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Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law) (S.C. 2017, c. 21)

Act current to 2024-10-30 and last amended on 2023-06-22. Previous Versions

Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law)

S.C. 2017, c. 21

Assented to 2017-10-18

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

Preamble

Whereas human rights and the rule of law are integral to international law and Canada has repeatedly asserted its commitment to promoting international justice and respect for human rights;

Whereas signatory States to international human rights agreements have committed themselves to the obligations and responsibilities set out in those agreements;

Whereas Sergei Magnitsky, a Moscow lawyer who uncovered the largest tax fraud in Russian history, was detained without trial, tortured and consequently died in a Moscow prison on November 16, 2009;

Whereas no thorough, independent and objective investigation has been conducted by Russian authorities into the detention, torture and death of Sergei Magnitsky, nor have the individuals responsible been brought to justice;

Whereas the unprecedented posthumous trial and conviction of Sergei Magnitsky in Russia for the very fraud he uncovered constitute a violation of the principles of fundamental justice and the rule of law;

Whereas legislation and motions adopted by legislative assemblies in the United States, the European Parliament, the United Kingdom, the Netherlands, Italy, Poland and Canada have condemned the mistreatment of Sergei Magnitsky as “a violation of the principles of fundamental justice and the rule of law” and called for sanctions against any foreign nationals responsible for violations of internationally recognized human rights in a foreign country when authorities in that country are unable or unwilling to conduct a thorough, independent and objective investigation of the violations;

Whereas the Litvinenko Inquiry report, presented to the United Kingdom Parliament on January 21, 2016, found that two Russian agents, Andrei Lugovoi and Dmitry Kovtun, were responsible for the assassination of Alexander Litvinenko and that there was a “strong possibility” that they were acting on behalf of the Russian Federal Security Service;

Whereas Russian opposition politician Boris Nemtsov was assassinated outside the Kremlin on February 27, 2015, and to this day no thorough, independent and objective investigation has been conducted by Russian authorities;

Whereas the Senate, on May 5, 2015, and the House of Commons, on March 25, 2015, by unanimous resolutions called upon the Government of Canada to explore and encourage sanctions against any foreign nationals responsible for the detention, torture and death of Sergei Magnitsky and to explore sanctions as appropriate against any foreign nationals responsible for violations of internationally recognized human rights in a foreign country, when authorities in that country are unable or unwilling to conduct a thorough, independent and objective investigation of the violations;

Whereas member of the Ukrainian Parliament Lieutenant Nadiya Savchenko and other Ukrainians were illegally convicted and imprisoned in Russia in violation of international norms and fundamental justice;

Whereas the Special Economic Measures Act authorizes the Government of Canada to take economic measures against a foreign state or national for the purpose of implementing a decision, resolution or recommendation of an international organization or association of states, or in cases of a grave breach of international peace and security that resulted or is likely to result in a serious international crisis;

Whereas adding gross violations of internationally recognized human rights as a ground on which sanctions may be imposed against foreign states and nationals would further Canada’s support for human rights and advance its responsibility to protect activists who fight for human rights;

Whereas it is important to acknowledge and remember Sergei Magnitsky’s sacrifice, as well as the sacrifice of other victims of gross violations of internationally recognized human rights;

And whereas all violators of internationally recognized human rights should be treated and sanctioned equally throughout the world,

Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

Short Title

Marginal note:Short Title

1 This Act may be cited as the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law).

Interpretation

Marginal note:Definitions

2 The following definitions apply in this Act.

Canadian

Canadian means a person who is a citizen within the meaning of the Citizenship Act or a corporation incorporated or continued by or under the laws of Canada or of a province. (Canadien)

entity

entity means a corporation, trust, partnership, fund, an unincorporated association or organization or a foreign state. (entité)

foreign national

foreign national means an individual who is not

foreign public official

foreign public official has the same meaning as in section 2 of the Corruption of Foreign Public Officials Act. (agent public étranger)

foreign state

foreign state means a country other than Canada, and includes

  • (a) any of its political subdivisions;

  • (b) its government and any of its departments, or the government or any department of any of its political subdivisions; and

  • (c) any of its agencies or any agency of any of its political subdivisions. (État étranger)

Minister

Minister[Repealed, 2022, c. 10, s. 444]

person

person means an individual or an entity. (personne)

prescribed

prescribed means prescribed by regulation. (version anglaise seulement)

property

property means any type of property, whether real or personal or immovable or movable, or tangible or intangible or corporeal or incorporeal, and includes money, funds, currency, digital assets and virtual currency. (bien)

Previous Version

Marginal note:Deemed ownership

  • 2.01 (1) If a foreign national 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 foreign national.

  • Marginal note:Criteria

    (2) For the purposes of subsection (1), a foreign national controls an entity, directly or indirectly, if any of the following criteria are met:

    • (a) the foreign national holds, directly or indirectly, 50% or more of the shares or ownership interests in the entity or 50% or more of the voting rights in the entity;

    • (b) the foreign national is able, directly or indirectly, to change the composition or powers of the entity’s board of directors; or

    • (c) it is reasonable to conclude, having regard to all the circumstances, that the foreign national is able, directly or indirectly and through any means, to direct the entity’s activities.

Minister

Marginal note:Minister

  • 2.1 (1) Subject to subsection (2), the Minister of Foreign Affairs is responsible for the administration and enforcement of this Act.

  • Marginal note:Designation

    (2) The Governor in Council may, by order, designate one or more Ministers of the Crown to discharge any responsibilities that the Governor in Council may specify with respect to the administration or enforcement of any of the provisions of this Act or any order or regulations made under this Act.

Her Majesty

Marginal note:Binding on Her Majesty

3 This Act is binding on Her Majesty in right of Canada or a province.

Orders and Regulations

Marginal note:Orders and Regulations

  • 4 (1) The Governor in Council may, if the Governor in Council is of the opinion that any of the circumstances described in subsection (2) has occurred,

    • (a) make any orders or regulations with respect to the restriction or prohibition of any of the activities referred to in subsection (3) in relation to a foreign national that the Governor in Council considers necessary; and

    • (b) by order, cause to be seized or restrained in the manner set out in the order any property situated in Canada that is owned — or that is held or controlled, directly or indirectly — by a foreign national who is identified in an order or regulation made under paragraph (1)(a).

  • Marginal note:Circumstances

    (2) The circumstances referred to in subsection (1) are the following:

    • (a) a foreign national is responsible for, or complicit in, extrajudicial killings, torture or other gross violations of internationally recognized human rights committed against individuals in any foreign state who seek

      • (i) to expose illegal activity carried out by foreign public officials, or

      • (ii) to obtain, exercise, defend or promote internationally recognized human rights and freedoms, such as freedom of conscience, religion, thought, belief, opinion, expression, peaceful assembly and association, and the right to a fair trial and democratic elections;

    • (b) a foreign national acts as an agent of or on behalf of a foreign state in a matter relating to an activity described in paragraph (a);

    • (c) a foreign national, who is a foreign public official or an associate of such an official, is responsible for or complicit in ordering, controlling or otherwise directing acts of corruption — including bribery, the misappropriation of private or public assets for personal gain, the transfer of the proceeds of corruption to foreign states or any act of corruption related to expropriation, government contracts or the extraction of natural resources — which amount to acts of significant corruption when taking into consideration, among other things, their impact, the amounts involved, the foreign national’s influence or position of authority or the complicity of the government of the foreign state in question in the acts; or

    • (d) a foreign national has materially assisted, sponsored, or provided financial, material or technological support for, or goods or services in support of, an activity described in paragraph (c).

  • Marginal note:Restricted or prohibited activities

    (3) Orders and regulations may be made under paragraph (1)(a) with respect to the restriction or prohibition of any of the following activities, whether carried out in or outside Canada:

    • (a) the dealing, directly or indirectly, by any person in Canada or Canadian outside Canada in any property, wherever situated, of the foreign national;

    • (b) 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

    • (c) the provision by any person in Canada or Canadian outside Canada of financial services or any other services to, for the benefit of or on the direction or order of the foreign national;

    • (d) the acquisition by any person in Canada or Canadian outside Canada of financial services or any other services for the benefit of or on the direction or order of the foreign national; and

    • (e) the making available by any person in Canada or Canadian outside Canada of any property, wherever situated, to the foreign national or to a person acting on behalf of the foreign national.

  • Marginal note:Order authorizing Minister

    (4) The Governor in Council may, by order, authorize the Minister to

    • (a) issue to any person in Canada or Canadian outside Canada a permit to carry out a specified activity or transaction, or class of activity or transaction, that is restricted or prohibited under this Act or any order or regulations made under this Act; or

    • (b) issue a general permit allowing any person in Canada or Canadian outside Canada to carry out a class of activity or transaction that is restricted or prohibited under this Act or any order or regulations made under this Act.

  • Marginal note:Ministerial permit

    (5) The Minister may issue a permit or general permit, subject to any terms and conditions that are, in the opinion of the Minister, consistent with this Act and any order or regulations made under this Act.

  • Marginal note:Revocation, etc.

    (6) The Minister may amend, suspend, revoke or reinstate any permit or general permit issued by the Minister.

Previous Version

Forfeiture Orders

Marginal note:Definitions

4.1 The following definitions apply in sections 4.2 to 4.4.

judge

judge means a judge of a superior court of the province where property described in an order made under paragraph 4(1)(b) is situated. (juge)

Minister

Minister means the Minister responsible under section 2.1 for the administration of an order made under paragraph 4(1)(b). (ministre)

Marginal note:Forfeiture

  • 4.2 (1) On application by the Minister, a judge must order that the property that is the subject of the application be forfeited to Her Majesty in right of Canada if the judge determines, based on the evidence presented, that the property

    • (a) is described in an order made under paragraph 4(1)(b); and

    • (b) is owned by the foreign national referred to in that order or is held or controlled, directly or indirectly, by that foreign national.

  • Marginal note:Notice

    (2) Before making the order in relation to the property, the court must require notice to be given to any person who, in the court’s opinion, appears to have an interest in or right to the property, and the court may hear any such person.

  • Marginal note:Manner of giving notice

    (3) The notice must

    • (a) be given in the manner that the court directs or that may be specified in the rules of the court;

    • (b) specify the period that the court considers reasonable or that may be set out in the rules of the court during which a person may, before the order in relation to the property is made, make an application to the court asserting their interest in or right to the property; and

    • (c) set out a description of the property.

  • Marginal note:Application by person

    (4) Any person — other than a foreign national described in any of paragraphs 4(2)(a) to (d) — who claims an interest in or right to property that is forfeited to Her Majesty under subsection (1) may, within 30 days after the day on which the property is forfeited, apply in writing to a judge for an order declaring that their interest or right is not affected by the forfeiture, declaring the nature and extent of the interest or right and directing the Minister to pay to the person an amount equal to the value of their interest or right.

Marginal note:Not a Crown corporation

4.3 If the property that is the subject of a forfeiture order consists of all of the shares of a corporation, the corporation is deemed not to be a Crown corporation as defined in subsection 83(1) of the Financial Administration Act.

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