1. The following definitions apply in these Regulations.

“arms and related material”

“arms and related material” means any type of weapon, ammunition, military vehicle or military or paramilitary equipment, and includes their spare parts. (armes et matières connexes)

“Canadian financial institution”

“Canadian financial institution” has the same meaning as in section 2 of the Bank Act. (institution financière canadienne)

“designated person”

“designated person” means a person who is in Iran, or is a national of Iran who does not ordinarily reside in Canada, and whose name is listed in Schedule 1. (personne désignée)

“Guide”

“Guide” has the same meaning as in section 1 of the Export Control List. (Guide)

“Iran”

“Iran” means the Islamic Republic of Iran and includes its political subdivisions. (Iran)

“Iranian financial institution”

“Iranian financial institution” means a body corporate, trust, partnership, fund, unincorporated association or organization, established under the laws of Iran, that engages, directly or indirectly, in the business of providing financial services. (institution financière iranienne)

“Minister”

“Minister” means the Minister of Foreign Affairs. (ministre)

“pension”

“pension” means a benefit paid under the Old Age Security Act, the Canada Pension Plan or an Act respecting the Quebec Pension Plan, R.S.Q. c. R-9, any superannuation, pension or benefit paid under or in respect of any retirement savings plan or under any retirement plan, any amount paid under or in respect of the Garnishment, Attachment and Pension Diversion Act or the Pension Benefits Division Act, and any other payment made in respect of disability. (pension)

“significant interest”

“significant interest” means, in respect of a Canadian or Iranian financial institution, the beneficial ownership by a person, and any entity controlled by the person, of more than 10 % of a class of outstanding shares of the institution. (intérêt substantiel)

2. A person whose name is listed in Schedule 1 is a person in respect of whom the Governor in Council, on the recommendation of the Minister, is satisfied that there are reasonable grounds to believe is

• (a) a person engaged in activities that contribute, or could contribute, to Iran’s proliferation-sensitive nuclear activities, or to Iran’s activities related to the development of chemical, biological or nuclear weapons of mass destruction or delivery systems for such weapons;

• (b) a former or current senior official in the Islamic Revolutionary Guard Corps;

• (c) an associate or family member of a person set out in paragraph (a) or (b);

• (d) an entity owned or controlled by, or acting on behalf of, a person set out in paragraphs (a) or (b); or

• (e) a senior official of an entity set out in paragraph (d).

3. It is prohibited for any person in Canada and any Canadian outside Canada to

• (a) deal in any property, wherever situated, held by or on behalf of a designated person;

• (b) enter into or facilitate, directly or indirectly, any transaction related to a dealing referred to in paragraph (a);

• (c) provide any financial or other related service, including insurance or reinsurance, in respect of a dealing referred to in paragraph (a);

• (d) make any goods, wherever situated, available to a designated person; or

• (e) provide any financial or financial-related service to or for the benefit of a designated person.

3.1 Section 3 does not apply in respect of

• (a) loan repayments to any person in Canada, or any Canadian abroad, in respect of loans entered into before July 22, 2010, enforcement of security in respect of those loans, or payments by guarantors guaranteeing those loans;

• (b) pension payments to any person in Canada or any Canadian abroad;

• (c) any transaction in respect of the accounts at a Canadian financial institution that are used for the regular business of the Embassy of Iran or its consular missions in Canada;

• (d) any transaction in respect of the accounts at an Iranian financial institution that are used for the regular business of the Embassy of Canada or its consular missions in Iran;

• (e) any transaction to international organizations with diplomatic status, United Nations agencies, the International Red Cross and Red Crescent Movement, or Canadian non-governmental organizations that have entered into a grant or contribution agreement with the Department of Foreign Affairs and International Trade and the Canadian International Development Agency, for the purpose of pursuing humanitarian relief work in Iran; and

• (f) any transactions necessary for a Canadian to transfer any existing accounts, funds or investments of a Canadian held with a designated person to a non-designated person.

• 4. (1) It is prohibited for any person in Canada and any Canadian outside Canada to export, sell, supply or ship any of the following goods, wherever situated, to Iran or any person in Iran or to deal with any of the following goods destined for Iran or any person in Iran:

  • (a) any arms and related material the sale, supply or transfer of which is not prohibited by the Regulations Implementing the United Nations Resolutions on Iran;

  • (b) any goods used in the refining of oil or the liquefaction of natural gas;

  • (b.1) any goods used in the petrochemical, oil or natural gas industry, other than

    • (i) goods that are required to be exported, sold, supplied or shipped further to a contract entered into before November 22, 2011, and

    • (ii) goods the export, sale, supply or shipping of which is prohibited by paragraph (b);

  • (c) any of the goods listed in Schedule 2; or

  • (d) any item listed in the Guide, with the exception of

    • (i) items 5001, 5011, 5101, 5102, 5103, 5201 and 5202, and

    • (ii) items 5400 and 5505, unless the export, sale, supply or shipment of the good is otherwise prohibited by these Regulations.

• (2) It is prohibited for any person in Canada and any Canadian outside Canada to provide or acquire any financial or other services to, from or for the benefit of, or on the direction or order of, any person in Iran in respect of any of the goods listed in subsection (1).

• (3) It is prohibited for any person in Canada and any Canadian outside Canada to transfer, provide or communicate to Iran or any person in Iran

  • (a) any technical data required for the processing, storing or handling of liquid natural gas; or

  • (b) any technical data related to any of the goods listed in subsection (1).

5. It is prohibited for any person in Canada and any Canadian outside Canada to

• (a) provide or acquire financial services or any other services to, from or for the benefit of, or on the direction or order of, any person in Iran for the purpose of

  • (i) establishing an Iranian financial institution in Canada or a Canadian financial institution in Iran,

  • (ii) establishing a branch, subsidiary or representative office of an Iranian financial institution in Canada or of a Canadian financial institution in Iran, or

  • (iii) acquiring a significant interest in an Iranian or Canadian financial institution;

• (b) if they are an entity referred to in paragraphs 9(a), (b), (f) or (g), provide or acquire correspondent banking services to, from or for the benefit of, or on the direction or order of, an Iranian financial institution;

• (c) purchase any debt obligation issued by the government of Iran; or

• (d) provide or acquire any financial services to, from or for the benefit of, or on the direction or order of, Iran or any person in Iran, other than

  • (i) financial services that are required to be provided or acquired further to a contract entered into before November 22, 2011,

  • (ii) financial services the provision or acquisition of which are otherwise prohibited by these Regulations,

  • (iii) financial services in respect of pension payments to any person in Canada or any Canadian abroad,

  • (iv) financial services in respect of pension payments to any person in Iran,

  • (v) financial services in respect of the accounts at a Canadian financial institution that are used for the regular business of the Embassy of Iran or its consular missions in Canada,

  • (vi) financial services in respect of the accounts at an Iranian financial institution that are used for the regular business of the Embassy of Canada or its consular missions in Iran, or for the personal banking of their employees,

  • (vii) financial services in respect of non-commercial remittances of $40,000 or less sent to or from Iran or any person in Iran, if the person providing the financial services keeps a record of the transaction, and

  • (viii) financial services in respect of any transaction with international organizations with diplomatic status, United Nations agencies, the International Red Cross and Red Crescent Movement, or Canadian non-governmental organizations that have entered into a grant or contribution agreement with the Department of Foreign Affairs and International Trade and the Canadian International Development Agency, for the purpose of pursuing humanitarian relief work in Iran.

• 6. (1) It is prohibited for any person in Canada and any Canadian outside Canada to make an investment in an entity in Iran that is owned or controlled by another entity in Iran and is engaged in the oil or natural gas industry.

• (2) It is prohibited for any person in Canada and any Canadian outside Canada to provide or acquire financial or other services to, from or for the benefit of or on the direction or order of a person in Iran for the purpose of investing in the oil or natural gas industry in Iran.

7. It is prohibited for any person in Canada and any Canadian outside Canada to provide a vessel that is owned or controlled by, or operating on behalf of, the Islamic Republic of Iran Shipping Lines with insurance services, or stevedoring, bunkering and lighterage and similar services, for the vessel’s operation or maintenance.

8. It is prohibited for any person in Canada and any Canadian outside Canada to do anything that causes, assists or promotes, or is intended to cause, assist or promote, any act or thing prohibited by sections 3 to 7.

8.1 The prohibitions in sections 4 to 8 do not apply with respect to an activity that has as its purpose the safeguarding of human life, disaster relief, or the providing of medicine or medical supplies.

9. Each of the following entities must determine on a continuing basis whether it is in possession or control of property owned or controlled by or on behalf of a designated person:

• (a) authorized foreign banks, as defined in section 2 of the Bank Act, in respect of their business in Canada or banks to which that Act applies;

• (b) cooperative credit societies, savings and credit unions and caisses populaires regulated by a provincial Act and associations regulated by the Cooperative Credit Associations Act;

• (c) foreign companies, as defined in subsection 2(1) of the Insurance Companies Act, in respect of their insurance business in Canada;

• (d) companies, provincial companies and societies, as those terms are defined in subsection 2(1) of the Insurance Companies Act;

• (e) fraternal benefit societies regulated by a provincial Act in respect of their insurance activities and insurance companies and other entities engaged in the business of insuring risks that are regulated by a provincial Act;

• (f) companies to which the Trust and Loan Companies Act applies;

• (g) trust companies regulated by a provincial Act;

• (h) loan companies regulated by a provincial Act;

• (i) entities that engage in any activity described in paragraph 5(h) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, if the activity involves the opening of an account for a client; and

• (j) entities authorized under provincial legislation to engage in the business of dealing in securities, or to provide portfolio management or investment counselling services.

• 10. (1) Every person in Canada and every Canadian outside Canada must disclose without delay to the Commissioner of the Royal Canadian Mounted Police

  • (a) the existence of property in their possession or control that they have reason to believe is owned or controlled, directly or indirectly, by a designated person or by an entity owned or controlled by a designated person; and

  • (b) information about a transaction or proposed transaction in respect of property referred to in paragraph (a).

• (2) No person contravenes subsection (1) by disclosing in good faith under that subsection.

• 11. (1) A designated person may apply to the Minister in writing to have their name removed from Schedule 1.

• (2) On receipt of an application, the Minister must decide whether there are reasonable grounds to recommend to the Governor in Council that the applicant’s name be removed from the schedule.

• (3) The Minister must make a decision on the application within 90 days after the day on which the application is received.

• (4) The Minister must give notice without delay to the applicant of the decision taken.

• (5) If there has been a material change in circumstances since the last petition was submitted, a person may submit another application under subsection (1).

• 12. (1) A person claiming not to be a designated person may apply to the Minister for a certificate stating that they are not the person who has been designated under section 2.

• (2) If it is established that the person is not a designated person, the Minister must issue a certificate to the applicant within 30 days after the day on which the application is received.

13. [Repealed, SOR/2011-268, s. 7]

14. [Repealed, SOR/2011-268, s. 7]

15. For the purpose of paragraph 11(2)(a) of the Statutory Instruments Act, these Regulations apply before they are published in the Canada Gazette.

16. These Regulations come into force on the day on which they are registered.