Navigating the waters: Compliance with multiple regimes
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.
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