) "proceeds of unlawful activity" means any of the following: (i) the whole or a portion of an interest in property where the whole or the portion of the interest, as the case may be, is acquired directly or indirectly as a result of unlawful activity, (ii) the whole or a portion of an interest in property that is equivalent in value to the amount of an increase in value of the whole or the portion of the interest in property where the increase in value results directly or indirectly from unlawful activity, (iii) the whole or a portion of an interest in property that is equivalent in value to the amount of a decrease in a debt obligation secured against the interest or the portion of the interest in property, where the decrease in debt obligation results directly or indirectly from unlawful activity, or (iv) property that is realized from the disposition of the whole or a portion of an interest in property referred to in subparagraphs (i), (ii) or (iii); (cc) "property" means real property or tangible or intangible personal property and includes cryptocurrency and other nonphysical currencies and cash; (dd) "protected interest holder" means, in relation to a subject property, a person who (i) holds an interest in the whole or a portion of an interest in the subject property, and (ii) did not directly or indirectly engage in the unlawful activity that is the basis of forfeiture under this Act, but, in the case of subject property that is a financed vehicle, does not include a specified interest holder; (ee) "protection order" means an order made by a court under subsection 25(1); (ff) "public body" means a public body prescribed in the regulations; (gg) "receiver manager" means a person who is appointed under paragraph 12(4)(c); (hh) "record suspension" has the same meaning as in the Criminal Records Act (Canada); (ii) "Registrar of Motor Vehicles" means the Registrar of Motor Vehicles appointed under the Highway Traffic Act; (jj) "registry of deeds" means the Registry of Deeds established under the Registration of Deeds Act, 2009; (kk) "respondent" means a person in respect of whom an unexplained wealth order is sought or made, other than a responsible officer; (ll) "responsible officer" means (i) where the respondent is a corporation, an individual who is an officer or director of the corporation, (ii) where the respondent is a partnership of any type, (A) an individual who is a partner, general partner or limited partner in the partnership, (B) an individual who is a director or officer of a corporation that is a partner, general partner or limited partner in the partnership, or (C) an individual who is a partner, general partner or limited partner in a partnership that is a partner in the partnership, or (iii) a person or class of persons prescribed in the regulations; (mm) "security interest" means a security interest as defined in the Personal Property Security Act; (nn) "serial numbered good" means a motor vehicle, trailer, mobile home, aircraft, boat or an outboard motor for a boat; (oo) "specified information" means information and records obtained by or on behalf of the director (i) in a proceeding commenced under section 6, other than information or records obtained under subsection 56(3), or (ii) under an order of the court, but does not include information or records that are available to the public; (pp) "specified interest holder", in relation to a financed vehicle, means a person who (i) at the time forfeiture is initiated in relation to the financed vehicle or the whole or a portion of an interest in the financed vehicle under section 29, holds a specified security interest in the financed vehicle or the whole or the portion of the interest in the financed vehicle, and (ii) did not directly or indirectly engage in the unlawful activity that is the basis of the forfeiture under this Act; (qq) "specified security interest", in
relation to a financed vehicle,
means a security interest (i) taken in the vehicle or the whole or a portion
of an interest in the vehicle for one or more of the following purposes: (A) to secure payment of all or part of the
purchase price of the vehicle, (B) to secure payment of a financed debt
obligation, (C) for a purpose prescribed in
the regulations, and (ii) in respect of which a financing statement
containing a description of the vehicle by serial number is registered in the
personal property registry, but does not include an interest under a lease for a term of more than one year, within the meaning of the Personal Property Security Act, that does not secure payment or performance of an obligation, or a security interest prescribed in the regulations; (rr) "subject property" means property described in subsection 27(1) and to which Part VII applies; (ss) "trafficking" has the same meaning as in the Controlled Drugs and Substances Act (Canada); (tt) "unexplained wealth order" means an order referred to in section 19; (uu) "uninvolved interest holder" means a person who (i) owns, at the time of application for an order under section 6, the whole or a portion of an interest in property that is an instrument of unlawful activity, and (ii) did not directly or indirectly engage in the unlawful activity that is the basis of the application referred to in subparagraph (i); (vv) "unlawful activity" means an act or omission described in one of the following paragraphs: (i) where an act or omission occurs in the province, the act or omission, at the time of occurrence, is an offence under an Act of Canada or the province, (ii) where an act or omission occurs in another province or territory of Canada, the act or omission, at the time of occurrence, (A) is an offence under an Act of Canada or the other province or territory, as applicable, and (B) would be an offence in the province, if the act or omission had occurred in the province, and (iii) where an act or omission occurs in a jurisdiction outside of Canada, the act or omission, at the time of occurrence, (A) is an offence under an Act of the jurisdiction, and (B) would be an offence in the province, if the act or omission had occurred in the province, but does not include an act or omission that is an offence under an Act of any jurisdiction where the Act or the jurisdiction is prescribed in the regulations; and (ww) "vessel" has the same meaning as in the Canada Shipping Act, 2001 (Canada). (2) For the purposes of subparagraphs (1)(bb)(ii) and (iii), "equivalent in value" means equivalent in value as determined or established by the regulations. (3) A person who indirectly engaged in the unlawful activity that is the basis of the application referred to in subparagraph (1)(uu)(i) includes a person who had knowledge of the unlawful activity and received a financial benefit from the unlawful activity. Purpose 3. The purpose of this Act is to provide civil remedies to assist in (a) compensating persons who suffer monetary and non-monetary losses as a result of unlawful activities; (b) preventing persons who engage in unlawful activities and other persons from keeping property that was acquired as a result of unlawful activities; and (c) preventing property from being used to engage in unlawful activities. Application 4. (1) This Act applies to an unlawful activity that occurred before, on or after the date this Act comes into force. (2) This Act applies to proceeds of unlawful activity, whether or not (a) the acquisition of the whole or the portion of an interest in property; (b) the increase in the value of the whole or the portion of an interest in property; or (c) the decrease in the debt obligation, as referred to in subparagraph 2(1)(bb)(iii), occurred before, on or after the coming into force of this Act. Labrador Inuit rights 5. This Act and regulations made under this Act shall be read and applied in conjunction with the Labrador Inuit Land Claims Agreement Act and, where a provision of this Act or regulations made under this Act is inconsistent or conflicts with a provision, term or condition of the Labrador Inuit Land Claims Agreement Act, the provision, term or condition of the Labrador Inuit Land Claims Agreement Act shall have precedence over the provision of this Act or the regulations. PART II Application for forfeiture order 6. (1) The director may apply to the court for an order forfeiting to the Crown (a) the whole of an interest in property that is proceeds of unlawful activity; or (b) the portion of an interest in property that is proceeds of unlawful activity. (2) The director may apply to the court for an order forfeiting to the Crown property that is an instrument of unlawful activity. (3) An application for a forfeiture order applies only with respect to property or an interest in property located in the province. (4) An application for a forfeiture order shall describe the property for which the forfeiture order is sought with sufficient detail to make the property readily identifiable. Parties and notification 7. (1) In proceedings commenced under subsection 6(1), the director shall name as a party (a) in relation to real property, (i) the person appearing from a search of the records at the registry of deeds to be the owner of the whole or the portion of the interest in property that is the subject of the application for forfeiture, and (ii) a person who the director has reason to believe is an owner of the whole or the portion of the interest in property that is the subject of the application for forfeiture; and (b) in relation to personal property, a person who the director has reason to believe is an owner of the whole or the portion of the interest in property that is the subject of the application for forfeiture. (2) In proceedings commenced under subsection 6(2), the director shall name as a party (a) in relation to real property, (i) the person appearing from a search of the records at the registry of deeds to be the owner of the property that is the subject of the application for forfeiture, and (ii) a person who the director has reason to believe is an owner of the property that is the subject of the application for forfeiture; and (b) in relation to personal property, a person who the director has reason to believe is an owner of the property that is the subject of the application for forfeiture. (3) In proceedings commenced under subsection 6(1) or (2), the director shall notify a person (a) where required to do so by the court or the regulations; and (b) in a manner established by the regulations, unless the court orders a different manner of notification. Response shall identify interest in property 8. A person who files a response to proceedings commenced under section 6 shall state the nature and extent of the interest or portion of interest the person claims in the property that is the subject of the application for forfeiture. Forfeiture order 9. (1) Where proceedings are commenced under subsection 6(1), the court shall make an order forfeiting to the Crown the whole or the portion of an interest in property that the court finds is proceeds of unlawful activity. (2) Where proceedings are commenced under subsection 6(2), the court shall make an order forfeiting to the Crown property that the court finds is an instrument of unlawful activity. Relief from forfeiture 10. (1) Notwithstanding section 9, where a court determines that the forfeiture of property or the whole or a portion of an interest in property under this Act is not in the interest of justice, the court may do any of the following: (a) refuse to issue a forfeiture order; (b) limit the application of a forfeiture order; or (c) put conditions on the forfeiture order. (2) In
the case of property that is proceeds of unlawful activity, the court may grant
relief from forfeiture under subsection (1) where a party to the proceedings
commenced under subsection 6(1) proves both of the following: (i) acquired the property or an interest in the property before a notice was filed against the property under paragraph 29(1)(a) or section 61, and (ii) did
not, directly or indirectly, acquire the property or an interest in the
property as a result of unlawful activity; and (i) co-owns the property with another person whose unlawful activity led to the finding that the property is proceeds of unlawful activity, but did not know and could not reasonably have known that the party's co-owner's interest in the property was acquired as a result of unlawful activity, (ii) owned or had an interest in
the property before the unlawful
activity occurred and was deprived of the property or the benefit of the
party's interest as a result of the unlawful activity, (iii) acquired the property or an interest in the
property for fair value after the unlawful activity occurred and did not know
and could not reasonably have known at the time of the acquisition that the
property was proceeds of unlawful activity, or (iv) acquired the property or an interest in the property from a person described in subparagraphs (i), (ii) or (iii). Effective date of forfeiture order 11. (1) A forfeiture order made with respect to property or the whole or a portion of an interest in property, as applicable, is effective as follows: (a) in the case of real property or an interest in real property registered in the registry of deeds, (i) at the time a notice is filed under subsection 61(1) with respect to the real property or the whole or a portion of an interest in the property, or (ii) at the time the forfeiture order is filed in the registry of deeds with respect to the real property or the whole or a portion of an interest in the property, where notice is not filed under subsection 61(1); (b) in the case of property that is realized from the disposition of real property or an interest in real property registered in the registry of deeds, where a notice was filed under subsection 61(1) with respect to the real property or the whole or a portion of an interest in the real property, at the time the notice was filed; (c) subject to paragraph (b), in the case of personal property or the whole or a portion of an interest in personal property, at the earliest of the following dates, as applicable: (i) where notice of forfeiture was filed under paragraph 29(1)(a) in relation to personal property, the date the notice of forfeiture was filed, (ii) where forfeiture was initiated under subsection 29(1) in relation to the personal property or the whole or the portion of the interest in property, the date on which forfeiture was initiated, and (iii) the date proceedings were commenced under section 6 in relation to the personal property. (2) A forfeiture order is retroactive to the
extent necessary to give it force and effect on and after the date or time
referred to in paragraph (1)(a), (b) or (c), as applicable. PART III Interim preservation order 12. (1) As part of a proceeding under subsection 6(1) for forfeiture of the whole or a portion of an interest in property, the director may apply to the court for one or more interim preservation orders in relation to (a) the whole or the portion of the interest in property; or (b) the property in which the whole or the portion of interest in property is held. (2) As part of a proceeding under subsection 6(2) for forfeiture of property, the director may apply to the court for one or more interim preservation orders in relation to the property. (3) The director may apply for an interim preservation order under subsection (1) or (2) on the director's own initiative or on consent of one or more parties to the proceedings under section 6. (4) On application under subsection (1) or (2), the court may make one or more of the following interim preservation orders relating to the preservation, management or disposition of property or the whole or a portion of an interest in property for the purposes of this Act: (a) an order restraining the disposition or transmission of the property or the whole or the portion of the interest in property; (b) an order for the possession, delivery to the director or safekeeping of property; (c) an order appointing a person to act as a receiver manager for the property or the whole or a portion of an interest in property; (d) an order for the disposition of the property or the whole or the portion of the interest in property in order to better preserve the value of the property or the whole or the portion of the interest in property; (e) an order directing that the money arising from the disposition of the property or the whole or the portion of the interest in the property under paragraph (d) be paid into court pending conclusion of the proceeding under section 6; (f) for the purposes of securing performance of an obligation imposed by an order made under this Part or under Part II, IV or V, an order granting to the director a lien for an amount set by the court on property or the whole or the portion of an interest in property; (g) an order the court considers appropriate to prevent the property from being (i) removed from the province, or (ii) used to engage in unlawful activity; (h) an order the court considers appropriate for the preservation of (i) the property or the whole or the portion of an interest in the property, (ii) the value of the property or of the whole or the portion of an interest in the property, or (iii) the rights of creditors and other interest holders; and (i) any other order that the court considers appropriate in the circumstances. (5) The amount set by the court under paragraph (4)(f) is considered for the purposes of the Personal Property Security Act to (a) be the full value of the property or the whole or portion of the interest in property, that is the subject of the proceedings, unless the court orders otherwise; and (b) include the expenses referred to in paragraph 60(3)(a) of the Personal Property Security Act. (6) Unless it is not in the interest of justice, the court shall make an interim preservation order where the court is satisfied that one or both of the following constitute a serious question to be tried: (a) whether the whole or the portion of the interest in property that is the basis of the application under subsection (1) is proceeds of unlawful activity; or (b) whether the property that is the basis of the application under subsection (2) is an instrument of unlawful activity. (7) An application with respect to an interim preservation order applies only with respect to property or an interest in property located in the province. (8) Notwithstanding paragraph (4)(i), the court shall not make an order under paragraph (4)(i) that would directly or indirectly reduce the amount of money that would otherwise result from the disposition of the property or the whole or a portion of the interest in property on its forfeiture under this Act. Interim preservation order made without notice 13. (1) A court may make an interim preservation order under section 12 without notice to any person. (2) Notwithstanding subsection (1), an order referred to in subsection (1) shall not be made for a period greater than 60 days. (3) A court may grant one or more extensions to an order referred to in subsection (1), only where notice of the application to extend the order is given to every person who is required by the court to be given notice of the application, other than a person who, in the opinion of the court, (a) has been evading service; (b) is unable to be located despite the director's reasonable efforts; or (c) is not required to be served because of exceptional circumstances. Receiver manager 14. (1) A person appointed to act as a receiver manager under paragraph 12(4)(c) is the receiver manager of the property or the whole or a portion of the interest specified by the court. (2) Where directed by the court, a receiver manager (a) may receive and hold property or the whole or a portion of an interest in property and dispose of property or the whole or a portion of an interest in property in the ordinary course of business; (b) has the authority to manage the business and affairs conducted in relation to the property or the whole or a portion of the interest in property; and (c) has all the incidental powers necessary to hold and manage the property or the whole or a portion of the interest in property. Application of Personal Property Security Act 15. (1) Subject to this section, the Personal Property Security Act applies with respect to a lien granted under this Act and the enforcement of a lien granted under this Act on personal property or the whole or a portion of an interest in property that is personal property. (2) Section 65 of the Personal Property Security Act does not apply to a receiver manager appointed under section 12. (3) Where an order under section 12 gives the director a lien on personal property or the whole or a portion of an interest in property that is personal property, (a) the lien is considered to be a security interest taken in the personal property or the whole or a portion of the interest in property, as applicable, to secure the payment of the amount of the lien granted by a court under section 12; and (b) the lien is considered to continue until the director registers a release in the personal property registry. (4) The director, by registration of the lien under the Personal Property Security Act, perfects the lien as if the lien were a security interest perfected under that Act. (5) Subsections 59(3) to (5) and section 63 of the Personal Property Security Act do not apply to this Act. PART IV Order to produce information or records required by director 16. (1) On application of the director, a court may make an order requiring a person to disclose to the director information or records in the custody or control of the person where the court is satisfied that the information or records are reasonably required by the director in order to exercise the director's powers or perform the director's duties or functions under this Act. (2) The director may apply for an order under subsection (1) before, at the time of or after (a) commencing proceedings under section 6; or (b) applying for an interim preservation order under section 12. (3) The director shall pay to a person who is subject to an order under subsection (1) the reasonable costs of producing, reproducing or delivering the information or records. Order made without notice 17. (1) A court may make an order under section 16 without notice to any person. (2) Notwithstanding subsection (1), an order made without notice under section 16 shall not be made for a period greater than 60 days. (3) Where the director requests, the court may order that an application for an order under section 16 be heard in private. Court file may be sealed 18. (1) Where an application under section 16 is brought without notice, the director may request that the application and any supporting affidavits or other materials be sealed by the registrar of the court. (2) Where the registrar of the court agrees with the director's request under subsection (1), the registrar of the court shall (a) seal the court file respecting the documents referred to in that subsection; and (b) prohibit access to those documents other than by the director. (3) The documents referred to in subsection (1) shall remain sealed until the hearing of the application. PART V Unexplained wealth order 19. (1) The director may apply to the court for an unexplained wealth order that requires a respondent or a responsible officer of the respondent to (a) provide a written statement to the director that (i) states the particulars of the interest or the portion of the interest in the property held by the respondent, including the extent of the interest or the portion of the interest in the property, (ii) states the particulars of the respondent's acquisition and maintenance of the property or the interest in the property, including how any costs incurred in acquiring and maintaining the property or the interest or the portion of the interest in the property have been met, (iii) states the sources and amounts of the respondent's lawfully obtained income and assets, (iv) identifies any persons who may have an interest in the property, and (v) includes any other information relating to the property that may be required by the court; (b) provide the director with records and documents that the director requests; and (c) answer questions respecting the statement and the records and documents that are provided to the director under paragraphs (a) and (b) at an examination to be conducted at a time and location set out in the unexplained wealth order. (2) The director may apply for an unexplained wealth order before, at the time of or after commencing proceedings under Part II in relation to the property. (3) An unexplained wealth order shall (a) state the form of the statement referred to in paragraph (1)(a) and the manner in which the statement is to be provided to the director; (b) state the deadline to provide (i) the statement referred to in paragraph (1)(a), and (ii) the records and documents referred to in paragraph (1)(b); and (c) either (i) state the time and location at which the examination referred to in paragraph (1)(c) is to be conducted, or (ii) describe the process for scheduling the examination and state the date by which the examination is required to be conducted. Application for unexplained wealth order 20. (1) An application for an unexplained wealth order shall describe the property that is the subject of the application with sufficient detail to make it readily identifiable. (2) The following persons may be named as respondents in the notice of application: (a) the owner of the property or the whole or a portion of an interest in the property; (b) any person, other than the owner, who is in possession of the property; and (c) any person whom the director believes may have an interest in the property or the whole or a portion of an interest in the property. (3) An application under this section may be made without notice unless the court orders otherwise. Grounds for unexplained wealth order 21. (1) Unless it would not be in the interest of justice, the court shall make an unexplained wealth order where the court is satisfied that the director has reasonable grounds to suspect that (a) the respondent (i) is the owner of the property or the whole or a portion of an interest in the property, (ii) is in possession of the property, or (iii) has an interest in the property or the whole or a portion of an interest in the property; (b) the fair value of the property exceeds $125,000; (c) the known sources of the respondent's lawfully obtained income and assets would be insufficient to enable the respondent to acquire or maintain the respondent's interest in the property or the whole or a portion of an interest in the property; and (d) the respondent or a person who does not deal with the respondent at arm's length is or has been involved in unlawful activity. (2) For the purposes of subsection (1), (a) the respondent is deemed to have acquired the property or the whole or a portion of an interest in the property at a price equivalent to its fair value; (b) the court may consider any mortgage, charge or other type of security that may reasonably have been available to enable the respondent to acquire or maintain the property or the whole or a portion of an interest in the property; (c) the known sources of the respondent's income and assets are the sources reasonably ascertainable from available information at the time that an application for an unexplained wealth order is made; (d) the respondent is deemed to possess the property where the property is available for use by the respondent; and (e) the respondent and another person are deemed not to be dealing at arm's length with each other where they are deemed for the purposes of the Income Tax Act (Canada) to not be dealing at arm's length with each other. Extensions 22. The court may grant one or more extensions to a deadline in an unexplained wealth order. Conduct examination 23. The examination of a respondent or responsible officer under an unexplained wealth order shall be conducted in accordance with Rules 30 and 32 of the Rules of the Supreme Court, 1986. Prohibition 24. A statement, record or document provided by a person in response to an unexplained wealth order shall not be used or disclosed except in proceedings under or for the purposes of this Act. PART VI Protection order 25. (1) Where a court finds that (a) property is an instrument of unlawful activity; and (b) a person is an uninvolved interest holder with respect to that property, the court shall make the orders necessary to protect the interest in the property held by the uninvolved interest holder. (2) A protection order issued with respect to property that is subject to a forfeiture order has effect from the date that the forfeiture order is effective, unless the court orders otherwise. (3) Notwithstanding subsection (1) and subsection 9(2), a court may refuse to issue a protection order where it is not in the interests of justice. Orders related to forfeiture orders and protection orders 26. On application of the director, a court may make, at the time of or after making a forfeiture order under section 9, one or more of the following orders: (a) an order requiring (i) the disposition or transmission of property or the whole or the portion of the interest in property forfeited, or (ii) the disposition or transmission of property that includes the whole or the portion of the interest in the property forfeited; (b) an order directing the manner of disposition of property or the whole or the portion of the interest in property referred to in subparagraph (a)(i) or (ii), including the appointment of a receiver manager to manage and dispose of the property or the whole or the portion of the interest in property; (c) an order directing that the money arising from the disposition of property or the whole or the portion of the interest in property referred to in subparagraph (a)(i) or (ii) be applied in accordance with the direction of the court after taking into account all encumbrances; (d) an order requiring the severing or partition of property, or the whole or a portion of an interest in property; (e) an order requiring the cancellation of the whole or a portion of an interest in property; (f) an order providing that, subject to the interest of an uninvolved interest holder or another person, the Crown, on forfeiture, may take possession of or seize (i) the property forfeited or the property in which an interest in property or a portion of an interest in property is forfeited, or (ii) the interest in property or a portion of an interest in property that is forfeited; or (g) any other order that the court considers appropriate in the circumstances. PART VII Application of Part 27. (1) This Part applies where (a) the director has reason to believe that the (i) whole or a portion of an interest in property, other than real property, is proceeds of unlawful activity, or (ii) property, other than real property, is an instrument of unlawful activity; (b) the director has reason to believe that the fair value of the property referred to in subparagraph (a)(i) or (ii), other than a financed vehicle, is $125,000 or less; (c) the property referred to in subparagraph (a)(i) or (ii) is in the province and is in the possession of a law enforcement agency; and (d) the director has no reason to believe that there are any protected interest holders in relation to the property. (2) This Part does not apply to property described in subsection (1) where proceedings are commenced under section 6 in relation to the property. (3) Notwithstanding subsection (2), where under paragraph 33(a) the director commences proceedings under section 6 in relation to the subject property, the law enforcement agency entitled to maintain possession of the subject property under section 30 continues to be entitled to maintain possession of the subject property until the expiry of the 30-day period described in paragraph 30(a). (4) This Part does not apply in relation to property where the property is the subject of an order of a court (a) establishing a right of possession in that property with a person other than the law enforcement agency; or (b) authorizing a person other than the law enforcement agency to have or take possession of that property. Subject property forfeited to Crown 28. Subject to sections 29 to 34, subject property is forfeited to the Crown for disposal by the director without having to commence proceedings under section 6. Notice of administrative forfeiture proceedings 29. (1) The director shall do the following to initiate administrative forfeiture proceedings in relation to any subject property: (a) file notice of administrative forfeiture proceedings against the subject property in the personal property registry; (b) give written notice of administrative forfeiture proceedings under this Part to each of the following: (i) the person from whom the subject property was seized, (ii) any other person claiming to be lawfully entitled to possession of the subject property, (iii) a person who the director has reason to believe may have an interest in the subject property, (iv) in the case of subject property that is a financed vehicle, a person who is a specified interest holder, and (v) the law enforcement agency in possession of the subject property; and (c) publish notice of administrative forfeiture proceedings under this Part in relation to the subject property in accordance with subsections (2) and (3). (2) Notice under paragraph (1)(a) shall state that (a) the subject property is subject to forfeiture under this Part; and (b) the subject property and all interests in the subject property may be affected by forfeiture under this Part. (3) Notice under paragraph (1)(c) shall be published (a) in the Gazette; (b) on a website relating to civil forfeiture operated by the director; and (c) where there is a newspaper of general circulation in or near the area in which the subject property was seized, in that newspaper. (4) Notice under paragraphs (1)(b) and (c) shall (a) describe the subject property; (b) state that the subject property is subject to administrative forfeiture proceedings under this Part; (c) indicate (i) where the subject property was seized, (ii) the date of the seizure, and (iii) the basis for the seizure; and (d) contain any other information prescribed in the regulations. Law enforcement agency entitled to possession 30. On receiving notice respecting a subject property under subparagraph 29(1)(b)(v), a law enforcement agency is entitled to maintain possession of the subject property, notwithstanding any other claim or interest or right of possession in the subject property, until the later of the following: (a) 30 days after the director gives the law enforcement agency notice of the direction taken under paragraph 33(b); and (b) 30 days after the director notifies the law enforcement agency under paragraph 35(2)(a). Notice to known interest holders 31. (1) Notice to a known interest holder shall be given by (a) sending the notice by ordinary or registered mail to the last known address of the known interest holder; (b) sending the notice by email to the last known email address of the known interest holder; (c) sending the notice by fax to the last known fax number of the known interest holder; or (d) delivering the notice by another method prescribed in the regulations. (2) Notice given to a known interest holder in accordance with subsection (1) is considered to have been received by the known interest holder as follows: (a) where the notice is sent by ordinary or registered mail, on the seventh day after deposit with Canada Post; (b) where the notice is sent by email or fax before 4 p.m. on a day that is not a Saturday, Sunday or holiday, on the day on which the notice was sent; (c) where the notice was sent by email or fax on a Saturday, Sunday or holiday or after 4 p.m. on any other day, on the next day that is not a Saturday, Sunday or holiday; or (d) where the notice is delivered by a method prescribed in the regulations on the date prescribed in the regulations. (3) Notwithstanding paragraph 29(1)(b), notice is not required to be given to a person referred to in paragraph 29(1)(b) where the person's mailing address, email address, fax number and any applicable information with respect to a method of delivery prescribed in the regulations is unknown to the director. Notice of dispute by claimed interest holder 32. (1) A person who claims to have an interest or a portion of an interest in the subject property may dispute forfeiture under this Part by delivering a notice of dispute to the director in accordance with this section. (2) A notice of dispute shall be accompanied by a statutory declaration that (a) sets out the particulars of the nature of the interest or the portion of the interest in the subject property held by the person, including the extent of the interest or the portion of the interest in the subject property; (b) includes the following: (i) the name of the person disputing forfeiture under this Part, (ii) an address for service of documents for the person disputing the forfeiture, and (iii) the reasons for disputing the forfeiture; (c) is made (i) by the person or, in the case of a corporation, by an individual authorized by the corporation for the purposes of delivering a notice of dispute under this section, and (ii) before a person authorized to administer an oath or affirmation in the province; and (d) is signed by the person making the statutory declaration and by the person before whom it is made. (3) A notice of dispute shall be delivered to the director before the expiry of the dispute period. (4) For the purposes of this section, a notice of dispute that is delivered by mail is considered to have been delivered on the date on which it is mailed. Where director receives notice of dispute 33. Not later than 60 days after receiving a notice of dispute, the director shall (a) commence proceedings under section 6 or withdraw from proceedings under this Act in relation to the subject property; and (b) give notice to the law enforcement agency and each known interest holder of the direction taken under paragraph (a). Settlement where forfeiture disputed 34. (1) Notwithstanding section 33, where the director receives a notice of dispute on or before the expiry of the dispute period, the director and the person submitting the notice of dispute may agree to a settlement respecting the forfeiture. (2) A settlement under subsection (1) may provide for (a) the full or partial forfeiture of the subject property; or (b) both full or partial forfeiture and a monetary amount. (3) A person who agrees to a settlement with the director shall file an amended notice of dispute with the director in the form and manner prescribed in section 32. (4) On receipt of an amended notice of dispute and subject to any further notice of dispute that the director receives on or before the expiry of the dispute period, section 35 applies with respect to the subject property as agreed to under the settlement under subsection (1). Where no notice of dispute received 35. (1) Where the director does not receive a notice of dispute on or before the seventh day after the expiry of the dispute period, the subject property is forfeited to the Crown for disposal by the director. (2) Where subject property is forfeited to the Crown under subsection (1), the director shall (a) notify the law enforcement agency in possession of the subject property of its forfeiture to the Crown under this Part; (b) in the case of subject property that is a motor vehicle or trailer, direct the Registrar of Motor Vehicles to transfer registration of the motor vehicle or trailer under the Highway Traffic Act to the Crown; (c) in the case of subject property that is an off-road vehicle, direct the Registrar of Motor Vehicles to transfer registration of the off-road vehicle under the Off-Road Vehicles Act to the Crown; (d) in the case of subject property that is a financed vehicle, discharge the registration of all specified security interests and any other charges or interests in relation to the financed vehicle; and (e) take possession of or seize the subject property and dispose of it. (3) The Registrar of Motor Vehicles shall transfer registration of (a) a motor vehicle or trailer in accordance with a direction received under paragraph (2)(b); and (b) an off-road vehicle in accordance with a direction received under paragraph (2)(c). Effective date of forfeiture under this Part 36. Forfeiture of a subject property under section 35 is considered to be effective immediately on the expiry of the dispute period. Innocent failure to deliver notice of dispute 37. (1) This section applies to a person who claims to have had an interest in the subject property at the time of its forfeiture under section 35 but who failed to deliver a notice of dispute in accordance with section 32. (2) Subject to this section, Part VIII and section 74, a claimant may commence proceedings in court against the Crown. (3) In proceedings commenced under subsection (2), the claimant shall establish that (a) the claimant's failure to deliver a notice of dispute in accordance with section 32 was not wilful or deliberate; and (b) the proceedings were commenced as soon as reasonably possible after the claimant learned of the forfeiture. (4) It is a defence to proceedings under this section where the director establishes either of the following in relation to the subject property: (a) the whole or a portion of an interest in the subject property would have been proceeds of unlawful activity had proceedings been commenced under subsection 6(1) in relation to the subject property before forfeiture under this Part; or (b) the subject property would have been an instrument of unlawful activity had proceedings been commenced under subsection 6(2) in relation to the subject property before forfeiture under this Part. (5) A defence under paragraph (4)(a) fails where the court finds that (a) the claimant did not, directly or indirectly, acquire the subject property as a result of unlawful activity committed by the claimant; and (b) the claimant (i) was the rightful owner of the subject property before the unlawful activity occurred and was deprived of possession or control of the subject property by means of the unlawful activity, (ii) acquired the subject property for fair value after the unlawful activity occurred and did not know and could not reasonably have known at the time of the acquisition that the subject property was proceeds of unlawful activity, or (iii) acquired the subject property from (A) a person who was the rightful owner of the subject property before the unlawful activity occurred and who was deprived of possession or control of the subject property by means of the unlawful activity, or (B) a person who acquired the subject property for fair value after the unlawful activity occurred and did not know and could not reasonably have known at the time of the acquisition that the subject property was proceeds of unlawful activity. (6) A defence under paragraph (4)(b) fails where the court finds that the claimant did not directly or indirectly engage in the unlawful activity that would have been the basis of the proceedings under subsection 6(2) had such proceedings been commenced before forfeiture under this Part. (7) For the purposes of subsection (6), a person who indirectly engaged in the unlawful activity that would have been the basis of the proceedings referred to in subsection (6) includes a person who had knowledge of the unlawful activity and received a financial benefit from the unlawful activity. (8) The court shall order the Crown to pay a claimant who is successful in proceedings under this section an amount that is the lesser of (a) the value of the claimant's interest in the subject property at the time of forfeiture; and (b) the liquidated value of the subject property that the Crown received from the disposition of the subject property. (9) The amount of payment ordered under subsection (8) shall be paid by the director out of the civil forfeiture account in accordance with section 64. Notice of remaining proceeds 38. (1) The director shall give written notice to each specified interest holder where the amount of the proceeds resulting from the disposition of a financed vehicle forfeited under section 35 exceeds the total of the following amounts: (a) an amount equal to any costs incurred by the director in relation to seizing, towing and storing the vehicle where the costs are incurred after the time of forfeiture under section 35; (b) an amount equal to any costs incurred by the director to dispose of the vehicle; and (c) an administrative fee, if any, in an amount set by the minister. (2) Notice under subsection (1) shall (a) describe the financed vehicle; (b) state that the financed vehicle or the whole or a portion of an interest in the financed vehicle was, under section 35, forfeited to the Crown for disposal by the director; (c) indicate (i) the effective date of the forfeiture, (ii) the amount of the proceeds resulting from the disposition of the financed vehicle, (iii) each of the amounts referred to in paragraphs (1)(a) to (c), as applicable, and (iv) the amount of the proceeds in excess of the total of the amounts referred to in subparagraph (iii); and (d) contain any other information prescribed in the regulations. (3) Subsections 31(1) and (2) apply in relation to a notice required to be given under subsection (1). Notice of interest in remaining proceeds 39. (1) A specified interest holder may claim an interest in any proceeds in excess of the total of the amounts referred to in paragraphs 38(1)(a) to (c) by delivering a notice of interest to the director in accordance with this section. (2) A notice of interest shall be accompanied by a statutory declaration that (a) attaches a copy of the agreement creating the applicable specified security interest in the financed vehicle; (b) specifies any amount owing to the specified interest holder, in relation to the specified security interest in the financed vehicle, at the time of forfeiture of the financed vehicle or the whole or a portion of an interest in the financed vehicle under section 35; (c) includes an accounting of every payment made and debt that arose in relation to the specified security interest in the financed vehicle; (d) is made (i) by a person or, in the case of a corporation, by an individual authorized by the corporation for the purpose of delivering a notice of interest under this section, and (ii) before a person authorized to administer an oath or affirmation in the province; and (e) is signed by the person making the statutory declaration and by the person before whom it is made. (3) A specified interest holder shall deliver the notice of interest to the director not later than 180 days after the date on which the specified interest holder is considered to have received notice given under subsection 38(1). (4) For the purposes of this section, a notice of interest that is delivered by mail is considered to have been delivered on the date on which it is mailed. Where director receives notice of interest 40. (1) As soon as practicable after receiving a notice of interest, the director shall pay to the specified interest holder an amount equal to the amount owing to the specified interest holder in relation to the applicable specified security interest in the financed vehicle at the time of forfeiture of the financed vehicle or the whole or a portion of an interest in the financed vehicle under section 35. (2) The amount referred to in subsection (1) shall be paid out of the civil forfeiture account in accordance with section 64. (3) Notwithstanding subsection (1), the amount owing to a specified interest holder in relation to a financed vehicle shall not include (a) an amount owing in relation to a charge or fee prescribed in the regulations arising under the terms of the security agreement; or (b) an amount equal to the portion of a charge or fee prescribed in the regulations arising under the terms of the security agreement that is greater than an amount prescribed in the regulations. (4) Notwithstanding subsection (1), where an amount is payable under subsection (1) to more than one specified interest holder, the director shall pay the amounts into court rather than to the specified interest holders. No compensation payable 41. Other than an amount a court may order to be paid under section 37 or that is payable under subsection 40(1), no other compensation is payable to any person by the Crown, the director, a law enforcement agency or an employee of a law enforcement agency and no other proceedings may be commenced or maintained to claim compensation from the Crown, the director, law enforcement agency or an employee of a law enforcement agency as a result of forfeiture under this Part, including a legal proceeding for damages that is commenced or maintained by an uninvolved interest holder. PART VIII Proceedings under Act (2) Proceedings under section 37 may only be commenced by an originating application. (3) Proceedings under section 37 are against the person and not against the property. (4) Except as otherwise provided in this Act or the regulations, the Rules of the Supreme Court, 1986 apply to all proceedings under this Act. (5) The Rules of the Supreme Court, 1986 apply with necessary changes to the court's jurisdiction to make an order in respect of any party or other person in any proceeding brought against the property under this Act as if the proceeding were brought against the person and such party or person were a named party in the proceeding. Standard of proof 43. Findings of fact in proceedings under Part II, III, IV or V or section 37 and the discharge of any presumptions are to be made on the balance of probabilities. Failure to seek forfeiture in sentencing does not prevent forfeiture 44. The fact that forfeiture of property was not sought in any sentencing process does not prevent the director from seeking forfeiture of the property under this Act. Amending pleadings after unexplained wealth order 45. The director may, without leave, amend the pleadings in forfeiture proceedings under Part II to address any matters arising as a result of an unexplained wealth order at any time until a trial or hearing date is set. Proof of unlawful activity 46. In proceedings under Part II, III, IV or V or section 37, proof that a person was convicted, found guilty or found not criminally responsible because of a mental disorder in respect of an offence that constitutes an unlawful activity is proof that the person engaged in the unlawful activity. Where no conviction or finding of unlawful activity 47. In proceedings under Part II, III, IV or V or section 37, an unlawful activity may be found to have occurred even where (a) a person has not been charged with an offence that constitutes an unlawful activity; or (b) a person charged with an offence that constitutes the unlawful activity was acquitted of all charges in proceedings before a criminal court or the charges are withdrawn or stayed or otherwise do not proceed. Determination respecting proceeds of unlawful activity 48. In proceedings under Part II, III, IV or V or section 37, proof that a person (a) participated in an unlawful activity that resulted in or is likely to have resulted in the person receiving a financial benefit; and (b) subsequently did one or more of the following: (i) acquired the whole or the portion of an interest in property that is the subject of the proceedings, (ii) caused an increase in the value of the interest or the portion of the interest in property that is the subject of the proceedings, or (iii) caused a decrease of a debt obligation secured against the interest or the portion of the interest in property that is the subject of the proceedings, is proof, in the absence of evidence to the contrary, that the whole or the portion of the interest in property that is the subject of the proceedings is proceeds of unlawful activity as a result of the unlawful activity referred to in paragraph (a). Proceeds of unlawful activity - property of members of criminal organizations 49. (1) In proceedings under Part II, III, IV or V or section 37, proof that the whole or the portion of an interest in property that is the subject of the proceedings (a) is owned, controlled or possessed by (i) a member of a criminal organization, or (ii) a corporation, where a member of a criminal organization is a director or officer of the corporation or has, directly or indirectly, a controlling interest in the corporation; or (b) was transferred for less than fair value and immediately before the transfer, was owned, controlled or possessed by a person referred to in paragraph (a), is proof, in the absence of evidence to the contrary, that the whole or the portion of the interest in property, as the case may be, is proceeds of unlawful activity. (2) Subsection (1) does not apply to the whole or a portion of an interest in property where the fair value of the whole or the portion of the interest in property is less than $10,000. Presumption - criminal organization offence 50. (1) In proceedings under Part II, III, IV or V or section 37, proof that a person was convicted, found guilty or found not criminally responsible because of a mental disorder in respect of a criminal organization offence is proof, in the absence of evidence to the contrary, that the person is a member of a criminal organization. (2) Subsection (1) does not apply to a person who was convicted, found guilty or found not criminally responsible because of a mental disorder in respect of a criminal organization offence where (a) a record suspension has been granted under the Criminal Records Act (Canada) in respect of the criminal organization offence; and (b) the record suspension has not been revoked or ceased to have effect. Proceeds of unlawful activity - cash or negotiable instruments 51. In proceedings under Part II, III, IV or V or section 37, proof that cash or negotiable instruments, with a total value greater than $10,000, were found (a) in proximity to a controlled substance; or (b) in the case of cash, the cash is (i) bundled or packaged in a manner not consistent with standard banking practices, (ii) mailed in a package that does not have any return address information or that has a false name or address in the return address information indicated on the package, or (iii) sent for delivery by a shipping company or courier and the person who sends the package does not provide the person's name or address to the shipping company or courier or provides a false name or address, is proof, in the absence of evidence to the contrary, that the cash or negotiable instruments are proceeds of unlawful activity. Instruments of unlawful activity - motor vehicle, vessel, aircraft or other conveyance 52. In proceedings under Part II, III, IV or V or section 37, proof that any of the following were found inside, on or attached to a motor vehicle, trailer, vessel, aircraft or other conveyance is proof, in the absence of evidence to the contrary, that the motor vehicle, trailer, vessel, aircraft or other conveyance is an instrument of unlawful activity: (a) a restricted firearm or a prohibited firearm, as defined in subsection 84(1) of the Criminal Code; (b) a controlled substance, in circumstances or in a quantity consistent with trafficking in the controlled substance; or (c) equipment, devices or other things related to trafficking in a controlled substance, including any equipment, devices or other things prescribed in the regulations. Instrument of unlawful activity - refusing to stop or fleeing from police 53. In proceedings under Part II, III, IV or V or section 37, proof that (a) a driver of a motor vehicle (i) failed to safely stop the motor vehicle within a reasonable period of time after being signalled or requested to stop by a police officer who is readily identifiable as a police officer, or (ii) used the motor vehicle to flee from a police officer; and (b) the driver's use of the motor vehicle could have resulted in serious bodily harm to a person, is proof, in the absence of evidence to the contrary, that the motor vehicle is an instrument of unlawful activity. Non-compliance with unexplained wealth order 54. In proceedings under Part II, proof that the property is the subject of an unexplained wealth order and the respondent or responsible officer (a) did not provide the required statement, records or documents by the deadline stated in the unexplained wealth order; (b) knowingly made a false or misleading statement in a response required under the unexplained wealth order; (c) knowingly provided a record or document in response to the unexplained wealth order that is not authentic; or (d) failed to attend the examination required under the unexplained wealth order or did not provide all the information, records and documents requested at the examination, is proof, in the absence of evidence to the contrary, that the property is proceeds of unlawful activity. PART IX Director 55. (1) The minister shall appoint a Director of Civil Forfeiture. (2) The minister may appoint a Deputy Director of Civil Forfeiture who shall exercise the powers and perform the duties of the director where (a) the director is absent or unable to act; or (b) the office of the director is vacant. (3) The director may delegate any power or duty the director has under this Act or the regulations to a person or class of persons. Powers, duties and functions of director 56. (1) The director may administer and dispose of property or the whole or a portion of an interest in property under this Act in accordance with orders of the court, this Act and the regulations. (2) The powers, duties and functions of the director include (a) managing the collection, use and disclosure of information and maintaining records for the purposes of this Act; (b) determining if proceedings should be commenced under this Act, based on the information collected; (c) commencing and conducting proceedings under this Act; and (d) managing the distribution of proceeds from the property, an interest in property or a portion of an interest in property forfeited to the Crown under this Act. (3) The director may enter into information-sharing agreements that are reasonably required by the director in order to exercise the director's duties and functions under this Act with the following: (a) the government of Canada, a province or territory of Canada or another jurisdiction in or outside of Canada; (b) a public body; or (c) a law enforcement agency. (4) Subject to subsection (5), the director is entitled to information that is (a) in the custody or control of a public body; and (b) reasonably required by the director in order to exercise the director's duties and functions under this Act. (5) Subsection (4) does not apply to the following information: (a) information that shall not be disclosed under section 8.1 of the Evidence Act; (b) information that shall not be disclosed under the Personal Health Information Act; (c) information that is subject to solicitor-client privilege; (d) information that is required to be kept confidential under (i) an Act of Canada, or (ii) an agreement with the government of Canada, a province or another jurisdiction in or outside Canada; and (e) in the case of information in the custody or control of a public body that has entered into an information-sharing agreement with the director under subsection (3), information that may not be shared under the terms of the agreement. (6) A public body that has custody or control of information to which the director is entitled under subsection (4) shall, on request, disclose the information to the director. Information sharing 57. (1) Notwithstanding any other Act or law other than an Act prescribed in the regulations, the director shall not use or disclose specified information except as authorized by this section. (2) The director may use or disclose specified information as follows: (a) for the purposes of administering this Act, including any proceedings under this Act; (b) for the purposes of prosecution of perjury or for proceedings of contempt; and (c) in accordance with an order of the court made on application by the director in proceedings under this Act. (3) Notwithstanding any other Act or law, the director shall not be required, in connection with any legal proceedings, to give or produce evidence relating to any information or records obtained by or on behalf of the director under this Act. (4) Subsection (3) does not apply in respect of legal proceedings referred to in paragraph (2)(a) or (b). (5) All reports, files and other records made by a person under this Act are the property of the government of the province and shall not be released without the permission of the director. Notice to produce information 58. (1) The director may
give a written notice, in the form set by the minister, to a person to produce
information described in subsection (2), as specified in the notice, where all
of the following apply: (a) the director has reason to suspect that (i) the whole or a portion of an interest in
property is proceeds of unlawful activity, or (ii) property is an instrument of unlawful activity; (b) the director has reason to believe that the
property referred to in subparagraph (a)(i) or (ii) is in the province; (c) the director has reason to believe that (i) the person is a financial institution in
possession of the whole or the portion of the interest in property referred to
in subparagraph (a)(i), or (ii) the person has an interest in the property
referred to in subparagraph (a)(i) or (ii); and (d) the information is reasonably required by the
director in order to exercise the director's powers or perform the director's
duties or functions under this Act. (2) A notice under subsection (1) may request that
the person provide to the director, (a) in the case of a person referred to in subparagraph
(1)(c)(i), the following information in relation to any accounts in which the
property referred to in subparagraph (1)(a)(i) is held by the person: (i) any information necessary to identify the account,
including the account number and other particulars, (ii) the nature and type of the account, (iii) whether the account is active, and (iv) the names and addresses of all account holders;
and (b) in the case of a person referred to in subparagraph
(1)(c)(ii), information or particulars related to the interest of the person in
the property referred to in subparagraph (1)(a)(i) or (ii). (3) A person who has custody or control of
information requested by a notice under this section shall, within 30 days
after receiving the notice, disclose that information to the director. (4) Where the director provides a notice under
subsection (1) to a person referred to in subparagraph (1)(c)(i), the director shall,
as soon as practicable after providing the notice, do one of the following: (a) disclose to all account holders identified by
the person that a notice was given under this section; (b) commence proceedings under section 6 in
relation to the whole or the portion of the interest in property; or (c) apply for an order under section 16. Requirement to not disclose existence of notice 59. (1) Where reasonably required for the director to
exercise the director's powers or perform the director's duties or functions
under this Act, the director may require in a notice under subsection 58(1)
that the person to whom the notice is given not disclose to any person the
existence of the notice. (2) Where the director required in a notice under subsection
58(1) that a person not disclose to any person the existence of the notice, the
person shall not disclose the existence of the notice to any person, other than
a person in respect of which solicitor-client privilege exists, unless the
director advises otherwise in accordance with subsection (3). (3) Where non-disclosure of a notice under subsection 58(1)
is no longer reasonably required for the director to exercise the director's
powers or perform the director's duties or functions under this Act, the
director shall advise the person, as soon as practicable, that the
non-disclosure requirement no longer applies. Annual report 60. The director shall submit an annual report to
the minister that shall include the following information: (a) the number of forfeiture orders made in the year and the status of any forfeiture proceedings; (b) the number of administrative forfeiture
proceedings that resulted in the forfeiture of property and amounts within the
year; (c) the total amount realized during the year from
the disposition of property forfeited under this Act; (d) a statement respecting the operation of the
civil forfeiture account that includes the following information: (i) the total amount paid
into the civil forfeiture account, and (ii) the total amount paid
out of the civil forfeiture account and the purposes for which payments were
made from the civil forfeiture account; and (e) any other information requested by the minister Filing notices in registries 61. (1) After commencing proceedings under section 6 that relate to real property or the whole or a portion of an interest in property that is real property, the director may file, in a manner prescribed in the regulations, in the registry of deeds, the form of notice set by the minister setting out that the proceedings commenced may affect the real property or the whole or a portion of an interest in the property that is the real property referred to in the notice. (2) After commencing proceedings under section 6 that relate to personal property or the whole or a portion of an interest in property that is personal property, the director may register in the personal property registry, in the manner prescribed in the regulations, the form of notice set by the minister setting out that the proceedings commenced may affect the personal property or the whole or a portion of an interest in the property that is the personal property referred to in the notice. (3) The director may amend, extend or cancel a
notice referred to in subsection (1) or (2) by filing or registering, in the
same manner as the notice was filed or registered, the amendment, extension or
cancellation in the registry of deeds or the personal property registry, as
applicable. PART X Establishment of civil forfeiture account 62. (1) There
shall be established a special purpose account in the Consolidated Revenue Fund
called the civil forfeiture account. (2) The civil forfeiture account shall consist of money paid into the civil forfeiture account under section 63. (3) Money paid into the civil forfeiture account under section 63 shall, for the purpose of section 22 of the Financial Administration Act, be considered to be received for a special purpose as prescribed in section 64 and the regulations. Allocation of funds 63. The director shall pay the following into the civil forfeiture account: (a) cash forfeited to the Crown under this Act; (b) proceeds resulting from the disposition of property, or the whole or a portion of an interest in property, forfeited to the Crown under this Act; and (c) money paid to the Crown in settlement of an application or action under this Act. Payment out of civil forfeiture account 64. Subject to this Act and the regulations, the director may make payments out of the civil forfeiture account for one or more of the following purposes: (a) compensation of eligible victims; (b) prevention of unlawful activities; (c) remediation of the effect of unlawful activities; (d) administration of the Act, including any costs related to the preservation, management or disposition of property or the whole or a portion of an interest in property for the purposes of this Act; (e) compliance with an order of the court under subsection 37(8); (f) for the purposes of subsection 40(1); and (g) other purposes prescribed in the regulations. Application for compensation 65. An eligible victim may, in accordance with the regulations, apply for compensation from the civil forfeiture account. Payment to eligible victim 66. (1) Subject to this Act and the regulations, where the director receives an application under section 65, the director may pay an amount to an eligible victim in the circumstances and subject to the terms and conditions that the director considers appropriate. (2) Notwithstanding subsection (1), the director shall not pay eligible victims of an unlawful activity a total amount that exceeds the net proceeds, as determined by the regulations, resulting from the disposition of property or the whole or a portion of an interest in property forfeited as a result of the unlawful activity. Manner of payment 67. In compensating an eligible victim under paragraph 64(a), the director may (a) pay an eligible victim in one or more instalments; or (b) prorate payments among eligible victims or a category of eligible victims in accordance with the regulations. Reconsideration of decision 68. On application to the director, or on the director's own initiative, the director may reconsider a decision made under section 66 or 67 respecting the payment of compensation or eligibility for compensation. Repayment of excess compensation received 69. Where an eligible victim received money from the civil forfeiture account that is in excess of the amount awarded to the eligible victim under this Act, the eligible victim is liable to repay to the Crown the amount of compensation to which the eligible victim was not entitled. PART XI Where possession unlawful 70. For the purposes of a proceeding under this Act, a person shall not claim to have an interest in property, where, under the law of Canada or the province, it is unlawful for that person to possess the property. Forfeited property free from other interests 71. Where property or the whole or a portion of an interest in property is forfeited under this Act, the Crown does not, as a result of the forfeiture, assume responsibility for any covenants, debts or other obligations under an encumbrance, a lien or another security interest to which the property or the whole or the portion of the interest in property is subject. Protection from liability 72. (1)
An action for damages does not lie
against the Crown, the director, an employee or a person acting on behalf of
the director personally for anything done or omitted to be done in good faith
in the performance or intended performance of a duty or the exercise or
intended exercise of a power under this Act, or for a neglect or default in the
performance, or intended performance, of a duty, or the exercise or intended
exercise, of a power, in good faith, under this Act. (2) An action or other proceeding shall not be commenced against the Crown, the director or a person acting on behalf of, assisting or providing information to the director in respect of the commencement or conduct in good faith of a proceeding under this Act or in respect of the enforcement in good faith of an order made under this Act. Provincial Offences Act 73. Section 5 of the Provincial Offences Act does not apply to this Act or the regulations. Limitation period 74. The time limit for commencing an application under this Act is 10 years from the date on which the unlawful activity occurred. Fees and forms 75. The minister may set fees and establish forms for the purposes and administration of this Act. Regulations 76. The Lieutenant-Governor in Council may make regulations (a) prescribing criteria for the purposes of subparagraph 2(1)(k)(iii); (b) prescribing classes of persons or entities for the purposes of subparagraph 2(1)(m)(iii); (c) prescribing agencies and organizations for the purposes of subparagraph 2(1)(u)(iii); (d) prescribing public bodies for the purposes of paragraph 2(1)(ff); (e) prescribing a person or a class of persons for the purposes of subparagraph 2(1)(ll)(iii); (f) prescribing a security interest for the purposes of paragraph 2(1)(qq); (g) prescribing a purpose for the purposes of clause 2(1)(qq)(i)(C); (h) prescribing Acts or jurisdictions for the purposes of paragraph 2(1)(vv); (i) establishing one or more methods or formulas for determining the interest or portion of an interest in property that is equivalent in value for the purposes of subsection 2(2); (j) prescribing circumstances where the director is required to notify a person for the purposes of paragraph 7(3)(a); (k) prescribing the manner of notice for the purposes of paragraph 7(3)(b); (l) prescribing information for the purposes of paragraph 29(4)(d); (m) prescribing methods of delivering notice to known interest holders for the purposes of paragraph 31(1)(d); (n) prescribing dates for the purposes of paragraph 31(2)(d); (o) prescribing information for the purposes of paragraph 38(2)(d); (p) prescribing charges or fees for the purposes of paragraph 40(3)(a); (q) prescribing an amount for the purposes of paragraph 40(3)(b); (r) respecting the application of the Rules of the Supreme Court, 1986 to proceedings for the purposes of subsection 42(4); (s) prescribing other things for the purposes of paragraph 52(c); (t) respecting the administration and disposal of property or the whole or a portion of an interest in property for the purposes of subsection 56(1); (u) prescribing Acts for the purposes of subsection 57(1); (v) prescribing the manner of filing notices for the purposes of subsections 61(1) and (2); (w) prescribing purposes for the purposes of paragraph 64(g); (x) respecting applications for compensation from the civil forfeiture account for the purposes of section 65; (y) respecting the determination of net proceeds for the purposes of subsection 66(2); (z) respecting the proration of payments for the purposes of paragraph 67(b); (aa) defining a word or phrase used but not defined in this Act; and (bb) generally to give effect to this Act. SNL2015 cA-1.2 Amdt. 77. (1) Schedule A of the Access to
Information and Protection of Privacy Act, 2015 is amended by adding
immediately after paragraph (d) the following: (d.1) subsection 57(5) of the Civil Forfeiture Act; Commencement 78. This Act, or a section, subsection, paragraph
or subparagraph of this Act, comes into force on a day or days to be proclaimed
by the Lieutenant-Governor in Council. ŠKing's Printer |