On December 5, 2022, Canada announced amendments to the Special Economic Measures (Haiti) Regulations (the “Regulations”) in response to the “egregious conduct of Haitian elites who provide illicit financial and operational support to armed gangs”. These amendments list an additional three individuals under the Schedule of the Regulations and took effect on December 2, 2022.
There are now eleven individuals listed under the Schedule of the Regulations. All of the newly listed individuals are believed to be using their status to “protect and enable the illegal activities of armed criminal gangs, including through money laundering and other acts of corruption”.
Generally speaking, listing under the Schedule of the Regulations imposes a dealings prohibition, effectively an asset freeze, against the listed person. Any person in Canada or any Canadian outside Canada cannot:
- deal in any property, wherever situated, that is owned, held or controlled, directly or indirectly, by a listed person;
- enter into or facilitate any transaction related to such a dealing;
- provide any financial or other related services in respect of such a dealing;
- make available any goods, wherever situated, to a listed person or to a person acting on their behalf; or
- provide any financial or related service to, or for the benefit of, a listed person.
This is the second amendment to the Regulations, implemented in response to gangs and their supporters in Haiti who are committing “unspeakable violence” against affected populations and “impeding the delivery of critical services and humanitarian aid”. The Regulations are enacted in addition to the Regulations Implementing the United Nations Resolutions on Haiti, which implement decisions of the United Nations Security Council pursuant to resolution 2653.
Businesses should continually assess their sanctions compliance in this shifting legal landscape. Regulations enacted under the Special Economic Measures Act obligate persons in Canada and Canadian citizens to disclose certain property held by listed persons under the Schedule and any related transactional information to the RCMP. Additionally, certain entities have a continuing duty to determine and disclose certain property held by listed persons.
An unofficial copy of the legislative amendments to the Special Economic Measures (Haiti) Regulations that came into effect on December 2, 2022 are available on Global Affairs Canada’s website at here.
