Mr. Speaker, the following reflects a consolidated response approved on behalf of Global Affairs Canada ministers.
In response to parts (a), (b) and (c) of the question, in coordination with allies and partners, Canada will continue to escalate sanctions and close loopholes to maximize pressure against the Russian regime until President Putin stops his war on Ukraine and turns to diplomacy. The measures the Government of Canada has put in place are designed to hit at the heart of Russia’s economy and limit its ability to fund its illegal and unjustifiable war.
Under Canada’s sanctions, it is prohibited for persons in Canada and Canadians abroad to engage in activities related to the property of sanctioned persons, including the provision of financial or related services. As a result, the assets of sanctioned persons are effectively frozen. They cannot be sold and they cannot be transferred, making transactions involving them simply impossible.
Through budget 2022, the Government of Canada is proposing amendments to the Special Economic Measures Act and the Justice for Victims of Corrupt Foreign Officials Act that will allow courts to order seized or restrained property belonging to sanctioned persons, including Russian elites, oligarchs and their proxies, to be forfeited to the Crown.
The proceeds generated from forfeited assets may be used for the reconstruction of a foreign state adversely affected by grave breaches of international peace and security; the restoration of international peace and security; and the compensation of victims affected by grave breaches of international peace and security, gross and systematic human rights violations or acts of significant corruption.
The management and disposal of assets are expected to be handled by the Minister of Public Services and Procurement Canada under the Seized Property Management Act. These changes will make Canada’s sanctions regime a leader in the G7.
Federally regulated financial institutions, or FRFIs, are regulated and supervised by the Office of the Superintendent of Financial Institutions, OSFI. This includes foreign banks operating in Canada. OSFI expects FRFIs to comply with all relevant Canadian sanctions legislation and to ensure they have adequate procedures in place to comply with the existing and any future laws on an ongoing basis.
Disclosures on the existence of sanctioned assets are made by reporting entities, such as Canadian financial institutions, to the Royal Canadian Mounted Police, the RCMP.
Global Affairs Canada is not in a position to provide the requested figures, given that they may not fully reflect what has been effectively frozen under Canadian sanctions and would represent only those assets that have been reported to the RCMP. Such an exercise could lead to the disclosure of incomplete and misleading information.
In response to part (d) of the question, G7 finance ministers released a joint statement on March 17, 2022, outlining their commitment to take all available legal steps to find, restrain, freeze, seize and, where appropriate, confiscate or forfeit the assets of those individuals and entities that have been sanctioned.
With regard to part (e) of the question, the information provided in response to this question is current as of March 31, 2022.