FEDERAL REG

SOR/2016-41: Regulations Amending the Freezing Assets of Corrupt Foreign Officials (Tunisia and Egypt) Regulations

REGISTRATION OF FEDERAL REGULATION - VIA OIC DATABASE, PRIOR TO PART II OF THE GAZETTE

Registered
March 11, 2016


REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Regulations and the Order.) Issues Pursuant to section 6 of the Freezing Assets of Corrupt Foreign Officials Act (FACFOA), the Freezing Assets of Corrupt Foreign Officials (Tunisia and Egypt) Regulations (the Regulations), which came into force on March 23, 2011, will expire on March 24, 2016. The Regulations are being amende... (Click for more)


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Senate

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Published on March 11, 2016

Bill Summary

SOR/2016-41: Regulations Amending the Freezing Assets of Corrupt Foreign Officials (Tunisia and Egypt) Regulations

REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Regulations and the Order.) Issues Pursuant to section 6 of the Freezing Assets of Corrupt Foreign Officials Act (FACFOA), the Freezing Assets of Corrupt Foreign Officials (Tunisia and Egypt) Regulations (the Regulations), which came into force on March 23, 2011, will expire on March 24, 2016. The Regulations are being amended and extended with respect to eight previously listed politically exposed foreign persons. Background 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 23, 2011, the Governor in Council made the Regulations, pursuant to the FACFOA. At the time, the Regulations gave effect to written requests from Tunisia and Egypt to freeze the assets of former leaders and senior officials or their associates and family members suspected of having misappropriated state funds, or of having obtained property inappropriately by virtue of their office or personal or business relationship. The Regulations are intended to provide a five-year period for completing criminal investigations and making actionable mutual legal assistance requests to Canada. Section 6 of the FACFOA 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.” Objectives The regulatory measures will aim to ensure that all of the assets of the eight politically exposed foreign persons identified and frozen under the current Regulations remain frozen; and allow additional time to provide the evidence required for the recovery of frozen assets and the freezing of any new assets that may be identified with respect to the eight individuals listed in the extended Regulations. Description The proposed Regulations amend the Regulations adopted on March 23, 2011, in order to continue to list eight individuals in Schedule 1 (Tunisia) who have, or may have, assets in Canada and to repeal the names of the remaining 196 Egyptian and Tunisian persons in Schedules 1 and 2. The Order extends the application of the Regulations, as amended, for a new five-year period beginning on March 24, 2016. “One-for-One” Rule The “One-for-One” Rule does not apply to this proposal because there are no administrative costs to business. There is no additional burden to financial institutions, as the eight designated persons were already listed in Schedule 1 of the Regulations. Small business lens The small business lens does not apply to this proposal because there are no costs to small business, and small businesses would not be disproportionately affected. Consultation The Department of Foreign Affairs, Trade and Development (Global Affairs Canada) consulted with the Department of Justice and the Royal Canadian Mounted Police. Rationale The Freezing Assets of Corrupt Foreign Officials Act is an important part of Canada’s fight against international corruption. It is intended to prevent state treasuries from being looted by fallen governments and to ensure such stolen assets are available for recovery through mutual legal assistance. Assets in Canada belonging to eight previously listed Tunisian politically exposed foreign persons have been identified or could be identified in the future. Therefore, these individuals remain politically exposed foreign persons. Only nominal assets associated with Egyptian individuals were identified and frozen in Canada. The extension of the Regulations will allow an additional period of five years for Tunisia to provide Canada with the evidence required to facilitate the recovery of assets that have been, or may be, identified upon Tunisia making a successful request for mutual legal assistance to Canada. Designated persons may seek a ministerial permit from the Minister of Foreign Affairs, subject to possible conditions, to allow legitimate economic activity in Canada. Implementation, enforcement and service standards Compliance 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 Freezing Assets of Corrupt Foreign Officials Act. Contacts Sébastien Carrière Director Maghreb and Regional Trade Relations Division Global Affairs Canada Telephone: 343-203-3298 Email: [email protected] Alexandre É. Michon Senior Desk Officer (Tunisia, Algeria) Maghreb and Regional Trade Relations Division Global Affairs Canada Telephone: 343-203-3298 Email: [email protected] Footnote a SOR/2011-78 Footnote b S.C. 2011, c. 10 Footnote c S.C. 2011, c. 10 Footnote 1 SOR/2011-78

This Bill does not amend any statutes.

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