On February 27, 2023, Canada announced further amendments to the Special Economic Measures (Iran) Regulations (the “Regulations”) in response to the “gross violations of human rights” by the Iranian regime. These amendments list an additional twelve individuals under Schedule 1 of the Regulations and entered into force on February 23, 2023.
There are now over 300 parties listed under Schedule 1 of the Regulations. All the newly listed parties are “senior officials from the Islamic Revolutionary Guard Corps (IRGC) and Law Enforcement Forces (LEF) who have participated in gross and systematic human rights violations in Iran, including through the lethal suppression of demonstrations across Kurdish areas of Western Iran”.
Generally speaking, listing under Schedule 1 of the Regulations imposes a dealings prohibition, effectively an asset freeze, against the listed person. Any person in Canada or any Canadian outside Canada cannot:
- deal in any property, wherever situated, that is owned, held or controlled by a person whose name is listed in Schedule 1 or a person acting on behalf of such listed person;
- enter into or facilitate, directly or indirectly, any transaction related to such a dealing;
- provide any financial or other related services in respect of such a dealing;
- make available any goods, wherever situated, to a person listed in Schedule 1 or to a person acting on their behalf;
- provide any financial or related service to, or for the benefit of, a person listed in Schedule 1;
- export, sell, supply or ship any goods listed in Schedule 2 of the Regulations to Iran, to any person in Iran, or to a person for the purpose of a business carried on in or operated from Iran; or
- transfer, provide or disclose to Iran or any person in Iran any technical data related to the goods listed in Schedule 2 of the Regulations.
The Government of Canada has now issued nine sets of amending regulations since the beginning of October 2022. Businesses should continually assess their sanctions compliance in this shifting legal landscape. Regulations enacted under the Special Economic Measures Act obligate persons in Canada and Canadian citizens to disclose certain property held 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 held by Schedule 1 entities.
An unofficial copy of the legislative amendments to the Special Economic Measures (Iran) Regulations that came into effect on February 23, 2023 are available on Global Affairs Canada’s website here.