Sanctions on Riad Salameh and Associates

Summary#

The final rule updates the Justice for Victims of Corrupt Foreign Officials Regulations by adding three people to Canada’s sanctions list. The government says the three were involved in embezzling US$330 million from the Lebanese central bank; the measures took effect when registered on August 4, 2023 and were published on August 16, 2023.

What it does#

• Adds Riad Toufic Salameh, Raja Salameh, and Marianne Hoayek to the schedule of the Justice for Victims of Corrupt Foreign Officials Regulations (the list of sanctioned people).
• Makes it illegal for anyone in Canada, or any Canadian abroad, to do certain financial or property dealings that involve these listed people. That includes:
  • dealing in their property;
  • entering into or helping financial transactions connected to their property;
  • providing or getting financial or related services for them;
  • making property available to them or people acting for them.
• States the listed people are inadmissible to Canada under immigration rules.
• Says the names will be added to the Consolidated Canadian Autonomous Sanctions List so banks and others can check them.
• Confirms enforcement and penalties: on summary conviction, up to $25,000 fine or up to 1 year in jail (or both); on indictment, up to 5 years in jail.

Who's affected#

• The three named individuals: Riad Toufic Salameh, Raja Salameh, and Marianne Hoayek.
• Financial institutions, businesses and people in Canada who might have dealt with those individuals. Banks will need to screen for them and block prohibited transactions.
• Canadians who do business abroad and might interact with those individuals.
• In practice, the government says the individuals probably have limited links to Canada, so direct effects on most Canadians and Canadian businesses are likely small.

Why it matters#

• These are targeted sanctions aimed at people Canada says were involved in serious corruption tied to Lebanon’s financial collapse. The measures freeze certain dealings and make it harder for the named people to use international financial services that pass through or touch Canada.
• For the public, it signals Canada’s position against large-scale corruption and supports broader international efforts to hold alleged wrongdoers to account.
• For banks and businesses, this means an extra names-based screening requirement and a small chance of added compliance work.