Sanctions Added for Hamas Financial Network

Summary#

The government has added nine people and two companies to the Special Economic Measures (Hamas Terrorist Attacks) Regulations through the final rule Regulations Amending the Special Economic Measures (Hamas Terrorist Attacks) Regulations: SOR/2024-153. The change took effect when it was registered on June 24, 2024 and was published in the Canada Gazette on July 3, 2024.

What it does#

• Adds 9 named individuals and 2 named entities to the list of people and organizations targeted by the Special Economic Measures (Hamas Terrorist Attacks) Regulations.
• Prohibits anyone in Canada, and Canadians outside Canada, from dealing with the listed people and entities. That includes handling their property, entering into transactions with them, providing services, or transferring goods or money to them.
• Makes the listed individuals inadmissible to Canada under immigration rules.
• Requires banks and other financial institutions to screen for and block dealings with the newly listed names and to add them to the Consolidated Canadian Autonomous Sanctions List.
• Sets criminal penalties for knowingly breaking the rules: on summary conviction a fine of up to $25,000 or up to 1 year in jail (or both); on indictment, up to 5 years in prison.

Who's affected#

• The listed individuals:

  • Abdelbasit Hamza Elhassan Mohamed Khair
  • Muhammad Ahmad Abd Al-Dayim Nasrallah
  • Ahmed M. M. Alaqad
  • Nasser Al Sheikh Ali
  • Samir ’Abd Al-Muin ’Abd Hirzallah
  • Thair Abd Al Raziq Shukri Hirzallah
  • Muhammad Fallah Kamil Hirzallah
  • Na’im Kamil Raghib Hirzallah
  • Salah Kamil Raghib Hirzallah

• The listed entities:

  • Herzallah Exchange and General Trading Company LLC
  • Samir Herzallah and Brothers for Money Exchange and Remittances

• Canadians and people or businesses in Canada, because they must not deal with the listed names.

• Canadian banks, payment services, and other financial institutions, which must update screening and compliance systems.

• It is unclear from the notice whether the newly listed names hold assets or operate in Canada; the government says they appear to have limited links to Canada, so direct impacts on most Canadians are expected to be small.

Why it matters#

• These listings are a targeted sanctions step aimed at disrupting people and companies that the government says help finance or support the October 7, 2023 Hamas attacks. That is intended to reduce those actors’ ability to move money, goods, or services that could support further violent acts.
• For ordinary Canadians, the main effects are indirect: banks and businesses must screen transactions and could block dealings that involve the listed names. This can slow or stop financial transfers if a name matches.
• For the named individuals and organizations, the practical effects include frozen access to Canadian financial systems and being barred from entering Canada.
• The measure aligns Canada with other countries taking similar steps, and it is part of broader international efforts to cut off funding and support for groups linked to the attacks.