Manitoba justice minister wants more civil forfeiture power

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This article was published 10/02/2025 (297 days ago), so information in it may no longer be current.

WINNIPEG — Manitoba’s justice minister is asking the federal finance and public safety ministers to better combat money laundering by beefing up the civil forfeiture powers of the provinces and allowing for better co-operation across jurisdictions.

Provincial justice minister Matt Wiebe requested “further action at the federal level to help crack down on money laundering” in a letter to Public Safety Minister David McGuinty and Finance Minister Dominic LeBlanc.

Wiebe asserted federal action would give provincial agencies “important new tools to cut off the money supply to organized crime and help us get toxic drugs like fentanyl off our streets,” in a letter sent Friday afternoon and provided to the Free Press.

Civil forfeiture is a process in which governments can ask civil courts to allow them to retain property and other assets, such as cash, that are believed to be linked to crime.

Civil forfeiture does not require a criminal conviction. Advocates for the process argue it’s a powerful tool to combat money laundering, though government use of the proceedings as well as unexplained wealth orders have faced criticism from civil liberties groups and academics concerned about the potential for Charter of Rights and Freedoms infringements and privacy violations.

Wiebe’s letter argued the federal government could take “immediate steps” to beef up civil forfeiture.

Among his requests are for the federal government to implement amendments to the Proceeds of Crime Terrorist Financing Act, passed last year, which the minister said will enable information sharing between the Financial Transactions and Reports Analysis Centre of Canada, which oversees the federal anti-money laundering regime, and civil forfeiture authorities across Canada.

Wiebe also requested the federal government amend the Income Tax Act to allow for tax records to be disclosed to provincial civil forfeiture authorities and to amend the Bank Act to “ensure there are no gaps in forfeiture of bank accounts … in jurisdictions without civil forfeiture programs.”

The minister also requested the Canadian government work to ensure federal law enforcement agencies “recognize civil forfeiture as an important and preferable option” to establish a consistent and integrated approach to combating money laundering across Canada.

Wiebe ended the letter by saying the Manitoba government wants to work closely with its federal counterpart to “implement meaningful reforms” on the money laundering file and requesting a meeting with McGuinty and LeBlanc to discuss it.

Manitoba brought in civil forfeiture legislation in 2004 and the New Democratic government passed the Unexplained Wealth Act last year, which gives forfeiture investigators the power to force numbered corporations to disclose information about a property owner, business partners and corporate directors, Wiebe said in the letter.

Last week, the province directed Manitoba Liquor and Lotteries to disclose all suspicious transactions directly to local law enforcement, on top of reporting to federal anti-money laundering agency, the Financial Transactions and Reports Analysis Centre of Canada, Wiebe noted in the letter.

Canadian casinos are required by law to report cash transactions that exceed $10,000 — by filing separate reports for payouts and buy-ins — to FINTRAC, as well as reports for any transaction they suspect could be related to money laundering or other illegal activity.

The announcement was billed as an effort to better crack down on attempted money laundering at casinos, a cash-rich environment often targeted by criminals trying to launder money.

» Winnipeg Free Press