Expanded Iran Sanctions Regulations

Summary#

These are final changes to the Special Economic Measures (Iran) Regulations (SOR/2025-84). They broaden who can be sanctioned for activities linked to Iran’s destabilizing actions and add 4 entities and 3 individuals to the Iran sanctions list; the measures came into force on March 6, 2025 and were published in the Canada Gazette on March 26, 2025.

What it does#

• Expands the reasons someone can be listed under the Special Economic Measures (Iran) Regulations to include people or entities that:
  • support or could support Iran’s nuclear or other weapons-related activities, or
  • carry out destabilizing actions that undermine international peace and security in ways consistent with Iran’s policies.
• Adds a new category so current or former senior officials of the Government of Iran can be listed.
• Clarifies that an entity that is owned, held or controlled, directly or indirectly, by a listed person can itself be listed.
• Tightens wording so anyone in Canada, or any Canadian abroad, must not deal with property owned or controlled, directly or indirectly, by a listed person, and must report suspected such property to the authorities.
  • Reporting is to the Royal Canadian Mounted Police or the Canadian Security Intelligence Service.
• Adds these four entities to Schedule 1:
  • Kavan Electronics Behrad Limited Liability Company
  • Basamad Electronic Pouya Engineering Limited Liability Company (also known as Dynamic Electronic Frequency Engineering Limited Liability Company)
  • Teyf Tadbir Engineering Co.
  • Farzanegan Propulsion Systems Design Bureau
• Adds these three individuals to Schedule 1:
  • Hossein Hatefi Ardakani
  • Mehdi Gogerdchian
  • Hossein Pourfarzaneh
• Confirms these rules came into force on the day of registration (March 6, 2025) and that listed people are made inadmissible to Canada under the Immigration and Refugee Protection Act.
• Sets criminal penalties for knowingly breaking the rules: up to $25,000 or one year in jail on summary conviction, or up to five years if convicted on indictment.

Who's affected#

• The newly listed people and companies named above.
• Other people or businesses worldwide that directly or indirectly own, control, fund, or provide services to those listed entities.
• Canadian banks and financial institutions, which must update screening systems to block prohibited transactions and report holdings.
• Any person in Canada or Canadian outside Canada who discovers property they reasonably believe is connected to a listed person — they must report it to the authorities.
• The government department running sanctions work, Global Affairs Canada, which maintains the list and handles any permit or removal requests.
• It is unclear how many direct links these newly listed names have to Canada; the government says initial information suggests limited ties to the Canadian economy.

Why it matters#

• These changes give Canada wider tools to target individuals and companies tied to Iran’s military and destabilizing activities, including support that may be connected to Russia’s war in Ukraine.
• In practical terms, listed people and firms can have assets frozen, be cut off from business in Canada, and be banned from entering the country. Banks and businesses will block or refuse transactions involving them.
• The government expects limited direct impact on most Canadians because the newly listed names appear to have limited links to Canada. Still, companies that trade internationally, handle shipping, or work in defence-related supply chains should be alert to expanded screening and reporting duties.