Financial Crime World

Title: White-Collar Crime and Finance: A Look into Canada’s Legal Landscape

Last Updated: October 24, 2023

Canada’s White-Collar Crime Scene: More Than Meets the Eye

Amid the tranquil waters of Canada’s finance and business sectors, a complex web of white-collar crime thrives. From fraud and corruption to bribery and money laundering, this sophisticated form of illicit activity is not confined to any one sector or jurisdiction (Canada.ca, 2021). In response, Canada’s legal framework is geared to tackle this issue, with world-class teams like Baker McKenzie leading the charge in a global effort.

Baker McKenzie: A World-Class Team on the White-Collar Front

Baker McKenzie’s white-collar and investigations practice is among the largest in the world. With a presence in 78 offices across 46 countries, the firm’s Canadian team is home to top practitioners. Recognized for their ability to handle high-stakes criminal and civil litigation, global asset recoveries, cartel defense, bribery and corruption investigations, this team leaves no stone unturned in the pursuit and defense of multi-jurisdictional proceedings (Baker & McKenzie, 2023).

White-collar crime in Canada is governed by the Criminal Code. Offenses are classified into three categories, varying in degrees of seriousness (Department of Justice Canada, 2023):

  1. Indictable Offenses: Carry the most severe penalties, including fraud in excess of CAD5,000, terrorism, treason, and robbery. These offenses typically carry a jury trial and can potentially result in life imprisonment.
  2. Summary Conviction Offenses: Less serious offenses, with penalties that include fines or imprisonment for a term of less than two years.
  3. Hybrid Offenses: Provide the Crown with the discretion to proceed either way: by indictment or summary conviction.

A Timeline of the Criminal Process: From Investigation to Sentencing

  1. Classification of Criminal Offenses

    a. Indictable Offenses b. Summary Conviction Offenses c. Hybrid Offenses

  2. Legal Framework

    a. Elements of the Offense i. Actus Reus: The prohibited act or conduct ii. Mens Rea: The guilty state of mind iii. Strict Liability Offenses: No need to prove intent

  3. Statute of Limitations

    a. No Bar for Indictable Offenses b. One-Year Limit for Summary Conviction Offenses

  4. Extraterritorial Reach

    a. Jurisdiction Over Offenses Committed Outside Canada b. Conditions for Prosecuting External Offenses

  5. Corporate Liability and Personal Liability

    a. Corporations as Criminal Entities b. Employee Conduct and Corporate Liability c. Successor Liability

  6. Damages and Compensation

    a. Restitution and Compensation b. Forfeiture of Criminal Proceeds

Recent Case Law and Latest Developments

Canadian law continues to evolve in the area of white-collar crime. Two notable developments are the use of Remediation Agreements and Plea Agreements.

The Enforcers: Police, Prosecutors, and Regulators

As the battle against white-collar crime rages on, Canada’s authorities remain a prominent force. Federal and provincial police departments, like the RCMP and various Crown attorneys, collaborate closely to maintain the integrity of the system. Federal and provincial regulators—including securities commissions and the Competition Bureau—are also responsible for investigating violations of their respective statutes (Canada.ca, 2022). Recently, the Competition Bureau has seen an increase in efforts to negotiate remediation agreements and strengthen anti-competitive laws.