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ARTICLE · 26 JULY 2023

Canada Significantly Amends Sanctions Laws, Adding Deemed Ownership Criteria

Dentons Canada LLP
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On June 22, 2023, significant amendments (the Amendments) to the Special Economic Measures Act (SEMA) entered into force. The Amendments fundamentally alter the notion...

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Paul Lalonde
Paul Lalonde
Sean Stephenson
Sean Stephenson
Daniela Acevedo
Daniela Acevedo
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On June 22, 2023, significant amendments (the Amendments) to the Special Economic Measures Act (SEMA) entered into force. The Amendments fundamentally alter the notion of ownership in Canadian sanctions, particularly through a new deemed control provision (the Provision). Notably, the Provision differs from other common legal definitions of control included in other Canadian legislation like the Competition Act or the Income Tax Act.

Among other things, the Amendments add the following definition to section 2 of SEMA:

Deemed ownership

2.1 (1) If a person controls an entity other than a foreign state, any property that is owned — or that is held or controlled, directly or indirectly — by the entity is deemed to be owned by that person.

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