Regulations Amending the Special Economic Measures (Extremist Settler Violence) Regulations: SOR/2024-155

Canada Gazette, Part II, Volume 158, Number 15

Registration
SOR/2024-155 June 26, 2024

SPECIAL ECONOMIC MEASURES ACT

P.C. 2024-840 June 26, 2024

Whereas the Governor in Council is of the opinion that the actions of Israeli extremist settlers in the occupied Palestinian territories constitute a grave breach of international peace and security that has resulted in or is likely to result in a serious international crisis;

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 (Extremist Settler Violence) 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 (Extremist Settler Violence) Regulations

Amendments

1 The schedule to the Special Economic Measures (Extremist Settler Violence) Regulations footnote 1 is amended by adding the following after the heading “Persons”:

PART 1
Individuals

2 The schedule to the Regulations is amended by adding the following after item 4:

PART 2
Entities

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

While extremist settler violence is a longstanding issue, the recent escalation of violent actions led by Israeli extremist settlers and affiliates against Palestinian civilians and their property in the occupied Palestinian territoriesfootnote 2 (oPt) threatens the viability of a two-state solution, leads to destabilization, and undermines the peace and security of the State of Israel and the oPt, consequently posing a threat to regional peace and security.

Background

Extremist settler violence against Palestinians and their property in the oPt remains a source of tension and conflict and has resulted in the forced displacement of Palestinian communities.

The severity of violent crimes has risen over the past few years. This violence includes the use of arms, killings, torture, physical and verbal assaults, trespassing, damages to private property, theft, vandalism, destruction of farming lands (including olive trees), and various other forms of harassment by Israeli extremist settlers.

The Fourth Geneva Convention applies in the occupied territoriesfootnote 3 and establishes Israel’s obligations as an occupying power, with respect to the humane treatment of the inhabitants of the occupied territories. As referred to in the United Nations (UN) Security Council Resolutions 446 and 465, and consistent with Canada’s longstanding policy, all Israeli settlements in the occupied territories are in violation of the Fourth Geneva Convention.

The issue of settler violence predates the October 7, 2023, attacks by Hamas on the State of Israel. However, a sharp increase in violent actions has occurred since October 7, 2023, whereby the UN reported over 800 Israeli settler attacks against Palestinians in the oPt. Further, these attacks have forcefully displaced at least 1 200 people, including 600 children. On May 16, 2024, the Government of Canada made the Special Economic Measures (Extremist Settler Violence) Regulations (the Regulations) and imposed sanctions against four individuals engaged in violence and violent acts against Palestinian civilians and their property in the oPt. Listing persons (individuals and entities) for their connection to the grave breach of international peace and security under the Regulations is a clear pronouncement on Canada’s position on extremist settler violence and settlements in the oPt, as well as on Canada’s commitment to a two-state solution as the only viable solution to the conflict.

Objective

These sanctions intend to

Description

The Regulations Amending the Special Economic Measures (Extremist Settler Violence) Regulations (the amendments) designate seven individuals and five entities. There are reasonable grounds to believe that these persons have engaged in activities that undermine the peace and security of the State of Israel and the oPt by directly or indirectly facilitating, supporting, providing funding for, or contributing to the use, or the threatened or attempted use, of violence by Israeli extremist settlers against Palestinian civilians or their property in the oPt.

These listed persons are subject to a dealings ban. 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. These measures will also render listed individuals inadmissible to Canada under the Immigration and Refugee Protection Act (IRPA).

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.

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, since publicizing the names of the persons targeted by sanctions would have potentially 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 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

The incremental cost to the Government of Canada to administer and enforce these additional prohibitions is minimal. Sanctions targeting specific individuals and entities also 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 an initial assessment of available open-source information, it is believed that the individuals listed have limited linkages with Canada and, as such, do not have significant business dealings that are relevant to the Canadian economy. It is therefore 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 the sanctions. They will do so by adding the new prohibitions to their existing monitoring systems, which may result in a minor compliance cost.

Small business lens

Analysis under the small business lens concluded that the amendments 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 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 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 the 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 persons have limited business ties to the Canadian economy, Global Affairs Canada does not anticipate any permit applications with respect to the 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 international partners.

Imposing sanctions in relation to Israeli extremist settler violence is aligned with Canada’s longstanding policy opposing the expansion of settlements in the oPt and settler violence. Canada and its partners, including Australia, the European Union, the United Kingdom and the United States, have been consistent in public opposition to settlement expansion in the oPt and Israeli extremist settler violence.

Strategic environmental assessment

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 Special Economic Measures Act (SEMA) can nevertheless have an unintended impact on certain vulnerable groups and individuals. Rather than affecting the whole region, these targeted sanctions impact individuals believed to be engaged in activities that contribute to a grave breach of international peace and security. Therefore, the amendments are unlikely to have a significant impact on vulnerable groups, as compared to traditional broad-based economic sanctions directed toward a state.

Implementation, compliance and enforcement, and service standards

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

Consequential to being listed in the 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 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 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 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 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 (PSD)
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