Special Economic Measures Act (S.C. 1992, c. 17)

Short Title

Marginal note:Short title

1 This Act may be cited as the Special Economic Measures Act.

Interpretation

Marginal note:Definitions

2 In this Act,

Canadian

Canadian means a person who is a citizen within the meaning of the Citizenship Act or a body corporate incorporated or continued by or under the laws of Canada or of a province; (Canadien)

entity

entity means a body corporate, trust, partnership, fund, an unincorporated association or organization or a foreign state; (entité)

foreign state

foreign state means a country other than Canada, and includes

• (a) any political subdivision of a foreign state,

• (b) the government, and any department, of a foreign state or of a political subdivision thereof, and

• (c) any agency of a foreign state or of a political subdivision thereof; (État étranger)

national

national, in relation to a foreign state, means an individual who possesses the nationality of that state as determined in accordance with the laws of that state or a body corporate incorporated or continued by or under the laws of that state; (nationaux)

person

person means an individual or an entity; (personne)

property

property means any type of property, whether real or personal or immovable or movable, or tangible or intangible or corporeal or incorporeal, and includes money, funds, currency, digital assets and virtual currency; (bien)

technical data

technical data includes blueprints, technical drawings, photographic imagery, computer software, models, formulas, engineering designs and specifications, technical and operating manuals and any technical information or know-how. (données techniques)

Marginal note:Deemed ownership

• 2.1 (1) If a person controls an entity other than a foreign state, any property that is owned — or that is held or controlled, directly or indirectly — by the entity is deemed to be owned by that person.

• Marginal note:Criteria

  (2) For the purposes of subsection (1), a person controls an entity, directly or indirectly, if any of the following criteria are met:

  • (a) the person holds, directly or indirectly, 50% or more of the shares or ownership interests in the entity or 50% or more of the voting rights in the entity;

  • (b) the person is able, directly or indirectly, to change the composition or powers of the entity’s board of directors; or

  • (c) it is reasonable to conclude, having regard to all the circumstances, that the person is able, directly or indirectly and through any means, to direct the entity’s activities.

Her Majesty

Marginal note:Binding on Her Majesty

3 This Act is binding on Her Majesty in right of Canada or a province.

Purpose

Marginal note:Purpose of Act

3.1 The purpose of this Act is to enable the Government of Canada to take economic measures against certain persons in circumstances where an international organization of states or association of states of which Canada is a member calls on its members to do so, a grave breach of international peace and security has occurred, gross and systematic human rights violations have been committed in a foreign state or acts of significant corruption involving a national of a foreign state have been committed.

Orders and Regulations

Marginal note:Orders and regulations

• 4 (1) The Governor in Council may, if the Governor in Council is of the opinion that any of the circumstances described in subsection (1.1) has occurred,

  • (a) make any orders or regulations with respect to the restriction or prohibition of any of the activities referred to in subsection (2) in relation to a foreign state that the Governor in Council considers necessary; and

  • (b) by order, cause to be seized or restrained in the manner set out in the order any property situated in Canada that is owned — or that is held or controlled, directly or indirectly — by a foreign state or a person who is identified in an order or regulation made under paragraph (1)(a).

• Marginal note:Circumstances

  (1.1) The circumstances referred to in subsection (1) are the following:

  • (a) an international organization of states or association of states, of which Canada is a member, has made a decision or a recommendation or adopted a resolution calling on its members to take economic measures against a foreign state;

  • (b) a grave breach of international peace and security has occurred that has resulted in or is likely to result in a serious international crisis;

  • (c) gross and systematic human rights violations have been committed in a foreign state; or

  • (d) a national of a foreign state who is either a foreign public official, within the meaning of section 2 of the Corruption of Foreign Public Officials Act, or an associate of such an official, is responsible for or complicit in ordering, controlling or otherwise directing acts of corruption — including bribery, the misappropriation of private or public assets for personal gain, the transfer of the proceeds of corruption to foreign states or any act of corruption related to expropriation, government contracts or the extraction of natural resources — which amount to acts of significant corruption when taking into consideration, among other things, their impact, the amounts involved, the foreign national’s influence or position of authority or the complicity of the government of the foreign state in question in the acts.

• Marginal note:Restricted or prohibited activities

  (2) Orders and regulations may be made pursuant to paragraph (1)(a) with respect to the restriction or prohibition of any of the following activities, whether carried out in or outside Canada, in relation to a foreign state:

  • (a) any dealing by any person in Canada or Canadian outside Canada in any property, wherever situated, that is owned — or that is held or controlled, directly or indirectly — by that foreign state, any person in that foreign state, a national of that foreign state who does not ordinarily reside in Canada or a person outside Canada who is not Canadian;

  • (b) the exportation, sale, supply or shipment by any person in Canada or Canadian outside Canada of any goods wherever situated to that foreign state, any person in that foreign state or a person outside Canada who is not Canadian, or any other dealing by any person in Canada or Canadian outside Canada in any goods wherever situated destined for that foreign state, any person in that foreign state or a person outside Canada who is not Canadian;

  • (c) the transfer, provision or communication by any person in Canada or Canadian outside Canada of any technical data to that foreign state, any person in that foreign state or a person outside Canada who is not Canadian;

  • (d) the importation, purchase, acquisition or shipment by any person in Canada or Canadian outside Canada of any goods that are exported, supplied or shipped from that foreign state after a date specified in the order or regulations, or any other dealing by any person in Canada or Canadian outside Canada in any such goods;

  • (e) the provision or acquisition by any person in Canada or Canadian outside Canada of financial services or any other services to, from or for the benefit of or on the direction or order of that foreign state, any person in that foreign state or a person outside Canada who is not Canadian;

  • (e.1) the transfer or provision by any person in Canada or Canadian outside Canada of property other than goods to that foreign state, any person in that foreign state, a national of that foreign state who does not ordinarily reside in Canada or a person outside Canada who is not Canadian;

  • (f) the docking in that foreign state of ships registered or licensed, or for which an identification number has been issued, pursuant to any Act of Parliament;

  • (g) the landing in that foreign state of aircraft registered in Canada or operated in connection with a Canadian air service licence;

  • (h) the docking in or passage through Canada by ships registered in that foreign state or used, leased or chartered, in whole or in part, by or on behalf of or for the benefit of that foreign state, any person in that foreign state or a person outside Canada who is not Canadian; and

  • (i) the landing in or flight over Canada by aircraft registered in that foreign state or used, leased or chartered, in whole or in part, by or on behalf of or for the benefit of that foreign state, any person in that foreign state or a person outside Canada who is not Canadian.

• Marginal note:Exclusions

  (3) Any order or regulation made pursuant to subsection (1) may exclude any person, property, goods, technical data, services, transactions, ships or aircraft or any class thereof from the application of the order or regulation.

• Marginal note:Order authorizing Minister

  (4) The Governor in Council may, by order, authorize the Minister to

  • (a) issue to any person in Canada or Canadian outside Canada a permit to carry out a specified activity or transaction, or class of activity or transaction, that is restricted or prohibited under this Act or any order or regulations made under this Act; or

  • (b) issue a general permit allowing any person in Canada or Canadian outside Canada to carry out a specified activity or transaction, or class of activity or transaction, that is restricted or prohibited under this Act or any order or regulations made under this Act.

• Marginal note:Ministerial permit

  (5) The Minister may issue a permit or general permit, subject to any terms and conditions that are, in the opinion of the Minister, consistent with this Act and any order or regulations made under this Act.

• Marginal note:Idem

  (6) The Minister may amend, suspend, revoke or reinstate any permit issued by the Minister under subsection (4).

Marginal note:Costs

5 Any costs incurred by or on behalf of Her Majesty in right of Canada in relation to the seizure or restraint of property under an order made under paragraph 4(1)(b) or the disposal of property forfeited under section 5.4 are the liability of the owner of the property and constitute a debt due to Her Majesty in right of Canada that may be recovered in any court of competent jurisdiction.

Marginal note:Application for review

• 5.1 (1) A person whose property is the subject of an order made under paragraph 4(1)(b) may, unless the property is the subject of a forfeiture order, apply at any time to the Minister in writing to request that the property cease being the subject of the order made under that paragraph.

• Marginal note:Reasonable grounds

  (2) On receipt of an application, the Minister must decide whether there are reasonable grounds to recommend to the Governor in Council that the property cease to be the subject of the order.

Marginal note:Ranking

5.2 All secured and unsecured rights and interests in any property that is the subject of an order made under paragraph 4(1)(b) that are held by a person are entitled to the same ranking that they would have been entitled to had the order not been made, unless

• (a) the person is the foreign state identified in the order or a person identified in the order; or

• (b) the property is forfeited to Her Majesty in right of Canada under section 5.4.