Senate Exchange Highlights Ongoing Concerns with Bill C-41 Authorization Regime
A recent exchange in the Senate has highlighted continuing concerns regarding the practical implementation of the authorization regime introduced by Bill C-41 for humanitarian and other activities in areas controlled by terrorist groups.
On June 10, 2026, Senator Mary Coyle raised concerns in the Senate regarding Canadian humanitarian assistance to Afghanistan. Senator Coyle noted that, while Bill C-41 was enacted in 2023 to help enable Canadian humanitarian aid to reach the people of Afghanistan through a humanitarian exemption, ongoing uncertainty appears to remain in relation to the implementation of the regime, including the authorization regime under section 83.03 of the Criminal Code. She stated that, as a result of this lack of clarity and transparency, some Canadian charities have limited their life-saving work, funds and support to areas that would not attract scrutiny under section 83.03, leaving many Afghans unserved.
In response, Senator Pierre Moreau, the Government Representative in the Senate, referred to federal funding provided to support emergency relief efforts through trusted partners active in the region, including the World Food Programme, the International Committee of the Red Cross, the Canadian Humanitarian Assistance Fund and Islamic Relief Canada. Senator Moreau stated that the government works with partners already on the ground to ensure aid is distributed effectively according to local needs and reaches those most vulnerable.
However, Senator Coyle pressed the issue further, emphasizing that the concern was not simply whether aid was being provided, but whether the legal framework itself was creating obstacles for humanitarian organizations. She referred specifically to a “chilling effect” caused by Canadian law, whereby organizations may be limiting the geographic areas or groups they serve because of concerns about potential exposure under the anti-terrorist financing provisions. Senator Moreau reiterated that the government was working with partners on the ground and contributing to international funds, but did not directly address the specific concern regarding legal uncertainty under the authorization regime.
This exchange reflects issues previously discussed in the August 2025 AML/ATF Update. As noted in that Update, Bill C-41 amended section 83.03 of the Criminal Code in June 2023 to provide an exception for humanitarian activities and to create an Authorization Regime for other activities in areas controlled by terrorist groups. The regime was originally welcomed as an important step for the charitable and not-for-profit sector, since it was intended to provide a defence from criminal liability where necessary activities may incidentally benefit terrorist groups.
However, the 2024 Annual Report on the Authorization Regime, released on June 23, 2025, showed limited use of the regime to date. As of June 2025, there had been just 14 applications for authorization, only 4 of which were external applications, and 2 authorizations had been granted. The August 2025 Update observed that the risk of falling afoul of the regime, together with the potentially onerous and time-consuming application process, may be deterring organizations that might otherwise seek authorization.
The June 10 Senate exchange suggests that those concerns remain current. For charities and not-for-profits engaged in international humanitarian work, particularly in areas affected by conflict or terrorist control, Bill C-41 remains a potentially positive option. However, practical uncertainty regarding the scope, timing and administration of the regime may continue to negatively impact how organizations assess and manage legal risk when delivering aid in high-risk areas of the world.
New E-Learning Platform Supports Nonprofits in Understanding FATF Recommendation 8
A new e-learning platform has been launched to help nonprofit organizations (NPOs) better understand Financial Action Task Force (“FATF”) Recommendation 8 and the impact of anti-money laundering and countering the financing of terrorism (“AML/ATF”) measures on civil society. FATF is the international standard-setting body for AML/ATF measures. Its Standards, including the FATF Recommendations and related interpretive notes, provide a framework that countries are expected to implement through domestic laws, regulations and supervisory practices. Recommendation 8 focuses specifically on the potential misuse of NPOs for terrorist financing purposes, while also emphasizing that measures should be targeted and risk-based so as not to unduly disrupt legitimate nonprofit activity. Announced on May 27, 2026, the platform is intended to provide NPOs with accessible, practical guidance on FATF Recommendation 8 and to support organizations in understanding how AML/ATF frameworks may affect their operations, relationships with financial institutions, and engagement with governments and regulators.
The e-learning program is designed to translate FATF-related concepts into applied guidance. According to the announcement, the platform addresses issues, such as typologies of nonprofit misuse, examples of good and bad practices, and approaches to participating in FATF mutual evaluation processes. This may be particularly useful for NPOs seeking to understand not only the content of Recommendation 8, but also how governments may implement FATF standards in domestic law, regulation and supervision.
Although the platform is grounded in the “lived experience” of civil society organizations in Latin America, it is intended to be relevant for NPOs in other regions facing similar regulatory and operational challenges. A second version is reportedly in development, with additional case studies and experiences from Africa and Asia.
The platform is available in both Spanish and English. For Canadian charities and NPOs involved in international work, financial transfers, advocacy or engagement in higher-risk jurisdictions, the resource may provide helpful background on FATF Recommendation 8 and the broader policy environment shaping AML/ATF obligations and expectations.