Regulations Amending the Special Economic Measures (Haiti) Regulations: SOR/2022-258

Canada Gazette, Part II, Volume 156, Number 26

Registration
SOR/2022-258 December 2, 2022

SPECIAL ECONOMIC MEASURES ACT

P.C. 2022-1300 December 2, 2022

Whereas the Governor in Council is of the opinion that the situation in the Republic of Haiti constitutes a grave breach of international peace and security that has resulted or is likely to result in a serious international crisis;

Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Foreign Affairs, makes the annexed Regulations Amending the Special Economic Measures (Haiti) Regulations under subsections 4(1)footnote a, (1.1)footnote b, (2)footnote c and (3) of the Special Economic Measures Act footnote d.

Regulations Amending the Special Economic Measures (Haiti) Regulations

Amendment

1 The schedule to the Special Economic Measures (Haiti) Regulations footnote 1 is amended by adding the following in numerical order:

Application Before Publication

2 For the purpose of paragraph 11(2)(a) of the Statutory Instruments Act, these Regulations apply according to their terms before they are published in the Canada Gazette.

Coming into Force

3 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

Economic elites are using their position, association with political figures, influence and resources to protect and/or support the activities of criminal gangs, which is contributing to a severe humanitarian crisis and a grave breach of international peace and security.

Background

For several years, Haiti has been gripped by a multidimensional crisis characterized by rampant inflation, chronic poverty, alarming insecurity as well as a political deadlock paralyzing most public institutions. In this context, Haitians experience daily assaults on their basic human rights.

The Special Economic Measures (Haiti) Regulations (the Regulations) announced on November 4, 2022, allow Canada to target sanctions at key individuals who finance, support or benefit from the activities of armed gangs. These gangs, who terrorize and subjugate the population, operate under the protection of political elites and oligarchs. Further, they have deliberately killed, injured and committed acts of sexual violence to terrorize and subjugate the population, and to expand territorial control. Starting September 12, the gangs encircled Port-au-Prince and were blocking access to strategic installations, such as ports as well as the Varreux fuel terminal. These blockades affected critical public services and infrastructure, as several health facilities and schools had to close. These blockades also intensified an existing humanitarian crisis, characterized by the re-emergence of cholera and millions of Haitians experiencing acute hunger. Following the Haitian National Police operations to secure a corridor for the transport of fuel, and subsequent announcement by leader of the G9 coalition of gangs, Jimmy Chevrier, to allow the passage of fuel trucks in early November 2022, access to the terminal has started to normalize. Despite this improvement, insecurity remains rampant with gangs maintaining control over large swaths of the capital.

The international community is seized by the current crisis and is taking action to limit the flow of financial support to those perpetuating violence in Haiti, as demonstrated by the unanimous adoption, on October 21, 2022, by the United Nations Security Council (UNSC) of a resolution establishing a new sanctions regime. Canada has closely coordinated with the United States to establish the autonomous sanctions regime aimed at applying immediate pressure on those supporting or fomenting the violence in Haiti, in order to put an end to the violence, and allow for Haitian authorities to restore law and order. Canada and the United States have continued to work closely together to strengthen these measures, including through the identification of additional targets.

The regulatory amendments align with existing policy and objectives to address the multidimensional crisis in Haiti. It also advances policy objectives focused on promoting good governance, democracy and the fight against corruption and impunity. Finally, the proposed regulatory amendments build on existing measures thereby reinforcing Canada’s steadfast commitment to promoting regional development, peace and security and to work with the international community in supporting Haitian authorities’ efforts to restore law and order.

Objective

These sanctions are intended to exert pressure on individuals who have established links to criminal gangs, in order to obstruct the flow of illicit funds and weapons to Haiti, facilitated by these individuals.

Description

The Regulations Amending the Special Economic Measures (Haiti) Regulations (the amendments) include three individuals subject to a broad dealings ban. There is reason to believe that the designated three individuals, all considered among the economic elite in Haiti, have used their influence and resources to protect and/or support the activities of criminal gangs, including through money laundering and other acts of corruption. These gangs are committing unspeakable violence and terrorizing vulnerable populations with impunity.

Any individual or entity in Canada, and Canadians and Canadian entities outside Canada are thereby prohibited from dealing in the property of, entering into transactions with, providing financial or related services to, or otherwise making goods available to listed persons.

Regulatory development

Consultation

Global Affairs Canada engages regularly with relevant stakeholders in Haiti, including civil society organizations and other like-minded governments, regarding Canada’s approach to international assistance in Haiti, including sanctions implementation. As an example, Canada chairs the Economic and Social Council (ECOSOC) Ad Hoc Advisory Group on Haiti, and uses this platform to develop and discuss with its allies coordinated international responses to the economic and development challenges facing the country.

With respect to the amendments targeting individuals, public consultation would not have been appropriate, given the urgency to impose these measures in response to the deteriorating security situation and humanitarian crisis, which poses a significant threat to regional peace and security. The situation in Haiti has intensified regional tensions, particularly with the Dominican Republic. President Abinader of the Dominican Republic has asserted that the situation in Haiti amounts to a “low intensity civil war,” which threatens the Dominican Republic’s national security.

Modern treaty obligations and Indigenous engagement and consultation

An initial assessment of the geographical scope of the initiative was conducted and did not identify any modern treaty obligations, as the amendments do not take effect in a modern treaty area.

Instrument choice

Regulations are the sole method to enact sanctions in Canada. No other instrument could be considered.

Regulatory analysis

Benefits and costs

Sanctions targeting specific persons have less impact on Canadian businesses than traditional broad-based economic sanctions, and have limited impact on the citizens of the country of the listed persons. Canadian banks and financial institutions are required to comply with sanctions. They will do so by adding the newly listed individuals to their existing monitoring systems, which may result in a minor compliance cost.

Small business lens

It is possible the amendments could potentially create additional costs for businesses seeking permits that would authorize them to carry out specified activities or transactions that are otherwise prohibited, as Canada has not applied sanctions in the Haiti context since 1992 (later repealed). However, given that the sanctions are targeted, the likelihood of costs for businesses is minimal, as it is highly unlikely that Canadian businesses have or will have dealings with the newly listed individuals and entities. No significant loss of opportunities for small businesses is expected as a result of the amendments.

One-for-one rule

The permitting process for businesses meets the definition of “administrative burden” in the Red Tape Reduction Act and would need to be calculated and offset within 24 months. However, the amendments address an emergency circumstance and are exempt from the requirement to offset administrative burden and regulatory titles under the one-for-one rule.

Regulatory cooperation and alignment

While the amendments are not related to a work plan or commitment under a formal regulatory cooperation forum, they align with actions taken by Canada’s allies.

Strategic environmental assessment

The amendments 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 (GBA+)

The subject of economic sanctions has previously been assessed for effects on gender and diversity. Although intended to facilitate a change in behaviour through economic pressure on individuals and entities in foreign states, sanctions under the Special Economic Measures Act (SEMA) can nevertheless have an unintended impact on certain vulnerable groups and individuals. Rather than affecting Haitians as a whole, these targeted sanctions impact individuals and entities believed to be engaged in activities that violate human rights and present an ongoing breach of international peace and security. Therefore, these sanctions are unlikely to have a significant negative impact on vulnerable groups as compared to traditional broad-based economic sanctions directed toward a state, and limit the collateral effects to those dependent on those targeted individuals. Furthermore, these sanctions are being introduced in support of vulnerable populations, particularly women and girls, who continue to face daily assaults on their basic human rights by criminal gangs, including sexual and gender-based violence.

Rationale

Gangs supported by the Haitian elite and others have expanded their territorial control over the country. Several UN Missions were deployed over the years in an attempt to support Haitian authorities’ efforts to restore order. A key gap in international interventions to date has been the establishment of measures to identify and exert pressure on those providing financial support and arms to criminal gangs to advance their own financial and/or political interests, capitalizing on the endemic corruption and money laundering that exists in the country. Sanctions announced by Canada in November 2022 targeted a number of current and former politicians. There is reason to believe that these individuals benefit from the instability created by the current violence which has resulted in a grave breach of international security resulting in an international crisis. The current amendment compliments and strengthens these measures by designating an additional three individuals. A sustained Canadian response aims to exert pressure on these individuals so that they change their behaviour and cease their support to gangs. It is expected that this response will act as a deterrent for others engaged in or considering similar behaviour.

Implementation, compliance and enforcement, and service standards

The amendments come into force on the day they are registered.

The names of the listed individuals will be available online for financial institutions to review and will be added to the Consolidated Canadian Autonomous Sanctions List. This will help to facilitate compliance with the Regulations.

Canada’s sanctions regulations are enforced by the Royal Canadian Mounted Police. In accordance with section 8 of SEMA, every person who knowingly contravenes or fails to comply with the regulations is liable upon summary conviction to a fine of not more than $25,000 or to imprisonment for a term of not more than one year or to both, and upon conviction on indictment to imprisonment for a term of not more than five years.

The Canada Border Services Agency (CBSA) has enforcement authorities under SEMA and the Customs Act, and will play a role in the enforcement of these sanctions.

Contact

Sébastien Sigouin
Executive Director
Haiti Division
Global Affairs Canada
125 Sussex Drive
Ottawa, Ontario
K1A 0G2
Telephone: 343‑548‑7620
Email: sebastien.sigouin@international.gc.ca