Navigating the waters: Compliance with multiple regimes
By Kim Walsh and Olivia Bungay
Compliance with Russian sanctions goes beyond complying with Canada’s Russia Regulations. Canadian individuals and businesses may be unaware of several other sanctions regimes that apply to them.
In conjunction with its sanctions against Russia, the Canadian Government has placed sanctions against Belarus (Special Economic Measures (Belarus) Regulations) and Russian-occupied areas of Ukraine (Special Economic Measures (Ukraine) Regulations). Similar to the Russia Regulations, the Belarus and Ukraine Regulations list several designated persons and prohibit any person or business in Canada, or any Canadian citizen or business outside of Canada to:
- Deal in property, wherever situated, that is owned, held or controlled by designated persons or a person acting on behalf of a designated person;
- Enter into or facilitate a transaction related to a prohibited dealing;
- Provide any financial or related services in respect of a prohibited dealing;
- Provide any goods or financial services to a designated person.
Together, the Russia, Belarus and Ukraine Regulations currently list over 2100 designated persons. Aside from prohibiting dealings with designated persons, the Russia, Belarus and Ukraine Regulations prohibit the import and export of certain goods and the provision of certain services in relation to the sanctioned areas. Care must be taken to ensure compliance will all of Canada’s sanctions that target Russia’s invasion of Ukraine.
Aside from Canada’s sanctions, Canadian individuals and businesses conducting business internationally may also be subject to international sanctions regimes. Multinational companies will typically need to follow the sanctions regimes of other countries if there is a sufficient nexus in their operations to that jurisdiction. Compliance with Canada’s sanctions may not equate to compliance with other countries’ sanctions since regimes, while somewhat coordinated, are not identical. Individuals and businesses should also take steps to ensure that their business partners are not “designated persons”/subject to an asset freeze under another country’s regime. Anyone conducting international business should take steps to identify international sanctions that apply to them and ensure they are complied with.
See our recent articles: Navigating Canada’s economic sanctions against Russia and Navigating Canada’s sanctions against Russia: New guidance on ownership and control of an entity
This client update is provided for general information only and does not constitute legal advice. If you have any questions about the above, please contact the author.
Click here to subscribe to Stewart McKelvey Thought Leadership.
Archive
Rick Dunlop and Kevin Landry The Federal government has released a new report titled: Proposed Approach to the Regulation of Cannabis: Summary of Comments Received During the Public Consultation (the “new report”) which outlines the…
Read MoreSean Kelly and Michelle Black Employers across Canada are facing a series of recently-announced plans for substantial minimum wage hikes in several provinces. Notably, Ontario, Alberta and British Columbia have all committed to raising their minimum…
Read MoreWe are pleased to present the second issue of Discovery, our very own legal publication targeted to educational institutions in Atlantic Canada. In this issue, our lawyers discuss student associations, sports-related concussions, freedom of expression,…
Read MoreIn preparing for the 2018 proxy season, you should be aware of some regulatory changes and institutional investor guidance that may impact disclosure to, and interactions with, your shareholders. This update highlights what is new…
Read MoreBrian Tabor, QC and Simon McCormick In May 2012, the Nova Scotia Legislature passed the Mortgage Regulation Act (“MRA”). The MRA has not yet come into force, but, when it does, it will replace the…
Read MoreThe Legislative Services Branch of the Province of New Brunswick has announced in issue 40 of the Law Reform Note, available online, its intention to reform the Mechanics’ Lien Act. The Note draws on similar…
Read MoreJonathan Coady and Chenchen Yu Once again, the time has come to review the year that was and to chart the course for the year ahead. For municipalities, developers and planning professionals throughout Prince Edward…
Read MorePerlene Morrison and Hilary Newman On October 11, 2017, the Chief Judge of the Provincial Court of Prince Edward Island gave her decision in R v. Community of Brackley. The Community of Brackley (the “Municipality”) was…
Read MoreIan Wallace The Occupational Health and Safety (“OHS”) legislation in Atlantic Canada and across the country recognizes the internal responsibility system. Everyone in the workplace is responsible for their own safety and the safety of…
Read MoreRick Dunlop, Kevin Landry and Justin Song Following October’s public consultation, which resulted in over 31,000 responses, Nova Scotia has revealed the first hints of its cannabis regulatory regime. While Nova Scotia’s proposed provincial legislation…
Read More