April 30, 2012 - FINTRAC Advisory

Canada announces Amendments to Special Economic Measures (Burma) Regulations

On April 24, 2012, Canada enacted the Regulations Amending the Special Economic Measures (Burma) Regulations under the Special Economic Measures Act (SEMA).

The Amendments have repealed many of the sanctions that were previously in force against Burma (also known as Myanmar) under SEMA, including those related to the provision of financial services, investment in Burma, and exports to and imports from Burma.

However, sanctions still exist in relation to designated persons. The Regulation stipulates that persons or entities which are subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) that are involved in the opening of an account for a client must determine, on a continuing basis, whether it is in possession or control of property owned or controlled by or on behalf of a designated person.

The Department of Foreign Affairs and International Trade is responsible for SEMA and the associated regulations. For more information concerning these new restrictions consult the web site of Foreign Affairs and International Trade Canada:

http://www.international.gc.ca/sanctions/burma-birmanie.aspx?view=d

FINTRAC encourages all reporting entities to be aware of the obligations on all persons in Canada and any Canadians outside Canada under the new sanctions.

Burma remains a jurisdiction representing risks arising from strategic AML/CFT deficiencies, as identified by the FATF in the February 16, 2012 FATF Public Statement. FINTRAC's previous Advisories listing Burma as a jurisdiction representing a risk remain in effect despite the changes to SEMA (Burma). FINTRAC's most recent Advisory listing Burma is available at the following link:

http://www.fintrac-canafe.gc.ca/new-neuf/avs/2012-02-27-eng.asp

The Office of the Superintendent of Financial Institutions (OSFI) has issued a Notice to all federally regulated financial institutions to be aware of the Special Economic Measures (Burma) Regulations.

http://www.osfi-bsif.gc.ca/Eng/fi-if/amlc-clrpc/snc/sema-rmes/Pages/2012-04-30-MM.aspx