Regulations Amending the Special Economic Measures (Haiti) Regulations: SOR/2024-144

Canada Gazette, Part II, Volume 158, Number 14

Registration
SOR/2024-144 June 20, 2024

SPECIAL ECONOMIC MEASURES ACT

P.C. 2024-745 June 20, 2024

Whereas the Governor in Council is of the opinion that the situation in the Republic of Haiti 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 Haiti;

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 (Haiti) 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 (Haiti) Regulations

Amendments

1 Part 1 of the schedule to the Special Economic Measures (Haiti) Regulations footnote 1 is amended by adding the following in numerical order:

2 Item 1 of Part 3 of the schedule to the Regulations is replaced by the following:

Application Before Publication

3 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

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.)

Issues

Criminal gangs in Haiti operate with impunity, sometimes under the protection of political and economic elites. They have deliberately killed, injured and committed acts of violence, including sexual violence, as a tool to expand territorial control and terrorize the population. These acts are fuelling the continued deterioration of the security and humanitarian situation in the country and continue to force the displacement of thousands of people. The gang violence thus has led to significant internal destabilization, and disrupted education, health systems and economic activities.

Additional sanctions under the Special Economic Measures (Haiti) Regulations (Haiti Regulations) are needed to apply immediate pressure on individuals who, directly or indirectly, contribute or have contributed to violence and insecurity in Haiti.

Background

For several years, Haiti has been gripped by a multidimensional humanitarian, security and political crisis characterized by rampant inflation, chronic poverty, alarming insecurity, as well as a political deadlock paralyzing public institutions. In this context, Haitians experience daily assaults on their basic human rights. In 2024, approximately 5.5 million Haitians will be dependent on humanitarian protection and assistance, including 3 million children.

Over the past three years, the escalating gang violence in Haiti has had devastating effects on the population. Criminal gangs in Haiti are committing unspeakable violence; terrorizing vulnerable populations with impunity; and are undermining efforts to restore law and order in the country. Thousands of people have been forced to flee their homes, resulting in a nearly 170 000-person increase in displacement during 2023. The Office of the United Nations High Commissioner for Human Rights (OHCHR) reports that in 2023 at least 4 451 persons have been killed (3 801 men, 538 women and 112 children) and 1 668 others injured (1 193 men, 420 women, 55 children) as a result of gang violence nationwide, with at least 1 962 gang-related kidnappings. A sharp increase compared with 2022.

Since January 2023, OHCHR has documented the looting or destruction of more than 1 880 homes and businesses. In a practice that is becoming more common, gangs in the Artibonite department target farm properties, stealing hundreds of livestock belonging to residents and charging ransom fees to farmers for use of their own farmlands. The reduced access to cultivated land exacerbates acute food insecurity and increases the need for humanitarian assistance.

Gang violence in certain neighbourhoods has also impacted the supply of medical inputs and the movement of personnel to health care facilities. Throughout 2023, the OHCHR has documented that several health care facilities or hospitals run by government or nongovernmental organizations were attacked or compelled to suspend their activities due to threats or violence from gangs. These actions disrupt access to health services and medical care in a context where access to water, hygiene, and other essential services are already limited.

The international community is seized by the continued deteriorating situation and is taking action to limit the flow of financial support to those perpetrating violence in Haiti. In October 2022, the international community took action to limit the flow of financial support to those perpetrating violence in Haiti, including through the resolution 2653 of the United Nations Security Council (UNSC) which established a sanctions regime in Haiti. The regime includes a targeted arms embargo, travel ban and asset freeze upon designated individuals and entities who are responsible for or complicit in actions that threaten the peace, security or stability of the country. The UNSC later authorized a one-year renewal for the sanction regime on October 19, 2023. Canada implements the UNSC sanction regime through its regulations made under the United Nations Act.

On November 4, 2022, Canada established an autonomous sanctions regime to address the situation in the country. The Haiti Regulations allow for the imposition of sanctions on individuals supporting or instigating violence in Haiti, including leaders of criminal gangs who inflict violence on the population, as well as individuals who finance, support or benefit from these activities. Since coming into force, Canada has sanctioned 31 individuals under the regime.

Objective

The amendments to the Haiti Regulations are intended to pressure criminal gang members into ceasing violence and human rights violations while also sending a powerful message to both Haitians and the international community that impunity for such acts is not tolerated.

Description

The amendments designate three individuals who would be subject to a broad dealings ban. There are reasonable grounds to believe the listed individuals are gang leaders who have engaged in activities that directly or indirectly undermine the peace, security, and stability of Haiti. These acts also include gross and systematic human rights violations in Haiti.

The amendments also include a minor change to correct the spelling of a previously listed name.

Any person in Canada or Canadian outside Canada is prohibited from dealing in the property of, entering into transactions with, providing services to, transferring property to, or otherwise making goods available to the listed persons. These measures will also render listed individuals inadmissible to Canada under the Immigration and Refugee Protection Act (IRPA).

Under the Haiti 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 Haiti, including civil society organizations and other like-minded governments, regarding Canada’s approach to international assistance in Haiti, including sanctions implementation. As an example, Canada chairs the United Nations Economic and Social Council Ad Hoc Advisory Group on Haiti and uses this platform to develop analysis, discuss with allies the international community’s approach to Haiti, and coordinate international responses to the economic and development challenges facing the country.

With respect to these amendments, public consultation on the persons to be listed under the Regulations would not have been appropriate. 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 initiative 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 method to enact sanctions in Canada. No other instrument could be considered.

Regulatory analysis

Benefits and costs

By taking these actions, Canada is sending a clear message to Haitians and the international community that impunity would not be tolerated for violence and human rights violations. The amendments align with existing policy objectives to address the multidimensional humanitarian, security and political crises in Haiti. It also advances policy objectives focused on promoting human rights as well as advancing the fight against impunity. Finally, the amendments build on existing measures, thereby reinforcing Canada’s steadfast commitment to promoting regional peace and security. This work is in collaboration with the international community to support Haitian authorities’ efforts to restore law and order.

The incremental cost to the Government of Canada of administering and enforcing these additional prohibitions is minimal. Sanctions targeting specific persons have less impact on Canadian businesses than traditional broad-based sanctions and will have limited impact on the citizens of Haiti.

Based on initial assessment of available open-source information, it is believed that the individuals listed have limited linkages with Canada and therefore do not have significant business dealings that are relevant to the Canadian economy. It is therefore anticipated that there will be no significant impact 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 compliance cost.

Small business lens

The Haiti Regulations prohibit Canadian businesses from dealing with, providing services to, or otherwise making goods available to listed persons. However, they do not create any direct administrative obligations. Canadian businesses may seek permits under the Haiti Regulations, which would authorize them to carry out specified activities or transactions that are otherwise prohibited, potentially creating additional costs. These permits are granted on an exceptional basis and Global Affairs Canada does not anticipate any applications resulting from listing these individuals. There would thus be no incremental administrative burden arising from this requirement. Canadian small businesses are also subject to the duty to disclose under the Haiti Regulations, which would represent a direct compliance requirement. As the newly listed individuals 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 definition of “administrative burden” in the Red Tape Reduction Act. However, while permits may be granted under the Haiti Regulations on an exceptional basis, given that the listed individuals have limited known business ties to Canadian economy, Global Affairs Canada does not anticipate any permit applications with respect to the amendments.

Regulatory cooperation and alignment

The amendments are not related to a work plan or commitment under a formal regulatory cooperation forum. These measures align with actions taken by Canada’s allies and partners, including with UNSC resolutions.

Strategic environmental assessment

The amendments are unlikely to have a significant environmental impact. 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 an impact on gender and diversity. Although intended to facilitate a change in behaviour through economic pressure on individuals in a foreign state, sanctions under the Special Economic Measures Act (SEMA) can nevertheless have an unintended impact on certain vulnerable groups and individuals.

Rather than affecting Haitians as a whole, these targeted sanctions impact individuals and entities believed to be engaged in significant acts of violence and human rights violations, which is fuelling the humanitarian crisis in Haiti and causing instability. Therefore, these sanctions are unlikely to have a significant negative impact on vulnerable groups as compared to traditional broad-based economic sanctions directed toward a state.

Furthermore, these sanctions are being introduced in support of vulnerable populations, particularly women and girls, who face assaults on their basic human rights by criminal gangs, including sexual and gender-based violence.

Implementation, compliance and enforcement, and service standards

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

Consequential to being listed in the Haiti Regulations, and pursuant to the application of paragraph 35.1(b) of the IRPA, 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 Haiti Regulations.

The Trade Commissioner Service for 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 and 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 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, and upon conviction on indictment to imprisonment for a term of not more than five years.

Contact

Sanctions Bureau
Global Affairs Canada
125 Sussex Drive
Ottawa, Ontario
K1A 0G2
Email: sanctions@international.gc.ca