Canadian Counter Terrorism Financial Enforcement Laws Limit Lawyers

On December 18, 2001, the Canadian “Anti-Terrorism Act” received Royal Assent and is expected to take effect after measures for implementation have been arranged with the provinces, territories, police, and other responsible for enforcement of its provisions. The new law has a significant impact on legal services and has raised the concern of the Canadian bar. While lawyers in four Canadian provinces are exempted temporarily from such reporting obligations by an order of th Supreme Court of British Columbia in Law Society of B.C. v. Attorney General of Canada and other law suits filed by the bar associations. The new counter-terrorism legislation in Canada, combined with the Proceeds of Crime (Money Laundering) Act, have brought transformations in the right to confidentiality under solicitor-client and bank-client relationships. Transnational terrorism is breaking down various barriers in the conduct of business and especially professional activities.