Canada sanctions 11 Belarus officials

Summary#

The final rule titled Special Economic Measures (Belarus) Regulations (SOR/2020-214) was registered on September 28, 2020 and published in the Canada Gazette on October 14, 2020. It adds 11 named Belarusian individuals to a Canadian sanctions list and bans many kinds of financial and commercial dealings with them.

What it does#

• Names 11 people in the schedule (including Aleksandr Grigoryevich Lukashenko) as “listed persons.”
• Prohibits anyone in Canada and Canadians abroad from:
  • dealing in property owned, held or controlled by a listed person;
  • entering into or facilitating transactions related to that property;
  • providing financial or related services tied to those dealings;
  • supplying goods to a listed person; or
  • providing financial services for the benefit of a listed person.
• Includes exemptions for certain routine or humanitarian activities, such as pension and other social benefits, legal services related to the sanctions, some diplomatic mission transactions, and some international organization transactions.
• Requires banks and other specified financial and trust institutions to check continuously whether they hold property belonging to a listed person.
• Requires prompt reporting of suspected property or transactions tied to listed persons to the Royal Canadian Mounted Police (RCMP) or the Canadian Security Intelligence Service (CSIS).
• As a consequence under immigration law, the listed individuals are made inadmissible to Canada under the Immigration and Refugee Protection Act.

Who's affected#

• People and businesses in Canada and Canadians operating abroad who might hold assets or do business involving the listed individuals.
• Financial institutions, trust companies, insurance firms, securities firms and other entities required to monitor accounts must check for and report relevant holdings. (These groups are specifically named in the regulations.)
• The 11 named Belarusian individuals themselves, who face asset and transaction restrictions and are barred from entering Canada.
• Law enforcement and border agencies that enforce the rules, including the RCMP and Canada Border Services Agency (CBSA).

Why it matters#

• These regulations are a tool Canada is using to put pressure on the Belarus government over reported human rights violations and the August 2020 election aftermath.
• In practical terms, the rules cut off listed people from Canadian financial services and make it illegal for Canadians to help them move or access assets.
• Canadian banks and businesses may face small compliance work to screen customers and transactions.
• There are criminal penalties for willful violations: a summary conviction can lead to a fine of up to $25,000 or up to 1 year in jail (or both), and indictable offences can carry up to 5 years imprisonment.