The CBA urges changes to framework on anti-terrorist financing for charities and not-for profits

  • April 29, 2015

Ottawa – Recognizing the need to protect charities from abuse or subversion by would-be terrorists, the Canadian Bar Association (CBA) suggests that changes are needed to the existing framework, currently under study by the government, in order to allow charities to accomplish their role in society.

The CBA was invited to contribute to the House of Commons Finance Committee’s study on the cost, economic impact, frequency and best practices to address terrorist financing in Canada and abroad. The CBA welcomes the opportunity to offer input to the process, bringing its legal expertise to the discussion. As with its views on Bill C-51, the Association welcomes government’s efforts to protect Canadians from any form of terrorism, without compromising their privacy and other Charter rights.

“Canadian charities have a significant role to play in winning over hearts and minds through the delivery of humanitarian aid and capacity building,” says Margaret Mason, chair of the CBA’s Charities and Not-for-Profit Law Section. “While the work of charities is primarily driven by moral imperatives rather than self-interest, their charitable work should be viewed as an asset in the war on terrorism.”

Charities are required to be diligent so they don’t inadvertently facilitate terrorist activity. The CBA notes that compliance measures can be complex and the costs steep. The CBA proposes several options for consideration. These include greater education efforts by the Canada Revenue Agency – pre-audit – on anti-terrorism compliance, and allocating funds to which charities can apply to offset costs.

Sam Schwisberg, representing the CBA National Charities and Not-for-Profit Law Section and also a member of the CBA’s Anti-Corruption Team, appears before the Finance Committee on April 30 at 8:45 am ET, in Room 268, The Valour Building, 151 Sparks Street. The CBA submission is available online.

The CBA is dedicated to support for the rule of law, and improvement in the law and the administration of justice. Some 36,000 lawyers, notaries in Quebec, law teachers, and law students from across Canada are members.