Somalia Sanctions Regulations Amended

Summary#

The final regulation SOR/2020-120, titled Regulations Amending the Regulations Implementing the United Nations Resolutions on Somalia, updates Canada’s sanctions rules tied to UN decisions about Somalia. The changes came into force on June 1, 2020 and adjust what is banned, who must report, and certain exceptions for humanitarian and security-related activities.

What it does#

• Updates and clarifies definitions in the Regulations Implementing the United Nations Resolutions on Somalia, including new terms like AMISOM and “military activities.”
• Rewrites the list of prohibited activities so it is clearer that Canadians and people in Canada must not:
  • deal with property or funds owned or controlled by people or entities designated under certain UN resolutions;
  • export, supply or transfer arms and related material to Somalia or to designated persons; or
  • import charcoal from Somalia.
• Adds and clarifies exceptions that allow certain shipments or support when approved or notified in advance, including for:
  • United Nations personnel, humanitarian and media workers, and their protective clothing;
  • the African Union Mission in Somalia (AMISOM) and its strategic partners; and
  • Somali security forces or activities to suppress piracy when they meet specific conditions.
• Requires banks and other financial and insurance institutions to monitor continuously for property tied to designated persons and to report suspicious holdings or transactions.
• Sets out a process for people to apply for exemptions or certificates (for example, for basic living expenses or mistaken identity).
• Allows the Minister and officials to disclose personal information to the UN or its committees when needed to enforce the rules or respond to UN requests.
• Extends certain exemptions in line with the UN up to November 15, 2020 (as noted in the regulatory statement).

Who's affected#

• Canadian banks and financial institutions and other entities that open or hold accounts, because they must monitor and report possible matches with designated people or entities.
• Exporters and transport operators dealing with military goods or items that could be used as weapons, including owners/operators of Canadian ships and aircraft.
• Humanitarian organizations, media and UN personnel who operate in Somalia — they may rely on exemptions but must follow notification or approval steps.
• Individuals or companies with assets linked to people designated by the UN’s Somalia sanctions committee. They can apply for exemptions (for basic expenses or mortgages) or for a certificate if they think they’ve been mistaken for a listed person.
• Enforcement agencies, including the Royal Canadian Mounted Police and the Canada Border Services Agency, which enforce the rules.
• The federal department that handles sanctions, Global Affairs Canada, which provides guidance and outreach.

Small businesses were not expected to face new costs from these changes, according to the government’s analysis.

Why it matters#

• These changes implement binding UN Security Council decisions in Canadian law. That keeps Canada aligned with international efforts to limit the flow of weapons, funds and other resources that could feed conflict or illicit activity in Somalia.
• For banks and companies, the rules mean stronger checking of clients and transactions tied to Somalia, and a legal duty to report suspected matches — failing to comply can lead to criminal penalties (on summary conviction a fine up to $100,000 or up to 1 year in jail; on indictment up to 10 years in jail).
• Humanitarian and peacekeeping work in Somalia can still go ahead, but often with extra paperwork: advance notifications or approvals may be required to use the exemptions.
• The regulation also allows officials to share personal information with the UN sanctions committee to help enforce listings and exemptions, which affects privacy handling in those cases.

If anything above is unclear in how it applies to a specific activity, the regulation provides processes (applications and notifications) and the government department that administers sanctions can be contacted for guidance.