Special Economic Measures (Ukraine) Regulations (SOR/2014-60)

Interpretation

Marginal note:Definitions

1 The following definitions apply in these Regulations.

Convention

Convention means the Vienna Convention on Diplomatic Relations, done at Vienna on April 18, 1961.  (Convention)

Crimea region of Ukraine

Crimea region of Ukraine means the Autonomous Republic of Crimea and the city of Sevastopol and includes their land areas and territorial sea. (région de Crimée de l’Ukraine)

designated person

designated person means a person who is in Ukraine, or is or was a national of Ukraine who does not ordinarily reside in Canada, and whose name is listed in the schedule.  (personne désignée)

DNR region of Ukraine

DNR region of Ukraine[Repealed, SOR/2022-202, s. 1]

LNR region of Ukraine

LNR region of Ukraine[Repealed, SOR/2022-202, s. 1]

Minister

Minister means the Minister of Foreign Affairs. (ministre)

occupied region

occupied region means

• (a) the so-called Donetsk People’s Republic and the territory it controls in the Donetsk oblast of Ukraine;

• (b) the so-called Luhansk People’s Republic and the territory it controls in the Luhansk oblast of Ukraine;

• (c) the area of the Kherson oblast of Ukraine that is illegally occupied by the Russian Federation; and

• (d) the area of the Zaporizhzhia oblast of Ukraine that is illegally occupied by the Russian Federation. (région occupée)

pension

pension means a benefit paid under the Old Age Security Act, the Canada Pension Plan or an Act respecting the Quebec Pension Plan, CQLR, 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)

technical assistance

technical assistance means any form of assistance, such as providing instruction, training, consulting services or technical advice or transferring know-how or technical data. (aide technique)

Ukraine

Ukraine includes

• (a) any political subdivision of Ukraine;

• (b) the government, and any department, of Ukraine or of a political subdivision of Ukraine; and

• (c) any agency of Ukraine or of a political subdivision of Ukraine. (Ukraine)

List

Marginal note:Schedule

2 A person whose name is listed in the schedule 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 directly or indirectly facilitate, support, provide funding for or contribute to a violation or attempted violation of the sovereignty or territorial integrity of Ukraine or that obstruct the work of international organizations in Ukraine;

• (a.1) a current or former member of the Government of the so-called Donetsk People’s Republic or the so-called Luhansk People’s Republic;

• (b) an associate of a person referred to in paragraph (a) or (a.1);

• (b.1) a family member of a person referred to in any of paragraphs (a) to (b) and (e);

• (c) an entity owned, held or controlled, directly or indirectly, by a person referred to in any of paragraphs (a) to (b.1), or acting on behalf of or at the direction of such a person;

• (d) an entity whose ownership or control was purported to be altered by a person who has violated or attempted to violate the sovereignty or territorial integrity of Ukraine; or

• (e) a senior official of an entity engaged in activities described in paragraph (a) or of an entity referred to in paragraph (c) or (d).

Prohibitions

Marginal note:Prohibited transactions and activities — designated persons

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 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 related service to or for the benefit of a designated person.

Marginal note:Non-application

4 Section 3 does not apply in respect of

• (a) any payment made by or on behalf of a designated person that is due under a contract entered into before the person became a designated person, provided that the payment is not made to or for the benefit of a designated person;

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

• (c) any transaction in respect of any account at a financial institution held by a diplomatic mission, if the transaction is required in order for the mission to fulfill its diplomatic functions as set out in Article 3 of the Convention or, if the diplomatic mission has been temporarily or permanently recalled, when the transaction is required in order to maintain the mission premises;

• (d) any transaction to international organizations with diplomatic status, a United Nations agency, 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, Trade and Development;

• (e) any transactions necessary for a Canadian to transfer to a non-designated person any accounts, funds or investments of a Canadian held by a designated person on the day on which that person became a designated person;

• (f) financial services required in order for a designated person to obtain legal services in Canada with respect to the application of any of the prohibitions set out in these Regulations; and

• (g) loan repayments made to any person in Canada, or any Canadian outside Canada, in respect of loans entered into before the coming into force of these Regulations, enforcement of security in respect of those loans, or payments by guarantors guaranteeing those loans.

Marginal note:Prohibited activities — Crimea region of Ukraine

4.1 With respect to the Crimea region of Ukraine, it is prohibited for any person in Canada and any Canadian outside Canada to

• (a) make an investment that involves a dealing in any property located in that region that is owned, held or controlled by the Crimea region of Ukraine or a person in the Crimea region of Ukraine, or a person acting on behalf of or at the direction of the Crimea region of Ukraine or a person in the Crimea region of Ukraine;

• (b) provide or acquire financial or other related services with respect to an investment referred to in paragraph (a);

• (c) import, purchase or acquire goods, wherever situated, from the Crimea region of Ukraine or any person in the Crimea region of Ukraine;

• (d) export goods destined for the Crimea region of Ukraine or sell, supply or transfer goods, wherever situated, to any person in the Crimea region of Ukraine;

• (e) provide technical assistance to the Crimea region in Ukraine or any person in the Crimea region of Ukraine;

• (f) provide financial or other services related to tourism to, or acquire such services from, the Crimea region of Ukraine or any person in the Crimea region of Ukraine; or

• (g) dock a cruise ship in the Crimea region of Ukraine that is registered or licensed, or for which an identification number has been issued, under any Act of Parliament.

Marginal note:Prohibited activities — occupied regions

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

• (a) make an investment that involves a dealing in any property located in an occupied region that is owned — or that is held or controlled, directly or indirectly — by a person in an occupied region;

• (b) provide or acquire financial or other related services with respect to an investment referred to in paragraph (a);

• (c) import, purchase or acquire goods, wherever situated, from a person in an occupied region;

• (d) export goods destined for an occupied region or sell, supply or transfer goods, wherever situated, to any person in an occupied region;

• (e) provide technical assistance to a person in an occupied region;

• (f) provide financial or other services related to tourism to, or acquire such services from, a person in an occupied region; or

• (g) dock a cruise ship in an occupied region that is registered or licensed, or for which an identification number has been issued, under any Act of Parliament.

Marginal note:Non-application

• 4.3 (1) Section 4.1 does not apply in respect of contracts entered into before the day on which that section came into force.

• Marginal note:Docking

  (2) Paragraphs 4.1(g) and 4.2(g) do not apply in respect of the docking of a cruise ship if the docking is necessary due to an emergency situation.

• Marginal note:Existing contracts — occupied regions

  (3) Section 4.2 does not apply in respect of the following until 30 days after the day on which this subsection comes into force:

  • (a) an investment made under a contract entered into before that coming into force;

  • (b) a service provided or acquired under a contract entered into before that coming into force;

  • (c) a good imported, purchased, acquired, exported, sold, supplied or transferred under a contract entered into before that coming into force; or

  • (d) technical assistance provided under a contract entered into before that coming into force.

Marginal note:Assisting in a prohibited activity

5 It is prohibited for any person in Canada or any Canadian outside Canada to knowingly do anything that causes, facilitates or assists in, or is intended to cause, facilitate or assist in, any activity prohibited by sections 3, 4.1 and 4.2.

Obligations

Marginal note:Duty to determine

6 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.

Marginal note:Disclosure

• 7 (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).

• Marginal note:Immunity

  (2) No proceedings under the Special Economic Measures Act and no civil proceedings lie against a person for a disclosure made in good faith under subsection (1).

Applications

Marginal note:Application to no longer be a designated person

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

• Marginal note:Recommendation

  (2) On receipt of the 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.

• Marginal note:Decision

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

• Marginal note:Notice

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

• Marginal note:New application

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

Marginal note:Application for a certificate

• 9 (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.

• Marginal note:Decision

  (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.

Application Prior to Publication

Marginal note:Statutory Instruments Act

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

Coming into Force

Marginal note:Registration

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