Special Economic Measures (Sudan) Regulations: SOR/2024-61

Canada Gazette, Part II, Volume 158, Number 9

Registration
SOR/2024-61 April 12, 2024

SPECIAL ECONOMIC MEASURES ACT

P.C. 2024-287 April 12, 2024

Whereas the Governor in Council is of the opinion that the situation in the Republic of the Sudan constitutes a grave breach of international peace and security that has resulted or is likely to result in a serious international crisis;

And whereas the Governor in Council is of the opinion that gross and systematic human rights violations have been committed in the Republic of the Sudan;

Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Foreign Affairs, makes the annexed Special Economic Measures (Sudan) 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.

Special Economic Measures (Sudan) Regulations

Definitions

Definitions

1 The following definitions apply in these Regulations.

Minister
means the Minister of Foreign Affairs. (ministre)
Sudan
means the Republic of the Sudan and includes
  • (a) any of its political subdivisions;
  • (b) its government, any of its departments and any government and department of its political subdivisions; and
  • (c) any of its agencies and any agency of its political subdivisions. (Soudan)

List

Listed person

2 A person whose name is listed in the schedule is a person who is in Sudan, or is or was a national of Sudan who does not ordinarily reside in Canada, and in respect of whom the Governor in Council, on the recommendation of the Minister, is satisfied that there are reasonable grounds to believe is

Prohibitions

Prohibited dealings and activities

3 It is prohibited for any person in Canada and any Canadian outside Canada to

Non-application

4 Section 3 does not apply in respect of

Assisting in prohibited activity

5 It is prohibited for any person in Canada and any Canadian outside Canada to knowingly do anything that causes, facilitates or assists in, or is intended to cause, facilitate or assist in, any activity prohibited by section 3.

Duty to determine

6 The following entities must determine on a continuing basis whether they are in possession or control of property that is owned — or that is held or controlled, directly or indirectly — by a listed person:

Duty to disclose

7 (1) Every person in Canada, every Canadian outside Canada and every entity set out in section 6 must disclose without delay to the Commissioner of the Royal Canadian Mounted Police or to the Director of the Canadian Security Intelligence Service

Immunity

(2) No proceedings under the Special Economic Measures Act and no civil proceedings lie against a person for a disclosure made in good faith under subsection (1).

Applications

Removal from list

8 (1) A listed person may apply to the Minister in writing to have their name removed from the schedule.

Reasonable grounds

(2) On receipt of an application, the Minister must decide whether there are reasonable grounds to recommend the removal to the Governor in Council.

New application

9 If there has been a material change in circumstances since the last application was submitted, a listed person may submit another application under section 8.

Mistaken identity

10 (1) A person whose name is the same as or similar to the name of a listed person and who claims not to be that person may apply to the Minister in writing for a certificate stating that they are not that listed person.

Determination by Minister

(2) Within 30 days after the day on which the Minister receives the application, the Minister must

Application Before Publication

Application

11 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

Registration

12 These Regulations come into force on the day on which they are registered.

SCHEDULE

(Section 2 and subsection 8(1))

Persons

PART 1

Individuals

  1. 1 Abdelrahim Hamdan Dagalo (also known as Abdel Rahim Hamdan Dagalo, Abdelrahim Dagalo, Abdul Rahim Dagalo and Abdelrahim Hamdan Dagalo Mousa)
  2. 2 Ali Karti (also known as Ali Ahmed Karti)

PART 2

Entities

  1. 1 Al Junaid Multi Activities Co. Ltd. (also known as AJMAC Multi Activities Company Ltd., AlGunade, AlJunaid, Algunade, Al Gunade and Al-Juneid)
  2. 2 GSK Advance Company Ltd. (also known as GSK Advance, GSK Advance Co. Ltd. and GSK for Advanced Business Co. Ltd.)
  3. 3 Defence Industries System (also known as Military Industry Corporation, Defense Industries Corporation and Defense Industry System)
  4. 4 Zadna International Company for Investment Ltd. (also known as Zadna Company and Zadna International Investments)

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations or the Order.)

Issues

The confrontation in Sudan between the Sudanese Armed Forces (SAF), led by General al-Burhan, and the Rapid Support Forces (RSF), led by General Mohamed Hamdan Dagalo (also known as “Hemedti”), is responsible for the displacement, human rights abuse and suffering of millions of Sudanese, affecting neighbouring countries and threatening to destabilize the entire region. After one year, the conflict, which is fuelled by the support from a number of individuals and commercial entities that provide logistical, material and financial assistance, continues with no end in sight.

In order to impose sanctions against individuals and entities supporting this conflict, which constitutes a grave breach of international peace and security, and to respond to gross and systematic human rights violations in Sudan, Canada requires new regulations to be enacted pursuant to the Special Economic Measures Act (SEMA).

Background

The SEMA allows Canada to impose sanctions in four situations: when a grave breach of international peace and security has occurred and has resulted in, or is likely to result in, a serious international crisis; when an international organization calls on its members to impose sanctions; when circumstances of gross and systematic human rights violations have been committed; or when acts of significant corruption have been committed. There are a broad range of prohibitions that can be imposed, including a dealings ban on individuals or entities and restrictions on trade or financial transactions.

Human rights situation in Sudan

The current conflict has been ongoing since April 15, 2023, when a direct confrontation began between the SAF and the RSF, a paramilitary force. Since then, mounting evidence has emerged implicating both parties in gross and systematic violations of human rights and international humanitarian law, which have targeted civilian populations in Sudan. To date, the SAF and the RSF have shown little willingness to engage in international mediation efforts despite repeated calls by Canada and the rest of the international community for a cessation of hostilities.

As of March 19, 2024, more than 6.5 million people have been internally displaced, and over 1.9 million people have fled Sudan into neighbouring countries, which are already experiencing their own protracted humanitarian crises. The conflict in Sudan has impacted neighbouring countries and the protracted nature of the crisis risks further destabilizing an already fragile region.

Millions of people continue to face acute shortages of food, water and medicine, as well as a lack of access to essential services. There have been credible reports of serious violations and abuses of international humanitarian and human rights law by all parties to the conflict. This includes the widespread use of sexual and gender-based violence as a weapon of war against women and girls, most of whom cannot access critical sexual and reproductive health services. There is evidence of looting of homes and destruction of civilian infrastructure. Reports have also detailed poor conditions of detention and related allegations of torture.

The SAF and the RSF continue to battle for control of Khartoum and its surrounding areas, including parts of the country previously untouched by the conflict. As a result, civilians continue to be severely impacted. This includes places such as Wad Madani, where up to 500 000 internally displaced people had sought refuge from the fighting in Khartoum earlier in the war. In December 2023, the RSF launched an attack against Wad Madani and forced hundreds of thousands to flee once more. There continue to be documented instances of indiscriminate attacks against civilians, including the use of shelling and heavy artillery in densely populated areas. This includes attacks targeting doctors, journalists, and human rights defenders, with women disproportionately impacted. In December 2023, there was a deadly attack against an International Committee of the Red Cross convoy attempting to evacuate over 100 civilians from Khartoum. Later that month, the World Food Programme warehouse in Wad Madani fell under RSF control. The warehouse contained enough food to feed nearly 1.5 million people facing food insecurity for a month.

Alarming reports of ethnic violence in Darfur emerged over the course of the summer and fall of 2023. Credible sources have documented the systematic targeting of the Masalit and other non-Arab tribes by the RSF and its allied militias starting in April 2023. This has led to significant loss of life, as evidenced by the discovery of mass civilian graves on the outskirts of El Geneina in July 2023. In October and November 2023, the RSF undertook a series of attacks against other cities in Darfur with devastating consequences for civilians. This included the massacre in Ardamata in November 2023, which reportedly resulted in the deaths of over 800 people in 72 hours.

International response

Since the outset of the crisis, the international community has engaged in intense political and diplomatic efforts to push for an immediate cessation of hostilities. International efforts also continue to focus on improving international humanitarian law compliance by the parties and, ultimately, ending the conflict. To date, all attempts at negotiating a ceasefire have failed. The international community is also providing humanitarian and development assistance.

The Group of Seven (G7) was quick to engage at the outset of the crisis. The final G7 Leaders Summit communiqué in May 2023 highlighted the dire consequences of the crisis on civilians, called for a cessation of hostilities, and reiterated the obligations of all parties under international humanitarian law. The communiqué also highlighted the impacts of the crisis on the political transition in Sudan. The G7 continues to discuss coordination of the measures to be taken in response to the crisis.

The United Nations (UN) has been engaged through several mechanisms and hosted a High-Level Pledging Event for Sudan in June 2023 to fund humanitarian efforts. In November 2023, the UN Secretary-General announced the appointment of Ramtane Lamamra as the UN Secretary-General’s Personal Envoy for Sudan, who is tasked with supporting mediation efforts.

The human rights situation in Sudan has also been featured on the agenda at the UN Human Rights Council (HRC) since May 2023. Further, on October 11, 2023, the HRC adopted a resolution establishing an independent, international Fact-Finding Mission (FFM) for Sudan. The FFM’s mandate is to investigate human rights violations or abuses of human rights and international humanitarian law since the beginning of the conflict in April 2023, identify those responsible, where possible, and make recommendations for possible accountability measures with the goal of ending impunity. The FFM is charged with presenting an oral update on its work at the HRC’s 56th session (from June 18, 2024, to July 12, 2024) and a comprehensive report at the HRC’s 57th session (from September 9, 2024, to October 9, 2024).

The International Criminal Court (the Court or ICC) Office of the Prosecutor opened an investigation into the situation in Sudan in June 2005, which was referred to the Court by the UN Security Council as a result of the conflict in Darfur in the early 2000s. In response to the discovery of mass civilian graves in Darfur in July 2023, the Prosecutor confirmed that its investigation encompasses allegations of Rome Statute crimes (i.e. crimes against humanity, war crimes, the crime of genocide and the crime of aggression) emanating from the current conflict.

Regional organizations are also engaged. In May 2023, the African Union (AU) approved its Roadmap for the Resolution of the Conflict in Sudan and convened several meetings through the summer with AU member states, as well as regional and international actors, to help end the conflict. At the most recent AU Summit in January 2024, the AU announced the creation of a High-Level Panel on Sudan. Its members are tasked with coordinating with Sudanese stakeholders, as well as other regional and international organizations, to develop an inclusive mediation process to end the war. The Intergovernmental Authority on Development (IGAD) formed a Quartet on Sudan, led by Kenya and consisting of Ethiopia, Djibouti and South Sudan, to lead mediation efforts. In June 2023, IGAD adopted a Roadmap for peace in Sudan to help guide this work and has organized several leader-level summits focused on ending the war.

Canada’s response

Canada is engaged at the highest levels, including outreach by the Prime Minister, the Minister of Foreign Affairs, and the Minister of International Development, with regional and international partners. Canada has been active at the UN HRC, including co-sponsoring recent resolutions on the human rights and humanitarian situation in Sudan (e.g. the October 2023 resolution establishing the FFM for Sudan), delivering national statements reiterating Canada’s condemnation of violence against civilians, including sexual and gender-based violence and ethnic violence, and emphasizing the importance of accountability and justice.

Additionally, in 2023, Canada allocated over $170 million in humanitarian assistance funding to experienced partners in Sudan and neighbouring countries impacted by the crisis, including close to $42 million towards providing humanitarian assistance inside Sudan. This flexible humanitarian assistance funding supports partners in addressing needs as they emerge, such as emergency food and nutrition assistance, health services, and access to clean water. Canada’s bilateral development assistance program in Sudan focuses on sexual and reproductive health and rights, preventing and responding to sexual and gender-based violence, access to education, and strengthening the resilience of the poorest and most marginalized. In June 2023, Canada announced an additional $6 million in development funding to support critical, complementary programming in areas such as education in emergencies, as well as prevention and response to sexual and gender-based violence.

Canada continues to explore opportunities to support the inclusion of civilian and civil society voices in mediation efforts, including offering support through the Peace and Stabilization Operations Program to civil society organizations, women’s human rights defenders, and peacebuilders in Sudan, in order to increase their capacity to engage in mediation efforts and to help mitigate the impacts of the conflict at a local level.

Canada currently imposes sanctions in relation to Sudan through regulations implemented under the United Nations Act (UNA). The Regulations Implementing the United Nations Resolutions on Sudan (the UN Sudan Regulations) implement the UN Security Council sanctions regime on Sudan, which was first imposed in 2004 in response to the humanitarian crisis and widespread human rights violations resulting from the conflict in the Darfur region. The measures imposed against Sudan under the UN Sudan Regulations include (1) a prohibition on the export of arms and related material to Sudan or any person in Sudan; (2) a prohibition on the provision to Sudan or any person in Sudan of technical or financial assistance related to arms and related material; (3) an asset freeze against those persons designated by the UN Security Council Committee established by Resolution 1591; and (4) a travel ban against persons designated by the Committee.

Objective

  1. Support a cessation of hostilities in Sudan by reducing the capacity of belligerents to continue engaging in conflict.
  2. Signal Canada’s firm commitment to human rights, international humanitarian law, and in support to the demands of the Sudanese people for a return to a peaceful and civilian-led transition to democracy.
  3. Align Canada’s measures with those taken by international partners to increase pressure to support a cessation of hostilities.
  4. Build upon Canada’s existing UN sanctions in relation to Sudan.

Description

The Special Economic Measures (Sudan) Regulations (the Regulations) establish a new sanctions regime related to Sudan. Six persons, comprising two individuals and four entities are added to the Schedule of the Regulations. They are businesses, corporations, and individuals affiliated with the SAF and the RSF who have committed or contributed to the commission of gross and systematic human rights violations and/or who are directly or indirectly facilitating, supporting, providing funding or contributing to the conflict that represents a grave breach in international peace and security.

Any individual or entity in Canada, or any Canadian outside Canada, is thereby prohibited from dealing in the property of, entering into transactions with, providing financial or related 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.

The Regulations include exceptions for any transaction with any international organization with diplomatic status, with any United Nations agency, with the International Red Cross and Red Crescent Movement or with any entity that has entered into a grant or contribution agreement with the Department of Foreign Affairs, Trade and Development. For example, this exception would include humanitarian activities and those activities that serve the purpose of safeguarding human life, disaster relief, or providing food, medicine or medical supplies or equipment. Other exceptions include those related to payments under pre-existing contracts or loan agreement to any person in Canada, or any Canadian outside Canada.

The Regulations also create a duty for certain entities (including businesses, such as banks and cooperative credit associations) to determine and disclose to the Commissioner of the Royal Canadian Mounted Police whether they are in possession or control of property belonging to a listed person. The duty to disclose also applies to every person in Canada and every Canadian outside Canada.

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.

The Regulations are accompanied by the Special Economic Measures (Sudan) Permit Authorization Order (the Order). The Order authorizes the Minister of Foreign Affairs to issue to any individual or entity in Canada, and any Canadian outside Canada, a permit to carry out a specified activity or transaction, or any class of activity or transaction that is otherwise restricted or prohibited pursuant to the Regulations.

Regulatory development

Consultation

Global Affairs Canada engages regularly 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 Regulations, public consultation on the persons being listed would not have been appropriate, as publicizing the names of the persons targeted by sanctions would have potentially resulted in asset flight prior to the coming into force of the Regulations.

Modern treaty obligations and Indigenous engagement and consultation

An initial assessment of the geographical scope of the Regulations was conducted and did not identify any modern treaty obligations, as the Regulations do not take effect in a modern treaty area.

Instrument choice

The Regulations and the Order are the sole methods to enact sanctions in Canada. No other instruments could be considered.

Regulatory analysis

Benefits and costs

The Regulations seek to impose a direct economic cost on malign actors supporting the principal belligerents in the current conflict in Sudan, the SAF and the RSF. These measures will also signal Canada’s strong condemnation of the ongoing violence in Sudan.

As the conflict in Sudan enters its twelfth month, the Regulations seek to limit the capacity of the belligerents to continue fighting and commit human rights violations and abuses, which could include the use of these entities to obtain logistical, material, and financial support. The Regulations also align Canada’s efforts with those of its international partners and expose individuals and entities engaged in activities that undermine international peace and security. The Regulations provide an avenue for impartial humanitarian activities to take place, even where some incidental benefit to sanctioned actors might accrue.

The Regulations are targeting specific individuals and entities 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 and entities. Based on initial assessment of available open-source information, it is believed that the newly listed individuals and entities have limited linkages with Canada and, therefore, do not have business dealings that are significant to the Canadian economy. As a result, it is anticipated that there will be no significant impacts on Canadians and Canadian businesses as a result of these Regulations.

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 minor compliance cost. The Regulations could also create additional costs for businesses seeking permits via the Order that would authorize them to carry out specific activities or transactions that are otherwise prohibited.

Small business lens

With respect to the individuals being listed under the Regulations, analysis under the small business lens concluded that the Regulations 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, and Global Affairs Canada does not anticipate any applications resulting from listing these individuals, 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 individuals have limited known linkages with Canada, Global Affairs Canada does not anticipate any disclosures resulting from the Regulations.

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 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 Canada’s allies.

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 (GBA+)

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 SEMA can nevertheless have an unintended impact on certain groups and individuals in vulnerable situations. Rather than affecting Sudan as a whole, these targeted sanctions impact individuals and entities believed to be engaged in activities that directly or indirectly support, provide funding for or contribute to the commission of gross and systematic human rights violations and to a grave breach in 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.

Implementation, compliance and enforcement, and service standards

The Regulations come into force on the day on which 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 and entities 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 (TCS) at 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 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

Candice Dandurand
Director
Southern and Eastern Africa Bilateral Relations Division
Global Affairs Canada
125 Sussex Drive
Ottawa, Ontario
K1A 0G2
Telephone: 343‑203‑3335
Email: wer@international.gc.ca