Regulations Amending the Special Economic Measures (Hamas Terrorist Attacks) Regulations: SOR/2024-87

Canada Gazette, Part II, Volume 158, Number 11

Registration
SOR/2024-87 May 9, 2024

SPECIAL ECONOMIC MEASURES ACT

P.C. 2024-511 May 9, 2024

Whereas the Governor in Council is of the opinion that the attacks by Hamas against the State of Israel that started on October 7, 2023 constitute a grave breach of international peace and security that has resulted 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 (Hamas Terrorist Attacks) Regulations under paragraph 4(1)(a)footnote a and subsections 4(1.1)footnote b, (2)footnote c and (3) of the Special Economic Measures Act footnote d.

Regulations Amending the Special Economic Measures (Hamas Terrorist Attacks) Regulations

Amendments

1 Paragraph 2(a) of the French version of the Special Economic Measures (Hamas Terrorist Attacks) Regulations footnote 1 is replaced by the following:

2 The schedule to the Regulations is amended by adding the following in numerical order:

Application Before Publication

3 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

4 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

The October 7, 2023, terrorist attacks by Hamas in Israel, and the subsequent actions undertaken by Hamas and its affiliates against Israel and persons residing in Israel, constitute a grave breach of international peace and security, resulting in a serious international crisis. Additionally, the heinous acts of violence by Hamas directly caused suffering and loss of human life and were a gross violation of human rights. Hamas’ leadership has stated that they intend to carry out further attacks against Israel and continue to call for the destruction of Israel.

Background

On October 7, 2023, Hamas launched a brutal attack from Gaza on several Israeli communities, sending armed militants into Israel to kill, torture, rape and capture persons residing in Israel. The attack was characterized by sexual violence, abduction, maiming, and murder. In the attack, Hamas killed over 1 200 individuals and took more than 200 hostages captive back into Gaza. More than 100 days after the attacks, 132 hostages remain in captivity.

Hamas is part of Iran’s so-called “Axis of Resistance,” a core part of Iran’s regional defence posture. This coalition of like-minded states and non-state actors includes Hamas, the Houthis, Hezbollah and Iranian-aligned militias in Iraq. Iran’s support for the Axis includes funding, arms provision, and training.

Canada has listed Hamas as a terrorist entity under the Criminal Code since November 2002, making it a criminal offence to participate in or contribute to any activity by Hamas knowingly. Members of a listed terrorist entity are inadmissible to Canada under the Immigration and Refugee Protection Act, and property owned by listed terrorist entities in Canada may be subject to seizure, restraint, or forfeiture. In response to the October 7 terrorist attacks against Israel and the ensuing conflict, the Government of Canada put in place additional measures against Hamas and its affiliates, including sanctions under the Special Economic Measures (Hamas Terrorist Attacks) Regulations.

There continues to be a strong international consensus amongst Canada’s allies and partners on the importance of further reinforcing measures to isolate, delegitimize, and counter Hamas’ ability to operate, raise funds and carry out terrorist acts.

Objective

These sanctions intend to send a clear signal of

Description

The Regulations Amending the Special Economic Measures (Hamas Terrorist Attacks) Regulations (the Regulations) designate four individuals who are subject to a dealings ban. As part of their roles in providing military training and resources to Hamas, these individuals have engaged in activities that directly or indirectly enable or contribute to the attacks by Hamas against the State of Israel and persons residing in the State of Israel, commencing on October 7, 2023. These measures help counter Hamas’ ability to operate, raise funds and carry out terrorist acts, including by ensuring that Canada’s financial system is protected from use by these specific individuals.

Any person in Canada or Canadian outside Canada is thereby prohibited from dealing in the property of, entering into transactions with, providing services to, transferring property to, or otherwise making goods available to listed persons. These measures will also render listed individuals inadmissible to Canada under the Immigration and Refugee Protection Act. Under the Regulations, listed persons may apply to the Minister of Foreign Affairs to have their name removed from the schedule of designated persons. The Minister must determine whether there are reasonable grounds to make a recommendation to the Governor in Council for removal.

Regulatory development

Consultation

Global Affairs Canada regularly engages with relevant stakeholders, including civil society organizations, cultural communities and other like-minded governments, regarding Canada’s approach to sanctions implementation.

With respect to the amendments, public consultation would not have been appropriate given the urgency to impose these measures. Publicizing the names of the persons targeted by sanctions would also have potentially resulted in asset flight prior to the coming into force of the amendments.

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 Regulations 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

The incremental cost to the Government of Canada to administer and enforce these additional prohibitions is minimal. Sanctions targeting specific individuals and entities also 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 individuals and entities. Based on the initial assessment of available open-source information, it is believed that the individuals listed have limited linkages with Canada and, therefore, do not have significant business dealings that are relevant to the Canadian economy. It is thus anticipated that there will be no significant impacts on Canadians and Canadian businesses as a result of these amendments.

Canadian banks and financial institutions are required to comply with sanctions. They will do so by adding the newly listed individuals and entities to their existing monitoring systems, which may result in a compliance cost.

Small business lens

Analysis under the small business lens concluded that the amendments could impact Canadian small businesses. The Regulations prohibit Canadian businesses from dealing with, providing services to, or making goods available to listed persons, but do not create any direct administrative obligations related to them. While Canadian businesses may seek permits under the Regulations, they are granted on an exceptional basis, and Global Affairs Canada does not anticipate any applications resulting from listing these individuals. As a result, there would be no incremental administrative burden arising from this requirement. Canadian small businesses are also subject to the duty to disclose under the Regulations, which would represent a direct compliance requirement. However, as the newly listed individuals have limited known linkages with Canada, Global Affairs Canada does not anticipate any disclosures resulting from the amendments.

One-for-one rule

The one-for-one rule does not apply, as there is no incremental change in administrative burden on businesses. The permitting process for businesses meets the definition of “administrative burden” in the Red Tape Reduction Act; however, while permits may be granted under the Regulations on an exceptional basis, given that the listed individuals have limited business ties to the Canadian economy, Global Affairs Canada does not anticipate any permit applications with respect to the Regulations.

Regulatory cooperation and alignment

The Regulations are not related to a work plan or commitment under a formal regulatory cooperation forum. These measures align with actions taken by Canada’s allies. Sanctions are most effective when they are applied in a coordinated manner.

Canada’s sanctions against Hamas and its affiliates come in support of concerted efforts with like-minded governments to dismantle and restrict Hamas’ financial architecture in order to hinder further efforts by Hamas to continue on with its attacks. Since October 2023, Canada and its allies, including Australia, Japan, the European Union, the United Kingdom and the United States, have enacted measures that target a range of actors related to Hamas, including terrorist groups and key leaders, as well as financial facilitators and enablers. These measures include terrorist listings, asset freezes, reporting requirements, dealings bans, travel bans, arms embargoes, and financial measures.

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 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 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 the whole region, these targeted sanctions impact individuals who have participated in gross and systematic human rights violations in relation to the October 7 terrorist attacks by Hamas in Israel. Therefore, these sanctions are unlikely to have a significant impact on vulnerable groups, as compared to traditional broad-based economic sanctions directed toward a foreign state and should limit the collateral effects to those dependent on the targeted individuals.

Implementation, compliance and enforcement, and service standards

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

Consequential to being listed in the Regulations, and pursuant to the application of paragraph 35.1(b) of the Immigration and Refugee Protection Act, the listed individuals will be inadmissible to Canada.

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.

New listings may result in new applications for permits seeking the Minister of Foreign Affairs’ authorization to conduct activities otherwise prohibited under Canadian sanctions. The Minister has the authority to grant such permits under the Special Economic Measures (Hamas Terrorist Attacks) Permit Authorization Order. Listed persons may also apply to the Minister of Foreign Affairs to have their name removed from the schedule of designated persons. The Minister must determine whether there are reasonable grounds to make a recommendation to the Governor in Council for removal.

The Trade Commissioner Service (TCS) for Global Affairs Canada, abroad and in Canada, continues to assist clients in understanding Canadian sanctions regulations, and notably the impact of the regulations on any activities in which Canadians may be engaged. Global Affairs Canada is also increasing outreach efforts across Canada — including to engage with businesses, universities, and provincial/territorial governments — to enhance national awareness of and compliance with Canadian sanctions.

Under the SEMA, both Royal Canadian Mounted Police and Canada Border Services Agency officers have the power to enforce sanctions violations through their authorities, as defined under the Customs Act, the Excise Act or the Excise Act, 2001, and sections 487 to 490, 491.1 and 491.2 of the Criminal Code.

In accordance with section 8 of the 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; or, upon conviction on indictment, to imprisonment for a term of not more than five years.

Contact

Israel, West Bank and Gaza Division
Global Affairs Canada
125 Sussex Drive
Ottawa, Ontario
K1A 0G2
Telephone: 343‑204‑5401
Email: extott-ela@international.gc.ca