Why Did Canada Freeze Bank Accounts?

In early 2022, Canada faced widespread protests known as the "Freedom Convoy," initially sparked by truck drivers opposing COVID-19 vaccine mandates for cross-border travel. The movement rapidly grew into broader opposition against all pandemic restrictions, leading to prolonged occupations in Ottawa around Parliament Hill and blockades at critical U.S. border crossings, such as the Ambassador Bridge. These actions disrupted daily life, trade, and supply chains, resulting in significant economic losses and prompting the government to view the situation as a national crisis requiring extraordinary measures.

On February 14, 2022, Prime Minister Justin Trudeau's government invoked the Emergencies Act for the first time since its replacement of the War Measures Act in 1988. This granted temporary powers to address what was deemed a national emergency beyond provincial capabilities, including regulating assemblies and securing borders. A key component was the Emergency Economic Measures Order, which compelled banks, crowdfunding platforms, and even cryptocurrency exchanges to freeze accounts and halt services linked to protest organizers, participants, and supporters - without needing court orders - to cut off financial support for the demonstrations.

The measures affected over 200 bank accounts holding about $7.8 million, primarily targeting key figures and vehicle owners involved in blockades, though not individual small donors. The Emergencies Act was revoked on February 23, 2022, after just over a week, leading to the swift unfreezing of accounts. A subsequent independent inquiry, the Public Order Emergency Commission (Rouleau Commission), reviewed the government's actions and released its report in February 2023, examining the justification and proportionality of these unprecedented steps.

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