At the present time, Canada has two bills (one in the Senate and one Private Member's bill) that are Magnitsky laws. Senate Bill S-226 "An Act to provide for the taking of restrictive measures in respect of foreign nationals responsible for gross violations of internationally recognized human rights and to make related amendments to the Special Economic Measures Act and the Immigration and Refugee Protection Act" was tabled in the Senate on May 4, 2016 by the Honourable Senator Andreychuk. Bill S-226 has not progressed passed first reading.
Private Member's Bill C-267 "An Act to provide for the taking of restrictive measures in respect of foreign nationals responsible for gross violations of internationally recognized human rights and to make related amendments to the Special Economic Measures Act and the Immigration and Refugee Protection Act" was tabled in the House of Commons on May 5, 2016 by Mr. Bezan, MP. This Act may be cited as the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law). Bill C-226 has not progressed passed first reading. Bill C-226 is almost identical to Bill S-226.
Both bills, if passed into law, will grant powers to the Governor-in-Council (that is, the Federal Cabinet) to respond to gross violations of internationally recognized human rights committed against individuals in any foreign country by enabling the Governor-in-Council (without Parliamentary approval required) to
- Restrictions/Prohibitions: make any orders or regulations with respect to the restriction or prohibition of any of the activities referred to in subsection (4) in relation to the foreign national's property that the Governor in Council considers necessary; and
- Asset Freeze: by order, cause to be seized, frozen or sequestrated in the manner set out in the order any of the foreign national's property situated in Canada.
The orders/regulations could restrict or prohibit of any of the following activities, whether carried out in or outside Canada:
- the dealing, directly or indirectly, by any person in Canada or Canadian outside Canada in any property, wherever situated, of the foreign national;
- the entering into or facilitating, directly or indirectly, by any person in Canada or Canadian outside Canada, of any financial transaction related to a dealing referred to in paragraph (a); and
- the provision by any person in Canada or Canadian outside Canada of financial services or related services in respect of property of the foreign national.
In other words, the otherwise legal business activities of Canadians/Canadian entities may be restricted. Canada's Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law) would create a new form of export controls and/or economic sanction.
In addition, Canadian financial institutions could be required to freeze the assets of listed persons. The effective implementation of any regulation/order would be on Canadians/Canadian businesses. Failure to comply would result in penalties. As a result, it is important for Canadians to be aware that the Magnitsky Laws are being considered.
The bills have not moved fast or far and may never be implemented in Canadian law. It will depend upon political will for these bills to progress through the legislative process. Minister Dion did not support the concept of Magnitsky-type legislation. Mr. Dion is no longer Canada's Minister of Foreign Affairs. Ms. Chrystia Freeland, Canada's new Minister of Foreign Affairs, is already on Russia's travel ban list. She could pursue the legislation as her travel ban is already in place.
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