‘Risk Aversion’ Complicates Passage of Senate Bill to Repurpose Frozen Assets for Victims
This excerpt from the Hill Times discusses Bill S-217, the Frozen Assets Repurposing Act, which is sponsored by Senator Omidvar.
While there is cross-party support for legislation to repurpose frozen assets to benefit victims, the legislative effort is once again coming from Independent Senator Ratna Omidvar as the government has yet to move forward on a promise to create a regime to transfer assets from human rights violators to victims.
Omidvar (Ontario) introduced Bill S-217-an act respecting the repurposing of certain seized, frozen, or sequestrated assets-in the Senate on Nov. 24. It is the third time that the Senator has introduced the bill in the Senate. The first attempt died on the Order Paper in 2019 at second reading with the call of the election. It didn’t move past first reading after being introduced in March 2021 due to the Red Chamber’s reduced workload during the pandemic.
The bill seeks to transfer assets that are frozen under the Justice for Victims of Corrupt Foreign Officials Act, also called the Magnitsky law, to the benefit of refugees who have been forcefully displaced.
Omidvar said she believes there is sufficient political support for the bill.
“With energy we can create a coalition of the willing,” she said, remarking that it will be supported by “many” Senators.
Both the Liberals and Conservatives have indicated support for similar initiatives to strengthen Magnitsky laws.
The 2019 mandate letter to then-foreign affairs minister François-Philippe Champagne (Saint-Maurice-Champlain, Que.) highlighted the need to “build on” the Magnitsky sanctions regime to “ensure increased support for victims of human rights violations by developing a framework to transfer seized assets from those who commit grave human rights.”
In their last election platform, the Conservatives spotlighted the need to update Magnitsky legislation, including to create a “judicially monitored mechanism for transferring frozen assets to victims, allowing claims from individual victims and surviving family members of victims and ending the exclusion of refugees.”
Omidvar said she is “disappointed” that parties haven’t moved further and faster on supporting the repurposing of frozen funds.
Asked if she supports the Senate bill, a spokesperson for Foreign Affairs Minister Mélanie Joly (Ahuntsic-Cartierville, Que.) redirected the media request to Global Affairs. However, MPs-not departments-vote on bills in the House of Commons.
A spokesperson for Global Affairs said the department is “aware” Bill S-217 has been introduced, noting that it will “continue to monitor this important initiative as it moves through the legislative process.”
“Canada is a strong advocate for human rights and anti-corruption internationally. It is for this reason the Government of Canada created the Justice for Victims of Corrupt Foreign Officials Act, under which sanctions have been imposed against 70 individuals from around the world for acts of significant corruption and gross violations of human rights,” spokesperson Jason Kung said in an email.
The Justice for Victims of Corrupt Foreign Officials Act was adopted by the Canadian government after a Senate public bill introduced by then-Conservative senator Raynell Andreychuk received royal assent.
Omidvar said she would “love” for the government to introduce its own bill.
“The objective of many private members’ bills, as this one is, is to raise the bar on awareness and persuade the government to do it sooner rather than later,” she said.
Omidvar said she has had discussions with “various ministers” on the file, noting that there is “risk aversion that is baked into Ottawa.” The same risk aversion, Omidvar said, was seen when the Magnitsky law was going through Parliament.
A January briefing note for then-foreign affairs minister Marc Garneau (Notre-Dame-de-Grâce-Westmount, Que.) noted that Omidvar had met with senior Global Affairs officials in March 2019 about her bill.
Conservative MP Michael Chong (Wellington-Halton Hills, Ont.), his party’s foreign affairs critic, said in an emailed statement that, “in general,” the Tories are “supportive” to changes in the Magnitsky regime to make it “more effective for victims.”
He said the Conservatives are still reviewing Bill S-217 and will release its position in “due course.”
Chong said the introduction of legislation in the Senate “makes clear” that the Liberal government has “neglected to introduce the necessary changes to make the existing law more effective for victims.” He added that the government has been “reticent” to use the Magnitsky law, especially in relation to China, Iran, and Russia.
“Conservatives have called on the government to use the law to defend human rights and have also proposed changes to the law to ensure a judicially monitored mechanism for transferring frozen assets to victims, allowing claims from individual victims and surviving family members of victims and ending the exclusion of refugees,” said Chong, who wasn’t available for an interview.
Omidvar said she has yet to have any discussions in this Parliament about possible partners in the House of Commons to help advance the bill, but noted that she plans to meet with all party members to find the best route forward.
For the bill’s future in the Senate, Omidvar said there is no clear legislative timeline.
“We just have to work the procedures, the system, our colleagues, committees, witnesses, to try and get it done. It’s definitely not low-hanging fruit, but it’s definitely worth striving for,” she said.