The Canadian Minister of Foreign Affairs, Melanie Joly announced that on November 15, 2021, Canada imposed sanctions against an additional 11 individuals under the Special Economic Measures (Nicaragua) Regulations.The sanctions have been placed in response to ongoing human rights violations in Nicaragua. This is the third in a series of sanctions that were previously imposed by Canada on June 21, 2018, and then on July 14, 2021.
The Nicaragua Regulations impose on listed persons a dealings prohibition, transaction (effectively, an asset freeze), by prohibiting persons in Canada, and Canadians abroad from:
- dealing in property anywhere in the world that is owned, held or controlled by listed persons or someone acting on their behalf;
- entering into or facilitating any transaction related to a dealing prohibited by the Regulations;
- providing any financial or related services in respect of a dealing prohibited by the Regulations;
- making available any goods anywhere in the world to a listed person or someone acting; and
- providing any financial or other related services to or for the benefit of a listed person.
The Regulations also prohibit causing, facilitating or assisting in prohibited activities.
Special Economic Measures (Nicaragua) Permit Authorization Order
The imposition of economic sanctions does not mean that Canadians must cease business with Nicaragua. The Minister of Foreign Affairs can issue to any person in Canada and any Canadian outside Canada a permit to carry out a specified activity or transaction that is otherwise restricted or prohibited under the Regulations.
Compliance and Red Flags
Canada does not publish a single consolidated list of designated or listed persons. As a result, it is necessary to review various acts and regulations under the Canadian economic sanctions regime. For example, regulations made under Special Economic Measures Act, United Nations Act and Freezing of Assets of Corrupt Foreign Officials Act, etc. must be reviewed separately in order to ensure compliance with Canadian sanctions law requirements.
The lawyers at Tereposky & DeRose have significant experience in the design and implementation of sanctions-related compliance programs, including policies, procedures, employee training, and internal control mechanisms. They also regularly assist both Canadian and international businesses, financial institutions, and individuals with internal investigations when “red flags” appear and provide advice on compliance in these areas. Where breaches have occurred, they have worked closely with their clients in making voluntary disclosures and in engaging with the ensuing investigations conducted by the RCMP and Global Affairs Canada.