Regulations Amending the Special Economic Measures (Venezuela) Regulations: SOR/2025-112

Canada Gazette, Part II, Volume 159, Number 8

Registration
SOR/2025-112 March 20, 2025

SPECIAL ECONOMIC MEASURES ACT

P.C. 2025-450 March 20, 2025

Whereas the Governor in Council is of the opinion that gross and systematic human rights violations have been committed in the Bolivarian Republic of Venezuela;

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 (Venezuela) 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 (Venezuela) Regulations

Amendment

1 The schedule to the Special Economic Measures (Venezuela) 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

On January 10, 2025, Nicolas Maduro proceeded to illegitimately inaugurate himself as President of Venezuela. Disregarding will of the Venezuelan people and the calls of the international community, Maduro and his regime are further entrenching themselves in power and adopting practices of state terrorism to sow fear among citizens. Venezuelan citizens are increasingly unable to exercise their rights, forcing many to seek better living conditions abroad, and the humanitarian crisis continues to deteriorate.

Background

Leading up to and following the July 28, 2024, presidential elections, Maduro resorted to using the Venezuelan state apparatus to launch a coordinated repressive strategy to prevent the political participation of the opposition, hindering the holding of free and fair elections and instilling fear among Venezuelans. Tactics included mass arbitrary detentions, forced disappearances, torture, raids without a judicial warrant, the marking of his opponents’ homes, raids of poor neighbourhoods, sudden cancellation of passports, and most of all the use of terror as a tool of social control. As a result, the most prominent figures of the Venezuelan opposition were arbitrarily detained, forced into exile or went into hiding to avoid personal injury. The Independent International Fact-Finding Mission on Venezuela established by the United Nations Human Rights Council has concluded that the Maduro regime has resorted to severe human rights violations, some of which amount to crimes against humanity, to stay in power.

Disregarding the will of the Venezuelan people and calls of the international community, Maduro illegitimately inaugurated himself for another six-year term on January 10, 2025, further eroding the already weakened democratic institutions of Venezuela. As reported by the Inter-American Commission on Human Rights, the circumstances surrounding 2024 presidential election constitute “an alteration of the constitutional order” making it impossible to regard the re-election of Nicolás Maduro and his inauguration as democratic and legitimate.

The adoption of practices of state terrorism aimed at instilling fear among citizens and silencing opponents, human rights defenders, journalists and activists are of great concern. There are numerous and credible reports of severe restrictions on freedom of expression in Venezuela, especially with regard to criticizing the Government. Criminal law, including anti-terrorism laws, continues to be applied to silence dissident or critical opinions. Journalists face significant obstacles in their work due to fear of violence, harassment, and the possible criminalization of news reporting. International human rights mechanisms have also documented the detention and criminalization of citizens for expressing their discontent with the situation in Venezuela on social media.

Canada’s response

Since 2017, Canada has implemented a series of sanctions against Venezuela in response to the Maduro regime’s erosion of democratic institutions and violation of human rights. Canada first imposed sanctions on September 22, 2017, when Canada designated 40 individuals linked to the Government, aiming to hold accountable those responsible for undermining democracy and stability in the country. These measures were enacted under the Special Economic Measures Act (SEMA) and included asset freezes and prohibitions on dealings with the listed individuals. To date, Canada has imposed targeted sanctions on 131 individuals under the Special Economic Measures (Venezuela) Regulations (the Regulations) and the Justice for Victims of Corrupt Foreign Officials Act (SergeiMagnitsky Law).

On December 13, 2024, the scope of the Regulations was expanded to allow Canada to impose sanctions in response to the current and continuously deteriorating situation in Venezuela and include activities that contribute directly or indirectly to the grave breach of international peace and security, gross and systematic human rights violations, or significant corruption. At the same time, Canada announced the imposition of sanctions on five individuals who engaged in activities that directly or indirectly undermine democracy in Venezuela. Shortly after, on January 10, 2025, and in coordination with like-minded partners, Canada announced sanctions on 14 individuals who engaged in activities that directly or indirectly contributed to, or supported, gross and systematic human rights violations in Venezuela.

Canada has remained active in its response to the Venezuelan crisis, including through co-sponsoring resolutions and making interventions at the Organization of American States, the United Nations General Assembly, the United Nations Human Rights Council, and other international forums, calling on Venezuelan authorities to respect human rights, democracy, and the will of the people.

Objective

Description

The Regulations Amending the Special Economic Measures (Venezuela) Regulations (the amendments) add eight individuals to the schedule of listed persons under the Regulations. These individuals are current senior officials of the Government of Venezuela who have engaged in activities that directly or indirectly contributed to, or supported, human rights violations in Venezuela and have engaged in activities that directly or indirectly undermine the peace, security or stability of Venezuela or the integrity of its democratic institutions. These designations include officials from the Bolivarian Armed Forces, Special Directorate of Criminal and Criminalistics Investigations of the Directorate General of Military Counter-Intelligence, the Directorate of Strategic and Tactical Actions of the Bolivarian National Police and the Scientific, Criminal and Forensic Investigations Corps.

Any person in Canada or Canadians outside Canada are 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 (individuals and entities). 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 in Venezuela, including civil society organizations, as well as other like-minded governments, regarding Canada’s response to the situation in Venezuela, including sanctions implementation.

With respect to the amendments, public consultation would not have been appropriate, given that publicizing the names of the persons targeted by sanctions would have likely 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 proposed regime does 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 amendments enhance Canada’s capacity for deterring actors from engaging in human rights violations, and/or acts that undermine the peace, security or stability of Venezuela or the integrity of its democratic institutions. The amendments align with Canada’s existing foreign policy strategies and actions to put pressure on Venezuela to respect the will of the people as expressed in the July 28, 2024, presidential election, and to ensure respect for human rights in Venezuela.

The incremental cost to the Government of Canada to administer and enforce these additional sanctions measures is minimal. The amendments target specific individuals, and as such 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. Based on an initial assessment of available open-source information, it is believed that the newly listed individuals have limited linkages with Canada and therefore do not have business dealings that are significant to the Canadian economy. Therefore, it is 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 the sanctions. They will do so by adding the new prohibitions to their existing monitoring systems, which may result in a very minor compliance cost.

Small business lens

With respect to the persons being listed under the Regulations, an 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 otherwise 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. Global Affairs Canada does not anticipate any applications resulting from listing these persons. Thus, 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 persons 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 business. 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

While the Regulations are not related to a work plan or commitment under a formal regulatory cooperation forum, they align with actions taken by like-minded partners. Sanctions are most effective when they are applied in a coordinated manner. Several like-minded countries have imposed sanctions in response to the corrupt actions and human rights violations in Venezuela. On September 12, 2024, the United States (U.S.) issued a round of sanctions on 16 members of the de facto Venezuelan Government involved in acts obstructing a competitive and inclusive presidential election process in Venezuela and violations of human rights. On November 27, 2024, they imposed another round of sanctions on 21 members of the de facto Venezuelan Government on the same basis. On January 10, 2025, the U.S., European Union, United Kingdom, and Canada imposed sanctions on Venezuelan officials to continue to put pressure on the Maduro regime.

International obligations

Compliance with Canada’s international commitments was considered in the development of this proposal.

Effects on the environment

The amendments are unlikely to result in important environmental effects. In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment (SEEA Directive), a preliminary scan concluded that a SEEA 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 and entities in foreign states, sanctions under the SEMA can nevertheless have an unintended indirect impact on certain vulnerable groups and individuals. Rather than affecting Venezuelans as a whole, these targeted sanctions would directly impact only those listed individuals. Therefore, these sanctions are unlikely to have a significant negative indirect 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.

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 would 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.

The Trade Commissioner Service at Global Affairs 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, abroad and in Canada. Global Affairs Canada is also increasing outreach efforts across Canada — including engaging with businesses, universities, and provincial and 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

Global Affairs Canada
Sanctions Bureau
125 Sussex Drive
Ottawa, Ontario
K1A 0G2
Telephone (toll-free): 1‑833‑352‑0769
Telephone (local): 343‑203‑3975
Fax: 613‑995‑9085
Email: sanctions@international.gc.ca