Financial Crime World

Canada’s Sanctions Regime: A Comprehensive Guide

As Canada continues to play a leading role in international efforts to combat terrorism, money laundering, and other threats to national security, its sanctions regime has become increasingly complex. In this article, we will explore the key aspects of Canada’s sanctions regime, including the legal framework, penalties for non-compliance, and how individuals and businesses can ensure they are in compliance.

Canada’s sanctions regime is governed by several pieces of legislation, including:

  • The United Nations Act
  • The Special Economic Measures Act
  • The Justice for Victims of Corrupt Foreign Officials Act

These laws provide the legal basis for Canada’s sanctions against foreign states, organizations, and individuals.

Penalties for Non-Compliance

Convictions on indictment may result in a maximum:

  • 10-year prison term under the United Nations Act and other legislation
  • $25,000 fine or a 1-year prison term, or both, under the Special Economic Measures Act and the Justice for Victims of Corrupt Foreign Officials Act
  • 5-year prison term on conviction

Canada’s Sanctions vs. Other Countries'

There are often significant differences in how countries impose sanctions, due to their different legal systems. Canada’s sanctions are applied under Canadian law, which determines:

  • The legal basis upon which the sanctions are made
  • The specific prohibitions that are imposed

Compliance with another country’s sanctions does not ensure compliance with Canadian law.

Sanctions by Country

Canadian sanctions usually do not apply in the same way to every country. Please check the relevant regulations and seek the advice of legal counsel if necessary, to determine whether any exceptions apply to your particular situation.

Exceptions for Humanitarian Assistance

Canadian sanctions regulations may include exceptions for:

  • Humanitarian assistance
  • Other types of activities

Always check the relevant regulations to determine whether any exceptions apply to your particular situation.

Reporting Violations

Mandatory or voluntary disclosures of violations of sanctions can be made to:

  • RCMP at the following address: Federal Policing Operations - Intake Unit, RPO Toronto

In conclusion, Canada’s sanctions regime is a complex and nuanced system that requires careful attention from individuals and businesses operating in Canada. By understanding the legal framework, penalties for non-compliance, and how to ensure compliance, Canadians can play an important role in upholding national security and combating global threats.