Venezuela sanctions expanded; five individuals listed

Summary#

The federal government has made final changes to the Special Economic Measures (Venezuela) Regulations (instrument SOR/2024-264). The amendments expand who can be sanctioned, add five people to the list of targeted individuals, and took effect on December 13, 2024 (published in the Canada Gazette on January 1, 2025).

What it does#

• Broadens the reasons Canada can list people or entities under the Special Economic Measures Act, to include:
  • activities that contribute to a grave breach of international peace and security;
  • activities that contribute to gross and systematic human rights violations in Venezuela;
  • activities that contribute to acts of significant corruption in Venezuela.
• Expands who can be treated as linked to those listed:
  • family members and associates;
  • entities owned, held or controlled (directly or indirectly) by listed people;
  • current or former senior officials of those entities.
• Tightens language about property and duties:
  • clarifies that Canadians (and people in Canada) may not deal with property owned or controlled directly or indirectly by a listed person;
  • requires banks and other entities to determine if they possess or control such property and to report as required.
• Adds five individuals to the schedule of listed persons (names and birthdates as recorded):
  • Caryslia Beatriz RODRIGUEZ RODRIGUEZ (born July 16, 1967)
  • Juan Carlos HIDALGO PANDARES (born October 20, 1961)
  • Rosalba GIL PACHECO (born March 18, 1965)
  • Edward Miguel BRICEÑO CISNEROS (born March 11, 1986)
  • Luis Ernesto DUEÑEZ REYES (born August 20, 1988)

Who's affected#

• The five newly listed individuals and anyone closely connected to them (associates, family, or controlled entities).
• Canadians, including:
  • businesses and non-profits that might deal with Venezuelan-linked persons or entities;
  • banks and financial institutions that must screen for and block prohibited transactions.
• Government and enforcement bodies that implement the rules, including the Royal Canadian Mounted Police and the Canada Border Services Agency.
• Listed persons will also be, as a consequence, inadmissible to Canada under the Immigration and Refugee Protection Act.

Why it matters#

• If you or your business deal with a listed person or their property, those transactions are now prohibited. That can mean frozen assets, blocked payments, and denied services.
• Banks and payment services will add these names to screening lists, which can cause delays or rejections for affected transactions even if the link is indirect.
• The rule aims to pressure individuals tied to the Venezuelan government over alleged election interference, human rights abuses, and corruption. The government says the economic impact on Canada will be small because the newly listed people have limited ties to Canada.
• Breaking the rules can lead to criminal penalties: summary conviction fines up to $25,000 and/or up to 1 year in jail, or indictment penalties including up to 5 years in prison.