Spurred by the case of ousted Tunisian leader Zine El Abidine Ben Ali, Ottawa is introducing a new law that would make it easier for Canadian authorities to freeze the assets of foreign despots and their associates.

"As a country that defends the principle of democracy, human rights and right of law, Canada wants to support all countries that try to get away from tyranny and implement a democracy," Foreign Affairs Minister Lawrence Cannon told reporters in Ottawa Thursday.

"Our government is submitting to Parliament a bill that seeks to help us fight corruption and money laundering from repressive state leaders."

The Freezing Assets of Corrupt Regimes Act would empower the government to quickly freeze such assets, Minister of Justice Rob Nicholson said.

"This would allow the government of Canada to order the freezing of assets or the restraint of property of foreign politically exposed persons," Nicholson said, explaining the proposed legislation is aimed at closing existing gaps in Canadian law.

"We need to act quickly when the assets from these corrupt regimes are moved into Canada," Nicholson told CTV's Power Play later Thursday. "We want to send a message out that this is not going to be tolerated."

Under the terms of the proposed legislation, Nicholson said the process would begin with the foreign state submitting a written request that asserts the assets were acquired by means of the individual's political office or family connections.

Then, Nicholson explained, three conditions would have to be met.

"That they are people who have or held important positions in foreign states, including close personal and business associates and family members.

"That the foreign state is in a situation of internal turmoil or political uncertainty and that the making of an order for regulation is in the interest of the international community."

Canada recently froze in excess of $2 billion in assets linked to Libyan leader Moammar Gadhafi. But when the government tried to freeze Canadian-based assets linked to the family of Tunisia's ousted president last month, lawmakers complained they were legally hamstrung.

Under current laws, a foreign regime's assets can be frozen if it is already subject to United Nations sanctions, or if the assets are proven to be the product of criminal activity.

Because Ben Ali and the Canadian assets linked to his regime met neither condition, Ottawa was unable to proceed.

Nicholson said this latest legislation, with its ability to freeze assets without proof of criminality, should prevent those circumstances from arising again by temporarily freezing assets, "for a period of time to permit the foreign state to initiate the necessary proceedings to allow for seizure and forfeiture under other applicable laws."

The Act would see freezing orders expire automatically after five years, although that period could be extended, Nicholson said.

"That would give the opportunity for the new government of the country we are trying assist . . . to make the applications, to file the kind of evidence that they need," he said of the five-year period.

The justice minister said the new legislation would allow the government to have a better grasp on the amount of assets held in Canada by foreign dictators.

Students affected by freeze

The freezing of Gadhafi's assets has affected eight students at the University of Regina, who could be out of cash by the end of the month because their scholarships were funded by Libya.

Vianne Timmons, president of the University of Regina, said while it's not known how or if the students are connected to Gadhafi, Canada should recognize the students as a long-term investment in Libya.

"These young people are the future of Libya, and we have the opportunity here in Canada to ensure they get a very solid education," she told CTV News Channel Thursday.

"We should try to separate politics and education."

Timmons said there are 520 scholarship students from Libya studying in Canada.

Timmons travelled to Ottawa Wednesday to urge the federal government to exempt the scholarships from the sanctions it imposed earlier this week.

With files from The Canadian Press