Find out how First Nations can manage their band moneys. Learn about Indigenous and Northern Affairs Canada (INAC)'s responsibility to manage Indian moneys held in trust for First Nations and First Nations peoples.
What are Indian moneys?
Indian moneys are all moneys collected, received or held in trust by INAC for the use and benefit of First Nations and First Nations peoples. Indian Moneys are moneys that belong to the band. To learn about INAC's financial obligations as administrator of trust accounts for Indian moneys in 2015, visit: Trust accounts.
Indian moneys are held in the Consolidated Revenue Fund. The Consolidated Revenue Fund is where the total of public moneys are deposited, as defined under the Financial Administration Act.
There are two types of Indian moneys:
- individual moneys
- band moneys
What are individual moneys?
Individual moneys are managed by INAC on behalf of Status Indian minors and dependent adults (as defined in the Indian Act). These moneys are administered and accessed through the Living Estates Program according to sections 51 and 52 of the Indian Act.
What are individual trust accounts?
An individual trust account holds assets belonging to a minor until that minor reaches the age of majority in their province of residence, at which time the account is paid out. Individual trust accounts are usually established in one of two situations:
- when the Minister exercises jurisdiction over property of a minor
- when a First Nation asks INAC to retain a minor's share of per capita distributions
Individual trust accounts administered by INAC accrue interest until the account is paid out. To learn more, visit Who is a minor?
What are band moneys?
Band moneys are managed by INAC on behalf of First Nations according to sections 61 to 69 of the Indian Act, which outline INAC's responsibilities for the collection, maintenance, spending and accounting of these moneys.
There are two types of band moneys:
- capital moneys
- revenue moneys
Capital moneys are Indian moneys that come from the sale of the First Nation's surrendered lands (from an interest in land), or from the sale of the First Nation's non-renewable resources.
Capital moneys include:
- oil and gas royalties
- sale of a First Nation's reserve lands
- other proceeds from the sale of timber, oil and gas or gravel
Revenue moneys include all band moneys other than capital moneys.
Revenue moneys may include, but are not limited to proceeds from:
- the sale of renewable resources
- reserve land activities such as leases, permits and rights-of-way
- fines and interest earned on capital
How can First Nations access and manage their band moneys?
There are three methods for First Nations to have more control over band moneys:
- First Nations Oil and Gas and Moneys Management Act (all band moneys)
- Policy on the Transfer of Capital Moneys Through Paragraph 64(1)(k) of the Indian Act (capital moneys only)
- Band Council Resolution requesting access to capital and revenue moneys per sections 64, 66 and 69 of the Indian Act (all band moneys)
To learn more about how First Nations under self-government agreements control their band moneys consult: Self-government.
Visit the Manual for the administration of band moneys to learn more.