Office of the Superintendent of Financial Institutions
This Notice is directed to the attention of all banks, authorized foreign banks, trust and loan companies, cooperative credit societies, cooperative retail associations, life insurance companies, property and casualty insurance companies and fraternal benefit societies (FRFIs).
On June 25, 2018, the Governor in Council enacted the Regulations Amending the Special Economic Measures (Burma) Regulations under the Special Economic Measures Act (SEMA). The following is a link to information provided by Global Affairs Canada.
The Regulations will be published in the Canada Gazette on a later date, but came into effect on June 25, 2018, the date they were registered.
The Regulations, as amended, have added seven individuals to the list of designated persons subject to asset freeze and dealings prohibitions. Specifically, the Regulations prohibit any person in Canada and any Canadian outside Canada from:
The Regulations further stipulate that FRFIs must determine, on a continuous basis, whether they are in possession or control of property owned or controlled by or on behalf of a designated person.
OSFI expects that FRFIs will continue to implement the necessary measures to search for the names of designated persons and freeze assets in accordance with the SEMA (Burma) Regulations. 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 our expectation that federally regulated deposit-taking institutions be able to search their records for designated names at least on a weekly basis, and more frequently if need be. New clients’ names should also be checked against the names of designated persons as part of the process of account opening or otherwise entering into a business relationship.
If Canadian financial institutions have property in their possession or control that they have reason to believe is owned or controlled by designated persons, or they have information about a transaction or proposed transaction in respect of property covered by the SEMA Burma Regulations, they are required to report such information to the Royal Canadian Mounted Police immediately. Information may be provided as follows:
Anti-Terrorist Financing Team
Unclassified fax: 613-825-7030
Please note that the SEMA Burma Regulations do not require financial institutions to report to their financial regulators each month on the results of the continuous searching and reporting obligations.
If any clarification is needed on the changes made by the SEMA Burma Regulations, please contact:
Global Affairs Canada
Economic Law Section
125 Sussex Drive,
Fax: (613) 992-2467