In response to the continuing conflict in South Sudan, including allegations of crimes against humanity, the Government of Canada has implemented targeted sanctions against particular individuals believed responsible for the violence. These new sanctions are effective as of October 23, 2014.
The "designated persons" targeted by the sanctions presently include:
- Peter Gadet, Commander within the Sudan People's Liberation Movement/Army (in Opposition); and
- Marial Chanuong, Commander, South Sudanese government's Presidential Guard.
The sanctions regime imposes an asset freeze on the two designated persons, and prohibit persons in Canada and Canadians abroad from:
- dealing in any property, wherever situated, held by or on behalf of a designated person;
- entering into or facilitating, directly or indirectly, any transaction related to such a dealing;
- providing any financial or related service in respect of such a dealing;
- making goods, wherever situated, available to a designated person; and
- providing any financial or related service to or for the benefit of a designated person.
Causing, assisting or promoting prohibited activities is likewise prohibited. Some exemptions exist, including for the following:
- payments made by or on behalf of a designated person that is due under a contract entered into before their designation, provided that the payment is not to a designated person or for their benefit;
- pension payments to any person in Canada or Canadian abroad;
- certain transactions in respect of diplomatic missions;
- transactions to UN agencies, the International Red Cross and Red Crescent Movement, and Canadian NGOs in certain circumstances;
- transactions necessary for a Canadian to transfer to a non-designated person any accounts, funds or investments held by a designated person when that person became a designated person;
- financial services required in order for a designated person to obtain certain legal services in Canada;
- certain payments to persons in Canada or Canadians abroad in respect of loan payments; and
- payments to any person in Canada or any Canadian abroad in respect of loans entered into prior to the date on which a person became a designated person.
BLG's export control and economic sanctions team regularly assists clients with cross-border transactions involving countries and persons subject to economic sanctions. In many cases, economic sanctions do not prevent the continuation of international business, so long as Canadians take the steps necessary to ensure compliance with them.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
