Canadian Sanctions Related to Guatemala

Prohibitions

Sanctions related to Guatemala have been enacted under the Special Economic Measures Act in response to the gross and systematic violations of human rights and acts of significant corruption have been committed.

The Special Economic Measures (Guatemala) Regulations impose a dealings prohibition, an effective asset freeze, on listed persons. The Regulations prohibit any person in Canada and any Canadian outside Canada from:

• dealing in property, wherever situated, that is owned, held or controlled by a listed person or a person acting on behalf of a listed person;
• entering into or facilitating any transaction related to a dealing prohibited by these Regulations;
• providing any financial or related services in respect of a dealing prohibited by these Regulations;
• making available any goods, wherever situated, to a listed person or a person acting on behalf of a listed person; and
• providing any financial or other related services to or for the benefit of a listed person.
• Causing, facilitating or assisting in prohibited activities is likewise prohibited.

Exceptions

The above-noted asset freeze and dealings prohibitions do not apply to the following activities or transactions:

• payments made by or on behalf of designated persons pursuant to contracts entered into prior to the coming into force of the Regulations, provided that the payments are not made to or for the benefit of a designated person;
• payments made by or on behalf of a listed person pursuant to contracts entered into prior to the coming into force of the Regulations, provided that the payments are not made to a listed person or to a person acting on behalf of a listed person;
• transactions necessary for a Canadian to transfer to a non-listed person any accounts, funds or investments of a Canadian held by a listed person on the day on which that person became listed;
• dealings with a listed person required with respect to loan repayments made to any person in Canada, or any Canadian outside Canada, for loans entered into with any person other than a listed person, and for enforcement and realization of security in respect of those loans, or repayments by guarantors guaranteeing those loans;
• dealings with a listed person required with respect to loan repayments made to any person in Canada, or any Canadian outside Canada, for loans entered into with a listed person before that person became a listed person, and for enforcement and realization of security in respect of those loans, or repayments by guarantors guaranteeing those loans;
• pension payments to any person in Canada or any Canadian outside Canada;
• financial services required in order for a listed person to obtain legal services in Canada with respect to the application of any of the prohibitions set out in these Regulations;
• transactions in respect of accounts at financial institutions held by diplomatic missions, provided that the transaction is required in order for the mission to fulfill its diplomatic functions under the Vienna Convention on Diplomatic Relations, or transactions required in order to maintain the mission premises if the diplomatic mission has been temporarily or permanently recalled;
• transactions with any international organization with diplomatic status, agencies of the United Nations, the International Red Cross and Red Crescent Movement, or with any entity that has entered into a grant or contribution agreement with Foreign Affairs, Trade and Development Canada; and
• transactions by the Government of Canada that are provided for in any agreement or arrangement between Canada and Guatemala.

Permits and certificates

A separate Special Economic Measures (Guatemala) Permit Authorization Order made pursuant to subsection 4(4) of the Special Economic Measures Act authorizes the Minister of Foreign Affairs to issue to any person in Canada and any Canadian outside Canada a permit to carry out a specified activity or transaction, or any class of activity or transaction, that is otherwise restricted or prohibited pursuant to the Regulations.

Background

For many years, Guatemala has been grappling with entrenched corruption, alarming levels of impunity, and gross human rights violations against justice actors, human rights defenders, and journalists. Under former President Giammattei (2020 to 2024), Guatemala experienced the systematic weakening of key government departments, as well as the country’s judicial branch. Throughout the 2023 electoral process, corrupt public officials worked relentlessly to annul the democratic victory of President Bernardo Arévalo, and to silence the will of the Guatemalan people that was clearly conveyed at the elections.

Although the efforts to prevent President Arévalo from taking office ultimately failed, the corrupt public officials that remain in positions of power continue their efforts to undermine the democratically-elected government. Along with its international partners, Canada is imposing these sanctions to collectively contribute to efforts to fight corruption and gross human rights violations in Guatemala. These sanctions will also serve to deter obstructionist actions by corrupt public officials.

On February 16, 2024, the Special Economic Measures (Guatemala) Regulations came into force. They serve as a new and complementary tool to support Canada’s ongoing efforts to support the democratically-elected Arévalo government and the people of Guatemala in their fight to strengthen democracy and human rights. The Regulations will allow Canada to target sanctions at individuals engaged in corruption and gross human rights violations. The Regulations include four (4) individuals to the Schedule of the Regulations, who are subject to a broad dealings ban. They are undemocratic public officials who have already attempted, and/or continue to attempt to prevent President Arévalo from fulfilling his mandate.

Selected documents

Related links

• Export and Import Controls
• Canada-Guatemala Relations

Legal advice

Please be advised that Global Affairs Canada cannot provide legal advice to members of the public. For this reason, we cannot deliver an opinion as to whether or not a specific activity or transaction would contravene sanctions legislation. You should consider seeking legal advice in relation to an activity that may contravene a Canadian sanction law.