Canada

Canada imposes two types of unilateral economic sanctions against Venezuela.  Canada imposes unilateral economic sanctions under the Special Economic Measures Act (and Special Economic Measures (Venezuela) Regulations).  Canada also imposes unilateral economic sanctions and trade restrictions pursuant to the Justice for Victims of Corrupt Foreign Officials (Sergei Magnitsky Law) Act and Justice for Victims of Corrupt Foreign Officials Regulations. Both sets of economic sanctions are intended to put financial pressure on President Maduro and his inner circle.

On September 5, 2017, Canada imposed the SEMA sanctions in order to implement the decision of the association formed between Canada and the United States.  On November 3, 2017, Canada imposed its first round of Magnitsky sanctions shortly after the passage of the Justice for Victims of Corrupt Foreign Officials (Sergei Magnitsky Law) Act. Global Affairs’ statement concerning the Magnitsky sanctions against Venezuela reiterated Canada’s concern about the political and economic crisis in Venezuela.  On May 30, 2018, Canada announced in a news release “Canada imposes further sanctions on the Maduro Regime in Venezuela” that it was adding 14 more names to the SEMA Designated Persons List in response to May 20, 2018 Venezuela Election.  This May 30, 2018 announcment occurred one day after the release of the report by the Panel of Independent International Experts on possible crimes against humanity in Venezuela and one day before Minister Freedland was to attend a meeting on the Assembly of American States’ General Assembly. The May 30, 2018 additions to the SEMA Designated Persons List includes Maduro’s wife and family members of the late President Hugo Chavez.

Who in Canada Needs to Be Aware of Canada’s Sanctions Against Venezuela?

Any Canadian or business in Canada that does business with Venezuela or Venezuelans should carefully review the two sets of economic sanctions.  In addition to financial institutions (e.g., banks, financial advisors, insurance companies), real estate companies and condominium sales entities, businesses in the oil and gas section, engineering companies, service providers, exporters of goods, etc. there are many others who need to be aware of the sanctions.

When I was younger, many children at Canadian camps were from Venezuela.  Venezuelan officials may also send their children to Canadian private schools and universities.  It is important to obtain information about relatives of Venezuelan citizens who are in Canada benefiting from our health care and education systems.

SEMA Asset Freeze and Prohibitions

Canada’s SEMA sanctions against Venezuela are a combination of an asset freeze and prohibitions.  The SEMA sanctions against Venezuela include:

1. Persons in Canada and any Canadian outside Canada shall not deal in any property, wherever situated, that is owned, held or controlled by person on the SEMA Designated Persons List or by a person acting on behalf of a person on the SEMA Designated Persons List.
2. Persons in Canada and any Canadian outside Canada shall not enter into or facilitate any transaction related to a dealing in any property, wherever situated, that is owned, held or controlled by person on the SEMA Designated Persons List or by a person acting on behalf of a person on the SEMA Designated Persons List.
3. Persons in Canada and any Canadian outside Canada shall not provide any financial or related services in respect of a dealing in any property, wherever situated, that is owned, held or controlled by person on the SEMA Designated Persons List or by a person acting on behalf of a person on the SEMA Designated Persons List.
4. Persons in Canada and any Canadian outside Canada shall not make available any goods, wherever situated, to a person on the SEMA Designated Persons List or by a person acting on behalf of a person on the SEMA Designated Persons List.
5. Persons in Canada and any Canadian outside Canada shall not provide any financial or related services to or for the benefit of a person on the SEMA Designated Persons List.
6. Persons in Canada and any Canadian outside Canada shall not knowingly do anything that causes, facilitates or assists in, or is intended to cause, facilitate or assist in, any probitied act in 1-5 above.

There are a number of exceptions to the above listed prohibitions.

Magnitsky Asset Freezes and Prohibitions

Canada’s Magnitsky sanctions against Venezuela are a combination of an asset freeze and prohibitions.  The Magnitsky sanctions against Venezuela duplicate some the SEMA sanctions and, in some cases, differ from the SEMA sanctions.  The Magnitsky sanctions are more expansive in their scope to cover property, services and financial services:

The prohibitions under Canada’s Magnitsky Law include:

1. Persons in Canada and any Canadian outside Canada shall not deal in any property, wherever situated, that is owned, held or controlled by person on the Magnitsky Designated Persons List or by a person acting on behalf of a person on the Magntisky Designated Persons List.
2. Persons in Canada and any Canadian outside Canada shall not enter into or facilitate any financial transaction related to a dealing in any property, wherever situated, that is owned, held or controlled by person on the Magnitsky Designated Persons List or by a person acting on behalf of a person on the Magnitsky Designated Persons List.
3. Persons in Canada and any Canadian outside Canada shall not provide any financial services or any other services to a person on the Magnitsky Designated Persons List or on behalf of a person on the Magnitsky Designated Persons List or on the direction or order of a person on the Magnitsky Designated Persons List.
4. Persons in Canada and any Canadian outside Canada shall not acquire financial services or any service for the benefit of  or on the direction of a person on the Magnitsky Designated Persons List.
5. Persons in Canada and any Canadian outside Canada shall not make available any property, wherever situated, to a person on the Magnitsky Designated Persons List or by a person acting on behalf of a person on the Magnitsky Designated Persons List.
6. Persons in Canada and any Canadian outside Canada shall not knowingly do anything that causes, facilitates or assists in, or is intended to cause, facilitate or assist in, any probitied act in 1-5 above.

There are a number of exceptions to the above listed prohibitions.

Designated Persons Lists

Canada has creates two lists of designated persons.  There are 54 individuals (all associated with the Maduro Regime, including Nicolas Maduro Moros) named in the Special Economic Measures (Venezuela) Regulations a (“SEMA Designated Persons List”) and 19 individuals named in the Justice for Victims of Corrupt Foreign Officials Regulations (“Magnitsky Designated Persons List”).

The following individuals are named in both the SEMA Designated Persons List and the Magnitsky Designated Persons List as at June 1, 2018:

The following individuals are named only to SEMA Sanctions List as at June 1, 2018:

For more information about complaince with CAnada’s economic sanctions against Venezuela, please contact Cyndee Todgham Cherniak at 416-307-4168 or cyndee@lexsage.com.