2025 Annual Report of the Minister of Public Safety Concerning Criminal Code sections 83.031 to 83.0391: A Regime to Authorize Certain Activities in a Geographic Area that is Controlled By a Terrorist Group

Introduction

Canada's Criminal Code contains robust anti-terrorism financing provisions that play a critical role in supporting Canada's counter-terrorism efforts, including addressing the evolving threat of terrorism, responding to domestic security considerations, supporting international responsibilities, and helping Canada meet its global obligations to prevent and disrupt terrorist financing. However, the Taliban takeover of Afghanistan in August 2021 exposed practical constraints in the existing framework which challenged the ability of the Government of Canada, Canadian charities and not-for-profit organizations, financial institutions, and civil society actors to deliver needed international assistance in regions controlled by terrorist groups.

To address these challenges, Parliament passed Bill C-41 in June 2023, amending the relevant Criminal Code provisions to include a humanitarian exception and an Authorization Regime to facilitate the delivery of other necessary activities in terrorist-controlled regions where an incidental and unavoidable benefit to a terrorist group may be incurred. Public Safety Canada (PS), in close coordination with partnering departments and agencies, publicly launched the Authorization Regime on June 19, 2024. Both mechanisms continue to be important tools for ensuring that terrorist financing provisions contained in the Criminal Code do not unintentionally impede the delivery of international assistance and other needed activities by Canadians and Canadian organizations in terrorist-controlled regions.

The Authorization Regime, which applies to Afghanistan and any other geographic region controlled by a terrorist group, continues to be well-positioned to respond to an increasingly complex global threat environment and proliferation of terrorist organizations. The Authorization Regime continues to facilitate organizations delivering needed activities in these complex environments. These same processes also support the Government of Canada's responsibility to uphold the strong anti-terrorist financing provisions outlined in the Criminal Code and national counter-terrorism efforts.

The humanitarian exception supports the delivery of humanitarian assistance activities conducted under the auspices of impartial humanitarian organizations in accordance with international law, while using reasonable efforts to minimize any benefit to terrorist groups. PS plays no statutory role related to the humanitarian exception as it operates outside the scope of the Authorization Regime. This exception is currently in effect, and there is no application process required. An individual or organization who meets the criteria of this exception is automatically shielded from criminal liability by the exception for humanitarian assistance activities.

As a measure of accountability, pursuant to legislation, the Minister of PS must prepare an Annual Report on the operations of the Authorization Regime for the previous calendar year.

The 2025 Annual Report covers the period from January 1, 2025, to December 31, 2025, and is organized in the following manner:

Section I

Provides an overview of the procedures set out in sections 83.031 to 83.0391 of the Criminal Code, and the reporting requirements under subsections 83.0392(1) and (1.1);

Section II

Summarizes the operations of the Authorization Regime throughout 2025; and,

Section III

Outlines the areas of focus in 2025, to support the ongoing administration of the Authorization Regime.

Section I - Overview of Sections 83.031 to 83.0391 of the Criminal Code and Reporting Requirements under Subsections 83.0392(1) and (1.1)

Bill C-41 created an exception to the terrorist financing offence outlined in subsection 83.03(2) of the Criminal Code to facilitate the delivery of certain assistance activities in terrorist-controlled areas via authorizations granted by the Minister of PS or a designated authority. Specifically, the Authorization Regime was created under subsection 83.032(1) to provide a shield from criminal liability to Canadians and Canadian organizations wishing to carry out eligible activities, including health services, education services, livelihoods programming, human rights programming, immigration and safe passage services, and other Government of Canada operations, in geographic area(s) controlled by a terrorist group.

PS works in close coordination with partnering departments and agencies including Global Affairs Canada (GAC) and Immigration, Refugees and Citizenship Canada (IRCC), who have distinct statutory responsibilities with respect to the review of incoming authorization applications. PS also works with security and intelligence partners who support the mandatory security review of all applications.

Applications for authorizations are assessed on a case-by-case basis to determine eligibility based on statutory requirements. This includes an initial assessment, conducted by the Minister of Foreign Affairs and/or the Minister of IRCC, to be satisfied that, among other criteria, the proposed activity responds to a real and important need in the geographic area, and that the applicant is capable of administering funds and reporting on that administration in a high-risk environment.

Once satisfied that the application meets the conditions for referral, applications are referred to the Minister of PS for a final assessment and decision. This includes the aforementioned security review, which PS facilitates in consultation with security and intelligence partners. Ultimately, the Minister of PS renders decisions on granting authorization requests based on security assessment results and weighing the risk of terrorist financing against the benefits of carrying out the activity. If granted, authorization holders may also be subject to any terms and conditions deemed necessary by the Minister of PS. Finally, PS may conduct compliance monitoring and enforcement activities on authorization holders in order to ensure risks remain sufficiently mitigated.

Bill C-41 also created a statutory obligation for the Minister of PS, pursuant to subsection 83.032(2.1), to provide written information, upon request from prospective applicants, on the need for an authorization to carry out a proposed activity in a specified geographic area. This is an optional resource available to prospective applicants to provide them clarity regarding the need for an authorization in an increasingly dynamic terrorist threat landscape.

Pursuant to the statutory obligations of the Authorization Regime, the Minister of PS is required to table an Annual Report within the first 90 days of each calendar year, outlining the operations of sections 83.031 to 83.0391 for the previous year, as well as conduct and table a report on a Comprehensive Review of the operations of the first year of the Authorization Regime and every five years thereafter.

Section II - Summary of the Operations of the Authorization Regime in 2025

Section II of this report outlines the operations of the Authorization Regime in 2025, and highlights the program achievements which have facilitated the ongoing and efficient administration of the Authorization Regime.

Applications for Authorizations

The Authorization Regime has received 15 applications for authorizations, including 12 in 2024 and 3 in 2025, plus one request for an authorization renewal. PS is pleased to report that 8 authorizations were granted, in addition to the approval of an authorization renewal, and none were refused in the 2025 calendar year. In addition, 5 applications were withdrawn by the applicants since the Regime launched in 2024. Finally, 2 applications remained under review at the end of the 2025 calendar year and will be included in next year's report.

Of these 15 applications, 11 were government-sponsored and 4 were from external applicants. The proposed activities fell primarily under health and education services, followed by livelihood supports and human rights programming, and other Government of Canada operations. These applications involved activities in the geographic areas of Afghanistan, Gaza, and Syria. To date, authorizations have been issued for projects with a total value of $246,500,000 CAD in international assistance.

Internal Application Assessment and Monitoring Processes

2025 represented the first full year in operation for the Authorization Regime. The program demonstrated early operational success through the establishment and administration of a coordinated governance and application review process, led by PS and supported by partnering departments and agencies. PS, alongside these partners, assessed applications through an inter-departmental approach that integrated a range of considerations from all partnering departments and agencies, ensuring that decisions were both timely and comprehensive. Experience delivering the program over this past year resulted in refinement and streamlining of processes, clarification and communication of requirements, and improving the efficiency of the review process.

As the Authorization Regime's operational experience continues to grow, PS, in coordination with GAC, IRCC, and security partners, have continued to refine inter-departmental procedures, applicant review processes, and public-facing guidance materials, in order to support a more efficient and transparent application process while maintaining terrorist financing due diligence requirements. Furthermore, PS has also undertaken efforts, in coordination with security and intelligence partners, to strengthen the mandatory security review process, and where possible, streamline these activities.

PS is also responsible for ongoing compliance monitoring and enforcement of all granted authorizations. These activities continue to be carried out and improved upon to ensure they satisfy the Minister of PS's authority to monitor terrorist financing risks and are practicable for authorizations holders.

Authorization Requirement Inquiry

The Authorization Requirement Inquiry (ARI) mechanism became available to the public on June 19, 2024. It facilitates the Minister of PS's statutory obligation to provide written information about whether an authorization is required to carry out an activity in a given geographic area, at the request of a prospective applicant. PS received 1 ARI request in 2024 and 2 requests in 2025. In 2025, PS exchanged with stakeholders as part of the ARI process, including providing one formal response.

The dynamic nature of terrorism means that the ARI mechanism continues to be a useful, optional resource for prospective applicants seeking to more confidently determine whether an authorization is required in their particular circumstances. In order to further support potential applicants, PS has made efforts to raise awareness about this mechanism amongst the non-profit sector and make it more user friendly, including developing guidance and a standardized request form.

Stakeholder Engagement

In 2025, PS and partners participated in a stakeholder engagement session hosted by the Department of Finance and attended by a number of non-profit organizations, financial sector representatives, and other key stakeholders. During this event, detailed information about the Authorization Regime, including application requirements, were shared with attendees. PS has also continued to directly engage with stakeholders via email, including to provide information in response to general inquiries, as well as questions regarding the application process. PS and partnering departments and agencies also actively participated in the Financial Action Task Force (FATF) Mutual Evaluation of Canada—a peer review of its anti–money laundering and counter-terrorist financing framework—to advance discussions and share detailed information on the Authorization Regime.

Stakeholder engagement is important to the long term effectiveness of the Authorization Regime. Targeted outreach with key stakeholder groups including not-for-profit organizations, charities, aid groups, and civil society is particularly important in order to improve awareness and understanding of the Authorization Regime and its requirements.

Section III - Looking Forward: Next Steps for the Authorization Regime

PS and partnering departments and agencies will continue undertaking efforts to ensure the application process is clear and accessible, and ensure that prospective applicants have access to the resources necessary to support them during the application process. This includes continued access to timely and comprehensive information about the Authorization Regime, and supportive resources such as the Authorization Requirement Inquiry mechanism.

PS, alongside partnering departments and agencies, is working to publish public-facing service standards in the coming year. These service standards will outline a measurable, aspirational service level that applicants can expect for the processing of applications made to the Authorization Regime under normal circumstances. This standard will be included on the Authorization Regime webpage once established. Reporting on performance results will be made available.

The forthcoming establishment and publication of service standards reflects the Authorization Regime's commitment to transparency and accountability with respect to the timeliness of application processing. While every effort is made to process applications for authorizations as quickly as possible, processing times may vary depending on a number of factors.

PS recognizes that each application is unique and varies in complexity based on the specific circumstances pertaining to the applicant, the proposed activities, and the nature of terrorism in the specified geographic areas. As such, these forthcoming service standards will provide the necessary flexibility to account for the varied complexity.

While data is limited due to the program becoming operational relatively recently, PS is continuing to take stock of program performance and results.

To date, stakeholders have shared views on the application process, sought guidance on when applications are required, and provided feedback on the timeliness of application processing. Operational experience has shown that information gaps related to the mandatory security assessments have often resulted in delays. PS is committed to working with partners and applicants to improve these issues, ensure program requirements and guidance are as streamlined and clear as possible, and will share updates on progress in future annual reports.

The Authorization Regime is committed to ongoing and meaningful engagement with stakeholders and will continue to seek opportunities for dialogue to raise awareness about the regime and seek input from stakeholders and applicants on their experience with this program. Stakeholder feedback has been a core consideration throughout the development of the Authorization Regime, and ongoing feedback will continue to be considered as this program matures to ensure that the Authorization Regime remains responsive to the needs of those who are most impacted by this program.

The Authorization Regime continues to be a whole-of-government undertaking, supported by the input and close coordination of a number of departments and agencies. As such, while this program is led by PS, the long-term efforts to efficiently administer and seek opportunities to enhance the delivery of this program will continue to benefit from this robust interdepartmental coordination.

Date modified:

2026-05-22