BACKGROUNDER

Trafficking in (or "fencing") property obtained by crime (such as stolen property or fraudulently obtained property) is the lynchpin that makes theft and other property crimes profitable. A complex criminal industry moves these stolen goods from the initial theft or other crime, to often unsuspecting consumers. This proposed bill would give police and prosecutors better tools to fight organized crime rings.

Trafficking in Stolen Automobiles

Trafficking in stolen cars and auto parts is a particular form of property crime that carries serious economic and public safety costs for Canadians.

Approximately 146,000 vehicles are stolen in Canada each year. It is estimated that auto theft costs Canadians over $1 billion a year, and the dangerous driving that sometimes results from auto theft makes Canadian roads unsafe.

Organized crime groups tend to participate in auto theft by:

• Operating "chop shops," where stolen vehicles are disassembled and their parts are trafficked to often unsuspecting customers;
• Altering, obliterating or destroying the vehicle identification number (VIN) of a stolen car. All vehicles in Canada are required to have a VIN in order to clearly distinguish one motor vehicle from another. Criminal car theft rings typically replace the VIN of a stolen vehicle with one from a legitimate vehicle of the same make and model, essentially altering the vehicle’s identity; and,
• Exporting stolen high-end sport utility vehicles and luxury sedans.

The legislation would address the first two issues by:

• Creating a separate offence of "theft of a motor vehicle", which would carry a mandatory prison sentence of 6 months for conviction of a third or subsequent indictable offence; and,
• Establishing a new offence for altering, destroying or removing a VIN.

Trafficking in Property Obtained by Crime

The provisions in the bill would:

• Make it an offence to traffic in property obtained by crime; and,
• Make the possession of such property for the purpose of trafficking also an offence.

In addition, these amendments would provide for the application of customs powers to allow the Canada Border Services Agency to identify and prevent stolen property from leaving the country, thus addressing the problem of the exportation of stolen vehicles from Canada by organized crime.