INTRODUCTION AND BRIEF DESCRIPTION
This section prohibits anyone from dealing with or transferring property derived from a criminal activity with the intent to hide or convert it.
SECTION WORDING
462.31(1) Every one commits an offence who uses, transfers the possession of, sends or delivers to any person or place, transports, transmits, alters, disposes of or otherwise deals with, in any manner and by any means, any property or any proceeds of any property with intent to conceal or convert that property or those proceeds, knowing or believing that all or a part of that property or of those proceeds was obtained or derived directly or indirectly as a result of (a) the commission in Canada of a designated offence; or (b) an act or omission anywhere that, if it had occurred in Canada, would have constituted a designated offence.
EXPLANATION
Section 462.31(1) of the Criminal Code of Canada prohibits the use, transfer, alteration, disposal, or dealing with any property or proceeds obtained from a designated offence with the intent to conceal or convert it, knowing or believing that it was obtained directly or indirectly from such an offence. A designated offence is any offence listed in the Criminal Code of Canada or a similar offense in another country that, if committed in Canada, would be considered an offence. The section aims to prevent the proceeds of illegal activities from being laundered or hidden through financial transactions or other means. This provision is part of the Criminal Code of Canada's broader efforts to combat organized crime and maintain the integrity of the country's financial system. By criminalizing the possession or use of proceeds from illegal activities, the government aims to disrupt criminal networks and prevent them from enjoying the fruits of their unlawful activities. The penalties for violating this provision can be severe and include fines, imprisonment, or both, depending on the severity of the offense. In practice, law enforcement officials use this provision to target individuals or organizations suspected of participating in criminal activities and seek to seize any assets connected to such activities. This can include anything from cash and property to stocks and investments. By depriving criminals of their ill-gotten gains, authorities aim to disrupt their operations and deter others from engaging in similar activities. Overall, Section 462.31(1) is an important tool in the fight against organized crime and corruption, helping to maintain the rule of law and preserve the integrity of Canada's financial system.
COMMENTARY
Section 462.31(1) of the Criminal Code of Canada is a provision that focuses on the criminal act of concealing or converting property or its proceeds. This provision applies when the person committing the act knows or believes that the property or its proceeds were obtained directly or indirectly as a result of a designated offence. A designated offence is defined under section 462.3 of the Criminal Code as an indictable offence that has a maximum punishment of imprisonment for five years or more. The provision aims to prevent criminals from enjoying the proceeds of their illegal activities by validating the seizure of the property and forfeiting the proceeds to the government. The provision targets individuals who have committed a designated offence and attempt to conceal the proceeds of that offence to avoid detection and punishment. Section 462.31(1) provides that an individual can commit the offence of concealing or converting property or its proceeds through different means, such as transfer, transportation, transmission, alteration, disposal, or dealing of property. Furthermore, section 462.31(1) does not only cover the commission of a designated offence within Canada, but also extends to acts or omissions that, if they had occurred in Canada, would have constituted a designated offence. This provision complements the Canadian government's efforts in fighting against global crime, especially in cases where illegitimate activities take place outside Canada, but their proceeds are brought into the country. Under section 462.37 of the Criminal Code, a court may order the forfeiture of property, whether the accused is convicted of a designated offence or not. A court may also grant an application for interim preservation of the property subject to forfeiture pending the outcome of proceedings. The aim of the forfeiture provision is to ensure that criminals do not keep the proceeds of illegal activities, and the property is used to make reparations to victims and to prevent future criminal activities. Overall, section 462.31(1) is an essential provision in the Canadian Criminal Code, as it allows for the government to seize the proceeds of criminal activities and deter criminals from continuing their illegal activities. It complements the government's fight against global crime and serves as a deterrent to individuals who may attempt to conceal or convert property or its proceeds obtained through illegal activities. The Criminal Code of Canada is constantly evolving to ensure that it aligns with the changing needs of society, and the provisions pertaining to designated offences remain vital in the government's attempts to curb criminal activities in Canada.
STRATEGY
Section 462.31(1) of the Criminal Code of Canada is a powerful tool that enables the prosecution to seize and forfeit property or proceeds obtained or derived from criminal activities. The section deals with offenses related to money laundering and the concealment or conversion of property resulting from designated offenses. Designated offenses are serious criminal offenses that carry a possible jail term of at least five years, including drug trafficking, terrorism, fraud, and organized crime. When dealing with this section of the Criminal Code of Canada, there are several strategic considerations to keep in mind. First and foremost, it is essential to recognize that the burden of proof falls on the prosecution. That is, it is up to the prosecution to show that the property or proceeds in question were obtained illegally and that the defendant was aware of this fact. Thus, the defense strategy should focus on challenging the prosecution's evidence and casting doubt on the prosecution's claim by presenting alternate theories of the origin of the property or proceeds in question. Another critical strategy when dealing with this section of the Criminal Code of Canada is to avoid suspicion of criminal activity in the first place. Given that designated offenses are listed under this section, defendants should avoid engaging in any behavior that could be interpreted as being related to such offenses. For instance, they should avoid large cash transactions, use of illicit accounts, or transactions that appear to disguise the origin of funds or property. If criminal charges are brought against a defendant, one possible defense strategy is to argue that the alleged offense did not meet the legal requirements of this section. For instance, the defendant may argue that there was no intent to conceal or convert property or proceeds, or that they were not aware that the property or proceeds were obtained illegally. Additionally, the defendant may argue that there is no evidence that the property or proceeds were obtained from a designated offense or that they were involved in the commission of such an offense. Finally, another strategy that could be employed when dealing with this section of the Criminal Code of Canada is to cooperate with the authorities. If a defendant believes that they are at risk of prosecution under this section, they may choose to cooperate with the authorities by providing information about criminal activities and participating in plea bargains or other settlement arrangements. Cooperation can help in reducing a possible sentence or result in an inactive prosecution. In conclusion, Section 462.31(1) of the Criminal Code of Canada is a powerful tool that enables the prosecution to seize property or proceeds derived from illegal activities. Some strategic considerations when dealing with this section include avoiding suspicion of criminal activities, challenging the prosecution's evidence, arguing that the alleged offense did not meet the legal requirements of this section, and cooperating with authorities when possible. By employing these strategies, defendants may be able to reduce the likelihood of conviction or mitigate the damage resulting from it.