Overview
Canada is a UN member state and implements UN sanctions via the United Nations Act.
Absent a resolution from the UNSC, Canada may impose autonomous sanctions, in the form of restrictions on trade and commercial activities, asset freezes and travel bans through orders and regulations made under the Special Economic Measures Act (“SEMA”) and the Justice for Victims of Corrupt Foreign Officials Act (the “Sergei Magnitsky Law”).
The SEMA enables Canada to make orders or regulations where certain circumstances have occurred, such as a grave breach of international peace and security that has resulted in or is likely to result in a serious international crisis, gross and systemic human rights violations, or where foreign public officials or associates of such officials are responsible for or complicit in acts of significant corruption.
The Justice for Victims of Corrupt Foreign Officials Act empowers Canada to impose targeted measures against foreign nationals, independent of state-related sanctions, who , in the opinion of the Governor in Council, are 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 where doing so is “in the interest of international relations”.
Other legislation, including the Criminal Code, the Export and Import Permits Act, and the Immigration and Refugee Protection Act, restrict or impose limits on certain activities with foreign states and foreign persons in relation to Canada’s sanctions regimes:
- 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 Terrorism.
- Part II.1 of the Criminal Code prohibits dealings in property of terrorist groups, including the entities defined in section 1 of the Regulations Establishing a List of Entities.
- Under the Immigration and Refugee Protection Act, Canada has the authority to deny entry to foreign nationals who are inadmissible as a result of being subject to sanctions.
- The Export and Import Permits Act allows Canada to adopt regulations as a means of controlling the export or transfer of certain goods or technology.
National Competent Authorities
The Minister of Foreign Affairs is responsible for the administration and enforcement of the Special Economic Measures Act (SEMA) and its regulations. The Minister makes recommendations to the Governor in Council with respect to listing and delisting individuals in accordance with the SEMA. The Minister may issue permits and certificates to authorize specified activities or activities that are otherwise prohibited.
The Royal Canadian Mounted Police (“RCMP”) is responsible for collecting information on assets owned or controlled by a designated person. The RCMP, along with the Canadian Border Services Agency, is responsible for investigating any contravention of Canadian sanctions.
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. Its mandate is to facilitate the detection, prevention and deterrence of money laundering and financing of terrorist activities.
Public Safety Canada manages the listing of terrorist entities and oversees the implementation of Canada’s Counter-terrorism Strategy.
Legislation
Special Economic Measures Act (SEMA)
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
Immigration and Refugee Protection Act
Belarus Sanctions
Central African Republic Sanctions
China Sanctions
Democratic People’s Republic of Korea Sanctions
Democratic Republic of Congo Sanctions
Guatemala Sanctions
Haiti Sanctions
Iran Sanctions
Iraq Sanctions
Lebanon Sanctions
Libya Sanctions
Moldova Sanctions
Myanmar Sanctions
Nicaragua Sanctions
Russia, Ukraine, and the Russian invasion of Ukraine Sanctions
Russia
Ukraine
Belarus
Moldova
Somalia Sanctions
South Sudan Sanctions
Sri Lanka Sanctions
Sudan Sanctions
Syria Sanctions
Ukraine Sanctions
Venezuela Sanctions
Yemen Sanctions
Zimbabwe Sanctions
Sanctions Related to Terrorist Entities and Terrorism
Sanctions Related to Settler Violence
Sanctions Lists
Consolidated Canadian Autonomous Sanctions List
Guidance
A Guide to Canada’s Export Control List
Sanctions: The Canadian and International Architecture
FINTRAC Guidance and Resources for Businesses
FINTRAC Special Bulletin on financial activity associated with suspected sanctions evasion
FINTRAC Special Bulletin on Russia-linked money laundering activities
Law Society of Alberta – Guidance on Canadian Sanctions Related to Russia and Belarus
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.
Justice for Victims of Corrupt Foreign Officials Permit Authorization Order
Enforcement
The Minister of Foreign Affairs, with the assistance of other government departments, is responsible for the administration and enforcement of the SEMA. The Commissioner of the Royal Canadian Mounted Police may also assist the Minister of Foreign Affairs in matters related to orders regarding the seizure or restraint of property, or the making of an application for forfeiture under the SEMA.
Contravening sanctions is a criminal offence. The Royal Canadian Mounter Police and the Canada Border Services Agency are responsible to investigate and enforce offences under the United Nations Act, the SEMA, and the Justice for Victims of Corrupt Foreign Officials Act.
Under the United Nations Act, the maximum penalty on summary conviction is a $100,000 fine or a 1-year prison term, or both. Convictions on indictment may result in a maximum 10-year prison term.
Under the Special Economic Measures Act and the Justice for Victims of Corrupt Foreign Officials Act, the maximum penalty on summary conviction is a $25,000 fine or a 1-year prison term, or both. Conviction on indictment may result in a maximum 5-year prison term.
Separate penalties are imposed for contraventions of the Criminal Code, the Freezing Assets of Corrupt Foreign Officials Act, and the Export and Import Permits Act. Notably, a person or organization that contravenes any provision of the Export and Import Permits Act or any regulation enacted pursuant to the Act is guilty of
- an offence punishable on summary conviction and liable to a fine not exceeding $250,000 or to imprisonment for a term not exceeding 12 months, or to both; or
- an indictable offence and liable to a fine in an amount that is in the discretion of the court or to imprisonment for a term not exceeding 10 years, or to both.
Recent amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (“PCMLTFA”) and its regulations expanded the reporting obligations for “reporting entities” to include an obligation to report suspicious completed or attempted transactions to the Financial Transactions and Reports Analysis Centre of Canada (“FINTRAC”) if there are reasonable grounds to suspect that a financial transaction in the course of their activities is related to the commission or the attempted commission of sanctions evasion. Failure to report such transactions may result in fines up to $2,000,000 and/or five years imprisonment.
Reporting
Under the SEMA, the Minister of Foreign Affairs may require any person to provide any information that the Minister believes on reasonable grounds is relevant for the purposes of the making, administration or enforcement of an order or regulation enacted under subsection 4(1) of the SEMA.
Certain regulations implementing United Nations sanctions impose on certain persons and entities a duty to disclose to the Commissioner of the Royal Canadian Mounted Police (RCMP) or the Director of the Canadian Security Intelligence Service (CSIS) the existence of property in their possession or control that they have reason to believe is owned, held or controlled by or on behalf of a designated person, as well as any information about a transaction or proposed transaction in respect of such property.
Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, specified persons and entities must report to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) every financial transaction that occurs or that is attempted in the course of their activities in respect of which there are reasonable grounds to suspect that the transaction is related to the commission or attempted commission of a money laundering, terrorist activity financing, or sanctions evasion offence.
Under s.6 and s.7 of the Justice for Victims of Corrupt Foreign Officials Act, certain entities are required to determine whether they own or control the property of a designated person and to report this without delay (and once every three months after that) to the principal agency or body that supervises or regulates it under federal or provincial law. Every person in Canada and every Canadian outside of Canada must also disclose to the Commissioner of the Royal Canadian Mounted Police or the Director of the Canadian Security Intelligence Service if they have reasons to belief that property in their possession or control is owned, held or controlled by a designated person, and any information about a transaction regarding such property.
The Criminal Code requires certain entities to disclose without delay the existence of property in their possession or control that they know is owned or controlled by or on behalf of a terrorist group, as well as any information about a transaction or proposed transaction in respect of property that that is owned or controlled by or on behalf of a terrorist group. Certain entities are also required to file monthly reports with their provincial securities regulator indicating whether they have the property of Designated Persons, even when the entity determines that it does not possess or control such entity. See Canadian Securities Administrators – Guide to Suppression of Terrorism and Canadian Sanctions Reporting (“STCS Guide”).
De-listing
Designated persons or entities may apply to the Minister of Foreign Affairs to be removed from the schedule to the relevant regulations. Names may be added or removed from a schedule by amending the regulations. There is no limitation period to file a delisting application.
Following the receipt of an application, the Minister of Foreign Affairs must decide whether there are reasonable grounds to recommend to the Governor in Council that the applicant be removed from the Regulations.
Information provided in an application for delisting, including personal information, may be shared with the Royal Canadian Mounted Police (RCMP) or other government departments.
Judgments
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Bigio v Canada (Governor General in Council) 2024 FC 1748
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Saint-Rémy v Canada (Attorney General) 2024 FC 1380
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Makarov v Canada (Foreign Affairs) 2024 FC 1234
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Angophora Holdings Limited v Ovsyankin 2022 ABKB 711
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Gomez v Canada (Attorney General) 2021 FC 1300
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Portnov v Canada (Attorney General) 2021 FCA 171
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R. v Kalai, 2020 NSSC 351
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United States v. Meng 2020 BCSC 785
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Portnov v Canada (Attorney General) 2019 FC 1648
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Djilani v Canada (Foreign Affairs) 2017 FC 1178
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R v Roy 2017 QCCQ 7780
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R v Yadegari 2011 ONCA 287
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Abdelrazik v. Canada (Minister of Foreign Affairs), 2009 FC 580
