Vol. 149, No. 13 — July 1, 2015

Registration

SOR/2015-152 June 17, 2015

FREEZING ASSETS OF CORRUPT FOREIGN OFFICIALS ACT

Regulations Amending the Freezing Assets of Corrupt Foreign Officials (Tunisia and Egypt) Regulations

P.C. 2015-819 June 17, 2015

Whereas Egypt has asserted to the Government of Canada, in writing, that each of the persons listed in the annexed Regulations Amending the Freezing Assets of Corrupt Foreign Officials (Tunisia and Egypt) Regulations has misappropriated property of Egypt or acquired property inappropriately by virtue of their office or a personal or business relationship and Egypt has asked the Government of Canada to freeze the property of those persons;

Whereas the Governor in Council is satisfied that each of those persons is a politically exposed foreign person in relation to Egypt;

Whereas the Governor in Council is satisfied that there is internal turmoil, or an uncertain political situation, in Egypt;

And whereas the Governor in Council is satisfied that the making of the annexed Regulations Amending the Freezing Assets of Corrupt Foreign Officials (Tunisia and Egypt) Regulations is in the interest of international relations;

Therefore, His Excellency the Governor General in Council, on the recommendation of the Minister of Foreign Affairs, pursuant to subsections 4(1) to (3) of the Freezing Assets of Corrupt Foreign Officials Act (see footnote a), makes the annexed Regulations Amending the Freezing Assets of Corrupt Foreign Officials (Tunisia and Egypt) Regulations.

REGULATIONS AMENDING THE FREEZING ASSETS OF CORRUPT FOREIGN OFFICIALS (TUNISIA AND EGYPT) REGULATIONS

AMENDMENTS

1. Schedule 2 to the Freezing Assets of Corrupt Foreign Officials (Tunisia and Egypt) Regulations (see footnote 1) is amended by adding the following in numerical order:

9. Rachid Mohamed Rachid, born on February 9, 1955, former Minister of Trade and Industry

19. Hanya Mahmoud Abdel Rahman Fahmy (also known among other names as Hania Mahmoud Abdel Rahman Fahmi), born on July 5, 1959, spouse of Rachid Mohamed Rachid

2. Items 32 to 40, 66, 67, 82, 83, 94 to 102, 105 to 108, 117 to 120, 123, 130 and 134 to 148 of Schedule 2 to the Regulations are repealed.

APPLICATION BEFORE PUBLICATION

3. For the purpose of paragraph 11(2)(a) of the Statutory Instruments Act, these Regulations apply 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.)

Background

On March 23, 2011, the Governor in Council made, pursuant to the Freezing Assets of Corrupt Foreign Officials Act, the Freezing Assets of Corrupt Foreign Officials (Tunisia and Egypt) Regulations (SOR/2011-78) [the Regulations]. The Regulations give effect to written requests from Egypt to freeze the assets of former leaders and senior officials or their associates and family members suspected of having misappropriated state funds, or of having obtained property inappropriately as a result of their office or family, business or personal connections. The Regulations were updated on December 2011, December 2012 and February 2014 to add and remove names, thereby bringing the number of designated persons subject to having their assets frozen in Canada to 249 persons, 126 from Egypt and 123 from Tunisia.

Issues

Egypt has requested in writing that Canada amend Schedule 2 of the Regulations by re-adding two persons who are subject to new legal proceedings in Egypt for corruption and by delisting 47 persons no longer considered to be politically exposed foreign persons by the Government of Egypt. As a result, Schedule 2 of the Regulations should be amended to give effect to the requests.

Objectives

The regulatory action aims to

Description

The Freezing Assets of Corrupt Foreign Officials Act permits the freezing of assets or the restraint of property of politically exposed foreign persons upon receipt of a written request from a state, where the Governor in Council has determined that the state is in a state of turmoil or political uncertainty, and where the making of an order or a regulation is in the interest of international relations. Schedule 2 of the Regulations deals specifically with Egypt.

The written requests from Egypt that are the subject of these amendments pertain to 49 politically exposed foreign persons. Egypt has requested that Canada re-add two individuals who were previously removed from the list as subsequent proceedings and charges have been filed against them. Egypt has also requested that Canada delist 47 persons no longer considered to be politically exposed foreign persons by the Government of Egypt. As a result, Schedule 2 of the Regulations should be amended to give effect to the requests.

“One-for-One” Rule

The “One-for-One” Rule applies to this proposal, as there are minimal administrative costs to business because of the reporting requirement. However, the administrative burden associated with these Regulations is carved out from the “One-for-One” Rule, as they address unique, exceptional circumstances.

Consultation

The Department of Foreign Affairs, Trade and Development drafted the Regulations following consultations with the Department of Justice, the Office of the Superintendent of Financial Institutions and the Royal Canadian Mounted Police.

Small business lens

The small business lens does not apply to this proposal, as there are no costs (or insignificant costs) to small business, and small businesses would not be disproportionately affected.

Rationale

Egypt remains in the midst of a complex political transition characterized by political uncertainty, insecurity, and serious economic concerns. Canada is supportive of Egypt’s transition to democracy.

Considering Canada’s continued support for accountability, the rule of law and a transition to democracy in Egypt, amending the Regulations as requested by Egypt to reflect decisions by the Office of the Public Prosecutor of Egypt will ensure that the Regulations remain accurate, comprehensive and legally consistent with judicial developments in Egypt.

Implementation, enforcement and service standards

Compliance is ensured by the Royal Canadian Mounted Police. Every person who contravenes provisions of the Regulations is liable, upon conviction, to the punishments set out in section 10 of the Freezing Assets of Corrupt Foreign Officials Act.

Contacts

Dennis Horak
Director
Middle East Relations

Rachna Mishra
Senior Policy Advisor
Middle East Relations (Egypt)
Telephone: 343-203-3297