On December 10, 2024, the Government of Canada announced further amendments to the Special Economic Measures (People’s Republic of China) Regulations (the “Regulations”). These amendments list an additional eight individuals under the Schedule 1 of the Regulations.
The eight newly designated individuals are current or former senior Chinese officials. Canada announced these sanctions in response to the Chinese government-led repression of ethnic and religious minorities in China. Since 2021, Canada has imposed sanctions on Chinese officials and entities.
The Regulations impose a dealings prohibition against the individuals and entities listed, effectively freezing any assets they hold in Canada. Specifically, the Regulations prohibit any person in Canada and any Canadian outside Canada from:
(a) dealing in any property, wherever situated, that is owned — or that is held or controlled, directly or indirectly — by a designated person;
(b) entering into or facilitating any transaction related to a dealing in a designated person’s property;
(c) providing any financial or related services in respect of a dealing in a designated person’s property;
(d) making available any goods, wherever situated, to a listed person or to a person acting on behalf of a designated person;
(e) transferring or providing any property other than goods to a listed person or to a person outside Canada who is not Canadian for the benefit of a designated person; or
(f) providing any financial or related services to or for the benefit of a designated person.
Individuals listed are also rendered inadmissible to Canada under the Immigration and Refugee Protection Act.
Businesses should continually assess their sanctions compliance in this shifting legal landscape. Regulations made under the Special Economic Measures Act obligate persons in Canada and Canadian citizens to disclose certain property owned or controlled by Schedule 1 entities and any related transactional information to the RCMP. Additionally, certain entities have a continuing duty to determine and disclose certain property owned, held or controlled by Schedule 1 entities. An unofficial copy of the legislative amendments to the Special Economic Measures (People’s Republic of China) Regulations (the “Regulations”) that came into effect on December 9, 2024 are available on Global Affairs Canada’s website here.
