Regulations Amending the Regulations Implementing the United Nations Resolutions on Somalia: SOR/2020-120
Canada Gazette, Part II, Volume 154, Number 12
Registration
SOR/2020-120 June 1, 2020
UNITED NATIONS ACT
P.C. 2020-401 May 30, 2020
Whereas the Security Council of the United Nations, acting under Article 41 of the Charter of the United Nations, adopted Resolution 733 (1992) on January 23, 1992, Resolution 751 (1992) on April 24, 1992, Resolution 1356 (2001) on June 19, 2001, Resolution 1425 (2002) on July 22, 2002, Resolution 1725 (2006) on December 6, 2006, Resolution 1744 (2007) on February 20, 2007, Resolution 1772 (2007) on August 20, 2007, Resolution 1844 (2008) on November 20, 2008, Resolution 2111 (2013) on July 24, 2013, Resolution 2244 (2015) on October 23, 2015 and Resolution 2444 (2018) on November 14, 2018;
And whereas it appears to the Governor in Council to be necessary to make regulations for enabling the measures set out in those resolutions to be effectively applied;
Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Foreign Affairs, pursuant to section 2 of the United Nations Act footnote a, makes the annexed Regulations Amending the Regulations Implementing the United Nations Resolutions on Somalia.
Regulations Amending the Regulations Implementing the United Nations Resolutions on Somalia
Amendments
1 (1) The definitions property, Security Council Resolution 733, Security Council Resolution 751, Security Council Resolution 1356,Security Council Resolution 1425, Security Council Resolution 1744, Security Council Resolution 1772, Security Council Resolution 2036, Security Council Resolutions and technical data in section 1 of the Regulations Implementing the United Nations Resolutions on Somalia footnote 1 are repealed.
(2) The definitions paragraph 3 designated person and paragraph 8 designated person in section 1 of the English version of the Regulations are repealed.
(3) The definitions arms and related material, Canadian, Committee of the Security Council and Somalia in section 1 of the Regulations are replaced by the following:
- arms and related material means any type of weapon, ammunition, military equipment including military vehicles, or paramilitary equipment, and their spare parts. (armes et matériel connexe)
- Canadian means a citizen within the meaning of the Citizenship Act or an entity established, incorporated or continued by or under the laws of Canada or of a province. (Canadien)
- Committee of the Security Council means the Committee of the Security Council of the United Nations, established under paragraph 11 of Resolution 751 (1992) of April 24, 1992, adopted by the Security Council. (Comité du Conseil de sécurité)
- Somalia means the Federal Republic of Somalia and includes
- (a) its political subdivisions;
- (b) its government and departments and a government or department of its political subdivisions; and
- (c) its agencies or any agency of its political subdivisions. (Somalie)
(4) The definitions entité, personne désignée en vertu du paragraphe 3 and personne désignée en vertu du paragraphe 8 in section 1 of the French version of the Regulations are replaced by the following:
- entité S’entend notamment d’une personne morale, d’une fiducie, d’une société de personnes, d’un fonds, d’une organisation ou d’une association non dotée de la personnalité morale ou d’un État étranger. (entity)
- personne désignée en vertu du paragraphe 3 Toute personne que le Comité du Conseil de sécurité désigne en application des paragraphes 3 et 11 de la résolution 1844 du Conseil de sécurité. (designated person under paragraph 3)
- personne désignée en vertu du paragraphe 8 Toute personne que le Comité du Conseil de sécurité désigne en application des paragraphes 8 et 11 de la résolution 1844 du Conseil de sécurité. (designated person under paragraph 8)
(5) Section 1 of the Regulations is amended by adding the following in alphabetical order:
- AMISOM means the African Union Mission in Somalia. (AMISOM)
- military activities means any activities conducted by state armed forces, non-state armed forces or armed mercenaries and any activities that support the operational capabilities of an armed group. (activités militaires)
- official means a person who
- (a) is or was employed in the service of Her Majesty in right of Canada or of a province;
- (b) occupies or occupied a position of responsibility in the service of Her Majesty in right of Canada or of a province; or
- (c) is or was engaged by or on behalf of Her Majesty in right of Canada or of a province. (fonctionnaire)
- Security Council Resolution 2111 means Resolution 2111 (2013) of July 24, 2013, adopted by the Security Council. (résolution 2111 du Conseil de sécurité)
(6) Section 1 of the English version of the Regulations is amended by adding the following in alphabetical order:
- designated person under paragraph 3 means a person that is designated by the Committee of the Security Council under paragraphs 3 and 11 of Security Council Resolution 1844. (personne désignée en vertu du paragraphe 3)
- designated person under paragraph 8 means a person that is designated by the Committee of the Security Council under paragraphs 8 and 11 of Security Council Resolution 1844. (personne désignée en vertu du paragraphe 8)
2 The heading before section 2 and sections 2 to 18 of the Regulations are replaced by the following:
Prohibitions
Prohibited activities
2 (1) It is prohibited for any person in Canada or any Canadian outside Canada to knowingly
- (a) deal in any property in Canada that is owned, held or controlled, directly or indirectly, by one of the following or by a person acting on behalf of or at the direction of that person:
- (i) a designated person under paragraph 3, or
- (ii) a designated person under paragraph 8;
- (b) enter into or facilitate any transaction related to a dealing referred to in paragraph (a);
- (c) provide or acquire any financial or related services in respect of a dealing referred to in paragraph (a);
- (d) make available any property to or for the benefit of a designated person under paragraph 3; or
- (e) make available any property, other than property referred to in subsection 3(2), to or for the benefit of a designated person under paragraph 8 or by a person acting on behalf of or at the direction of a designated person under paragraph 8;
- (f) provide any financial or related services to or for the benefit of any person or any entity referred to in paragraph (d) or (e) or acquire any such services from or for the benefit of any such person or entity.
Payments
(2) Subsection (1) does not prohibit the payment of interest or other earnings to a designated person under paragraph 3 or a designated person under paragraph 8 if
- (a) the payment is the result of a dealing or transaction that occurred before the person became a designated person under paragraph 3 or a designated person under paragraph 8; and
- (b) the amount paid becomes subject to subsection (1).
Embargo — arms and related material
3 (1) It is prohibited for any person in Canada or any Canadian outside Canada to knowingly
- (a) export, sell, supply or transfer, directly or indirectly, arms and related material, wherever situated, to Somalia or any person in Somalia; or
- (b) provide, directly or indirectly, technical assistance or financial assistance related to the sale, supply, transfer, manufacture, maintenance or use of arms and related material to Somalia or to any person in Somalia.
Arms and related material — designated person under paragraph 8
(2) It is prohibited for any person in Canada or any Canadian outside Canada to knowingly
- (a) export, sell, supply or transfer, directly or indirectly, arms and related material, wherever situated, to a designated person under paragraph 8; or
- (b) provide, directly or indirectly, technical assistance or financial assistance related to the sale, supply, transfer, manufacture, maintenance or use of arms and related material to a designated person under paragraph 8.
Embargo — military activities
4 It is prohibited for any person in Canada or any Canadian outside Canada to knowingly provide technical assistance or financial assistance related to military activities, directly or indirectly, to Somalia or any person in Somalia or to a designated person under paragraph 8.
Embargo — transport
5 It is prohibited for the owner or master of a Canadian vessel, as defined in section 2 of the Canada Shipping Act, 2001, or any operator of an aircraft registered in Canada or any Canadian owner or master of a vessel or Canadian operator of an aircraft to knowingly carry, cause to be carried or permit to be carried, arms and related material that are destined for
- (a) Somalia or any person in Somalia; or
- (b) any designated person under paragraph 8.
Import prohibited
6 It is prohibited for any person in Canada or any Canadian outside Canada to knowingly import, directly or indirectly, charcoal, wherever situated, from Somalia or from any person in Somalia.
Exception — non-lethal military equipment
7 (1) Subsection 3(1) and paragraph 5(a) do not apply to non-lethal military equipment intended solely for humanitarian or protective use, if the Committee of the Security Council has been notified five days in advance of its intended use.
Exception — protective clothing
(2) Subsection 3(1) and paragraph 5(a) do not apply to protective clothing, including flak jackets and military helmets, that is temporarily exported to Somalia by United Nations personnel, representatives of the media and humanitarian and development workers and associated personnel, solely for their personal use.
Exception — various entities
8 Subsection 3(1) and paragraph 5(a) do not apply to an activity that is intended solely for the support of
- (a) AMISOM;
- (b) the strategic partners of AMISOM operating solely in the context of activities referred to in Security Council Resolution 2111;
- (c) United Nations personnel, including personnel of the United Nations Assistance Mission in Somalia (UNSOM); or
- (d) the European Union Training Mission in Somalia (EUTM).
Exception — Somalia
9 (1) Subsection 3(1) and paragraph 5(a) do not apply to arms and related material that are intended for use by Somalia unless those items are set out in the annex to Security Council Resolution 2111, in which case the activity must be approved in advance by the Committee of the Security Council.
Exception — security sector
(2) Subsection 3(1) and paragraph 5(a) do not apply to an activity that is intended solely to develop Somalia’s security sector, if the Committee of the Security Council has been notified five working days in advance of the activity and does not object.
Exception — suppression of piracy
10 (1) Subsection 3(1) and paragraph 5(a) do not apply to an activity that is intended solely to support a Member State of the United Nations or an international, regional or sub-regional organization in undertaking measures to suppress piracy and armed robbery at sea off the coast of Somalia, if the activity is in accordance with Security Council Resolution 2111.
Exception — Canadian vessels
(2) Subsection 3(1) does not apply to arms and related material that are carried for defensive purposes on a Canadian vessel as defined in section 2 of the Canada Shipping Act, 2001.
Assisting in prohibited activity
11 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 2 to 6.
Obligations
Duty to determine
12 The following entities must determine on a continuing basis whether they are in possession or control of property that is owned, held or controlled by or on behalf of a designated person under paragraph 3 or a designated person under paragraph 8:
- (a) authorized foreign banks, as defined in section 2 of the Bank Act, in respect of their business in Canada, and banks regulated by that Act;
- (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 regulated by a provincial Act that are engaged in the business of insuring risks;
- (f) companies regulated by the Trust and Loan Companies Act;
- (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.
Duty to disclose — RCMP or CSIS
13 (1) Every person in Canada, every Canadian outside Canada and every entity set out in section 12 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, held or controlled by or on behalf of a designated person under paragraph 3 or a designated person under paragraph 8; and
- (b) any information about a transaction or proposed transaction in respect of property referred to in paragraph (a).
Immunity
(2) No proceedings under the United Nations Act and no civil proceedings lie against a person for a disclosure made in good faith under subsection (1).
Applications
Exemption
14 (1) A person that wishes to engage in any activity that is prohibited under these Regulations must, before doing so, apply to the Minister in writing for a certificate to exempt the activity from the application of the Regulations.
Certificate
(2) The Minister must issue the certificate if the Security Council did not intend that the activity be prohibited or if the Security Council or the Committee of the Security Council has approved the activity in advance.
Basic or extraordinary expenses
15 (1) A person whose property is affected by the application of section 2 may apply to the Minister in writing for a certificate to exempt the property from the application of that section if the property is necessary for basic or extraordinary expenses or is subject to a lien, mortgage or security interest, to a hypothec or prior claim, to a charge or to a judicial, administrative or arbitral decision.
Certificate
(2) If it is established in accordance with Security Council Resolution 1844 that the property is necessary for basic or extraordinary expenses or that it is subject to a lien, mortgage or security interest, to a hypothec or prior claim, to a charge or to a judicial, administrative or arbitral decision, the Minister must issue a certificate within the following time periods:
- (a) within 15 working days after receiving the application, in the case of property necessary for basic expenses, if the Committee of the Security Council did not oppose the application;
- (b) within 30 working days after receiving the application, in the case of property necessary for extraordinary expenses, if the Committee of the Security Council approved the application; and
- (c) within 90 working days after receiving the application, in the case of property that is subject to a lien, mortgage or security interest, to a hypothec or prior claim, to a charge or to a judicial, administrative or arbitral decision that
- (i) was created or issued before the person became a designated person under paragraph 3 or a designated person under paragraph 8,
- (ii) is not for the benefit of a person referred to in subparagraph (i), and
- (iii) has been brought to the attention of the Committee of the Security Council by the Minister.
Mistaken identity
16 (1) A person whose name is the same as or similar to the name of a designated person under paragraph 3 or a designated person under paragraph 8 and that claims not to be that designated person may apply to the Minister in writing for a certificate stating that they are not that designated person under paragraph 3 or that designated person under paragraph 8.
Determination by Minister
(2) Within 45 working days after receiving the application, the Minister must
- (a) issue the certificate, if it is established that the applicant is not the designated person under paragraph 3 or the designated person under paragraph 8; or
- (b) provide notice to the applicant of his or her determination, if it is not so established.
Personal Information
Communication by Minister
17 (1) The Minister may, for the purpose of enforcing these Regulations or fulfilling any obligation under a resolution of the Security Council with respect to Somalia or to respond to a request from the Security Council or any of its subsidiary organs, disclose any personal information to an official or the Security Council or any of its subsidiary organs.
Receipt of information
(2) An official may receive any personal information disclosed to them under subsection (1).
Communication by official
(3) An official may, for the purpose of enforcing these Regulations or fulfilling any obligation under a resolution of the Security Council with respect to Somalia or to respond to a request from the Security Council or any of its subsidiary organs, disclose any personal information to the Minister.
Application Before Publication
6 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
7 These Regulations come into force on the day on which they are registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Regulations.)
Issues
As a Member State of the United Nations and pursuant to Article 25 of the Charter of the United Nations (the Charter), Canada is legally obligated to implement binding decisions of the Security Council taken under Chapter VII of the Charter. On January 23, 1992, acting under Chapter VII of the Charter, the United Nations Security Council (the Security Council) adopted Resolution 733 (1992), imposing an arms embargo on Somalia. Resolution 1844 (2008) expanded the embargo to include a targeted ban on individuals and entities and created an asset freeze. Resolution 2036 (2012) established a charcoal ban. Canada has implemented resolutions 733 (1992), 1844 (2008) and 2036 (2012) through the Regulations Implementing the United Nations Resolutions on Somalia. Since the implementation of these resolutions, the Security Council adopted Resolution 2111 (2013), which consolidated the arms embargo and the asset freeze, set out exemptions to the arms embargo and the asset freeze, and provided for a related notification requirement. Resolution 2498 (2019) extended the exemptions to the arms embargo and the asset freeze.
Objective
- Fulfill Canada’s international legal obligation to implement the binding decisions of the Security Council set out in resolutions 2111 (2013) and 2498 (2019); and
- Address miscellaneous amendments raised by the Standing Joint Committee for the Scrutiny of Regulations (SJCSR).
Description
The Regulations Amending the Regulations Implementing the United Nations Resolutions on Somalia (the Regulations) give effect to the decisions by the Security Council to impose various measures outlined in resolutions 2111 (2013) and 2498 (2019).
The Regulations
- update the exceptions to the Somali arms embargo, including for exports of arms to strategic partners of the African Union Mission in Somalia, United Nations personnel, the European Union Training Mission in Somalia, the Somali National Security Forces, under specific conditions;
- create an exception to the asset freeze for humanitarian assistance programs delivered by the United Nations; this new provision allows the payment of funds, or other financial resources necessary to ensure the timely delivery of urgently needed humanitarian assistance in Somalia;
- make miscellaneous amendments to address changes requested by the SJCSR, such as ensuring the English and French text are equivalent including certain typographical mistakes like the error found in the French definition of “résolution 751 du Conseil de sécurité”;
- extend the exemptions to the arms embargo and the asset freeze until November 15, 2020; and
- create provisions allowing for the disclosure of personal information by officials and by the Minister in order to comply with requests from the Security Council.
For more information, please consult Security Council Resolution 2111 (2013) (PDF) and Resolution 2498 (2019) (PDF).
Regulatory development
Consultation
Global Affairs Canada engages regularly with relevant stakeholders including civil society organizations and cultural communities and other like-minded governments regarding Canada’s approach to sanctions implementation. With respect to the specific proposed amendments, no such external outreach was conducted. Canada is obliged to implement the binding elements of the Security Council resolutions related to the Regulations as a member of the United Nations.
Modern treaty obligations and Indigenous engagement and consultation
An assessment has been conducted and no modern treaty implications have been identified.
Instrument choice
Regulations are the sole method to enact sanctions in Canada. No other instrument could be considered.
Regulatory analysis
Benefits and costs
The Regulations make Canada compliant with its obligations under the Charter of the United Nations by implementing Security Council resolutions 2111 (2013) and 2498 (2019).
Canadian banks and financial institutions are required to comply with the sanctions. They will do so by adding the new prohibitions to their existing monitoring systems, which may result in a minor compliance cost.
Small business lens
As trade is already impacted by current economic measures against Somalia, these Regulations are not expected to result in cost impacts on small business.
To facilitate compliance by small businesses, Global Affairs Canada is in the process of conducting enhanced outreach with stakeholders to better inform them of changes to the Regulations. This includes updates to the sanctions website as well as the creation of the sanctions hotline. In addition, the Trade Commissioner Service is engaged in implementing Canada’s Trade Diversification Strategy, which will support Canadian companies seeking to find alternative export markets.
One-for-one rule
The one-for-one rule does not apply to the Regulations, as they do not impose incremental administrative burden on businesses.
Regulatory cooperation and alignment
The Regulations align with Security Council resolutions 2111 (2013) and 2498 (2019) and are made to fulfill Canada’s obligation to implement all measures taken by the Security Council under Chapter VII of the Charter of the United Nations.
Strategic environmental assessment
The Regulations are unlikely to result in important environmental effects. In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan concluded that a strategic environmental assessment is not required.
Gender-based analysis plus
The subject of sanctions has previously been addressed for effects on gender and diversity in May 2018, in consultations with departmental gender-based analysis plus (GBA+) experts.
Although sanctions are intended to facilitate change to restore peace and security, protect and advance human rights, and combat foreign corruption through economic pressure on states and responsible individuals, they can nevertheless have an impact on vulnerable groups. In countries facing sanctions, such groups have historically been more likely to bear the political and economic instability caused by economic sanctions due to their disadvantaged position in society.
Women, in particular, are more likely to suffer due to their vulnerable socioeconomic and political status. This may particularly be the case in developing countries where broader economic sanctions are in place. This suffering has been historically measured using the following variables: women’s participation in the workplace; economic participation; political participation; and women’s economic rights. In addition, women are often primarily responsible for feeding and caring for their families in many of their countries, which is made more difficult if goods are scarce or not available in target countries, as a result of sanctions.
Current sanctions regimes are being improved from a gender and diversity responsiveness perspective. Canada is seeking to improve this responsiveness through funding research that further explores the gendered aspects of Canadian and international sanctions, as well as advancing international advocacy efforts in the multilateral settings where sanctions are designed. In addition, Canada undertakes direct, gender-responsive development programming in many countries affected by sanctions, and Canada’s contributions to international financial institutions can also go toward projects and programs in countries subject to Canadian sanctions.
Implementation, compliance and enforcement, and service standards
Canada’s sanctions regulations are enforced by the Royal Canadian Mounted Police and the Canada Border Services Agency. Anyone who contravenes the Regulations is liable, upon conviction, to the punishments set out in section 3 of the United Nations Act (namely, on summary conviction, to a fine of not more than $100,000 or to imprisonment for a term of not more than one year, or to both; or on conviction on indictment, to imprisonment for a term of not more than 10 years).
Contact
Marie-Hélène Côté
Director
Southern and Eastern Africa Bilateral Relations Division
Telephone: 343‑203‑3335
Email: Marie-Helene.Cote@international.gc.ca