Economic sanctions and anti-terrorism laws are having increasing impact on day-to-day business operations for companies in many industries and have also become an important area of diligence for equity transactions and financings. All companies with a nexus to Canada should be aware of these laws and their responsibilities thereunder and take appropriate risk-based steps directed towards compliance.
Canada has a broad range of economic sanctions and anti-terrorism laws targeting certain foreign states and some of their nationals, as well as various terrorist organizations. These laws are generally stated as being binding on individuals and entities when in Canada as well as on Canadian citizens and Canadian-incorporated businesses when they are or are operating outside Canada. These laws prohibit dealings with designated individuals, entities or organizations and in some cases have sector-specific or country or region-specific prohibitions or other limitations such as export controls in addition to those under the Export and Import Permits Act. They often impose reporting obligations regarding property of designated persons and in some cases impose periodic screening and reporting obligations on regulated financial institutions and other businesses.
Our Guide to Canada's Economic Sanctions and Anti-Terrorism Laws provides an overview of Canada's economic sanctions and anti-terrorism laws and a summary of potential measures that businesses can implement to enhance their compliance regime.
Note: This Guide was originally published on March 2, 2022. It has been updated following the numerous developments with respect to Canada's economic sanctions laws which have occurred since Russia's invasion of Ukraine in late February 2022.
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.