Regulations Amending the Special Economic Measures (Extremist Settler Violence) Regulations: SOR/2025-137

Canada Gazette, Part II, Volume 159, Number 14

Registration
SOR/2025-137 June 10, 2025

SPECIAL ECONOMIC MEASURES ACT

P.C. 2025-504 June 9, 2025

Whereas the Governor in Council is of the opinion that the actions of Israeli extremist settlers in the occupied Palestinian territories constitute a grave breach of international peace and security that has resulted in or is likely to result in a serious international crisis;

Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Foreign Affairs, makes the annexed Regulations Amending the Special Economic Measures (Extremist Settler Violence) Regulations under paragraph 4(1)(a)^{footnote a} and subsections 4(1.1)^{footnote b}, (2)^{footnote c} and (3) of the Special Economic Measures Act ^{footnote d}.

Regulations Amending the Special Economic Measures (Extremist Settler Violence) Regulations

Amendment

1 Part 1 of the schedule to the Special Economic Measures (Extremist Settler Violence) Regulations ^{footnote 1} is amended by adding the following in numerical order:

• 16 Itamar Ben-Gvir (born on May 6, 1976)
• 17 Bezalel Yoel Smotrich (born on February 27, 1980)

Application Before Publication

2 For the purpose of paragraph 11(2)(a) of the Statutory Instruments Act, these Regulations apply according to their terms before they are published in the Canada Gazette.

Coming into Force

3 These Regulations come into force on the day on which they are registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issues

Extremist settler violence is a long-standing issue within the context of the Israeli-Palestinian conflict. The recent escalation of violent actions led by Israeli extremist settlers and affiliates against Palestinian civilians and their property in the occupied Palestinian territories (oPt)^{footnote 2} is increasingly threatening the safety of Palestinians and the viability of a two-state solution.

While various factors contribute to extremist settler violence, a key source stems from ultra-nationalist political actors who continue to pursue policies (including the expansion of the settlement enterprise and apparatus) to advance the case for Israeli settlers in the West Bank (and in some instances, Gaza) and who have provided public support to them. These actions lead to further destabilization of the region and undermine the peace and security of the State of Israel and the oPt, consequently posing a threat to international peace and security.

To emphasize the far-reaching harm of these developments and to deter further escalation, the Government of Canada is imposing additional economic measures on individuals who have directly and indirectly facilitated, supported or contributed to the above actions.

In a joint statement on May 19, 2025, the leaders of Canada, France and the United Kingdom announced that they would take action, including targeted sanctions, if Israel fails to halt settlement expansion in the West Bank.

Background

The Fourth Geneva Convention applies in the occupied territories^{footnote 3} and establishes Israel’s obligations as an occupying power, with respect to the humane treatment of the inhabitants of the occupied territories. As referred to in the United Nations Security Council Resolutions 446 and 465, and consistent with Canada’s long-standing policy, all Israeli settlements in the occupied territories are in violation of the Fourth Geneva Convention.

The issue of settler violence predates the October 7, 2023, terrorist attacks by Hamas on the State of Israel. However, a sharp increase in violent actions has been reported by the United Nations since the attacks, with more than 1 800 extremist settler attacks against Palestinians in the oPt between January 1, 2024, and March 31, 2025. This violence has included the use of arms, torture, physical and verbal assaults, trespassing, damage to private property, theft, vandalism, destruction of farm land (including olive orchards), and various other forms of harassment by Israeli extremist settlers, including blocking humanitarian aid from entering the Gaza Strip. These attacks have also resulted in fatalities and the forced displaced of Palestinian communities.

On May 16, 2024, the Government of Canada announced the Special Economic Measures (Extremist Settler Violence) Regulations (the Regulations). Since the Regulations came into force, Canada has imposed sanctions against fifteen individuals and seven entities in relation to their role in participating in or facilitating extremist settler violence.

Objective

These sanctions intend to

• (i) condemn the harmful actions and attacks, including for the threat they pose to the viability of a two-state solution;
• (ii) deter future attacks by Israeli extremist settlers against Palestinian civilians in the oPt; and
• (iii) emphasize Canada’s long-standing policy opposing settler violence against Palestinian civilians, forced displacement and the expansion of settlements in the oPt.

Description

The Regulations Amending the Special Economic Measures (Extremist Settler Violence) Regulations (the amendments) designate two officials of the Government of Israel who are current Cabinet ministers within the Knesset. There are reasonable grounds to believe that these individuals have engaged in activities that undermine the peace and security of the State of Israel and the oPt by directly facilitating, supporting, providing funding for or contributing to the use of violence by Israeli extremist settlers against Palestinian civilians or their property in the oPt.

Any person (individuals and entities) in Canada or Canadians outside Canada is thereby prohibited from dealing in the property of, entering into transactions with, providing services to, transferring property to, or otherwise making goods available to these listed individuals. These measures will also render the listed individuals inadmissible to Canada under the Immigration and Refugee Protection Act. Under the Regulations, listed persons may apply to the Minister of Foreign Affairs to have their name removed from the schedule of designated persons and entities. The Minister must determine whether there are reasonable grounds to make a recommendation to the Governor in Council for removal.

Regulatory development

Consultation

Global Affairs Canada regularly engages with relevant stakeholders, including civil society organizations, cultural communities and other like-minded governments regarding Canada’s approach to sanctions implementation.

With respect to these amendments, public consultation would not have been appropriate. Publicizing the names of the persons targeted by sanctions would have potentially resulted in asset flight prior to the coming into force of these amendments, leading to sanctions circumvention. Therefore, these amendments are not prepublished in the Canada Gazette, Part I, as public consultation could allow sanctions evasion and compromise Canada’s foreign policy objectives.

Modern treaty obligations and Indigenous engagement and consultation

In accordance with the Cabinet Directive on the Federal Approach to Modern Treaty Implementation, an analysis was undertaken to determine whether the amendments are likely to give rise to modern treaty obligations. The assessment examined the geographic scope and subject matter of the amendments in relation to modern treaties in effect. No modern treaty obligations were identified.

Instrument choice

The imposition of sanctions against foreign states and non-state actors is a key tool for the international community to support peace and security and to enforce international norms and laws. The Parliament of Canada has enacted legislation authorizing the imposition of sanctions through the United Nations Act, the Special Economic Measures Act (SEMA) and the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law).

Canada has established a rigorous due diligence process to consider and evaluate possible cases that may warrant the use of sanctions. Given the elements proposed in the package, the SEMA was identified as the instrument of choice.

Regulations are the sole method to enact sanctions in Canada. Sanctions measures under the SEMA are imposed by the Governor in Council on the recommendation of the Minister of Foreign Affairs through a regulatory process. No other instrument could be considered.

Regulatory analysis

Benefits and costs

The measures included in this package strengthen existing economic sanctions measures against extremist settlers. By implementing these sanctions, Canada signals strong condemnation of the ongoing extremist settlers’ violence.

The incremental cost to the Government of Canada to administer and enforce these additional prohibitions is minimal. The Canada Border Services Agency, the Royal Canadian Mounted Police, Immigration, Refugees and Citizenship Canada and other departments and agencies may incur a small cost to update the relevant systems to include the individuals listed through these amendments.

Canadian banks and financial institutions are required to comply with sanctions. They will do so by adding the newly listed individuals to their existing monitoring systems, which may also result in a minor compliance cost.

Sanctions targeting specific persons have less impact on Canadian businesses than customary broad-based economic sanctions, and such amendments have more limited impact on the citizens of the country of the listed persons. Based on an initial assessment of available open-source information and consultations within the Government of Canada, it is believed that the newly listed individuals have limited linkages with Canada and therefore do not have business dealings that are significant to the Canadian economy. It is therefore anticipated that there will be no significant impacts on Canadians or Canadian businesses as a result of these amendments.

Small business lens

Analysis under the small business lens concluded that the amendments could impact Canadians small businesses. The amendments listing new individuals do not impose any new compliance or administrative burden on small businesses in Canada. However, the amendments prohibit Canadian businesses from dealing with, providing services to, or otherwise making goods available to listed persons, but they do not create obligations related to them.

Canadian businesses may seek a permit under the Special Economic Measures Permit Authorization Order to allow them to carry out a specified activity that is otherwise restricted or prohibited with a listed person. Those permits are granted on an exceptional basis allowing policy space for exemptions. However, Global Affairs Canada does not anticipate any applications resulting from listing these persons as the department’s assessment has not identified business dealings that are significant to Canada’s economy.

Canadian small businesses are also subject to the duty to disclose under the Regulations, which would represent a direct compliance requirement. However, as the newly listed individuals have no known legitimate linkages with Canada, Global Affairs Canada does not anticipate any disclosures resulting from the amendments.

One-for-one rule

The one-for-one rule does not apply, as there is no incremental change in administrative burden on businesses. The permitting process for businesses meets the definition of “administrative burden” in the Red Tape Reduction Act. However, while permits may be granted under the Regulations on an exceptional basis, Global Affairs Canada does not anticipate any permit applications with respect to the amendments given the minimal level of trade with the State of Israel and the oPt.

Regulatory cooperation and alignment

Although sanctions are more effective when applied in a coordinated manner, these amendments are not related to a work plan or a commitment under a formal regulatory cooperation forum. Canada is working to harmonize efforts internally, and with partners, to facilitate a unified front on sanctions.

Canada’s international partners continue to update their sanction regimes against individuals and entities related to extremist settler violence in the oPt and enforce far-reaching financial and investment prohibitions on extremist settlers. Countries and jurisdictions that have sanctioned individuals and entities related to extremist settler violence in the oPt include Australia, the European Union, Japan, New Zealand, and the United Kingdom.

International obligations

Compliance with Canada’s international commitments was considered in the development of these amendments.

Effects on the environment

The amendments are unlikely to result in important environmental effects. In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment, a preliminary scan concluded that a strategic environmental and economic assessment is not required.

Gender-based analysis plus

None of the newly listed individuals have Canadian citizenship. As a result, the scope of the gender-based analysis plus (GBA+) is limited.

The subject of economic sanctions has previously been assessed for effects on gender and diversity. Although intended to facilitate a change in behaviour through economic pressure on individuals and entities in foreign states, sanctions under SEMA can nevertheless have an unintended impact on certain vulnerable groups and individuals. Rather than affecting the State of Israel and the oPt as a whole, these targeted sanctions impact individuals believed to be engaged in activities that undermine the peace and security of the State of Israel and the oPt by directly or indirectly facilitating, supporting, providing funding for or contributing to the use — or the threatened or attempted use — of violence by Israeli extremist settlers against Palestinian civilians or their property in the oPt. Therefore, these amendments are unlikely to have a significant impact on vulnerable groups compared to customary broad-based economic sanctions directed toward a state. As sanctions limit extremist settlers’ ability to carry out attacks, women, children and vulnerable groups are likely to benefit from these measures.

Implementation, compliance and enforcement, and service standards

The amendments come into force on the day on which they are registered.

Consequential to being listed in the Regulations, and pursuant to the application of paragraph 35.1(b) of the Immigration and Refugee Protection Act, the listed individuals would be inadmissible to Canada. The names of the listed individuals will be available online for financial institutions to review and will be added to the Consolidated Canadian Autonomous Sanctions List. This will help facilitate compliance with the Regulations.

The Trade Commissioner Service for Global Affairs Canada, abroad and in Canada, continues to assist clients in understanding Canadian sanctions regulation and, notably, the impact of the regulations on any activities in which Canadians may be engaged. Global Affairs Canada is also increasing outreach efforts across Canada — including engaging with businesses, universities and provincial and territorial governments — to enhance national awareness of and compliance with Canadian sanctions.

Under SEMA, Royal Canadian Mounted Police and Canada Border Services Agency officers have the power to enforce sanctions through their authorities as defined under the Customs Act, the Excise Act or the Excise Act, 2001, and sections 487 to 490, 491.1 and 491.2 of the Criminal Code.

In accordance with section 8 of SEMA, every person who knowingly contravenes or fails to comply with the Regulations is liable, upon summary conviction, to a fine of not more than $25,000 or to imprisonment for a term of not more than one year, or to both: or, upon conviction on indictment, to imprisonment for a term of not more than five years.

Contact

Global Affairs Canada
Sanctions Bureau
125 Sussex Drive
Ottawa, Ontario
K1A 0G2
Telephone (toll-free): 1‑833‑352‑0769
Telephone (local): 343‑203‑3975
Fax: 613‑995‑9085
Email: sanctions@international.gc.ca