Canada Implements UN Sanctions on Haiti

Summary#

The final rule Regulations Implementing the United Nations Resolution on Haiti puts into Canadian law the United Nations sanctions from Security Council Resolution 2653 (adopted October 21, 2022). It freezes assets and bans arms and certain assistance for people and groups designated by the UN; the regulations were registered on November 10, 2022 and published in the Canada Gazette on November 23, 2022.

What it does#

• Freezes funds, financial assets and economic resources that are owned or controlled by persons or entities the UN Committee designates.
• Bans exporting, selling, supplying or transferring arms and related material to those designated.
• Prohibits providing technical or financial help connected to military activities or to arms for designated people or groups.
• Stops Canadian vessels and Canadian-registered aircraft from carrying arms destined for designated persons.
• Applies to anyone in Canada and to Canadians while they are outside Canada.
• Requires banks and many financial institutions to keep checking whether they hold assets tied to designated people, and to report suspected assets or transactions to the Royal Canadian Mounted Police or the Canadian Security Intelligence Service.
• Allows the Minister of Foreign Affairs to grant written exemptions in limited cases (for example, for humanitarian needs, existing contracts, or mistaken identity).
• Identifies at least one person now: Jimmy Cherizier (“Barbeque”), leader of the G9 gang alliance, who is listed by the UN as a designated individual.

Who's affected#

• People and organizations who are named (or later named) by the UN Committee as designated persons or entities.
• Financial institutions, insurance companies, trust and loan companies, securities dealers and other businesses that open accounts or handle money.
• Owners/operators of Canadian ships and aircraft.
• Canadians traveling or doing business abroad who might deal with designated people or entities.
• Humanitarian organizations and UN agencies — the rules include narrow exceptions to allow urgent humanitarian assistance to proceed.
• Enforcement and reporting bodies such as the Royal Canadian Mounted Police, the Canadian Security Intelligence Service, and the Canada Border Services Agency.

Why it matters#

• These regulations make Canada follow its international obligation to carry out the UN Security Council’s sanctions.
• In practical terms, they aim to cut off money, weapons and technical support to people and groups blamed for threatening peace and security in Haiti.
• Banks and other service providers will need to update screening and reporting systems; that could mean some compliance costs. Small businesses with trade links to Haiti could be affected if more people or entities are designated.
• Breaking the rules can lead to criminal penalties: a summary conviction fine of up to $100,000 or up to one year in jail (or both), and on indictment up to 10 years in jail.