Canada adds people and companies to Iran sanctions

Summary#

The Regulations Amending the Special Economic Measures (Iran) Regulations add a small list of people and companies to Canada’s Iran sanctions list. The changes took effect when they were registered on November 29, 2022 and were published in the Canada Gazette on December 21, 2022.

What it does#

• Adds 5 entities and 4 individuals to Schedule 1 of the Iran sanctions regulations. Those added are subject to a broad ban on dealings.
• The new entities added are:
  • Safiran Airport Services
  • Paravar Pars Aerospace Engineering Services and Research Company (also known as Paravar Pars Company)
  • Design and Manufacturing of Aircraft Engines Company (DAMA)
  • Baharestan Kish Company
  • Javan News Agency (also known as Javan)
• The new individuals added are:
  • Ali Ghanaatkar Mavardiani
  • Mohammad Javad Azari Jahromi (born 1981)
  • Morteza Talaei (born 1957)
  • Hassan Karami (born 1960)
• Once listed, Canadians and anyone in Canada are generally prohibited from:
  • dealing in the property of listed persons or entities;
  • entering into transactions with them;
  • providing them with services or goods.
• Penalties for knowingly breaking the rules can include a fine of up to $25,000, imprisonment for up to one year on summary conviction, or up to five years on indictment.

Who's affected#

• The named individuals and companies listed above are the direct targets.
• Canadian banks, financial institutions and businesses may need to update screening systems and refuse or report transactions involving these names.
• Canadians and Canadian companies operating abroad must also follow these bans.
• Enforcement agencies involved include the Royal Canadian Mounted Police and the Canada Border Services Agency.

Why it matters#

• These are targeted sanctions meant to increase pressure on parts of the Iranian state and people Canada says are involved in human rights abuses or destabilizing activities (for example, repression of free expression and companies tied to unmanned aerial vehicles).
• For most Canadians, the change is administrative: banks and companies update checks to avoid banned dealings. For the listed people and firms it restricts their ability to access Canadian financial and commercial ties.
• The move also aligns Canada with allies taking similar steps and signals Canada’s stance on Iran’s actions and human rights record.