Targeted Sanctions on Two Haitian Politicians

Summary#

The Special Economic Measures (Haiti) Regulations are a set of targeted Canadian sanctions that came into force on November 3, 2022. They add two named Haitian political figures to a list and bar Canadians from dealing with their property or providing them with services.

What it does#

• Names two people as "listed persons":
  • Youri Latortue (born November 13, 1967)
  • Joseph Lambert (born February 5, 1961)
• Prohibits, for anyone in Canada and for Canadians abroad:
  • dealing in any property owned or controlled by a listed person;
  • entering into or facilitating transactions related to that property;
  • providing financial or related services in respect of those dealings;
  • making goods available to a listed person or someone acting for them;
  • providing financial services to or for the benefit of a listed person.
• Lists several exceptions where the ban does not apply, including:
  • payments under contracts entered into before someone was listed;
  • transfers that move Canadian accounts or investments out of a listed person’s control;
  • enforcement of loan repayments and related security interests;
  • public benefits and pension payments to Canadians;
  • financial services needed for a listed person to obtain legal advice in Canada;
  • transactions for diplomatic missions or certain international organizations;
  • transactions by the Government of Canada under existing agreements with Haiti.
• Requires a range of financial and related institutions (banks, credit unions, insurers, trust and loan companies, securities dealers, etc.) to continuously check whether they hold property owned or controlled by a listed person.
• Requires prompt disclosure of suspected assets or transactions involving listed persons to the Royal Canadian Mounted Police or the Canadian Security Intelligence Service.
• A separate authorization order was developed to allow the Minister of Foreign Affairs to issue permits in specific cases, according to the regulatory background.

Who's affected#

• The two named individuals, Youri Latortue and Joseph Lambert, and any entities they own, control, or benefit.
• Canadians and people in Canada who might hold, move, or deal with property linked to those individuals.
• Canadian financial institutions and regulated firms (for example, banks, credit unions, insurers, trust companies, securities dealers) that must screen accounts and report suspected holdings.
• Canadian businesses or service providers that might be asked to provide goods, funds, or services to the listed persons.
• It is not explicitly clear from the text how broadly family members, associates or third-party entities will be affected beyond the listed persons; the rules describe categories (associates, family members, entities owned or controlled) but application can depend on facts.

Why it matters#

• These are targeted measures meant to stop or disrupt financial support to people who are alleged to be linked to violence and instability in Haiti.
• Banks and other financial firms will need to update screening and compliance checks; that can mean modest operational costs.
• People and businesses in Canada must not deal with the listed persons or their property without an explicit permit. Breaking the rules can bring criminal penalties: on summary conviction a fine up to $25,000 or up to one year in prison (or both), and on indictment up to five years in prison.
• The regulation is intended to put pressure on the listed individuals and deter others who might support violent groups, while aiming to limit wider harm to the general Haitian population.