Canada expands sanctions enforcement and regulatory oversight through major bureau merger and new reporting mandates

Canada merges sanctions and export bureaus while introducing new FINTRAC and CBSA reporting mandates to combat sanctions evasion and streamline trade permits.

By: AXL Media

Published: Mar 6, 2026, 2:56 PM EST

Source: The information in this article was sourced from Baker McKenzie

Structural shift in trade oversight

In February 2026, representatives from the Sanctions Bureau announced a significant transformation of Global Affairs Canada internal architecture. The Export Controls Bureau and the Sanctions Bureau will merge into a single entity known as the Sanctions and Export Controls Bureau. This move is designed to leverage administrative tools from the trade controls sector to improve the efficiency of the sanctions permitting process. By the end of 2026, the government intends for sanctions permits to be processed through the NEXCOL system, with stakeholder testing expected to begin in the fall.

Evolution of compliance guidance

The Sanctions Bureau recently issued the first formal guidance regarding compliance and enforcement within the national economic sanctions regime. This documentation emphasizes due diligence best practices, including the necessity of screening third parties and evaluating beneficial ownership. While the guidelines encourage the reporting of non-compliance to the Royal Canadian Mounted Police, there is currently no positive legal obligation to report violations under the Special Economic Measures Act. The bureau has indicated that further sector-specific guidance and details on deeming provisions will be released throughout the remainder of the year.

Expansion of regulatory designations

The list of individuals and entities designated under unilateral sanctions legislation continues to grow as the government utilizes Orders in Council to amend regulations. Significant updates have been made to regimes targeting Belarus, Iran, and Russia in early 2026. Specifically, amendments to the Russia Regulations have expanded prohibitions to include services provided to non-Canadians regarding the Russian ghost fleet, as well as stricter bans on the import of coal, metals, and various industrial goods. Notably, Canada has continued to lower the price cap per barrel for crude oil under the G7 framework.