Canada

Overview

Canada is a UN member state and implements UN sanctions via the United Nations Act.

Canada imposes autonomous sanctions, namely restrictions on trade and commercial activities, asset freezes and travel bans via the Special Economic Measures Act.

The Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law) empowers Canada to impose targeted measures against foreign nationals who are, in the opinion of the Governor in Council, complicit in gross violations of human rights or are public officials (or associates) responsible for acts of significant corruption.

The Freezing Assets of Corrupt Foreign Officials Act allows Canada to freeze the assets or restrain the property of certain politically exposed foreign persons (such as government officials or politicians), at the request of a country undergoing internal turmoil or political uncertainty.

Canada imposes asset freezes on those suspected of participating in a terrorist activity pursuant to the Regulations Implementing the United Nations Resolutions on the Suppression of TerrorismCriminal Code (Part II.1 – Terrorism) authorises the designation of terrorist entities.

National Competent Authorities

Global Affairs Canada (GAC) is responsible for implementing sanctions and issuing permits and delistings.

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is Canada’s financial intelligence unit and anti-money laundering and anti-terrorist financing supervisor.

Public Safety Canada manages the listing of terrorist entities.

Legislation

United Nations Act (UNA)

Special Economic Measures Act (SEA)

Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law)

Freezing Assets of Corrupt Foreign Officials Act

Proceeds of Crime (Money Laundering) and Terrorist Financing Act

Regulations Implementing the United Nations Resolutions on the Suppression of Terrorism

Export and Import Permits Act

Regulations enacted under UNA

Regulations enacted under SEA

Licensing

Canadian sanctions regulations generally include mechanisms for the Minister of Foreign Affairs to issue permits or certificates to authorise specified activities or transactions that are otherwise prohibited. This authority is found in the related Permit Authorisation Order or in the relevant Act or regulation.

Permits can only be issued to individuals and entities in Canada and Canadians outside Canada.

Applications for permits under the regulations should be made to the Sanctions Policy and Operations Coordination Division (e-mail: sanctions@international.gc.ca).  Applications for permits under the Freezing Assets of Corrupt Foreign Officials Act should be made to the Criminal, Security and Diplomatic Law Division (e-mail: freeze-gel@international.gc.ca).

Applications should set out (inter alia) a detailed description of the proposed activity or transaction; an explanation as to how the activity or transaction would violate the relevant regulation, or how the request otherwise meets the criteria for application; which section of the regulation and/or which permit authorization order is being relied on to support the application; and a detailed explanation of the reasons for the transaction and the anticipated effects if a permit or certificate is not granted.

For export and import permits, please see our Canada: export controls section.

Permits and Certificates

Justice for Victims of Corrupt Foreign Officials Permit Authorization Order

Enforcement

Under the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law), firms are required to determine whether they have the property of Designated Persons and to report this “without delay”.

Criminal Code (R.S.C., 1985, c. C-46) requires firms to file a monthly report (Monthly Nil STCS Reports) to their provincial securities regulator (Principal Regulator) indicating a Nil response, even when the firm determines that it does not possess or control a Designated Person’s property.

Reporting

Under s.6 and s.7 of the Justice for Victims of Corrupt Foreign Officials Act, firms are required to determine whether they have the property of designated persons and to report this without delay (and once every three months after that) to the Commissioner of the Royal Canadian Mounted Police or the Director of the Canadian Security Intelligence Service.

Canadian Securities Administrators – Guide to Suppression of Terrorism and Canadian Sanctions Reporting (“STCS Guide”)

Judgments

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