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ARTICLE · 02 JUNE 2014

Canada Enforces Sanctions Laws For First Time With Sema Conviction

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A cautionary tale illustrating the recent trend in the enforcement of Canada’s economic sanctions by the RCMP.

CanadaInternational Law
Borden Ladner Gervais LLP
Borden Ladner Gervais LLP
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A cautionary tale illustrating the recent trend in the enforcement of Canada's economic sanctions by the RCMP.

An Alberta-based company has been fined $90,000 for violating the Special Economic Measures Act ("SEMA"). The company attempted to export Viton o-rings, valued at 30 cents apiece, to Iran – the result: a $90,000 fine for a transaction worth approximately $15.00. The charges that led to the conviction and resulting fine were the first ever brought under SEMA (which has been in place for 20 years).

Understanding The Legislation

SEMA, along with the United Nations Act, represents one of the principal mechanisms through which Canada imposes economic sanctions on foreign states. The United Nations Act allows for the domestic implementation by the Canadian government of sanctions instituted by the United Nations Security Council. SEMA authorizes Canada to establish sanctions that further its own foreign policy objectives in the absence of or in addition to

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