Former nationals added to sanctions lists

Summary#

These final rules, titled Regulations Amending Certain Regulations Made Under the Special Economic Measures Act (SOR/2023-175), change how Canada defines who can be listed under some country-specific sanctions. The change took effect on August 4, 2023 and lets Canada list people who used to be nationals of those countries so they cannot escape sanctions by renouncing citizenship.

What it does#

• Clarifies the meaning of “designated person” in 13 country-specific regulations under the Special Economic Measures Act so that former nationals can be listed as well as current nationals.
• Applies the change to the SEMA regulations for these countries:
  • Belarus
  • Haiti
  • Iran
  • Moldova
  • Myanmar (Burma)
  • Nicaragua
  • People’s Republic of China
  • Russia
  • South Sudan
  • Sri Lanka
  • Syria
  • Ukraine
  • Venezuela
• Keeps existing sanctions in place. It does not add new types of penalties or new countries; it only broadens who may be covered by existing listings.
• Enforcement remains handled by agencies such as the Royal Canadian Mounted Police and the Canada Border Services Agency.

Who's affected#

• People listed (or who may be listed) under the 13 affected country sanctions regimes, including those who are former nationals of those countries.
• Individuals who might try to avoid Canadian sanctions by renouncing citizenship or using multiple nationalities (for example, wealthy targets of sanctions).
• Canadian enforcement and foreign-affairs bodies involved in implementing and policing sanctions, including Global Affairs Canada.
• It is unclear from the notice whether the change will affect private businesses directly; the government says it should cause only minor implementation changes.

Why it matters#

• The change closes a loophole that could let people avoid Canadian sanctions by giving up a nationality. That makes the sanctions harder to evade in practice.
• For targeted individuals, it can preserve restrictions on travel, financial dealings, and assets even if they renounce a nationality tied to the sanctions listing.
• For the public, it signals Canada is tightening sanctions tools to work better with international partners and to limit creative evasion.
• Criminal penalties for knowingly breaking these sanctions remain: a fine up to $25,000 or imprisonment up to 1 year on summary conviction, or imprisonment up to 5 years on indictment.