The Special Economic Measures Act (SEMA) is a Canadian federal statute enacted in 1992 that empowers the Governor in Council to impose economic sanctions against foreign states and their nationals. It is administered primarily by Global Affairs Canada, with enforcement support from the Royal Canadian Mounted Police (RCMP) and the Canada Border Services Agency (CBSA).
SEMA can be triggered in two circumstances: (1) when an international organization of which Canada is a member calls on its members to take economic measures, or (2) when the Governor in Council determines that a grave breach of international peace and security has occurred that is likely to result in a serious international crisis. Following 2017 amendments associated with the Justice for Victims of Corrupt Foreign Officials Act (the Canadian "Magnitsky" law), SEMA was also broadened to capture gross human rights violations and significant acts of corruption.
Measures available under SEMA include:
- Asset freezes on designated persons and entities
- Dealings prohibitions barring Canadians from transacting with listed persons anywhere in the world
- Import/export bans on specified goods, services, or technology
- Restrictions on financial services, insurance, and shipping
- Designation of individuals as inadmissible to Canada under the Immigration and Refugee Protection Act
SEMA programs are implemented through country-specific regulations — for example, the Special Economic Measures (Russia) Regulations, (Iran) Regulations, (Venezuela) Regulations, (Myanmar) Regulations, and (Belarus) Regulations. Each regulation contains a schedule listing designated persons.
SEMA is distinct from the United Nations Act (which implements UN Security Council sanctions in Canada) and from the Justice for Victims of Corrupt Foreign Officials Act, though the three frameworks often operate in parallel. Penalties for SEMA violations include fines and imprisonment of up to five years on indictment. Following Russia's 2022 invasion of Ukraine, SEMA was amended to permit the seizure and forfeiture of assets of sanctioned persons — a tool Canada was among the first G7 states to adopt.
Example
In February 2022, Canada used SEMA to impose sweeping sanctions on Russian officials, banks, and oligarchs following the invasion of Ukraine, later expanding the list to include thousands of designated persons.
Frequently asked questions
SEMA targets foreign states in response to grave breaches of peace, human rights abuses, or corruption, while the Justice for Victims of Corrupt Foreign Officials Act targets individual foreign nationals specifically for human rights violations or significant corruption, regardless of any broader state-level crisis.
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