Regulations Amending the Special Economic Measures (Iran) Regulations: SOR/2024-177

Canada Gazette, Part II, Volume 158, Number 21

Registration
SOR/2024-177 September 17, 2024

SPECIAL ECONOMIC MEASURES ACT

P.C. 2024-1005 September 16, 2024

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

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 (Iran) Regulations under paragraph 4(1)(a)footnote a and subsections (1.1)footnote b, (2)footnote c and (3) of the Special Economic Measures Act footnote d.

Regulations Amending the Special Economic Measures (Iran) Regulations

Amendment

1 Part 2.1 of Schedule 1 to the Special Economic Measures (Iran) 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

Subsequent to the “Woman, Life, Freedom” movement, the human rights situation in the Islamic Republic of Iran has deteriorated. Iran’s discriminatory laws and policies disproportionately impact women and girls. Iran continues to engage in gross and systematic human rights violations, including the violent repression of its citizens.

Background

Human rights situation in Iran

A deep-rooted, persistent disregard for human rights has characterized the Government of Iran for decades, especially targeting women and girls, ethnic and religious minorities, and human rights defenders.

On September 16, 2022, Mahsa Amini, a 22-year-old Kurdish Iranian woman, died while in the custody of Iran’s so-called “morality police.” Iranian authorities had detained her for allegedly violating the country’s strict dress code. Her death ignited widespread protests under the banner “Woman, Life, Freedom” (WLF) that called for broader political reforms, justice, and accountability.

The Government responded to these protests with widespread and severe repression. Security forces, including the Islamic Revolutionary Guard Corps (IRGC) and the Basij militia, used excessive force, up to and including lethal force, to quell unrest and the legitimate exercise of human rights. Reports by United Nations (UN) experts and human rights organizations detailed numerous violations, including the use of live ammunition, beatings, arbitrary arrests, and torture. Hundreds of protesters were killed and thousands were detained in the crackdown. Iran’s judicial system has long faced criticism for its lack of due process, including the use of sham trials and evidence obtained through torture.

Iran’s IRGC plays a significant role in the systemic human rights violations in the country. The IRGC has been directly involved in detaining and torturing protesters, using excessive force, and committing widespread violations. Additionally, the Law Enforcement Command of the Islamic Republic of Iran (LEF) is tasked with enforcing strict dress codes and other repressive measures, which have been central to the systematic oppression of women and girls. The LEF conducts surveillance, provides training and supplies equipment used to violently suppress protests.

In the aftermath of the WLF movement, the human rights situation in Iran continues to deteriorate and human rights violations by Iranian authorities persist. The regime continues to target not only protesters but also journalists, lawyers, and human rights defenders and their families. The judiciary, controlled by hardliners within the regime, facilitates the persecution of dissidents through politically motivated trials and harsh sentences, including the death penalty.

Also subsequent to the WLF protests in 2022–2023, Iran escalated its enforcement of the compulsory hijab law, using public cameras with facial recognition technology to identify women not adhering to the law and significantly increasing patrols by the “morality police.” The Government implemented stricter measures and penalties for non-compliance, reflecting a broader initiative to reinforce dress code regulations. This heightened enforcement continues to impose significant restrictions on women’s human rights, including severe punishments.

International response

Iran’s failure to uphold its international human rights obligations has been a point of condemnation by Canada and the international community. As the lead on the United Nations General Assembly (UNGA) resolution on the human rights situation in Iran, Canada documents the systemic violations of human rights by the Iranian regime in coordination with a core group of partner countries. This resolution remains a key component of meaningful international engagement to call attention to the human rights situation in Iran.

In response to the 2022 unrest and crackdown by Iran, the UN Human Rights Council established an Independent International Fact-Finding Mission to investigate the violations against women and children occurring after September 16, 2022. On April 4, 2024, the UN Human Rights Council extended the mandate of the Fact-Finding Mission. The UN Economic and Social Council also voted to successfully remove Iran from the UN Commission on the Status of Women. Canada was active in securing support for both initiatives, underscoring the need for accountability for human rights violations by the Iranian regime.

Canada and partners, including the European Union, the United Kingdom and the United States, have also imposed multiple rounds of sanctions against Iranian officials and entities responsible for participating in human rights violations.

Canadian sanctions against Iran

Between 2006 and 2010, Canada implemented into domestic law several rounds of UN sanctions against Iran in response to its nuclear program. In July 2010, Canada established the Special Economic Measures (Iran) Regulations (Iran Regulations), pursuant to the Special Economic Measures Act (SEMA). The Iran Regulations were based on Canada’s position that Iran’s actions amounted to a grave breach of international peace and security that resulted or was likely to result in a serious international crisis, in particular related to Iran’s nuclear program. Canada established these new regulations in coordination with the European Union, the United States and other like-minded partners.

In October 2022, Canada amended the Iran Regulations to include circumstances of gross and systematic human rights violations. Since October 2022, Canada has imposed 17 rounds of sanctions under the Iran Regulations.

On December 7, 2023, Canada also listed two Iranian individuals under the Justice for Victims of Corrupt Foreign Officials Regulations in relation to the torture and killing of Iranian-Canadian photojournalist Zahra Kazemi in Iran in 2003.

Most recently, on April 25, 2024, Canada imposed sanctions in response to Iran’s broad and first-ever direct attack on Israeli military targets.

In addition to the imposition of sanctions, Canada listed the IRGC as a terrorist entity under the Criminal Code in June 2024. This listing is intended to signal to Iran and the violent extremists it supports that Canada does not tolerate terrorism. Canada has also designated the state of Iran as a supporter of terrorism under the State Immunity Act in 2012. In concert with the Justice for Victims of Terrorism Act, this listing allows victims to bring civil action against Iran for losses or damages from an act of terrorism linked to Iran committed anywhere in the world. Following that designation in 2012, Canada expelled Iranian diplomats from Canada and closed its embassy in Tehran.

Objective

These sanctions are intended to increase pressure on Iran to cease its gross and systematic human rights violations, particularly those targeting women and girls. By holding Iran accountable for its actions, Canada reinforces its commitment to promoting gender equality and protecting the rights and freedoms of vulnerable populations.

Description

The amendments add five individuals to Schedule 1 of the Iran Regulations for their participation in gross and systematic human rights violations in Iran, particularly those targeting women and girls, given their roles to facilitate repressive policies and direct their implementation.

These sanctions target Iranian political figures who have played a significant role in these violations, including senior political officials and officials who have held prominent positions within Iran’s IRGC and the LEF.

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 (individuals and entities). These measures will also render listed individuals inadmissible to Canada under the Immigration and Refugee Protection Act (IRPA). Under the Iran 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 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 amendments 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 methods to enact sanctions in Canada. No other instruments could be considered.

Regulatory analysis

Benefits and costs

The amendments aim to impose costs on Iran for its flagrant violations of human rights domestically, and to seek to compel the regime to address the legitimate grievances and interests of its citizens.

The incremental cost to the Government of Canada to administer and enforce these additional prohibitions 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 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. 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 to their existing monitoring systems, which may result in a minor compliance cost.

Small business lens

With respect to the persons being listed under the Iran Regulations, an analysis under the small business lens concluded that the amendments could impact Canadian small businesses. The Iran 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 Iran 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 Iran 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 businesses. The permitting process for businesses meets the definitions of “administrative burden” in the Red Tape Reduction Act. However, while permits may be granted under the Iran 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 application with respect to the Iran Regulations.

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.

Effects on the environment

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

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 impact on certain groups and individuals in vulnerable situations. Rather than affecting Iran 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 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 and entities. Furthermore, these sanctions are being introduced in support of the women of Iran who face increasingly repressive and unacceptable levels of discrimination, harassment, and persecution by the Iranian regime.

Implementation, compliance and enforcement, and service standards

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

Consequential to being listed in the Iran 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 Iran 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 Iran 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