Regulations Amending the Special Economic Measures (Haiti) Regulations: SOR/2023-143

Canada Gazette, Part II, Volume 157, Number 14

Registration
SOR/2023-143 June 21, 2023

SPECIAL ECONOMIC MEASURES ACT

P.C. 2023-591 June 20, 2023

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 subsections 4(1)footnote a, (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 (1) Section 2 of the Special Economic Measures (Haiti) Regulations footnote 1 is amended by adding the following after paragraph (a):

(2) Paragraph 2(c) of the Regulations is replaced by the following:

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

PART 3
Individuals — Gross Human Rights Violations

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

Haitian elites are using their position, association with political figures, influence and resources, to protect and/or support the activities of criminal gangs, which has led to gross and systematic human rights violations, including sexual violence, and a severe humanitarian crisis.

Background

For several years, Haiti has been gripped by a multidimensional crisis characterized by rampant inflation, chronic poverty, alarming insecurity as well as a political deadlock paralyzing most public institutions. In this context, Haitians experience daily assaults on their basic human rights.

The Special Economic Measures (Haiti) Regulations (the Regulations) announced on November 4, 2022, and subsequent amendments, allow Canada to target sanctions at members of armed criminal gangs who inflict unspeakable violence on the population, including sexual violence, as well as individuals who finance, support or benefit from these activities. Sexual violence, including collective rape, is used by gangs to terrorize and inflict pain on populations under the control of rivals. Sexual exploitation was also used by gangs against women and girls living in the communities under their influence. Although incidents of sexual violence are severely underreported, a 2023 report by a local human rights organization indicated that at least 652 women and girls were subjected to individual and collective rape in gang-controlled areas over the past year.

These gangs, who terrorize and subjugate the population, operate under the protection of political elites and oligarchs and have deliberately killed, injured and committed acts of sexual violence to expand territorial control and terrorize the population. Insecurity remains rampant with gangs maintaining control over large swaths of the capital.

The international community is seized by the current crisis and is taking action to limit the flow of financial support to those perpetuating violence in Haiti, as demonstrated by the unanimous adoption, on October 21, 2022, by the United Nations Security Council (UNSC), of a resolution establishing a new sanctions regime. Canada has closely coordinated with the United States to establish the autonomous sanctions regime aimed at applying immediate pressure on those supporting or fomenting the violence in Haiti, in order to put an end to the violence, and allow Haitian authorities to restore law and order. Canada and the United States have continued to work closely together to strengthen these measures, including through the identification of additional targets.

The regulatory amendments align with existing policy and objectives to address the multidimensional crisis in Haiti. It also advances policy objectives focused on promoting human rights as well as the fight against corruption and impunity. Finally, the regulatory amendments build on existing measures thereby reinforcing Canada’s steadfast commitment to promoting regional development, and peace and security and to working with the international community in supporting Haitian authorities’ efforts to restore law and order.

Objective

These sanctions are intended to exert pressure on gang leaders and their affiliates among the political and economic elite, who are responsible for gross and systematic human rights violations.

Description

The amendments will add a new listing criterion to section 2 of the Regulations to allow for listing persons who have participated in gross and systematic human rights violations in Haiti.

The amendments to the Regulations will include four individuals who will be subject to a broad dealings ban and be inadmissible to Canada. There is reason to believe the designated four individuals, gang leaders and an economic elite, have engaged in gross and systematic human rights violations, and have used their influence and resources to protect and/or support the activities of criminal gangs, including through using violence to manipulate elections and other egregious conduct. These gangs are committing unspeakable violence and terrorizing vulnerable populations with impunity.

Any individual or entity in Canada, and Canadians and Canadian entities outside Canada are thereby prohibited from dealing in the property of, entering into transactions with, providing financial or related services to, or otherwise making goods available to listed persons. Further, as these individuals are being listed in the Regulations in response to acts of significant corruption, they are also rendered inadmissible to Canada under the Immigration and Refugee Protection Act.

Regulatory development

Consultation

Global Affairs Canada engages regularly 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 Economic and Social Council (ECOSOC) Ad Hoc Advisory Group on Haiti, and uses this platform to develop and discuss with its allies, coordinated international responses to the economic and development challenges facing the country.

With respect to the amendments targeting individuals, public consultation would not have been appropriate, given the urgency to impose these measures in response to the deteriorating security situation and humanitarian crisis.

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

Sanctions targeting specific persons 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 persons. 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 minor compliance cost.

Small business lens

It is possible the amendments could potentially create additional costs for businesses seeking permits that would authorize them to carry out specified activities or transactions that are otherwise prohibited.

Overall, it is expected that the impact on Canadian businesses, and particularly the Canadian textile industry that one of the individuals listed under these regulations is involved in, to be minimal. At least two of the individual’s factories based in Haiti assemble clothes for this industry. Given that the sanctions are targeted to individuals, the likelihood of costs for businesses is minimal.

One-for-one rule

The permitting process for businesses meets the definition of “administrative burden” in the Red Tape Reduction Act and would need to be calculated and offset within 24 months. However, the initiative addresses an emergency circumstance and is exempt from the requirement to offset administrative burden and regulatory titles under the one-for-one rule.

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 allies.

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 (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 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 corruption, which is fuelling the humanitarian crisis in Haiti. 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, and limit the collateral effects to those dependent on those targeted individuals. Furthermore, these sanctions are being introduced in support of vulnerable populations, particularly women and girls, who continue to face daily assaults on their basic human rights by criminal gangs, including sexual and gender-based violence.

Rationale

Gangs supported by the Haitian elite and others have expanded their territorial control over the country. Several United Nations missions were deployed over the years in an attempt to support Haitian authorities’ efforts to restore order. A key gap in international interventions to date has been the establishment of measures to identify and exert pressure on those providing financial support and arms to criminal gangs to advance their own financial and/or political interests, capitalizing on the endemic corruption and money laundering that exists in the country. Sanctions, announced by Canada from November 2022, to June 2023 targeted economic elites as well as a number of current and former politicians. There is reason to believe the designated individuals use their position as leaders of criminal gangs as well as members of the political elite to inflict gratuitous violence on the Haitian population, including sexual violence, with a callous disregard for international norms and standards related to human rights.

The current amendments compliment and strengthen these measures by designating an additional two individuals. A sustained Canadian response aims to exert pressure on these individuals so that they change their behaviour and cease their support to gangs. Early reports indicate these measures are already having an impact on the ground. It is expected that this response will continue to act as a deterrent for others engaged in or considering similar behaviour.

Implementation, compliance and enforcement, and service standards

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

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 Regulations.

Canada’s sanctions regulations are enforced by the Royal Canadian Mounted Police. 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; or, upon conviction on indictment, to imprisonment for a term of not more than five years.

The Canada Border Services Agency (CBSA) has enforcement authorities under SEMA and the Customs Act and will play a role in the enforcement of these sanctions.

Contact

Sébastien Sigouin
Executive Director
Haiti Division
Global Affairs Canada
125 Sussex Drive
Ottawa, Ontario
K1A 0G2
Telephone: 343‑548‑7620
Email: sebastien.sigouin@international.gc.ca