Sanctions on Four Guatemalan Individuals

Summary#

The federal government registered the Special Economic Measures (Guatemala) Regulations (SOR/2024-23) on February 15, 2024. The rules impose targeted sanctions on four named Guatemalan individuals, blocking Canadians and people in Canada from dealing with their property or providing them financial services or goods.

What it does#

• Creates a sanctions regime called the Special Economic Measures (Guatemala) Regulations that took effect on February 15, 2024.
• Lists four named individuals who are subject to a broad ban on dealings.
• Prohibits any person in Canada and any Canadian outside Canada from:
  • dealing in property owned or controlled by a listed person;
  • entering into or helping transactions involving that property;
  • providing financial or related services to a listed person;
  • making goods or other property available to a listed person.
• Requires certain financial and investment entities (banks, credit unions, insurers, trust and loan companies, securities dealers, portfolio managers, etc.) to check on an ongoing basis whether they hold property of a listed person and to report suspected holdings to the Royal Canadian Mounted Police or the Canadian Security Intelligence Service.
• Allows limited exceptions, for example for:
  • payments under contracts entered into before someone was listed;
  • certain pension and social security payments;
  • diplomatic mission accounts and some transactions with international organizations and humanitarian entities;
  • transactions specifically allowed under a separate Permit Authorization Order, which lets the Minister of Foreign Affairs grant permits in exceptional cases.
• Gives listed people a route to apply to the Minister of Foreign Affairs to have their names removed from the schedule.

Who's affected#

• The four people named in the Schedule: María Consuelo PORRAS Argueta de Porres, Cinthia Edelmira MONTERROSO Gómez, José Rafael CURRUCHICHE Cucul (also known as Rafael CURRUCHICHE), and Jimi Rodolfo BREMER Ramírez.
• Any person in Canada and any Canadian outside Canada: individuals, businesses and organizations that might hold property or provide services to those listed.
• Financial and related businesses that must monitor for and report holdings, including banks, credit unions, insurers, trust and loan companies, securities dealers and investment advisers.
• Law enforcement and intelligence bodies involved in enforcement and reporting: Royal Canadian Mounted Police and Canadian Security Intelligence Service.

Why it matters#

• The sanctions make it hard for the listed individuals to use Canadian financial services, access assets through Canada, or receive goods or services routed from Canada.
• Being listed also makes those people inadmissible to Canada under the immigration rules. The regulations will be added to Canada’s sanctions lists so banks and businesses can screen for them.
• There may be small compliance costs for financial institutions to update monitoring systems, but the government expects limited trade or economic fallout because the listed individuals have few ties to Canada.
• The rules are intended as a targeted tool to pressure corrupt or rights-violating actors in Guatemala and to signal Canada’s support for democracy and the rule of law.
• Penalties for knowingly breaking the rules include a fine of up to $25,000 or imprisonment for up to one year on summary conviction, and up to five years’ imprisonment on conviction on indictment.