Document Properties
- Type of Publication: Notice
- Date: December 12, 2012
This Notice is directed to the attention of all banks, authorized foreign banks, trust and loan companies, cooperative credit societies, cooperative retail associations, life insurance companies, property and casualty insurance companies and fraternal benefit societies (FRFIs).
On November 28, 2012 the Governor in Council enacted further regulations strengthening the Canadian sanctions against Syria under the Special Economic Measures Act (SEMA). Detailed information and links to the specific regulations can be found on the Department of Foreign Affairs and International Trade (DFAIT) Canadian Economic Sanction Page at:
http://www.international.gc.ca/sanctions/syria-syrie.aspx?lang=eng&menu_id=70&view=d
The November 28, 2012 regulations add 10 individuals and 3 entities to the list of Designated Persons, and remove two individuals and 1 entity.
Sanctions against Designated Persons
The SEMA Syria Regulations prohibit the provision or acquisition of financial or other related services to, from or for the benefit of or on the direction or order of Syria or any person in Syria. These include the Central Bank of Syria.
Searching, Monitoring and Reporting Obligations
The SEMA Syria Regulations require FRFIs to ensure that they do not provide or acquire prescribed financial and other related services to, from or for the benefit of, or on the direction or order of Syria or any persons in Syria. This will entail ensuring that customer relationships and accounts are monitored accordingly. Implementation will require financial institutions to identify accounts to which the SEMA Syria Regulations apply, and also to monitor financial transactions, to ensure that assets and/or transactions connected to designated persons, products or services are identified, blocked and reported as appropriate, including implementation measures at any branches of financial institutions, including FRFIs outside Canada.
OSFI expects that FRFIs will continue to implement the necessary measures to comply with their obligations under the SEMA Syria Regulations. As with other searching and reporting requirements, the obligation to search for designated names is a continuing one. For example, at a minimum, it is our expectation that federally regulated deposittaking institutions be able to search their records for designated names at least on a weekly basis, and more frequently if need be.
Disclosure to Law Enforcement
If Canadian financial institutions have property in their possession or control that they have reason to believe is owned or controlled by designated persons, or they have information about a transaction or proposed transaction in respect of property covered by the SEMA Syria Regulations, they are required to report such information to the Royal Canadian Mounted Police immediately. Information may be provided to the following fax numbers:
RCMP
Customs & Excise Branch Ottawa, ON
Fax : 613-993-2499
Or
National Operations Centre Ottawa, ON
Fax : 613-952-7575
No Reporting to Financial Regulators
Please note that the SEMA Syria Regulations do not require financial institutions to report to their financial regulators each month on the results of the continuous searching and reporting obligations.
Where to go for more information
If any clarification is needed on the requirements of the SEMA Syria Regulations, please contact:
Department of Foreign Affairs and International Trade
United Nations, Human Rights and Economic Law Division
125 Sussex Drive,
Ottawa, ON
K1A 0G2
Email: sanctions@international.gc.ca
Telephone: (613) 995-1108
Fax: (613) 992-2467
This Notice is also being sent to the following for their information:
- Provincial Regulators and Supervisors;
- Canadian Association of Direct Response Insurers;
- Canadian Bankers Association;
- Canadian Fraternal Association;
- Canadian Life and Health Insurance Association;
- Canadian Securities Administrators;
- Credit Union Central of Canada;
- Insurance Bureau of Canada;
- Investment Industry Regulatory Organization of Canada;
- Trust Companies Association of Canada.