Designation and de-listing procedures for listed persons
Under Canadian sanctions, individuals and entities are designated—placed on sanctions lists—through regulations enacted by the Governor in Council on the recommendation of the Minister of Foreign Affairs under section 4 of the Special Economic Measures Act or the Justice for Victims of Corrupt Foreign Officials Act. The designation process varies between the two autonomous-sanctions statutes.
Designation mechanism under SEMA. Under section 4 of the Special Economic Measures Act, the Governor in Council may make regulations with respect to the restriction or prohibition of activities in relation to a 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. Persons are designated by name in a schedule to the relevant country-specific regulation and published in the Canada Gazette.
Each SEMA regulation defines the criteria for designation. Thirteen country-specific SEMA regulations (Belarus, Haiti, Iran, Moldova, Myanmar, Nicaragua, People's Republic of China, Russia, South Sudan, Sri Lanka, Syria, Ukraine, and Venezuela) authorize the Governor in Council to list persons who are nationals or ordinary residents of the foreign state or—following amendments enacted in August 2023—former nationals of that state. The amendments, published in the Canada Gazette Part II on August 16, 2023, closed a circumvention loophole whereby a listed person could renounce citizenship to remove the regulatory basis for maintaining the listing. Three other SEMA regulations (Democratic People's Republic of Korea, Libya, and Zimbabwe) permit designation of persons who meet the listing criteria without regard to nationality of the sanctioned state.
Designated persons are compiled on the Consolidated Canadian Autonomous Sanctions List maintained by Global Affairs Canada for administrative convenience. However, the Consolidated List itself is not a regulation and does not have force of law; legal effect flows solely from the listing in the schedule to the applicable regulation.
Designation under JVCFOA. Under section 4 of the Justice for Victims of Corrupt Foreign Officials Act, the Governor in Council may make orders or regulations prohibiting activities in relation to a foreign national if the Governor in Council is of the opinion that the foreign national has committed a gross violation of internationally recognized human rights, is responsible for or complicit in acts of significant corruption, or has materially assisted such activities. Foreign nationals are designated through regulations that list individuals in a schedule, published in the Canada Gazette. Because designation decisions are made in the context of foreign policy objectives and the risk of asset flight, the regulations are not prepublished for public comment; publication occurs upon or immediately after entry into force.
De-listing application. A listed person may apply to the Minister of Foreign Affairs to have their name removed from a sanctions list. Under the Special Economic Measures (Extremist Settler Violence) Regulations and other SEMA regulations, section 13 provides: "A listed person may apply to the Minister in writing to have their name removed from the schedule [and] [t]he 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." Parallel provisions exist in JVCFOA regulations.
An applicant must submit a de-listing application through the forms or written submission procedures published by Global Affairs Canada, including: (a) identifying information (name, date of birth, nationality, and any aliases for individuals; legal name, registration number, and jurisdiction of incorporation for entities); (b) the item number associated with the listing in the schedule of the relevant regulation; (c) a declaration of any assets held in Canada; and (d) a summary of the reasons the applicant believes they should be removed from the sanctions list. The Minister may request additional supporting documentation. Processing times for de-listing applications begin only when the Sanctions Bureau receives all required documentation.
If the Minister determines that reasonable grounds exist, the Minister makes a recommendation to the Governor in Council, which decides by order-in-council whether to amend the schedule to remove the name. If the Minister determines that reasonable grounds do not exist, the applicant receives notice of the determination. Neither SEMA nor JVCFOA establishes a statutory right of appeal; however, general judicial-review remedies under Canadian administrative law may be available on grounds of procedural fairness or reasonableness.
Request for particulars and mistaken identity. A listed person may request particulars—information about the reasons for their designation—from the Minister under applicable regulations. Separately, any individual or entity claiming not to be a listed person may apply for a certificate of mistaken identity. If the Minister is satisfied that the applicant is not the listed person, the Minister issues a certificate; if not, the applicant receives notice of the determination. Certificates of mistaken identity do not remove the name from the list but confirm that the certificate-holder is not the sanctioned person.
According to Global Affairs Canada guidance, any information provided in a de-listing application, request for particulars, or certificate-of-mistaken-identity application, including personal information, may be communicated to the Royal Canadian Mounted Police and other government departments and agencies as necessary to verify identity and assess whether a person should be de-listed, and for administration and enforcement of the sanctions regime.
Source: Special Economic Measures Act, S.C. 1992, c. 17, s. 4 Source: Justice for Victims of Corrupt Foreign Officials Act, S.C. 2017, c. 21, s. 4 Source: Regulations Amending Certain Regulations Made Under the Special Economic Measures Act, SOR/2023-175 (August 16, 2023) Source: Regulations Amending the Special Economic Measures (Extremist Settler Violence) Regulations, SOR/2025-137, s. 13 (July 2, 2025) Source: Listed persons, mistaken identity and delisting—Global Affairs Canada
Asset freeze and dealing prohibition for listed persons
All Canadian sanctions regulations made under the Special Economic Measures Act, the Justice for Victims of Corrupt Foreign Officials Act, and most regulations under the United Nations Act impose a dealing prohibition (also called a dealing ban) on listed persons. This prohibition effectively subjects listed persons to an asset freeze, preventing them from gaining access to property or other assets held by Canadians or persons in Canada.
Scope of the prohibition. Under SEMA section 4(2)(a), regulations may prohibit "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." The prohibition applies extraterritorially to persons in Canada and Canadians outside Canada; "Canadian" is defined to include citizens within the meaning of the Citizenship Act and bodies corporate incorporated or continued under the laws of Canada or a province.
Individual country-specific SEMA regulations implement the prohibition through standardized clauses. For example, under the Special Economic Measures (Russia) Regulations, it is prohibited for any person in Canada and any Canadian outside Canada to (a) deal in any property, wherever situated, that is owned—or that is held or controlled, directly or indirectly—by a listed person; (b) enter into or facilitate any transaction related to such a dealing; (c) provide any financial or related services in respect of such a dealing; or (d) make any goods available to a listed person. The prohibition covers direct transactions with listed persons and indirect dealings, including transactions through third parties—even if the third party is not Canadian and is located outside Canada.
Deemed ownership — the 50% rule and direction test. To close ownership-and-control evasion structures, SEMA section 2.1 establishes a deemed-ownership rule: if a person controls an entity, any property owned, held, or controlled by the entity is deemed to be owned by that person. Section 2.1(2) sets three alternative tests for control: (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; (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. Where any test is met, dealings with the entity are prohibited to the same extent as dealings with the listed person. The JVCFOA contains parallel provisions. The 50% threshold is a bright-line test, but the direction-of-activities prong is fact-specific and creates compliance uncertainty when a listed person holds a significant minority stake or exercises de facto control through contractual arrangements.
Disclosure obligations. Most SEMA and JVCFOA regulations impose a mandatory disclosure obligation on every person in Canada and every Canadian outside Canada. Under section 7(1) of the Special Economic Measures (Extremist Settler Violence) Regulations (a representative text), every person in Canada, every Canadian outside Canada, and every financial institution enumerated in section 6 must disclose without delay to the Commissioner of the Royal Canadian Mounted Police or to the Director of the Canadian Security Intelligence Service: (a) the existence of property in their possession or control that they have reason to believe is owned—or held or controlled, directly or indirectly—by a listed person; and (b) any information about a transaction or proposed transaction in respect of such property. A transaction does not have to occur to trigger the disclosure obligation; a proposed transaction or attempted transaction is sufficient. The regulation provides that no proceedings under SEMA and no civil proceedings lie against a person for a disclosure made in good faith.
Ongoing screening obligation for financial institutions. Designated financial institutions—including banks, credit unions, insurance companies, securities dealers, and money services businesses—face a heightened continuing duty to determine whether they are in possession or control of property owned or controlled by a listed person. Section 6 of the Russia Regulations lists ten categories of institutions subject to this obligation, including authorized foreign banks in respect of their business in Canada, banks regulated by the Bank Act, cooperative credit societies and savings and credit unions, foreign and domestic insurance companies, securities dealers, and life insurance brokers. This is a dynamic, ongoing obligation, not a one-time check at account opening.
Exceptions. Regulations may exempt specific categories of transactions from the prohibition. Common exceptions include: (a) diplomatic and consular activities; (b) transfers by a Canadian to a non-listed person of accounts, funds, or investments held by a listed person on the day the person became listed (de-listing exit transactions); (c) dealings required for loan repayments on pre-listing loans or loans entered into with non-listed persons, and enforcement of security; (d) pension and social-benefit payments under the Old Age Security Act, the Canada Pension Plan, or the Employment Insurance Act; and (e) transactions necessary to comply with court orders (for example, child-support orders). Always consult the specific regulation; exceptions are not uniform across all SEMA or JVCFOA instruments.
Permits. The Minister of Foreign Affairs may issue a permit on an exceptional, discretionary basis to authorize activities that would otherwise be prohibited under SEMA or JVCFOA, subject to terms and conditions consistent with the statute and the applicable regulation. Permit practice is not transparent; Canada does not publish aggregated statistics or a public register of issued permits. For United Nations Act measures, a certificate from the UN is required if the activity is otherwise prohibited by a Security Council resolution.
Enforcement and penalties. Contravention of a SEMA regulation is a criminal offence under section 3 of SEMA. On summary conviction, the penalty is a fine up to CAD 25,000 or imprisonment for a term of up to one year, or both. On indictment, fines are unlimited and imprisonment may extend to five years. JVCFOA section 13 sets parallel penalties. The RCMP and CBSA enforce the regulations. Since February 24, 2022 (the date of Russia's full-scale invasion of Ukraine), the RCMP reports that approximately CAD 140.1 million of assets have been frozen and approximately CAD 317.2 million in financial transactions have been blocked under the Russia Regulations alone, based on disclosures received as of May 2024.
Source: Special Economic Measures Act, S.C. 1992, c. 17, ss. 2.1, 4 Source: Special Economic Measures (Extremist Settler Violence) Regulations, SOR/2024-91, ss. 3, 6, 7 Source: Special Economic Measures (Russia) Regulations, SOR/2014-58, ss. 3, 6, 7 Source: Canadian sanctions — Dealings prohibition and asset freeze — Global Affairs Canada Source: Update on the reporting of frozen assets under the Special Economic Measures Act — RCMP, May 14, 2024
Permit applications for otherwise-prohibited activities
Canadian sanctions regulations made under the Special Economic Measures Act, the Justice for Victims of Corrupt Foreign Officials Act, and the United Nations Act prohibit a broad range of dealings, financial transactions, and sectoral activities. When a person in Canada or a Canadian outside Canada needs to conduct a transaction that would otherwise be prohibited—for example, humanitarian payments, enforcement of pre-existing contractual obligations, court-ordered transfers, or pension distributions—the only legal path is a permit (for SEMA or JVCFOA prohibitions) or a certificate (for United Nations Act prohibitions). Permits and certificates are granted on an exceptional basis at the discretion of the Minister of Foreign Affairs; there is no statutory entitlement, and approval is not guaranteed.
Statutory authority. Under section 4(4) of the Special Economic Measures Act, the Governor in Council may authorize the Minister of Foreign Affairs 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 SEMA or any regulation made under it; 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. Section 4(5) provides that 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 SEMA and any order or regulation made under it. Section 4(6) provides that the Minister may amend, suspend, revoke, or reinstate any permit. Parallel authority exists under section 4 of the Justice for Victims of Corrupt Foreign Officials Act.
On February 26, 2025, Canada brought into force the Special Economic Measures Permit Authorization Order (SOR/2025-50), which consolidates and replaces all prior country-specific permit authorization orders under SEMA. The Order authorizes the Minister of Foreign Affairs to issue both individual permits (to named applicants) and general permits (allowing any person who meets specified criteria to carry out the activity without a prior individual application). The Order applies to all SEMA regulations listed in its schedule.
Who may apply. Permits may be issued only to persons in Canada and Canadians outside Canada. Under section 2 of SEMA, 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." Foreign nationals outside Canada who are not Canadian citizens and non-Canadian entities may not apply for a permit; in practice, a Canadian intermediary or Canadian subsidiary would need to apply on behalf of the transaction.
Application procedure. Global Affairs Canada does not publish a prescribed application form for sanctions permits or certificates. According to Global Affairs Canada guidance, once an applicant has confirmed that a permit or certificate is needed, the applicant must provide Global Affairs Canada with: (a) a detailed description of the proposed activity or transaction; (b) an explanation as to how the activity or transaction would violate the relevant regulation, or how the request otherwise meets the criteria for application; and (c) where possible, which section of the regulation and/or which permit authorization order is being relied on to support the application.
Any information provided in the application, including personal information, may be communicated to the Royal Canadian Mounted Police and other government departments and agencies if it is necessary to do so in order to establish if a permit or certificate can be issued.
Applications should be sent to: Sanctions Bureau Global Affairs Canada 125 Sussex Drive Ottawa, Ontario K1A 0G2 Email: sanctions@international.gc.ca Telephone (toll-free): 1-833-352-0769 Telephone (local): 343-203-3975
For certificate applications under the United Nations Act, the procedure and decision timeline may differ depending on the type of certificate.
Processing time. Global Affairs Canada does not publish or guarantee processing times for permit applications. According to official guidance, "Global Affairs Canada cannot estimate how long a permit will take to process." The granting of a permit under SEMA or JVCFOA is "an exceptional act at the discretion of the Minister of Foreign Affairs," and applicants "should not rely on the granting of a permit and should not undertake any activities prohibited by sanctions until a signed permit has been transmitted." For certificate applications submitted pursuant to regulations made under the United Nations Act, timelines for the processing of a certificate may apply, depending on the type of certificate.
An evaluation report published by Global Affairs Canada in August 2025 noted that the Russian invasion of Ukraine in February 2022 resulted in Canada imposing 65 rounds of sanctions on Russian, Belarusian, Ukrainian, and Moldovan individuals and entities, which "resulted in a tremendous increase in the number of Canadian sanctions regulations being managed by GAC," with consequent implications for permit-processing capacity.
Humanitarian permits and the Syria general permit. Certain SEMA regulations include statutory exceptions for humanitarian activities, obviating the need for a permit. For example, section 3.2 of the Special Economic Measures (Syria) Regulations exempts dealings for the purpose of safeguarding human life, disaster relief, democratization, stabilization, or providing food, medicine, or medical supplies or equipment for international organizations with diplomatic status, United Nations agencies, the International Red Cross and Red Crescent Movement, and NGOs that have entered into a grant or contribution agreement with the Department of Foreign Affairs and International Trade or the Canadian International Development Agency.
According to Global Affairs Canada guidance, a general permit allowing the provision of humanitarian financial and services assistance to Syria was in place until February 2026. A general permit does not require a permit application. At the discretion of the Minister of Foreign Affairs, a general permit may be renewed or removed when it expires. Where a general permit or statutory exception applies and the applicant satisfies its conditions, no individual permit is required.
Terms, conditions, and revocation. Permits are issued subject to terms and conditions specified in the permit document. The Minister may amend, suspend, revoke, or reinstate a permit at any time at the Minister's discretion under section 4(6) of SEMA and parallel provisions in JVCFOA.
Separate from export/import permits. Global Affairs Canada guidance notes that "the application process for sanctions permits and certificates is separate from the permit process under the Export and Import Permits Act, which is related to the Export Control List, the Import Control List, and the Area Control List." The latter permits are administered by the Strategic Export Controls Bureau.
Criminal offence. Contravening sanctions is a criminal offence under section 3 of SEMA and section 13 of JVCFOA. According to official guidance, "Do not undertake any activities prohibited by sanctions until you have received a signed permit or certificate." Conducting a prohibited transaction in anticipation of a permit, or after submitting an application but before receiving the signed permit, is a violation and exposes the person to prosecution, with penalties on indictment of an unlimited fine and imprisonment for up to five years under SEMA section 3.
Source: Special Economic Measures Act, S.C. 1992, c. 17, ss. 2, 4(4)–(6) Source: Justice for Victims of Corrupt Foreign Officials Act, S.C. 2017, c. 21, s. 4 Source: Special Economic Measures Permit Authorization Order, SOR/2025-50 (February 26, 2025) Source: Permits and certificates—Global Affairs Canada Source: Canadian sanctions—Essential information—Global Affairs Canada Source: Canadian sanctions guidance—Humanitarian sector—Global Affairs Canada Source: Evaluation of Global Affairs Canada's Sanctions Operations, 2018–2024 (August 2025)
Sectoral and trade prohibitions — goods, services, and financial restrictions
Beyond asset freezes and dealing prohibitions on listed persons, Canadian sanctions regulations impose sectoral and trade prohibitions that restrict or prohibit the import, export, or supply of specific goods, the provision of designated services, and certain financial transactions. These prohibitions apply to all persons in Canada and all Canadians outside Canada, regardless of whether the counterparty is a listed person. The most extensive suite of sectoral measures is found in the Special Economic Measures (Russia) Regulations (SOR/2014-58), reflecting Canada's response to Russia's ongoing violations of Ukraine's sovereignty and territorial integrity.
Import prohibitions — Russian-origin goods. Under section 3.05(1) of the Russia Regulations, it is prohibited for any person in Canada and any Canadian outside Canada to import, purchase, or acquire any good referred to in Schedule 5 (revenue-generating goods), wherever situated, from Russia or from any person in Russia. Schedule 5 enumerates goods that generate revenue for the Russian economy, including crude oil (HS 2709), petroleum oils and oils obtained from bituminous minerals (refined petroleum products) under HS 2710, and natural gas and other gaseous hydrocarbons under HS 2711. The prohibition applies regardless of the legal status of the seller; a transaction with a non-listed Russian entity for goods on Schedule 5 is prohibited.
Section 3.05(2) grandfathers goods if a contract for the import, purchase, or acquisition was entered into before the day on which section 3.05 came into force. Section 3.051(1) imposes a parallel prohibition on goods listed in Schedule 5.01 (which includes certain diamonds of Russian origin). Subsection 3.051(2) exempts goods exported from Russia at least 60 days before the section came into force, and subsection 3.051(3) provides an exception for goods imported, purchased, or acquired under a contract entered into at least 60 days before that date, if the goods are exported, sold, supplied, or shipped within 120 days after the day the section comes into force.
Section 3.052(1) prohibits the export, sale, supply, or shipment of any good referred to in Schedule 5.02 (luxury goods) to Russia or to any person in Russia. Luxury goods include certain vehicles, yachts, jewelry, clothing, footwear, and alcoholic beverages exceeding specified HS thresholds and values. An exception applies to usual and reasonable quantities of goods stored on board an aircraft and intended for consumption on board the aircraft during its outgoing and return flight. Schedule 9 lists additional goods the import of which from Russia is prohibited; in July 2022, amendments added gold and certain gold products to that schedule.
Export prohibitions — oil and gas equipment, restricted goods, and technologies. Section 3.03(1) prohibits any person in Canada and any Canadian outside Canada from exporting, selling, supplying, or shipping any good referred to in Schedule 4 to Russia or to any person in Russia for use in: (a) offshore oil exploration or production at a depth greater than 500 m; (b) oil exploration or production in the Arctic; or (c) shale oil or gas projects in Russia with the potential to produce oil. Section 3.03(2) prohibits the provision to Russia or to any person in Russia of any financial, technical, or other services related to any good whose export, sale, supply, or shipment is prohibited by subsection (1). The prohibition is use-specific: an export of Schedule 4 equipment for a non-oil/gas civilian end-use in Russia would not be caught by section 3.03(1), but the prohibition on services in subsection (2) applies if the service is related to a prohibited good intended for the enumerated uses.
Section 3.06(1) imposes the broadest export prohibition: it is prohibited for any person in Canada and any Canadian outside Canada to export, sell, supply, or ship any good to Russia or to any person in Russia if the good is referred to in the Restricted Goods and Technologies List (administered by Global Affairs Canada and incorporated by reference) or in Schedule 5.1. According to Global Affairs Canada, the Restricted Goods and Technologies List includes a broad range of items in electronics, computers, telecommunications, sensors and lasers, navigation and avionics, marine, aerospace, and transportation goods. Section 3.06(2) prohibits the provision to Russia or to any person in Russia of any technology referred to in the Restricted Goods and Technologies List or in Schedule 5.1. Exceptions are enumerated in section 3.06(3) and include: goods for use by a department or agency of the Government of Canada or a partner country listed in Annex 1 to the Restricted Goods and Technologies List; goods for use in inspections under the Chemical Weapons Convention; goods for use in relation to the activities of the International Space Station; software updates for civilian end-users owned, held, or controlled by a Canadian or a national of a partner country; civil aircraft departing Canada after a temporary sojourn or departing for a temporary sojourn abroad; and usual and reasonable quantities of food, beverages, and personal-care items stored on board an aircraft for consumption during the flight.
Services prohibitions — oil, gas, chemical, and manufacturing sectors. Section 3.07(1) prohibits the provision to Russia or to any person in Russia of any service referred to in Schedule 8 in relation to the Russian oil, gas, chemical, or manufacturing industries or any entity in those industries. Schedule 8 includes categories of technical, management, and business services—among them accounting, auditing, bookkeeping, tax-consulting, business and management consulting, public-relations services, advertising, market research, and architectural, engineering, and technical-testing services. The prohibition is industry-specific, not end-user-specific: the service prohibition applies when the service is provided to a Russian oil, gas, chemical, or manufacturing entity or in relation to those industries, even if the ultimate customer is a non-Russian parent company. Exceptions exist under section 3.07(2) for services related to the safety and security of activities, for completion of contractual obligations under contracts entered into before the applicable effective date, and for services to facilitate the winding-down of operations.
Maritime and aviation prohibitions. Section 3.04(1) prohibits any person from docking or passing through Canada any ship that is: (a) a Russian-flagged ship; (b) owned, operated, or controlled by Russia; or (c) used, leased, or chartered, in whole or in part, by or on behalf of or for the benefit of Russia, a person in Russia, or a person listed in Schedules 1, 2, or 3, unless that docking or passage is necessary to safeguard human life or to ensure navigational safety. Section 3.04(2) prohibits any person in Canada and any Canadian outside Canada from providing to a person outside Canada who is not Canadian any services related to a vessel listed in Schedule 1.1. Schedule 1.1 was added by amendment and lists vessels by name and IMO number.
Section 3.11(1) prohibits any person in Canada and any Canadian outside Canada from providing any insurance, reinsurance, or underwriting services for aircraft and aviation and aerospace products that are owned, controlled, registered to, chartered, or operated by entities and individuals resident, incorporated, or domiciled in Russia.
Financial prohibitions — debt and equity financing. Section 3.01(1) prohibits any person in Canada and any Canadian outside Canada from transacting in, providing financing for, or otherwise dealing in new debt of longer than 30 days' maturity (including bonds, loans, debentures, extensions of credit, loan guarantees, letters of credit, drafts, acceptances, discount notes, treasury bills, commercial paper, and similar instruments) in relation to certain Russian state-owned financial institutions and entities listed in Schedule 2. Section 3.01(1.1) imposes a similar prohibition for new debt of longer than 90 days' maturity in relation to entities listed in Schedule 3.1. Section 3.02(1) prohibits transacting in, providing financing for, or otherwise dealing in new equity in relation to entities listed in Schedule 2. These prohibitions apply only to new debt and equity issued or entered into after the effective date; existing instruments held prior to the prohibition are not required to be divested, though secondary-market dealings may be restricted depending on the structure of the prohibition.
Schedules as regulatory lists. The goods, services, vessels, and entities subject to sectoral prohibitions are enumerated in schedules to the Russia Regulations. Each schedule is a regulatory instrument amendable by the Governor in Council. According to Global Affairs Canada, schedules of prohibited goods use a description-based approach in Column 1 to cover items by detailed capabilities and technical characteristics; HS codes in Column 2 are provided for reference purposes only, and "the description in Column 1 prevails over the HS codes listed in Column 2." Exporters and importers must conduct substantive classification based on the description, not rely solely on HS code screening.
Overlap with the Export and Import Permits Act. Sanctions export and import restrictions are separate from broader export and import controls under the Export and Import Permits Act (EIPA). According to Global Affairs Canada guidance, in some cases a transaction may require both a permit under EIPA (administered by the Strategic Export Controls Bureau) and a sanctions permit under SEMA; the two regimes are complementary but legally distinct. Global Affairs Canada notes that "the application process for sanctions permits and certificates is separate from the permit process under the Export and Import Permits Act."
Grandfathering and wind-down provisions. Many sectoral prohibitions include exceptions for contracts entered into before the relevant provision came into force. For example, section 3.03(3) provides that the oil-and-gas-equipment prohibitions in subsections (1) and (2) do not apply to goods or services if a contract for the export, sale, supply, or shipment of the good, or for any related service, was entered into before the day on which section 3.03 came into force. Similar exceptions appear throughout the Russia Regulations; practitioners must check each prohibition individually to determine the applicable grandfathering or wind-down period.
Application to other SEMA regulations. Sectoral prohibitions also appear in other SEMA country-specific regulations. The Special Economic Measures (Ukraine) Regulations impose comprehensive prohibitions on investment, goods trade, technical assistance, and financial services with respect to the Crimea region and the areas of Donetsk, Luhansk, Kherson, and Zaporizhzhia oblasts that are illegally occupied by the Russian Federation, under sections 4.1 and 4.2. Section 4.1 prohibits making an investment involving property in the Crimea region; importing, purchasing, or acquiring goods from the Crimea region; exporting goods destined for the Crimea region; providing technical assistance to the Crimea region; providing financial or other services related to tourism; and docking a cruise ship in the Crimea region. The Special Economic Measures (Belarus) Regulations, the Special Economic Measures (Syria) Regulations, the Special Economic Measures (Myanmar) Regulations, and other country-specific regulations contain arms embargoes, export and import restrictions on designated goods, and prohibitions on the provision of technical assistance. The scope, exceptions, and grandfathering provisions vary by regulation.
Enforcement. Sectoral prohibitions are criminal offences under section 3 of SEMA. On summary conviction, the penalty is a fine up to CAD 25,000 or imprisonment for a term of up to one year, or both; on indictment, fines are unlimited and imprisonment may extend to five years. The Canada Border Services Agency enforces import and export prohibitions at the border; the RCMP investigates violations and prosecutes offences.
Source: Special Economic Measures (Russia) Regulations, SOR/2014-58, ss. 3.01–3.14 Source: Special Economic Measures (Ukraine) Regulations, SOR/2014-60, ss. 4.1, 4.2 Source: Special Economic Measures Act, S.C. 1992, c. 17, s. 3 Source: Canadian sanctions — Export and import restrictions — Global Affairs Canada Source: Canadian Sanctions Related to Russia — Global Affairs Canada
Asset seizure and forfeiture mechanism under SEMA and JVCFOA
Canada’s asset seizure and forfeiture mechanism under the Special Economic Measures Act (SEMA) and the Justice for Victims of Corrupt Foreign Officials Act (JVCFOA) is a compliance-critical feature for any firm or financial institution transacting with property subject to Canadian sanctions regulations, especially following the statutory amendments that came into force June 2022.
Statutory authority. As amended in 2022, SEMA section 4(1.2) and the parallel section in JVCFOA permit the Minister of Foreign Affairs, with Governor in Council authorization, to direct the seizure, restraint, or administration of property in Canada that is subject to a prohibition under any order or regulation made for reasons including international crises or gross human rights violations. This applies to any property—tangible or intangible, including funds or securities—owned, held, or controlled by a person designated under the asset freeze provisions of the relevant legislation.
Process. Upon such direction, an enforcement authority—typically the Royal Canadian Mounted Police (RCMP)—may apply to the Federal Court under SEMA section 6.2 (or the parallel JVCFOA provision) for an order to seize or restrain the property. The application may be made ex parte (without notice), and the court may grant the order if lawful grounds are satisfied. The order may apply to property held by listed persons or by third parties if the statutory deemed-ownership thresholds are met. Property subject to such an order must not be dealt with or disposed of pending further order of the court or final disposition under the statute.
Forfeiture. SEMA section 6.4 (and equivalent in JVCFOA) empowers the Minister, again with Governor in Council authorization, to apply to the Federal Court for an order forfeiting seized or restrained property. The court must be satisfied the asset is owned, held, or controlled by a designated person and that forfeiture is appropriate in the circumstances. Upon forfeiture, the property vests in the Crown as specified by the Governor in Council. SEMA is silent as to the further use or distribution of proceeds, leaving this to future order or regulation.
Safeguards and recourse. Persons affected by seizure or forfeiture orders may seek judicial review under the Federal Courts Act or contest the orders on grounds permitted by statute or regulation. No explicit statutory right of compensation exists for non-sanctioned holders affected by mistaken or overbroad orders, in the plain text of SEMA ss. 6.2 and 6.4; broader rights, if any, must be grounded in Canadian law outside the cited regime.
Currency. These asset seizure and forfeiture powers became effective with the SEMA and JVCFOA amendments assented to June 23, 2022. Parties must check the current statute and regulations for subsequent changes.
Source: Special Economic Measures Act, S.C. 1992, c. 17, ss. 4(1.2), 6.2, 6.4
Reporting and recordkeeping obligations under the PCMLTFA for sanctions-related transactions
Canadian financial institutions and other reporting entities must comply with both sanctions law (SEMA, JVCFOA, United Nations Act) and the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). Significant amendments to the PCMLTFA came into force on March 26, 2026, expanding the statute’s reporting obligations and regulatory reach as they pertain to sanctions-evasion activities.
Expanded suspicious transaction reporting (STR) requirement as of March 26, 2026. Section 7 of the PCMLTFA now explicitly requires every entity subject to section 5—including financial entities, securities dealers, money services businesses, and designated non-financial businesses or professions—to file a Suspicious Transaction Report (STR) with FINTRAC if there are reasonable grounds to suspect that a transaction, whether completed or attempted, is related to a money laundering offence, a terrorist financing offence, or a sanctions-evasion offence under Canadian law. This amendment clarifies that STRs must be filed when sanctions evasion is reasonably suspected, regardless of whether the transaction would independently trigger a reporting obligation under a sanctions statute. STRs must include specified information: the nature of the transaction, the identity of each party, account details, reasons for suspicion, and all supporting documentation required by regulation (see Suspicious Transaction Reporting Regulations, SOR/2001-317).
Mandatory property reporting to law enforcement remains parallel. Where regulated persons come into possession or control of property owned, held, or controlled by a person listed under SEMA, JVCFOA, or United Nations Act regulations, there remains a distinct and immediate obligation to report that fact “without delay” to the RCMP or CSIS under the relevant sanctions regulation. This property-reporting duty is not satisfied by filing with FINTRAC, and is triggered by sanctions law, not by money-laundering or terrorist-financing suspicion alone.
Universal FINTRAC enrolment and enhanced enforcement (effective March 26, 2026). Following the 2026 amendments, all reporting entities covered by section 5 (with limited carve-outs) must enrol with FINTRAC and keep registration information current (PCMLTFA ss. 11.4001–11.4015). Registration is a precondition for engaging in regulated activities; failure to comply is subject to administrative and criminal penalty. FINTRAC’s administrative monetary penalties regime has also been expanded, with higher penalty ceilings and broader grounds for penalty assessment, including new offences for non-enrolment, recordkeeping breaches, and reporting-failure associated with sanctions-evasion STRs (PCMLTFA s. 73.1).
Recordkeeping and retention. Reporting entities must retain all records associated with filed STRs, property reports, and supporting transaction documentation for at least five years from the day they were created (PCMLTFA s. 6; Suspicious Transaction Reporting Regulations). STRs and related files must be maintained so they can be produced to FINTRAC upon request. Personal information in STRs must be destroyed after 15 years unless otherwise prescribed by law.
Penalties and compliance risks. Failure to file an STR for sanctions evasion, failure to enrol, or failure to maintain required records exposes entities to administrative monetary penalties under PCMLTFA or prosecution for an offence under the statute (including substantial fines and possible imprisonment). Sanctions-law breaches (failure to report to law enforcement, or substantive violation) carry criminal penalties, including unlimited fines and imprisonment under SEMA, JVCFOA, or the United Nations Act. Obligations and new enforcement provisions are current as of June 2026.
Source: Proceeds of Crime (Money Laundering) and Terrorist Financing Act, S.C. 2000, c. 17, ss. 6–7, 11.4001–11.4015, 73.1 Source: Suspicious Transaction Reporting Regulations, SOR/2001-317 Source: Reporting requirements—financial entities and FINTRAC, Global Affairs Canada Source: FINTRAC—Suspicious Transaction Report Form
Extraterritorial application of Canadian sanctions: obligations of Canadians and Canadian entities abroad
Canadian sanctions law—primarily under the Special Economic Measures Act (SEMA) and the Justice for Victims of Corrupt Foreign Officials Act (JVCFOA)—applies extraterritorially, binding a broad class of actors outside Canada. Section 4(2) of SEMA provides that prohibitions "apply to any person in Canada and any Canadian outside Canada." Section 2 defines "Canadian" as a citizen within the meaning of the Citizenship Act or a body corporate incorporated or continued under the laws of Canada or a province. The same extraterritorial structure applies under the JVCFOA. This means that Canadian citizens and Canadian-incorporated entities must comply with Canadian sanctions wherever they act in the world—regardless of whether the conduct occurs in Canada or another jurisdiction.
Practical reach and limitations:
- Foreign subsidiaries: SEMA and JVCFOA do not automatically extend sanctions obligations to foreign-incorporated subsidiaries solely by virtue of Canadian ownership. Rather, the obligations bind the Canadian parent and any Canadian citizens or Canadian-incorporated entities involved in sanctionable conduct, even abroad. The statutes do not contain further explicit rules pulling foreign subsidiaries into direct scope.
- Employees and dual nationals: Canadian citizens, including dual nationals, are bound by Canadian sanctions law worldwide. The statutory text is silent on permanent residents; by default, the law binds persons while present in Canada or when otherwise defined as "Canadian."
- Joint ventures and group structures: There are no explicit statutory provisions attributing joint venture activity or foreign affiliate conduct to Canadians beyond the definition of "Canadian." Liability will depend on whether a specific individual or legal entity falls under the statutory definitions or is covered as a "person in Canada."
Conflicts and local law: Global Affairs Canada states that Canadians must comply with Canadian sanctions law even if activities occur in jurisdictions outside Canada. However, where compliance would contravene local laws (such as blocking statutes in some foreign countries), the agency acknowledges a risk of legal conflict but does not provide detailed safe-harbour language. Formal guidance leaves resolution of such conflicts to case-by-case determinations; impossibility of compliance due to foreign law may affect enforcement discretion but does not limit statutory liability on the face of the statutes.
Key compliance implications:
- Canadian multinational groups should map their cross-border activities, relationships, and transactions for exposure under SEMA and JVCFOA. Where obligations are unclear due to group structure or conflicting local law, consultation with counsel and, where appropriate, Global Affairs Canada is prudent.
- As of June 2026, no case law or published enforcement action conclusively interprets the boundary situations described above. Practitioners should monitor for updates to primary statutes and official guidance.
Source: Special Economic Measures Act, S.C. 1992, c. 17, ss. 2, 4 Source: Global Affairs Canada—Canadian sanctions legislation (scope)
Consolidated Canadian Autonomous Sanctions List — legal status, update process, and compliance role
The Consolidated Canadian Autonomous Sanctions List, published by Global Affairs Canada, compiles the names of individuals, entities, and organizations subject to asset freezes and dealing prohibitions under Canada's autonomous sanctions instruments: the Special Economic Measures Act (SEMA), the Justice for Victims of Corrupt Foreign Officials Act (JVCFOA), and relevant United Nations Act regulations. While the Consolidated List is the practical starting point for screening, its legal status is secondary to the schedules of the country-specific regulations, which alone have force of law.
Legal status. The Consolidated List is not a regulation or order-in-council and cannot create or extinguish legal obligations. Sanctions prohibitions only attach where a person or entity is named in the schedule to a country-specific regulation made under SEMA, JVCFOA, or the United Nations Act, as published in the Canada Gazette. If there is a discrepancy between the Consolidated List and a regulation's schedule, the regulation prevails. Global Affairs Canada expressly warns that “the schedules to the regulations are the authoritative source,” and users must consult the up-to-date regulations for compliance purposes.
Update process. Names are added to or removed from the Consolidated List when Canada amends the schedules to SEMA, JVCFOA, or United Nations Act regulations by regulation (SOR). Once an amendment takes effect, Global Affairs Canada updates the Consolidated List to reflect the change. There is no statutory delay between regulatory amendment and List update, but the website often incorporates changes within a business day of their publication in the Canada Gazette. Practitioners must monitor recent amendments to regulations, as delays may occur in updating the Consolidated List during periods of high regulatory activity.
Format and scope. The List is published in both human-readable (HTML) and machine-readable (CSV, XML) formats and includes names, aliases, designation dates, and sources of listing. Separate lists exist for United Nations sanctions and Canada’s autonomous sanctions. Searching the List does not substitute for screening against all relevant schedules, especially for entities with complex naming conventions or recent designations. The List may flag corrections, the date of the last update, and hyperlinks to the regulatory authority for each listing.
Compliance role. While the Consolidated List is a valuable screening tool and a de facto industry standard, compliance programs must treat the underlying regulation’s schedule as definitive. Official guidance recommends routine cross-checking of counterparties against both the List and the current legal schedules. Errors or omissions in the List do not excuse violations, nor do they give rise to liability if the actual regulations are not contravened. Where screening returns a potential match, due diligence requires consultation of the relevant SEMA, JVCFOA, or UN regulation.
Source: Consolidated Canadian Autonomous Sanctions List — Global Affairs Canada Source: Listed persons, delisting, and the Consolidated List — Global Affairs Canada
UN sanctions implementation under the United Nations Act in Canada: process, scope, and differences from autonomous sanctions
Canada implements mandatory United Nations (UN) Security Council sanctions through the United Nations Act, R.S.C. 1985, c. U-2 (UNA). This regime is legally and operationally distinct from Canada’s autonomous sanctions under the Special Economic Measures Act (SEMA) and the Justice for Victims of Corrupt Foreign Officials Act (JVCFOA), with notable differences in initiation, scope, permits, and redress.
Process and Statutory Authority. When the UN adopts a binding Chapter VII Security Council resolution requiring sanctions, the Governor in Council (Cabinet) may, under UNA s.2(1), enact regulations to implement “any measure,” directly reflecting the resolution’s terms. No parliamentary debate or pre-publication is required—the aim is swift compliance with international obligations. These regulations, such as the United Nations Suppression of Terrorism Regulations (SOR/2001-360, in force since October 2001, periodically updated), are published in the Canada Gazette and have immediate legal force. The Governor in Council cannot impose measures under the UNA beyond those required by the specific UN resolution (s.2(1)), nor omit a required measure.
Scope and Regulation Content. UNA-based regulations bind all persons in Canada and Canadians abroad (s.2(2)). Prohibitions frequently mirror asset freezes, transaction bans, technical assistance restrictions, and travel bans enumerated in Security Council programs. Regulations specify both designations and exemptions as dictated by the UN. For example, the United Nations Suppression of Terrorism Regulations incorporate and update Security Council lists by reference, reflecting the living nature of UNSC designations.
Penalties and Enforcement. Violation of a UNA regulation is a criminal offence under s.3: on indictment, offenders are liable to imprisonment for up to ten years; on summary conviction, up to $5,000 in fines and/or 12 months’ imprisonment. The RCMP, CBSA, and FINTRAC are typical enforcement agencies. Forfeiture and seizure may also be addressed in ancillary regulations as the Security Council requires.
Licensing, Permits, and Relief. Where the Security Council resolution or the implementing Canadian regulation allows, the Minister of Foreign Affairs may grant certificates (“permits”) authorizing otherwise-prohibited activities, but only in terms strictly aligned with the UN’s authority or subject to Sanctions Committee approval (see e.g., UNA s.2, SOR/2001-360, s.6). Ministerial discretion is limited relative to broader powers under SEMA or JVCFOA, where permits may be granted on wider public policy grounds. For relief from a listing or designation under UNA regulations, the delisting or exemption process may require application to the relevant UN Sanctions Committee, rather than a purely domestic process (no direct administrative appeal is provided in UNA or in most regulations).
Differences from Autonomous Sanctions.
- UNA regulations are strictly reactive and must adhere to the limits of the UN Security Council’s resolution—no more, no less.
- SEMA and JVCFOA permit Canada to create broader, narrower, or independent sanctions for policy reasons and to allow discretionary permitting, delistings, and tailored exceptions through Canadian administrative channels.
- UNA’s penalties and compliance scope are set by statute; SEMA/JVCFOA allow broader regulatory flexibility but include a similar range of sanctions and enforcement mechanisms.
Compliance teams must distinguish between the two regimes to identify available licences, proper authorities for applications, and the correct paths for delisting and error correction. Misclassification risks breach, especially regarding transactions, asset freezes, and humanitarian exceptions.
Source: United Nations Act, R.S.C., 1985, c. U-2 Source: United Nations Suppression of Terrorism Regulations, SOR/2001-360 Source: Canadian sanctions legislation, Global Affairs Canada
Foreign Extraterritorial Measures Act (FEMA) blocking statute — protection against extraterritorial foreign sanctions and anti-boycott obligations
Canada’s legal instrument for countering the extraterritorial application of foreign sanctions—particularly against Canadian firms and citizens—is the Foreign Extraterritorial Measures Act, R.S.C. 1985, c. F-29 (FEMA). FEMA enables the Attorney General of Canada to issue orders that block or restrict compliance by Canadians with specified foreign laws when those laws threaten Canadian sovereignty or international trade.
Statutory Authority and Mechanism
Under section 5 of FEMA, the Attorney General may issue orders requiring any Canadian, or class of Canadians, to: (a) notify the Attorney General of any communication relating to the application of a foreign law of extraterritorial effect; or (b) prohibit or restrict compliance, by any act or omission, with a specified foreign law or foreign court judgment. Section 7 creates an offence for contravening an order, punishable on summary conviction by a fine up to CAD 10,000 or imprisonment up to five years, or both (FEMA s. 7).
Key Blocking Order: Cuba and U.S. Sanctions
The principal current order under FEMA is the Foreign Extraterritorial Measures (United States) Order, 1992 (SOR/92-584), which responds to U.S. sanctions against Cuba. This Order:
- Prohibits Canadian corporations and their directors, officers, and employees from complying with certain U.S. laws relating to trade with Cuba.
- Requires any Canadian who receives a communication concerning such a law (such as a U.S. directive to cease trading with Cuba) to promptly notify the Attorney General of Canada.
- Prohibits compliance with specific U.S. judgments or requirements intended to enforce the U.S. embargo against Cuba.
The Order does not block all extraterritorial measures by default; protection only applies where an order is specifically issued covering the foreign measure in question. Orders can thus be tailored to address new foreign threats to Canadian interests as they arise.
Practice and Limitations
To date, the 1992 Cuba-focused Order remains the only blocking order in force. FEMA’s language is broad enough for the Attorney General to block other foreign laws in the future, but no order currently addresses U.S. secondary sanctions targeting Russia or other jurisdictions. Compliance conflicts arise only where a foreign measure is subject to an active blocking order. FEMA does not provide a parallel civil cause of action for private parties harmed by foreign measures; its remedies are exclusively in the form of reporting or blocking orders and criminal penalties for contravention.
For current and full text of all orders, practitioners should check the Justice Laws website and updates from Global Affairs Canada.
Source: Foreign Extraterritorial Measures Act, R.S.C. 1985, c. F-29 Source: Foreign Extraterritorial Measures (United States) Order, 1992, SOR/92-584 Source: Global Affairs Canada — Blocking statutes and extraterritorial measures
CBSA border enforcement of sanctions: powers, procedures, and importer/exporter obligations
The Canada Border Services Agency (CBSA) is the frontline enforcement authority at Canadian ports of entry and exit for trade sanctions imposed under the Special Economic Measures Act (SEMA), the Justice for Victims of Corrupt Foreign Officials Act (JVCFOA), and regulations under the United Nations Act. While policy direction, designations, and permit administration originate with Global Affairs Canada and the Minister of Foreign Affairs, the border's practical gatekeeper is CBSA, operating under the Customs Act and cross-referenced statutes.
Inspection, detention, and seizure authority: Under section 101 of the Customs Act, CBSA officers may examine any goods, records, or conveyances presented for import or export, including physically opening packages to verify compliance. Where an officer suspects goods are prohibited for import or export by SEMA, JVCFOA, or UNA regulations, section 110 of the Customs Act authorizes detention for up to 14 days (or longer, with judicial extension) as the facts are investigated, and further empowers CBSA to seize goods outright if evidence supports prohibited status. SEMA section 7(1) and JVCFOA section 11 directly invoke Customs Act procedures for search, seizure, and detention under their respective regimes. Imported or exported goods seized because of sanctions violations may be subject to forfeiture (Customs Act, ss. 124–133)—including destruction or disposal—by court order or Minister’s decision.
Permits, licenses, and documentary checks: Any importer or exporter presenting goods covered by sanctions prohibitions must present a permit, certificate, or other authorizing documentation if an exception applies (such as a SEMA permit or UN certificate). CBSA is entitled to examine original documents and to verify them with Global Affairs Canada or the issuing body. Failure to present a valid authorization results in denial of clearance, detention, or seizure.
Administrative vs. criminal enforcement: CBSA’s administrative sanctions for attempted unlawful import or export include seizure, monetary penalties, and forfeiture. For willful breaches, material misstatements, or smuggling, CBSA refers cases to the Royal Canadian Mounted Police (RCMP) for investigation and potential criminal prosecution. Penalties for violations under SEMA or the Customs Act range from summary fines up to CAD 25,000 and/or imprisonment (up to one year on summary conviction, five years on indictment) per SEMA s. 3 and Customs Act ss. 124–133.
Expanded AML/TF and sanctions-evasion enforcement — effective April 1, 2025: As of April 1, 2025, Memorandum D19-15-1 requires importers and exporters to disclose whether goods or funds are the proceeds of crime, involved in money laundering or terrorist financing, or related to sanctions evasion under Canadian law. CBSA officers may request this declaration for both imports and exports alongside other border examinations. Failure to comply may result in administrative monetary penalties or referral for criminal investigation. This amendment augments existing enforcement under SEMA, JVCFOA, and the United Nations Act.
Rights and recourse: Importers/exporters whose goods are detained or seized receive notice under the Customs Act and may, within prescribed timeframes, request a review or appeal to the Minister or to the Federal Court under sections 129–131. Time limits for contesting forfeiture are strictly enforced. CBSA administrative action is distinct from independent criminal prosecutions, which proceed separately under Canadian law if warranted.
Key takeaways for practitioners:
- Always confirm the sanctions status of goods, parties, and required authorizations prior to shipment.
- Maintain original permits and supporting documentation for presentation at border clearance.
- As of April 2025, ensure declarations required under Memorandum D19-15-1 are completed and retained as part of border compliance.
- Awareness of immediate and longer-term recourse channels (Ministerial review, court appeal) is critical in the event of action by CBSA.
Source: Special Economic Measures Act, S.C. 1992, c. 17, s. 7 Source: Justice for Victims of Corrupt Foreign Officials Act, S.C. 2017, c. 21, s. 11 Source: Customs Act, R.S.C. 1985, c. 1 (2nd Supp.), ss. 101, 110, 124–133 Source: CBSA Memorandum D19-15-1: Proceeds of Crime (Money Laundering) and Terrorist Financing Act requirements, April 1, 2025 Source: Sanctions—Export and import restrictions—Global Affairs Canada
Voluntary self-disclosure of sanctions violations: guidance, limits, and mitigation effect under Canadian law
Canada does not have a formal, statutory process for voluntary self-disclosure (VSD) of sanctions violations under the Special Economic Measures Act (SEMA), Justice for Victims of Corrupt Foreign Officials Act (JVCFOA), or the United Nations Act. There is no published regulation or administrative policy outlining the procedure, mandatory content, or outcome of a VSD. In contrast to US OFAC or BIS, Global Affairs Canada provides only general guidance.
Recognition as mitigating factor: Official Global Affairs Canada guidance states that voluntary disclosure is encouraged and recognized as a mitigating factor in sanctions enforcement. Specifically: “If a company discovers it has conducted activities that may be in violation of sanctions regulations, it is encouraged to disclose the violation to Global Affairs Canada. Voluntary disclosure may be taken into account when considering the appropriate means of addressing a violation.” The guidance does not specify how mitigation is applied, the percentage of penalty reduction, or whether administrative, non-prosecution, or prosecution outcomes may result—these are determined case-by-case and not described in detail by the authority.
Procedural specifics not prescribed: No prescribed format, form, or online channel for VSD exists in Canada. The guidance does not state exactly how a VSD should be submitted, what documentation must be included, or what information is required beyond “disclose the violation to Global Affairs Canada.” Practitioners typically recommend written disclosure (letter or email) to the Sanctions Bureau, but this is not stated in official resources as of June 2026.
No formal amnesty or penalty matrix: The official guidance does not offer any assurance of amnesty, non-prosecution, or automatic penalty reduction for voluntary disclosure. There is no published penalty matrix or structured disposition process for VSDs. The recognition of mitigation is discretionary.
Overlap with other obligations: Nothing in the official VSD guidance addresses parallel reporting obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) or to FINTRAC—practitioners should be aware that these obligations are separate and not referenced in the sanctions VSD context.
Summary for practitioners (2026 currency):
- Voluntary self-disclosure of sanctions violations is not formally regulated in Canada as of June 2026.
- Official guidance encourages disclosure and states it may mitigate enforcement outcomes.
- All specific details and outcomes (format, supporting documents, penalty mitigation) are at agency discretion and are not codified in published authority.
- Submitting a VSD does not guarantee leniency or preclude prosecution.
Source: Canadian sanctions—Essential information—Global Affairs Canada
Sanctions enforcement in Canada — RCMP investigation, prosecution, and available enforcement record (2022–2026)
Enforcement of Canadian sanctions law is criminal, with responsibility for investigation lying with the Royal Canadian Mounted Police (RCMP) and prosecution by the Public Prosecution Service of Canada (PPSC). Offences under the Special Economic Measures Act (SEMA), the Justice for Victims of Corrupt Foreign Officials Act (JVCFOA), and the United Nations Act can be prosecuted summarily or by indictment, with penalties including fines (unlimited on indictment) and imprisonment (up to five years under SEMA/JVCFOA, or ten years under the United Nations Act).
RCMP investigation and process. The RCMP’s Federal Policing unit investigates potential violations of sanctions regulations. Section 8 of SEMA empowers RCMP officers to seek judicial warrants to enter and search premises, examine records, and seize evidence relevant to an alleged offence; JVCFOA section 12 contains parallel powers. Most investigations are triggered by disclosures from financial institutions under sanctions or anti-money-laundering statutes, tips to law enforcement, or referrals from Global Affairs Canada. Since Russia’s full-scale invasion of Ukraine in February 2022, enforcement activity and reporting have increased substantially. The RCMP reported in May 2024 that approximately CAD $140.1 million in assets had been frozen and CAD $317.2 million in financial transactions blocked under the Russia Regulations alone, based on disclosures as of that date.
2025 enforcement milestone — criminal prosecution initiated. On June 6, 2025, the RCMP publicly announced its first known arrest and criminal charge under the Special Economic Measures Act and the Russia Regulations, alleging the export of banned technology to Russia by an Ontario individual. This case marks a disclosed, active criminal prosecution for sanctions violations—an escalation from prior years, where enforcement reports consistently noted investigations and asset freezes but no published criminal prosecutions or convictions. The matter remains before the courts as of June 2026; no conviction or precedent decision has been reported or published.
Prosecution and penalties. Violations are indictable or summary offences: under SEMA section 3 and JVCFOA section 13, offenders face fines (up to $25,000 on summary conviction, unlimited on indictment) and up to five years’ imprisonment. Prosecution is a criminal matter and is handled by the PPSC; there is no published administrative penalty regime for sanctions contraventions in Canadian law as of June 2026. Forfeiture of property subject to sanctions occurs via Federal Court order under SEMA sections 6.2 and 6.4.
Current enforcement record and compliance note. As of June 2026, Canadian sanctions law remains criminally enforced with substantially increased investigative and asset-freeze actions since 2022. RCMP reporting confirms at least one public criminal prosecution underway in 2025–2026, but available sources do not confirm any completed prosecutions resulting in conviction or published judicial precedent to date. No official public prosecution policy or landmark case law interpreting sanctions provisions has been released as of this date.
Source: Special Economic Measures Act, S.C. 1992, c. 17, ss. 3, 8-9 Source: Justice for Victims of Corrupt Foreign Officials Act, S.C. 2017, c. 21, s. 13 Source: RCMP — Update on the reporting of frozen assets under the Special Economic Measures Act, May 14, 2024 Source: RCMP — Arrest for exporting banned technology to Russia under SEMA, June 6, 2025
Sanctions compliance requirements and liability standard for Canadian financial institutions
Canadian financial institutions—including banks, trust companies, credit unions, securities dealers, insurers, and money services businesses—face explicit and evolving obligations under Canadian sanctions law, primarily the Special Economic Measures Act (SEMA), Justice for Victims of Corrupt Foreign Officials Act (JVCFOA), and corresponding regulations. This section reflects current law as of June 2026, including significant statutory amendments effective March 26, 2026.
General asset freeze and disclosure duties remain: Under pre-2026 rules, financial institutions must conduct ongoing screening of accounts and transactions against Canadian sanctions regulations. If they have reasonable grounds to believe property is owned, held, or controlled by (or on behalf of) a listed person, institutions must freeze the property and disclose, without delay, to the RCMP or CSIS both the existence of such property and information about related transactions or proposed transactions (Russia Regulations ss. 6–7). These duties are measured by a “reasonable grounds to believe” standard, not strict knowledge or intent. There is no codified safe harbour for inadvertent breaches or technical errors.
New obligations and liability regime under SEMA Part 2 (effective March 26, 2026): Substantial new requirements apply to federally regulated financial institutions as of March 2026. SEMA now contains a new Part 2, creating:
- Ministerial profit-remittance orders: The Minister of Finance may order a federally regulated financial institution to remit “profits realized in respect of foreign property that is subject to an order or regulation” (SEMA s. 15(1)). Profits are paid to the Receiver General for Canada; timelines, classes, and other specifics are prescribed by regulation. This mechanism targets institutions that hold or have earned profit from foreign assets affected by Canadian sanctions, and applies in addition to general asset-freeze/disclosure provisions.
- Minister of Finance consultation requirement: Before the Governor in Council or Minister of Foreign Affairs may make a sanctions order or regulation affecting a “systemically important foreign financial entity” (defined by regulation), the Minister of Finance must be consulted. This requirement aims to prevent unintended impacts on the stability of Canada’s financial system when sanctions measures have extraterritorial or foreign systemic reach.
These amendments impose direct, statutory financial consequences (loss of profit rights) and give the Minister of Finance a role in the administration of key sanctions-compliance elements.
Compliance standard and risk: Canadian law continues to require robust, effective programs to prevent prohibited transactions, but no formal statutory or regulatory “due diligence” checklist or safe harbour is established for financial institutions as of June 2026. The “reasonable grounds” standard for triggering liability remains for freezing and reporting obligations. However, the addition of Part 2 means that financial institutions—especially federally regulated entities—must also monitor developments regarding affected foreign property and prepare for possible profit-remittance orders in addition to asset freeze/reporting.
There is still no published case law or regulatory decision outlining a negligence or strict-liability defense, nor any formal safe harbour for good-faith errors. Officers, directors, and employees participating in compliance failures remain personally liable under SEMA s. 9(1).
Penalties: Breaches remain criminal offences: up to CAD 25,000 fine or up to one year’s imprisonment on summary conviction; unlimited fines and up to five years’ imprisonment on indictment (SEMA s. 3). Administrative monetary penalties are not separately established for sanctions failures as of June 2026.
Summary: Financial institutions are subject to enhanced obligations and financial consequences under the amended SEMA, including possible profit-remittance. Programs should be updated promptly to reflect these changes.
Source: Special Economic Measures (Russia) Regulations, SOR/2014-58, ss. 6–7 Source: Special Economic Measures Act, S.C. 1992, c. 17, ss. 3, Part 2 (as amended by 2026, c. 3, s. 357, in force March 26, 2026) Source: Canadian sanctions—Financial sector obligations and screening—Global Affairs Canada