Summary#

This bill creates a new sanctions tool for Canada to respond when foreign states, entities, or individuals take Canadians hostage or detain them arbitrarily to pressure Canada. It lets the government freeze, seize, and forfeit assets in Canada, restrict dealings by Canadians anywhere, and use seized funds to compensate victims. It also requires support for families, allows monetary rewards for tips that free hostages, and changes immigration rules to reward cooperation and bar sanctioned offenders.

• Allows orders that ban Canadians and Canadian companies worldwide from dealing with listed foreign actors and their property; lets Canada seize and forfeit their assets in Canada (Bill s.5, s.8).
• Requires the Minister of Foreign Affairs to give families information, guidance, and help accessing services, and to facilitate communication when appropriate (Bill s.20).
• Permits monetary rewards for critical information that leads to a hostage’s release and return (Bill s.21(2)).
• Lets government pay compensation to victims or their estates from the net proceeds of forfeited assets (Bill s.9).
• Makes people under these orders inadmissible to Canada and creates a path to permanent residence for foreign nationals who provide qualifying information, with limits (IRPA s.35(1)(e), s.25.1(1.1) as amended).
• Sets penalties for violations, up to five years in prison or, on summary conviction, a fine up to CAD $25,000 and/or up to one year in prison (Bill s.15).

What it means for you#

• Households
  • Families of hostages: You receive timely information, advice, and referrals to supports, including mental health resources; the Minister may help with communications when appropriate (Bill s.20). Timing is ongoing once cases arise.
  • Canadians and eligible protected persons abroad: Canada can target those responsible for hostage-taking or arbitrary detention that is used to pressure Canada (Bill s.5(2), s.2(2)). Direct consular services are not changed in the bill. Data unavailable on timelines for specific cases.
• Workers and individuals with information
  • If you provide critical information that leads to a hostage’s release and repatriation, the Minister may pay you a monetary reward (amount and process not specified in the bill) (Bill s.21(2)).
  • If you are a foreign national who provides such critical information, you and your family members may be granted permanent residence or exemptions from immigration rules, unless inadmissible on security, human rights, or organized crime grounds (IRPA s.25.1(1.1) as amended).
• Businesses and financial institutions
  • Canadian persons and Canadian corporations, anywhere in the world, must not deal in property of listed parties; must not provide or acquire services for their benefit; and must not make property available to them (Bill s.5(3)(a)-(e)).
  • Violations can lead to criminal penalties (up to five years imprisonment; or on summary conviction, fine up to CAD $25,000 and/or up to one year imprisonment) (Bill s.15).
  • You may apply for case-by-case or general permits to allow specified transactions that are otherwise restricted (Bill s.6).
  • The Minister may require you to provide information relevant to making or enforcing orders; you must comply in the form and timeline set by the Minister (Bill s.7).
  • If you act reasonably to comply with an order (for example, freezing an account you believe is subject to an order), you have civil immunity for those actions or omissions (Bill s.16).
  • The anti–money laundering law is amended to reference persons subject to these orders, supporting information disclosures related to them (PCMLTFA s.11.11(1)(b.4) as amended).
• Local and provincial governments
  • If you hold or control property of a listed party in Canada, you must comply with seizure or restraint orders and any restrictions on dealings (Bill s.5(1)(b), s.5(3)). You may face information requests (Bill s.7).
• People listed under an order (or mistakenly affected)
  • Listed foreign nationals, states, or entities can apply to end an order or to have property released; the Minister must decide within 90 days whether to recommend changes based on set criteria (Bill s.11–s.13).
  • A listed foreign national may request a certificate to exempt property needed for reasonable living expenses for them and their dependents; 90-day decision timeline (Bill s.14).
  • If your name matches a listed foreign national’s name but you are not that person, you can apply for a certificate; the Minister must decide within 45 days (Bill s.19).
  • If your property interests are affected by forfeiture, you can apply within 30 days for a court order recognizing your unaffected interest and payment of its value (Bill s.8(4)).

Expenses#

Estimated net cost: Data unavailable.

• No fiscal note found. The bill contains no standing appropriation. Data unavailable.
• Monetary rewards for critical information are authorized at the Minister’s discretion; no amounts or caps stated (Bill s.21(2)). Data unavailable.
• Compensation to victims is limited to the net proceeds from the sale of forfeited property and is paid from the Proceeds Account; amounts depend on actual forfeitures (Bill s.9). Data unavailable.
• Enforcement and administration will require departmental resources (orders, permits, information requests, court applications), but the bill provides no cost estimates. Data unavailable.
• Seizure and disposal costs are charged to the owner of the property and are recoverable as a debt to the Crown (Bill s.18). Offsetting effect on federal costs: Data unavailable.
• Potential fine revenue from offences is not estimated (Bill s.15). Data unavailable.

Proponents' View#

• Strengthens Canada’s leverage and deterrence by enabling broad restrictions on dealings, asset seizures, and forfeiture against state and non‑state actors tied to hostage-taking or arbitrary detention (Bill s.5, s.8).
• Provides direct, legally required support to families, improving coordination and access to services during crises (Bill s.20).
• Creates concrete incentives for cooperation through discretionary monetary rewards and immigration relief for foreign nationals who provide critical information leading to releases (Bill s.21(2); IRPA s.25.1(1.1) as amended).
• Offers a path to compensate victims from net proceeds of forfeited assets, aligning consequences with harm (Bill s.9).
• Increases accountability and transparency via mandatory tabling of each order in Parliament, annual reporting on implementation, and a 10‑year legislative review (Bill s.10, s.22–s.23).
• Harmonizes with existing inadmissibility rules by adding those sanctioned under this Act to the list of people barred from entering Canada (IRPA s.35(1)(e) as amended).

Opponents' View#

• Due process and discretion concerns: orders can be made when the Governor in Council is “of the opinion” conditions are met, with wide restrictions and property impacts; although courts oversee forfeiture and notice is required, critics may see risks of overreach or errors (Bill s.5(1)–s.5(3), s.8(1)–s.8(3)).
• Compliance burden for Canadian businesses and financial institutions, including global screening, transaction blocking, responding to information demands, and managing permits, with criminal exposure for mistakes (Bill s.5(3), s.6–s.7, s.15). Costs: Data unavailable.
• Overlap and complexity with other sanctions laws could create confusion for compliance and immigration inadmissibility, as the bill adds a parallel regime alongside the Justice for Victims of Corrupt Foreign Officials Act (Magnitsky Law) (IRPA s.35(1)(e) as amended).
• Incentive risks: monetary rewards and immigration benefits may invite false or low‑quality tips; the bill sets no public criteria for reward amounts or vetting beyond the “critical information leading to release” standard (Bill s.21(2); IRPA s.25.1(1.1) as amended).
• Victim compensation is limited to net proceeds of forfeited assets; if assets are not found or are minimal, compensation may be small or unavailable (Bill s.9).
• International retaliation or escalation risks are possible when sanctioning foreign states or officials; the bill does not address mitigation strategies. Data unavailable.