New Iran Sanctions: Six People, Four Entities

Summary#

These final regulations — Regulations Amending the Special Economic Measures (Iran) Regulations: SOR/2022-214 — add certain Iranian individuals and entities to Canada’s Iran sanctions list. The listings freeze assets and ban most dealings with the named people and organizations. The measures came into force on October 19, 2022 and were published in the Canada Gazette on November 9, 2022.

What it does#

• Adds 4 entities to the Iran sanctions list:
  • Fars News Agency
  • Guardian Council
  • Assembly of Experts
  • Expediency Discernment Council
• Adds 6 individuals to the list:
  • Heshmatollah Falahatpisheh (born in 1971)
  • Mohammad Karami (born in 1960)
  • Soghra Khodadadi Taghanaki (born in 1971)
  • Ezzatollah Zarghami (born in 1959)
  • Seyyed Majid Mirahmadi
  • Abbas-Ali Kadkhodaei (born in 1961)
• Anyone in Canada, and Canadians and Canadian entities outside Canada, are prohibited from dealing with the property of, entering into transactions with, providing services to, or otherwise making goods available to the listed persons and entities.
• The additions will be posted on the Consolidated Canadian Autonomous Sanctions List to help banks and other organizations comply.
• These measures are made under the Special Economic Measures Act and are part of Canada’s Iran sanctions regime.

Who's affected#

• Banks and other financial institutions in Canada that must screen and block dealings with the listed people and entities.
• Canadian businesses and charitable organizations that might otherwise trade with or provide services to the listed parties.
• The named individuals and entities themselves (their assets in Canada are frozen and dealings are banned).
• Law enforcement and border agencies responsible for enforcing the rules.
• It is unclear that these listings will affect broad Canadian trade with Iran; the government says the listed parties likely have limited connections with Canada.

Why it matters#

• In practical terms, the listings mean asset freezes and a ban on most transactions with the newly listed people and organizations. That can prevent money, goods or services from flowing to those targets.
• Non-compliance can lead to criminal penalties: upon summary conviction a fine of up to $25,000 or imprisonment for up to one year, and upon conviction on indictment imprisonment for up to five years.
• The government says these are targeted measures meant to increase pressure on Iran over human rights abuses and threats to international peace and to align Canada with measures taken by allies.
• For most ordinary Canadians and businesses, the direct economic impact is expected to be limited; banks may face minor compliance costs to update screening systems.
• Enforcement will involve the Royal Canadian Mounted Police and the Canada Border Services Agency, and Global Affairs Canada maintains the sanctions list used for compliance.