Thursday, February 5, 2026
The Standing Senate Committee on Foreign Affairs and International Trade has the honour to table its
SECOND REPORT
Your committee, which was authorized to examine the subject matter of those elements contained in Divisions 18 and 27 of Part 5 of Bill C-15, An Act to implement certain provisions of the budget tabled in Parliament on November 4, 2025, has, in obedience to the order of reference of Wednesday, November 26, 2025, examined said subject matter and now reports as follows:
1. On December 10, 2025, your committee received testimony from the Department of Finance Canada, Global Affairs Canada (GAC), and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) on the subject matter of those elements contained in Divisions 18 and 27 of Part 5 of Bill C-15.
2. Your committee understands that Division 18 of Part 5 of Bill C-15 would amend the Special Economic Measures Act and the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. The purpose of the amendments is to enhance the Minister of Finance’s role in assessing the impact of sanctions on Canada’s financial sector and to create new reporting and remittance obligations on federal financial institutions in respect of sanctioned property.
3. Specifically, the committee heard from Erin Hunt, Director General, Financial Crimes and Security Division, Department of Finance Canada, that the amendments in Division 18 would require the Minister of Foreign Affairs to consult the Minister of Finance before sanctioning certain financial entities. Ms. Hunt indicated that this amendment is intended to mitigate the potential financial sector risks and possible unintended consequences associated with Canadian sanctions. Ms. Hunt told the committee that the amendments in Division 18 would also authorize the Minister of Finance to issue a targeted charge on windfall profits that financial institutions may earn from holding immobilized assets. The purpose of these amendments is to ensure that Canadian financial institutions do not unduly profit from holding the immobilized property of a sanctioned person (e.g., by generating interest on frozen assets).
4. Your committee understands that Division 27 of Part 5 of Bill C-15 would amend the Export and Imports Permits Act to enable the government to control the export and import of selected goods to protect Canada’s economic security. Specifically, the amendments would allow the Governor in Council to add an article to the Export Control Listto control the export of that article in response to actions by a foreign country or association of countries that are viewed as harming Canada’s economic security. It would also allow the Governor in Council to add an article to the Export Control Listand/or Import Control List if the Governor in Council deems it necessary to control the export and/or import of the article to ensure a secure and reliable supply of economically important goods.
5. The committee heard from Larisa Galadza, Associate Deputy Minister, International Security and Political Affairs Branch, GAC, that the amendments in Division 27 would provide “an additional tool to protect Canada from economic coercion or critical supply chain failures that could undermine our economic security.” She further specified that any future decision to add an item to the Export Control List or Import Control List would be made through the normal regulatory process, which would involve rigorous analysis and stakeholder consultation, as required under Canadian law.
6. Your committee has no objections to the amendments proposed in Divisions 18 and 27 of Part 5 of Bill C-15.
Respectfully submitted,
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