The Flawed Proceeds of Crime Act: Canada Must Amend It to Protect Innocent Citizens

Canada's Proceeds of Crime (Money Laundering) and Terrorist Financing Act was designed to combat illicit financial activities, but in practice, it has become a deeply flawed instrument of government overreach, financial surveillance, and constitutional violations. Innocent Canadians—law-abiding individuals and businesses—are being swept up in an overly broad system that prioritizes suspicion over evidence, surveillance over privacy, and foreign influence over national sovereignty. This Act must be immediately amended to restore financial privacy, prevent political weaponization, and ensure real due process protections under the Canadian Constitution.

This is the Canadian law designed to combat money laundering and terrorist financing.

While it is necessary but a flawed tool in the fight against financial crime. While it strengthens Canada’s defences it raises questions about financial privacy, regulatory overreach, and international influence.

The Proceeds of Crime (Money Laundering) and Terrorist Financing Act has gone far beyond its intended purpose, turning into a tool for mass surveillance, financial blacklisting, and government overreach. If left unchanged, it will continue to violate the rights of Canadians, damage businesses, and compromise financial privacy.

To ensure financial privacy while maintaining an effective anti-money laundering (AML) and counter-terrorist financing framework, Canada's Proceeds of Crime (Money Laundering) and Terrorist Financing Act must be amended.  

Judicial Oversight: A Three-Judge Panel Must Approve Financial Restrictions

One of the most egregious flaws in the Act is that it allows financial institutions and regulatory bodies to freeze assets, block transactions, and report individuals based on suspicion alone—without requiring any substantial evidence of a crime. This creates an environment ripe for abuse, where citizens can be financially blacklisted without due process.

Proposed Amendment:

✅ Mandatory three-judge panel approval before any financial restriction (account freeze, transaction block, asset seizure) is imposed under the Act.
✅ Requirement for clear evidence of wrongdoing, not just suspicion.
✅ Exception: Immediate action is allowed only in an active terrorist financing case, but must undergo judicial review within 48 hours.
✅ Result: This prevents political abuse, mass financial surveillance, and wrongful persecution of innocent Canadians.

Strengthening Financial Privacy for Citizens & Corporations

The Act's current structure treats all Canadians as potential criminals, forcing banks to report even perfectly legal financial transactions. This is an outright violation of privacy and the presumption of innocence. The law must be reformed to protect the rights of law-abiding citizens and businesses.

Key Amendments:

✅ Limit “Suspicious Activity Reports” (SARs) to High-Risk Cases Only

• Banks should only be required to flag transactions linked to actual criminal activity, not just any transaction over $10,000.

✅ Transparency for Affected Individuals & Businesses

• Canadians must be notified within six months if their transactions were flagged but found innocent. No more secret blacklisting.

✅ Reduce Data Retention Periods to Prevent Financial Surveillance

• The Act mandates that financial institutions store data for over 5 years, enabling mass surveillance.

• Amendment: Limit data retention to 3 years maximum, unless linked to an active investigation.

✅ Protect Cryptocurrency Users from Overregulation

• The law treats all crypto transactions as high-risk, even though many Canadians use crypto legally.

• Amendment: Ensure that only high-risk transactions are flagged while respecting law-abiding crypto users' financial privacy.

Eliminating Regulatory Overreach & Government Abuse

The Act gives the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) broad powers with little oversight. There have been multiple instances where laws like this have been weaponized against political opponents, peaceful protestors, and businesses. This must stop.

Key Safeguards Needed:

✅ Prevent Mass Surveillance of Financial Transactions

• Require a warrant before any mass data collection on transactions.

✅ Rein in FINTRAC’s Expansive Powers

• Establish independent oversight of FINTRAC to prevent overreach.

• Require annual third-party audits to ensure compliance with privacy laws.

✅ Ban Political Weaponization of Banking

• Freeze assets only with a court order—politicians and bureaucrats should not be able to target individuals or groups.

• Parliamentary approval should be required before the Act can be used against peaceful political activists or businesses.

✅ Enforce Criminal Penalties for Wrongful Freezing of Assets

• If a bank or government agency wrongfully freezes an account, they should face criminal liability and financial penalties.

Restoring Canada’s Financial Sovereignty

The Act is heavily influenced by foreign bodies like the Financial Action Task Force (FATF), the United Nations, and the U.S. financial system. This has led to Canadian financial laws being dictated by international actors, rather than serving the best interests of Canadian citizens and businesses.

Key Reforms:

✅ Limit Foreign Influence in Canada’s AML Laws

• No automatic adoption of FATF, U.S., or UN financial restrictions without independent Canadian review.

✅ Prohibit Canadian Banks from Enforcing Foreign Sanctions Without Canadian Approval

• Right now, foreign governments can pressure Canadian banks to freeze assets or deny financial services based on political disputes abroad.

• Amendment: Canadian banks should only enforce sanctions approved by Canadian law.

✅ Strengthen Protections for Politically Exposed Persons (PEPs)

• Ensure PEP monitoring does not become political harassment.

• Limit monitoring to current officials, not past ones.

• Require concrete risk factors before flagging a transaction.

Conclusion: Canada Must Fix This Law Now

The Proceeds of Crime (Money Laundering) and Terrorist Financing Act has gone far beyond its intended purpose, turning into a tool for mass surveillance, financial blacklisting, and government overreach. If left unchanged, it will continue to violate the rights of Canadians, damage businesses, and compromise financial privacy.

Immediate legislative reforms are needed: 

✅ Require a three-judge panel to approve any financial restrictions.
✅ Limit mass transaction monitoring and financial surveillance.
✅ Ensure financial transparency and prevent wrongful blacklisting.
✅ End foreign influence over Canadian financial laws.
✅ Protect law-abiding Canadians from unjust suspicion and government abuse.

Canada must act now to restore financial freedom, constitutional protections, and sovereignty. It’s time to reform this law before more innocent Canadians become collateral damage in the government’s failed approach to financial crime prevention.

SOURCE:

https://lois-laws.justice.gc.ca/eng/acts/p-24.501/

NOTE:

Financial Transactions and Reports Analysis Centre of Canada

Government agency

The Financial Transactions and Reports Analysis Centre of Canada is the national financial intelligence agency of Canada.

FINTRAC was established in 2000 under the Proceeds of Crime Act to facilitate the detection and investigation of money laundering.

Parent organization: Department of Finance Canada

Founded: 2000

Agency executive: : Sarah Paquet, Director and Chief Executive Officer;

Employees: 556 (2024)

Headquarters: Ottawa, Ontario, Canada

Minister responsible: Chrystia Freeland, Minister of Finance

 

  

The European Union: A Constitution of Control, Not Democracy

Published

May 7, 2012

Supporters of a new world order—including media institutions, political elites, and globalist advocates—often portray the European Union’s constitutional framework as a triumph of democracy, human rights, and minority protections. However, the stark reality is that the EU’s constitutional foundation was imposed in direct defiance of its own citizens, overriding democratic referendums and national self-determination within its member states.

A fundamental distinction exists between the constitutional principles of the European Union and those of the United States. The U.S. Constitution begins with the powerful declaration, “We the People,” affirming that government derives its legitimacy from the consent of the governed. In contrast, the EU’s constitution, as shaped by successive treaties, begins with “His Majesty the King of the Belgians,” symbolizing its aristocratic, top-down origins rather than a foundation built on popular sovereignty.

The EU’s Contempt for Democratic Mandates

From its inception, the EU demonstrated a blatant disregard for the will of its people. National referendums rejecting various EU constitutional frameworks were either ignored or rebranded under different treaty names to circumvent public opposition. Rather than respecting democratic mandates, European elites imposed a supranational structure designed by aristocrats, technocrats, and lifelong bureaucrats—individuals whose interests are inherently tied to centralizing power and eliminating national autonomy.

This governance model is not an evolution of democracy but a direct inversion of it. Much like authoritarian regimes of Europe’s past, the EU is built upon the premise that power should reside with an insulated ruling class, not the electorate. The European Union’s formation was not a product of democratic consensus but a strategic political reorganization from above, using legislative loopholes to subvert national self-determination.

A System Designed to Bypass the People

The EU’s legislative power is concentrated in the hands of an appointed European Commission, an unelected body of career bureaucrats who wield supreme authority over European legislation. Unlike traditional democratic systems, where laws are debated and enacted by elected representatives, the EU grants its executive branch a monopoly on legislative proposals, ensuring that critical policies originate not from the people but from entrenched elites.

In any truly democratic society, such unchecked, unelected power would be unacceptable, yet the EU’s constitutional framework was deliberately crafted to make these officials untouchable by national elections. By shielding its ruling class from electoral consequences, the EU has institutionalized a permanent bureaucratic aristocracy, unaccountable to the very people it governs.

Supranationalism as a Means of Control

This forced Europeanization of formerly sovereign states is not about unity—it is about control. The EU's governing structure has eroded national identities and democratic institutions, replacing them with a centralized, unaccountable power structure that resembles historical regimes where bureaucratic elites ruled without public consent.

The European Union is, in essence, a fanatical experiment in supranationalism, where the ruling class is detached from the citizens they claim to represent. The project is less about cooperation and more about ensuring that the levers of power remain firmly in the hands of unelected, lifelong bureaucrats at the taxpayers’ expense.

Democracy vs. Technocratic Dictatorship

When given the choice between democracy and autocratic bureaucratic rule, the EU has consistently sided with the latter. The European Union is not a governing body that exists to serve its citizens; rather, it is a political mechanism that exists to perpetuate itself, concentrating authority while stripping power from national governments and individuals alike.

In essence, the EU is not a union of democratic nations but an authoritarian construct, designed to subjugate sovereign states under a ruling class that answers only to itself. Its policies, constitutional structure, and governance mechanisms serve as a continuation of the centralist, bureaucratic governance that has plagued Europe for centuries.

A Stark Contrast: The EU vs. the United States

The fundamental difference between the constitutional models of the United States and the European Union is not simply one of wording—it is a defining factor like freedom and governance:

• The U.S. Constitution was designed to empower the people and restrain the government.
• The EU’s constitutional framework was designed to empower the government and control the people.

This distinction is not just theoretical—it is a reflection of two entirely different visions of governance: one rooted in individual liberty and one entrenched in bureaucratic dominance.

The citizens of Europe, like those in any free society, must ask themselves: Who truly governs us? A government of the people, by the people, and for the people? Or a government by elites, for elites, at the expense of its citizens?

The answer is clear. The European Union, under its current framework, is nothing more than an autocratic governing entity, continuing the long and unfortunate European tradition of centralized, elite-driven rule—a system that history has repeatedly shown to be a threat to liberty, prosperity, and national self-determination.

Readings @

http://www.proyectos.cchs.csic.es/euroconstitution/

http://eu.um.dk/en/about-us/representatives/

http://ec.europa.eu/commission_2010-2014/

http://www.eunow.eu/eublog/?p=4

http://europa.eu/about-eu/institutions-bodies/index_en.htm

http://en.wikipedia.org/wiki/European_Parliament

http://www.culturaldiplomacy.org/culturaldiplomacynews/participant-papers/eu/Maria-Eremenko-Political-participation-Model-by-Verba-in-the-EU-and-Russia.pdf

Canada’s Missed Opportunity: Why More Refineries and Pipelines Were Essential for Energy Security

For decades, Canada has been a global leader in oil production, yet it remains heavily dependent on the United States for refining and export infrastructure. Instead of maximizing its energy independence, Canada has allowed political and regulatory roadblocks to stall vital projects, limiting economic growth and making the country reliant on foreign refining capacity. Building more domestic refineries and east-west pipeline infrastructure should have been a national priority.

Canada’s failure to develop refining and pipeline capacity has been a self-inflicted wound, limiting the country’s economic potential and increasing dependence on foreign markets. By reversing course and adopting pro-energy policies, Canada can secure its economic future and maximize the value of its vast natural resources.

The Case for More Refineries

1. Energy Independence and Security

Canada exports millions of barrels of crude oil daily to the U.S., only to import back refined fuels like gasoline, diesel, and jet fuel at a higher cost. A stronger domestic refining sector would have reduced reliance on foreign supply chains and insulated Canadians from external price shocks.

2. Economic Growth and Jobs

Refineries are major job creators, providing employment in construction, operations, and maintenance. By expanding refining capacity, Canada could have added thousands of high-paying jobs while increasing the value of its exports.

3. Strengthening Trade Position

Instead of exporting raw crude at lower prices, Canada could have exported finished petroleum products, generating higher revenues and reducing trade imbalances. With global energy demand rising, particularly in Asia and Europe, a stronger refining sector would have positioned Canada as a key player in international energy markets.

The Need for More Pipelines to the East and West

1. Market Diversification

Currently, over 98% of Canada’s crude exports go to the United States, making Canada heavily reliant on a single buyer. The cancellation of the Energy East pipeline in 2017 meant that Eastern Canada continued importing oil from foreign producers instead of using domestic resources. Similarly, restrictions on Western pipeline expansion have prevented access to the booming Asian markets.

2. Reducing Foreign Dependence

Despite being one of the world’s top oil producers, Eastern Canada still imports oil from Saudi Arabia, Venezuela, and the U.S. due to the lack of pipeline infrastructure linking Alberta’s oil sands to the region. This reliance on foreign oil is unnecessary and exposes Canada to geopolitical risks.

3. Boosting Canadian Competitiveness

By failing to build critical pipeline infrastructure, Canada has ceded energy market advantages to the United States. While American refiners process Canadian crude and profit from it, Canada lags in developing its own refining and export capacity.

Policy Barriers and the Trudeau Government’s Role

Several policy decisions have significantly hindered Canada’s energy sector:

• Bill C-69 (2019) introduced subjective criteria such as social and gender impacts into energy project approvals, creating uncertainty for investors. The Supreme Court later ruled it unconstitutional, but the damage was already done.

• Bill C-48 effectively banned oil tankers from B.C.’s northern coast, blocking access to Asian markets.

• Federal policies have disproportionately targeted the oil and gas sector with greenhouse gas (GHG) emission caps and restrictive clean fuel standards, discouraging investment.

As a result, energy investment in Canada plummeted from $76 billion in 2014 to $35 billion in 2023, while U.S. states such as Wyoming and North Dakota surged ahead in investment attractiveness.

The Path Forward: Rebuilding Canada’s Energy Strength

If Canada wants to reclaim its position as a global energy leader, it must:

1. Encourage new refinery construction to reduce dependence on U.S. refining capacity.

2. Revive east-west pipeline projects to connect Canadian crude to domestic and international markets.

3. Streamline regulatory processes to attract investment and eliminate unnecessary barriers.

4. Balance environmental goals with economic growth to ensure Canada remains competitive in global energy markets.

1. Energy Independence & Security 🔥

• Canada exports crude oil to the U.S., but then imports refined fuel back at higher prices.
• If Canada had more refining capacity, it could produce its own gasoline, diesel, and jet fuel instead of depending on U.S. refineries.
• The Energy East pipeline would have connected Alberta’s oil to Eastern Canada, reducing reliance on foreign imports.

2. Market Diversification 🌍

• With pipelines to the West Coast, Canada could sell directly to Asia, taking advantage of growing demand in China and India.
• Eastern pipelines would have allowed exports to Europe, reducing dependence on the U.S. as the primary buyer.

3. Economic Growth & Jobs 💰

• Building new pipelines and refineries would have created thousands of high-paying jobs in construction, engineering, and operations.
• More refining capacity means higher-value exports rather than just shipping raw crude.

4. Lost Opportunity Due to Policy & Regulation 🏛️

• The Trudeau government killed Energy East in 2017 with excessive regulatory demands.
• Bill C-48 banned crude oil exports from B.C.'s northern coast, limiting access to Asia.
• Bill C-69 created uncertainty for investors, stalling projects.

5. The U.S. Wins While Canada Stalls 🇨🇦➡️🇺🇸

• The U.S. refined 2.8 million barrels per day of Canadian oil in 2023 while Canada still imports gasoline and diesel from the U.S.
• The lack of pipelines and refineries has artificially constrained Canadian energy growth while benefiting American refiners.

The Bottom Line

Canada should have built more refineries and pipelines to diversify its energy exports, create jobs, and achieve energy security. Instead, political decisions and overregulation have blocked progress, leaving the country dependent on U.S. refineries and limiting economic potential.

Canada Consistently Underfunds Its Defense

 

Canada has consistently underfunded its defence while benefiting from U.S. military protection, and it’s fair to argue that it should pay its fair share, both going forward and retroactively. 

Canada should pay its fair share—both retroactively and moving forward. The U.S. taxpayer shouldn’t be subsidizing a wealthy country like Canada when it can afford to defend itself.

Canada's Chronic Underfunding of Defense

• NATO requires members to spend at least 2% of GDP on defence, but Canada has never met this target in modern history.
• Canada currently spends around 1.38% of GDP on defence (2023)—well below what’s expected.
• The U.S. often makes up the shortfall, ensuring North America’s security at great financial cost.

The U.S. Bears the Burden

• The U.S. spent 3.49% of GDP on defence in 2023, well above NATO’s 2% target.
• The NORAD alliance (which protects Canadian airspace) is overwhelmingly funded by the U.S.
• The U.S. has military bases, personnel, and missile defence systems that indirectly protect Canada at no direct cost to Canadian taxpayers.

 Decades of Free-Riding – Should Canada Pay Retroactively?

Canada should have met NATO's 2% target for the past 50 years, here’s a rough estimate of what it “owes” in back defence spending:

• Since 1973, Canada has spent an average of 1.2% of GDP on defence, far below NATO’s 2% guideline.
• If Canada had met the 2% target, it would have spent hundreds of billions more over the years.
• Some estimates suggest that Canada has “underpaid” by $250 billion to $300 billion in military spending compared to its NATO commitments.

What Could Canada Do to Pay Its Fair Share?

• Increase defence spending immediately to at least 2% of GDP (about $20-30 billion more per year).
• Compensate the U.S. for past shortfalls—even a one-time repayment (e.g., $50-$100 billion) would acknowledge the U.S. burden.
• Take on more responsibility in NORAD and NATO, including Arctic security and missile defence.

The Political Reality

• Trudeau has refused to commit to 2% GDP defence spending, despite repeated U.S. pressure.
• Canada’s military is underfunded and aging, with outdated ships, aircraft, and limited troop numbers.
• The U.S. is growing impatient—Trump openly criticized Canada’s defence spending, and Biden has pushed for stronger NATO commitments.

Instead of outright demanding a lump-sum repayment, the U.S. should strategically adjust trade agreements to recover the costs while keeping relations smooth. Here’s how that could work:

1. "Trade Corrections" as Repayment

Since Canada has benefited from U.S. defence spending, the U.S. could:

• Impose higher tariffs on Canadian exports until the defence debt is balanced.
• Adjust USMCA (NAFTA 2.0) terms to favor U.S. industries, reducing Canadian economic advantages.
• Require mandatory U.S. defence contracts—forcing Canada to purchase more military equipment from American manufacturers (benefiting the U.S. economy).

2. Specific Trade Adjustments That Make Sense

A. Tariffs on Key Canadian Exports

• The U.S. buys 75% of Canada’s total exports, giving it major leverage.
• The U.S. could impose a defence surcharge on high-value Canadian goods like:
  • Oil & Gas (Canada’s biggest export)
  • Lumber & Forestry Products
  • Automobiles & Parts
  • Agricultural Products (wheat, beef, dairy)

B. Exclusive Defense Contracts

• Require all Canadian military purchases to be U.S.-made (fighter jets, warships, defence systems).
• Make Canada fund more NORAD operations directly by paying for U.S. military infrastructure in the Arctic.

C. Adjustments to USMCA (NAFTA 2.0)

• Canada gets trade advantages in USMCA, which could be revised to favour U.S. businesses until Canada offsets its defence debt.
• For example:
  • Reduce Canadian dairy protections (which currently hurt U.S. farmers).
  • Increase U.S. energy exports to Canada while restricting some Canadian energy sales to the U.S.
  • Strengthen “Buy American” provisions for U.S. infrastructure projects.

3. Why This Approach Works

✔ Avoids direct confrontation—Canada wouldn’t see it as a military “bill,” just a trade adjustment.
✔ Benefits the U.S. economy while recovering costs.
✔ Encourages Canada to increase defence spending voluntarily to avoid further trade penalties.

Bottom Line

If Canada won’t pay back directly, the U.S. should recoup the money through trade corrections—a fair, strategic, and diplomatic way to ensure Canada stops freeloading on defence.