Office of the Superintendent of Financial Institutions
This Notice is directed to the attention of all banks, authorized foreign banks, trust companies, loan companies, cooperative credit associations, cooperative retail associations, life insurance companies, property and casualty insurance companies and fraternal benefit societies (FRFIs).
On November 29 2018 the Governor in Council enacted the Regulations Amending the Justice for Victims of Corrupt Foreign Officials Regulations (Amending Regulations) under the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law) (JVCFOA).
The following links have been provided by Global Affairs Canada.
The Amending Regulations will be published in the Canada Gazette on December 12, 2018, but came into effect on the date they were registered.
In this Notice, "Regulations" refers to the Justice for Victims of Corrupt Foreign Officials Regulations.
Among other things, the Regulations impose a dealings prohibition on foreign nationals listed under Regulations made pursuant to the Act. A foreign national whose name is listed in the Regulations is a person who is not a Canadian citizen or a permanent resident under the Immigration and Refugee Protection Act, and in respect of whom the Governor in Council is of the opinion has committed an act described below:
The JVCFOA establishes that the Governor in Council may make orders or regulations with respect to the restrictions or prohibition of the following activities in relation to a foreign national:
Duty to Determine and Disclose
The JVCFOA stipulates that FRFIs must determine on a continuing basis whether they are in possession or control of property that they have reason to believe is the property of a foreign national who is subject to an order or regulation. OSFI expects that FRFIs will implement the necessary measures to search for the names of listed foreign nationals. As with other searching and reporting requirements, the obligation to search for designated names is a continuing one. For example, at a minimum, it is OSFI's expectation that FRFIs be able to search their records for listed names at least on a weekly basis, and more frequently if need be. New clients' names should be checked against the names of designated persons as part of, or as soon as reasonably possible after, the process of account opening or otherwise entering into a business relationship.
FRFIs that are subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act are required to obtain and record prescribed information on the persons who own or control, directly or indirectly, 25% or more of clients that are corporations and other entities. It is OSFI's expectation that FRFIs will search these records to determine if they are dealing with a corporation or an entity that may be owned or controlled, directly or indirectly, by a designated person under the Regulations.
If Canadian financial institutions have property in their possession or control that they have reason to believe is owned, held or controlled by or on behalf of a foreign national, or they have information about a transaction or proposed transaction in respect of property covered by the Regulations, they are required to report such information to the Royal Canadian Mounted Police or the Canadian Security Intelligence Service without delay. Information may be provided as follows:
Anti-terrorist Financing Team
Unclassified fax: 613-825-7030
Unclassified Fax : 613-369-2303
Reporting to Financial Regulators
The JVCFOA requires FRFIs and a number of provincially regulated institutions to report monthly to their principal regulatory agency or body whether or not they are in possession or control of any property that they have reason to believe is the property of a foreign national subject to an order or regulation. Where they are in possession or control of such applicable, these institutions must report the number of persons or dealings involved and the total value of the property.
Where to go for more information
For further information please see the Canadian economic sanctions website: