On April 11, 2023, Canada announced further amendments to the Special Economic Measures (Belarus) Regulations (the “Regulations”) in response to the Belarusian regime’s role in “enabling Russia’s illegal invasion and attempted annexation of Ukrainian territory”. These amendments list an additional nine entities under Schedule 1 of the Regulations, and modify existing prohibitions under sections 3.1 and 3.2 for purposes of legal clarity. The amendments took effect on April 5, 2023.
There are now over 150 parties listed under Schedule 1 of the Regulations. All the newly listed entities are Russian and Belarussian-owned banks in Belarus not previously sanctioned by Canada.
Generally speaking, listing under Schedule 1 of the Regulations imposes a dealings prohibition, effectively an asset freeze, against the listed person. The Regulations prohibit any person in Canada or any Canadian outside Canada from:
- dealing in property, wherever situated, that is owned, held or controlled by listed persons or a person acting on behalf of a listed person in Schedule 1;
- entering into or facilitating any transaction related to such a dealing;
- providing any financial or related services in respect of such a dealing;
- making available any goods, wherever situated, to a listed person in Schedule 1 or a person acting on behalf of a listed person; and
- making available any property or providing any financial or other related services to or for the benefit of a listed person in Schedule 1.
The Government of Canada has now issued six sets of amending regulations since 2022 in response to the Belarusian regime’s role in “enabling the Russian regime’s human rights violations in [Ukraine] and for contributing to the pain and suffering of millions around the globe that has resulted from President Putin’s weaponization of food and energy”.
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 parties and any related transactional information to the RCMP. Additionally, certain entities have a continuing duty to determine and disclose certain property of Schedule 1 parties. An unofficial copy of the legislative amendments to the Special Economic Measures (Belarus) Regulations that came into effect on April 5, 2023 are available on Global Affairs Canada’s website here.
