FEDERAL REG

SOR/2016-14: Regulations Amending the Regulations Implementing the United Nations Resolutions on Iran

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

Registered
February 5, 2016


REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Regulations.) Issues On July 20, 2015, the United Nations Security Council adopted Resolution 2231, under Chapter VII of the United Nations Charter, endorsing the agreement reached between the five permanent members of the Security Council (China, France, Russia, the United Kingdom and the United States) and Germany (P5+1) an... (Click for more)


Published on February 5, 2016

Bill Summary

SOR/2016-14: Regulations Amending the Regulations Implementing the United Nations Resolutions on Iran

REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Regulations.) Issues On July 20, 2015, the United Nations Security Council adopted Resolution 2231, under Chapter VII of the United Nations Charter, endorsing the agreement reached between the five permanent members of the Security Council (China, France, Russia, the United Kingdom and the United States) and Germany (P5+1) and Iran on its nuclear program. The agreement provides Iran with substantial international sanctions relief in return for Iran fulfilling its commitments to significantly roll back and constrain its nuclear program. Background In 2003, the International Atomic Energy Agency (IAEA) confirmed the existence of previously undeclared nuclear facilities in Iran, contrary to Iran’s Safeguards Agreement pursuant to the Treaty on the Non-Proliferation of Nuclear Weapons. Iran refused to suspend proliferation-sensitive activities and the IAEA referred the matter to the Security Council in 2006. The Security Council identified Iran’s nuclear program as a threat to international peace and security and passed six successive resolutions against Iran, four of them imposing sanctions: 1737 (2006), 1747 (2007), 1803 (2008) and 1929 (2010). On July 14, 2015, the P5+1 reached an agreement with Iran on the Joint Comprehensive Plan of Action (JCPOA). Under the JCPOA, Iran accepted long-term restrictions on its nuclear program, combined with extensive international verification, aimed at preventing Iran from being able to produce a nuclear weapon. In return, Iran receives significant relief from sanctions imposed for its past non-compliance with international obligations in regard to its nuclear program. On July 20, 2015, the Security Council endorsed the JCPOA by adopting Resolution 2231 (2015). The IAEA is responsible for monitoring and verifying Iran’s implementation of its JCPOA commitments. Due to Iran’s provisional implementation of the IAEA Safeguards Additional Protocol, which provides inspectors with additional verification tools and greater access to relevant Iranian facilities, the IAEA now has a significantly improved ability to monitor and verify that Iran is meeting these commitments under the JCPOA. Pursuant to Security Council Resolution 2231 (2015), on January 16, 2016, the IAEA officially confirmed that Iran had verifiably met its commitments under the JCPOA, triggering the sanctions reduction commitments of the United Nations. The United States and the European Union also modified their nuclear-related autonomous sanctions against Iran. Security Council Resolution 2231 (2015) requires member states to continue to prevent persons designated by the United Nations from entering or transiting through their territory, for up to five years. Member states are also required to continue to freeze all assets of designated individuals or entities for up to eight years. In addition, in accordance with decisions of the Security Council set out in the Resolution, member states take the measures necessary to restrict activities pertaining to Iran’s nuclear program for up to 10 years; restrict activities pertaining to Iran’s development of nuclear weapon delivery systems and ballistic missile program for up to eight years; restrict activities pertaining to Iran’s acquisition and/or facilitation of the use of certain heavy arms and military equipment for up to five years; and restrict the procurement of arms and related material from Iran for up to five years. The Resolution includes a mechanism to allow for the reimposition of sanctions that were imposed under Security Council Resolutions 1737 (2006), 1747 (2007), 1803 (2008), and 1929 (2010) should Iran not fulfill its commitments under the JCPOA. If this mechanism is activated, Canada will be required to amend the Regulations to account for the reimposition of sanctions. Objectives The Regulations Amending the Regulations Implementing the United Nations Resolutions on Iran (the Regulations) implement in Canadian domestic law the binding international obligations of the Security Council Resolution 2231 (2015) adopted on July 20, 2015. Resolution 2231 (2015) was adopted by the Security Council pursuant to Article 41 of Chapter VII of the Charter of the United Nations and is binding on all member states. As a member state of the United Nations and pursuant to Article 25 of the Charter of the United Nations, Canada is legally obligated to implement binding decisions of the Security Council. Description In accordance with Security Council Resolution 2231 (2015), the Regulations restrict the provision of nuclear-related material and technology to Iran; restrict the provision of goods, technology and related services in relation to Iran’s ballistic missile program and development of nuclear weapon delivery systems; restrict the provision of heavy arms and related material to Iran or services related to the Iran’s use of such arms and related material; and restrict the procurement of arms and related material from Iran. The Regulations allow for the issuance of ministerial certificates to authorize activities with Iran in the above areas if it is established that the requirements under Resolution 2231 for participation in such activities are met, including the approval of the Security Council, as required. The Regulations continue to impose asset freezes on the individuals and entities maintained on the list of designated persons per Resolution 2231, while adding an exception, via ministerial certificate, for dealings in property of a designated person if necessary for certain activities related to the implementation of the JCPOA. In the event that the Security Council reimposes sanctions on Iran under the terms of Resolution 2231, the Regulations Implementing the United Nations Resolutions on Iran would be amended to reflect those binding decisions of the Security Council. Finally, the Regulations update language throughout the Regulations Implementing the United Nations Resolutions on Iran to give effect to certain recommendations made by the Standing Joint Committee for the Scrutiny of Regulations, to clarify intent and to ensure consistency across Canada’s economic sanctions regulations. In Canada, implementation of travel restrictions on designated persons mandated under Resolution 2231 (2015) is ensured under the Immigration and Refugee Protection Act and its Regulations. The United Nations Act constitutes the appropriate legislative authority to implement into Canadian law the asset freezes and additional restrictive measures mandated by the Security Council. The text of Security Council Resolution 2231 (2015) is available at http://www.un.org/fr/documents/view_doc.asp?symbol=S/RES/2231(2015)&TYPE=&referer=/fr/&Lang=E. “One-for-One” Rule The “One-for-One” Rule applies to this proposal, as there are minimal administrative costs to business related to the reporting requirement. However, the administrative burden associated with these Regulations is carved out from the “One-for-One” Rule, as they implement non-discretionary international obligations. Small business lens The small business lens does not apply to this proposal, as there are no costs (or insignificant costs) on small business, and small businesses would not be disproportionately affected. Consultation Foreign Affairs, Trade and Development Canada drafted the Regulations in consultation with the Department of Justice. The Regulations implement non-discretionary international obligations. Rationale The Regulations will allow Canada to fulfill its international legal obligations by implementing Security Council Resolution 2231 (2015). Implementation, enforcement and service standards Canada’s sanctions regulations are enforced by the Royal Canadian Mounted Police and the Canada Border Services Agency. Every person who contravenes the Regulations is liable, upon conviction, to the punishments set out in section 3 of the United Nations Act (i.e. on summary conviction, to a fine of not more than $100,000 or to imprisonment for a term of not more than one year, or to both; or, on conviction on indictment, to imprisonment for a term of not more than 10 years.) Contact Emmanuelle Lamoureux Director Gulf States Relations Division Global Affairs Canada 125 Sussex Drive Ottawa, Ontario K1A 0G2 Telephone: 343-203-3293 Email: [email protected] Footnote a R.S., c. U-2 Footnote 1 SOR/2007-44

This Bill does not amend any statutes.

Sign up for alerts on this Bill

Receive emails tracking this Bill's progress.

See all your alerts in a dashboard.

Set an alert with one click and you're done!