Farm Credit Canada says none of its customers were affected when it followed its obligations under the Emergencies Act in February.
The federal government invoked the act Feb. 14 and revoked it Feb. 23 as it tried to clear the Freedom Convoy in downtown Ottawa. While it was in force, all financial institutions were required to abide by requirements to freeze the accounts of those engaged in activity prohibited under the regulations. That included providing money to the cause.
But the publication in late July of redacted emails obtained by Ottawa-based subscription-only Blacklock’s Reporter, as well as in May by Ontario newspaper Farmers Forum, released a torrent of concern from FCC’s customers and others who say it shouldn’t have complied.
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The emails posted publicly noted how FCC was to identify and report customers’ potential involvement in the convoy.
One of them lists nine customers who were possibly involved; two of those were confirmed to be at the convoy protest.
Still, farmers and others took to social media to complain about FCC’s actions, saying the crown corporation lied in previous statements when it said there was no list.
Karen Rathwell, in an email to The Western Producer, said the implementation of the act was an overreach.
“If I am correct FCC gives out government loans, don’t they? Regardless they are basically making a hit list to deny farmers to make a living, which is disgusting, then of course to lie about (it) to protect themselves from public outcry is pathetic,” she said.
Another person who contacted The Western Producer said other financial institutions pushed back against the government’s use of the act because they were afraid of losing their customers’ trust. The person, who did not want to be identified for fear of business repercussions, said people are worried they are now on a government blacklist and could be subjected to tax audits and that others such as the RCMP could have access to that list.
Others said FCC continued to report customers involved in the convoy after the act was revoked.
However, FCC in a statement said the email in question was sent at mid-day Feb. 23 and the act was revoked later that afternoon.
“Subsequently employees were advised that any direction related to the act was also revoked,” the statement said.
In that Feb. 23 email, the corporation said it would take a balanced and responsible approach to comply with the act.
“Although we continue to assess the act’s impact for FCC, our approach as always with integrity issues is to take action when we have reasonable, objective and verified information.”
The same email said that FCC’s Customer Diligence Centre “screens existing and prospective customers against watch lists and industry intelligence information. Any individual and entities that have been verified by the authorities as participating in illegal activity under the act will face appropriate action, which will include not onboarding those found to violate the act, freezing disbursements and assessing the need to terminate business relationships.”
Earlier emails said FCC would be “required to freeze personal and business accounts of participants in the illegal blockades if the federal government directs us to” and instructed employees to submit tips of potential customer involvement.
Last week FCC said it is subject to federal laws and communicated with employees as part of its due diligence.
“Given that this was the first time the Government of Canada had implemented the Emergencies Act since its original drafting 30 years ago, FCC needed time to determine obligations and to ensure we were reacting in a reasonable manner based on verified information only. The purpose of the e-mail to employees was to ensure compliance with the new legal obligations under the Emergencies Act through standard due-diligence processes.
“To reiterate, during the implementation and subsequent withdrawal of the Emergencies Act, no loans were denied, nor were any existing FCC customer loans affected. All customers were served without interruption.”
The Canadian Bankers Association said the act applied to all financial services providers in the country, including crowdfunding sites.
CBA general counsel Angelina Mason said during testimony at the House of Commons finance committee that it was a legal duty and she didn’t know of any members that did not comply.
She said there could be markers in accounts that had been frozen, and then unfrozen, and if customers had concerns, they should contact their financial institutions.
Mason also said banks were not instructed to maintain a list and privacy laws prevent holding information longer than the purpose for which it was needed.
She said any accounts that remained frozen after the act was revoked would be due to court orders.
Mason said accounts were frozen based on lists from the RCMP and also on risk-based approaches taken by individual banks.
According to committee testimony, 180 accounts from among more than 60 million customers at the six largest domestic banks were frozen. Including other financial institutions, the number was 206.
