Regulations Amending the Freezing Assets of Corrupt Foreign Officials (Ukraine) Regulations: SOR/2019-68
Canada Gazette, Part II, Volume 153, Number 6
SOR/2019-68 March 4, 2019
FREEZING ASSETS OF CORRUPT FOREIGN OFFICIALS ACT
P.C. 2019-157 February 28, 2019
Whereas the Governor in Council considers that two of the persons listed in the schedule to the Freezing Assets of Corrupt Foreign Officials (Ukraine) Regulations footnote a should not remain listed;
Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Foreign Affairs, pursuant to section 4 of the Freezing Assets of Corrupt Foreign Officials Act footnote b, makes the annexed Regulations Amending the Freezing Assets of Corrupt Foreign Officials (Ukraine) Regulations.
Regulations Amending the Freezing Assets of Corrupt Foreign Officials (Ukraine) Regulations
1 Items 4 and 16 of the schedule to the Freezing Assets of Corrupt Foreign Officials (Ukraine) Regulations footnote 1 are repealed.
Coming into Force
2 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 or the Order.)
The Freezing Assets of Corrupt Foreign Officials (Ukraine) Regulations (the Regulations), made pursuant to the Freezing Assets of Corrupt Foreign Officials Act (the Act), came into force on March 5, 2014, and are due to expire on March 5, 2019, by operation of section 6 of the Act.
The 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 country is in “internal turmoil” or in “an uncertain political situation” and where the making of an order or a regulation is in the interest of international relations. This measure supports promoting global peace and security, democracy and rule of law, and maintaining strong bilateral relationships with other countries.
On March 5, 2014, the Governor in Council approved the Regulations. At the time, the Regulations gave effect to a written request from Ukraine to freeze the assets of former Ukrainian President Viktor Fedorovych Yanukovych, his senior officials, his close associates and his family members suspected of having misappropriated state funds, or of having obtained property inappropriately as a result of their office or family, personal or business connections. The Regulations were intended to provide a five-year period for completing criminal investigations and making actionable mutual legal assistance requests to Canada.
The Act provides that “an order or regulation made under section 4 of that Act in respect of a politically exposed foreign person ceases to have effect on the day that is five years after the day on which it comes into force unless the Governor in Council, by order, extends it for the period specified in the order.” Information received by the Government of Canada supports an extension of the Regulations in relation to 16 of the 18 individuals currently listed.
The regulatory measures aim to
- allow additional time for Ukraine to complete its criminal investigations and make actionable mutual legal assistance requests to Canada;
- ensure that misappropriated assets held by officials of the former government are frozen so that politically exposed foreign persons may be held accountable;
- signal Canada’s support for accountability, rule of law, and democracy in Ukraine.
The Regulations Amending the Freezing Assets of Corrupt Foreign Officials (Ukraine) Regulations (the Amending Regulations) amend the Regulations adopted on March 5, 2014, in order to repeal the names of two individuals.
The Order Extending the Application of the Freezing Assets of Corrupt Foreign Officials (Ukraine) Regulations (the Order) extends the application of the Regulations, as amended, for a new five-year period beginning on March 6, 2019.
Public consultations were not undertaken as it would not have been suitable to indicate in advance that this action was being considered. Additionally, exemption from prepublication has been granted, as prepublication could have created the risk of asset flight in the event of a temporary lapse of the freeze, and would have thus defeated the purpose of the Regulations.
Modern treaty obligations and Indigenous engagement and consultation
Modern treaty obligations were considered and no impacts have been identified.
An amending regulation and a regulatory order are the only instruments available to respectively amend and extend the Regulations.
Benefits and costs
The Amending Regulations and the Order have no incremental costs to government. Through the extension of the Regulations, compliance costs are reduced for financial institutions as they are not required to unfreeze the assets, on March 6, 2019, of the 16 individuals to whom the extension applies.
Small business lens
The small business lens does not apply, as there are no costs to small business.
The “One-for-One” Rule does not apply, as there are no administrative costs to business. There is no additional burden to financial institutions, as the 16 designated persons were already listed in the Regulations.
Regulatory cooperation and alignment
The Amending Regulation and the Order are not related to a work plan or commitment under a formal regulatory cooperation forum.
Strategic environmental assessment
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 (SEA) is not required.
Gender-based analysis plus (GBA+)
GBA+ impacts have been considered and none have been identified.
Implementation, compliance and enforcement, and service standards
The Order extends the Regulations, as amended, so that they continue without interruption for another five-year period.
Compliance with the Regulations 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 Act.