OSFI Sanctions List
Office of the Superintendent of Financial Institutions (OSFI) is an independent agency of the Government of Canada reporting to the Minister of Finance created "to contribute to public confidence in the Canadian financial system". It is the sole regulator of banks, and the primary regulator of insurance companies, trust companies, loan companies and pension plans in Canada.
OSFI's mission is to:
- Supervise institutions and pension plans to determine if they are in sound financial condition and meeting minimum plan funding requirements respectively, and are complying with their governing law and supervisory requirements;
- Promptly advise institutions and plans in the event there are material deficiencies and take or require management, boards or plan administrators to take necessary corrective measures expeditiously;
- Advance and administer a regulatory framework that promotes the adoption of policies and procedures designed to control and manage risk;
- Monitor and evaluate system-wide or sectoral issues that may impact institutions negatively.
Canada's legislative measures against terrorists, terrorist groups and other listed and sanctioned individuals and entities ("Designated Persons") are contained in various Canadian statutes and regulations. These impose prohibitions, disclosure and other compliance obligations targeting specific countries, individuals and entities, and their financial activities. These legislative measures apply to all Canadians including Canadians resident outside Canada, and more particularly to all financial institutions, including federally regulated financial institutions (FRFIs).
This Instruction Guide addresses Canadian legislative measures that:
- Identify Designated Persons; prohibit activity with respect to assets of Designated Persons;
- Require disclosure of information concerning these assets to law enforcement authorities;
- Require reporting of aggregated values of these assets to financial regulators (which, in the case of FRFIs, is OSFI) (Designated Persons Listings and Sanctions Laws or Laws).
FRFIs should note that other Canadian legislation may apply financial sanctions and that this legislation may include lists of designated persons. OSFI expects FRFIs to comply with all such legislation, which includes, for example, the Special Economic Measures Act (SEMA) and the Special Economic Measures (Burma) Regulations and Special Economic Measures (Zimbabwe) Regulations under SEMA.
Compliance with the Laws requires that FRFIs implement the following types of control measures:
- Searching in FRFI records for individuals and entities designated by the Laws and subject to financial sanctions;
- Determining whether the FRFI is in possession or control of property of Designated Persons;
- Preventing prohibited activity with respect to property of Designated Persons (by freezing assets) and monitoring for and preventing prohibited transactions;
- Disclosing information to the Royal Canadian Mounted Police (RCMP) and the Canadian Security Intelligence Service (CSIS) concerning property of Designated Persons in the FRFI's possession or control; and
- Reporting to OSFI monthly on the aggregate value of property of Designated Persons in the FRFI's possession or control.
Information about individuals and entities that FRFIs collect and develop in the "know your client" process, and any other information at their disposal, must be used to determine whether an individual or entity on their records is a Designated Person since government agencies, including the Royal Canadian Mounted Police (RCMP) and Canadian Security Intelligence Service (CSIS), cannot assist FRFIs with the determination.
Canada implements international sanctions and measures to combat terrorism through the following two Canadian statutes and regulations created pursuant to them:
- The United Nations Act (UN Act) allows for the enactment of regulations implementing decisions of the United Nations Security Council (UNSC) (which are binding on all UN members) to list and apply sanctions to terrorists and others who threaten international peace and security. Pertinent regulations under the UN Act are:
- Regulations Implementing the United Nations Resolutions on the Suppression of Terrorism (RIUNRST);
- United Nations Al-Qaida and Taliban Regulations (UNAQTR);
- Regulations Implementing the United Nations Resolutions on Iran (RIUNRI); and
- Regulations Implementing the United Nations Resolutions on the Democratic People's Republic of Korea (RIUNRDPRK)
- Under the Criminal Code, the Governor in Council may, on the recommendation of the Minister of Public Safety, place an entity on the list of terrorist entities if satisfied that the legal threshold outlined in s. 83.05(1) of the Criminal Code has been met. Pertinent regulations under the Criminal Code are the Regulations Establishing a List of Entities (Criminal Code Regulations).