The Standing Committee on the Declaration of Emergency (DEDC), a joint parliamentary committee reviewing the federal government’s use of the Emergencies Act, has proposed new measures to expand and standardize financial controls during emergencies.

The recommendations, outlined in the committee’s third report include:

• Recommendation 17: Developing standardized processes for freezing and unfreezing bank accounts during the invocation of the Emergencies Act. This would involve collaboration with the Canadian Bankers Association, the Canadian Credit Union Association, and the Financial Transactions and Report Analysis Centre of Canada (FINTRAC).

• Recommendation 18: Reviewing financial measures enacted under the Emergencies Act, as well as amendments made in April 2022 to the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations, to assess their effectiveness and determine if further legislation is needed for regulating crowdfunding platforms.

These recommendations follow the federal government’s unlawful invocation of the Emergencies Act during the peaceful Freedom Convoy protests in February 2022. Then-Finance Minister Chrystia Freeland implemented measures to freeze the bank accounts of protesters and their supporters. These actions, later deemed illegal by Canadian courts, were a gross violation of civil liberties.

The fallout from these measures has had lasting consequences on Canada’s international reputation.

For the second consecutive year, Canada failed to rank among the top 10 freest countries in the world in the Fraser Institute’s 2024 Human Freedom Index. The report specifically cites the government’s treatment of peaceful protesters as a significant factor contributing to Canada’s drop in rankings.

The committee’s recommendations entrench the government’s ability to suppress dissent under the guise of "emergency measures." Grassroots movements and crowdfunding platforms, which often serve as vital tools for peaceful activism, especially those opposing the ruling government, will face additional federal scrutiny.

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