Six Individuals Added to Iran Sanctions

Summary#

These final regulations amend the Special Economic Measures (Iran) Regulations to add 6 people to Canada’s Iran sanctions list. They took effect when the regulations were registered on September 14, 2023 and were published on September 27, 2023. The practical effect is that Canadians and people or companies in Canada must not deal with these listed individuals and their assets in Canada can be frozen.

What it does#

• Adds these six people to Part 2.1 of Schedule 1 of the Special Economic Measures (Iran) Regulations:
  • Abdol Hosein Khosrow Panah (born 1967)
  • Hasan Rahimpour Azghadi (born 1965)
  • Ensieh Khazali (born 1963)
  • Mohammad Mehdi Esmaili (born 1975)
  • Mohammad Masroor (no birth year listed)
  • Mojtaba Zonnouri (born August 12, 1963)
• Prohibits Canadians, people in Canada and Canadian businesses from dealing in the property of, providing services to, or entering into transactions with these listed persons. Their assets in Canada are effectively frozen.
• The listing also carries immigration consequences for the listed persons (they become inadmissible to Canada under the immigration law named in the source).
• Enforcement is carried out by the Royal Canadian Mounted Police and the Canada Border Services Agency. Penalties include up to $25,000 on summary conviction or imprisonment up to one year, or on indictment imprisonment up to five years.

Who's affected#

• The six named individuals listed above. Several are described in the regulatory statement as senior Iranian officials, including members of Iran’s Supreme Council for Cultural Revolution, a senior commander in the Islamic Revolutionary Guard Corps, and a member of Iran’s parliament.
• Canadian banks and financial institutions, which must screen for and block transactions involving listed people.
• Canadian businesses, charities, and individuals who deal internationally — they must avoid transactions with these listed people or risk penalties. The government says it is unlikely Canadian small businesses will be directly affected.
• It is unclear from the notice whether any everyday services or people in Canada beyond financial institutions will feel direct effects; the measures target the listed individuals, not broad trade.

Why it matters#

• This is a targeted sanctions move by Canada in response to what the government says are gross and systematic human rights violations in Iran. It aims to increase pressure on Iranian officials believed to be responsible for or enforcing repressive policies.
• For the listed people, it cuts off access to Canada’s financial system and can limit travel or diplomatic contact with Canada.
• For Canadians, the main impacts are compliance: banks need to update screening systems and businesses must ensure they do not do prohibited transactions with those listed. The government expects these costs to be minor.
• The measure aligns Canada with actions taken by allied countries and signals support for human-rights-related pressure, including measures said to support women and protestors inside Iran.