OSFI has been informed that following the adoption by the United Nations Security Council (UNSC) of Resolution 1483 (2003) on May 22, 2003, the Department of Foreign Affairs and International Trade (DFAIT) issued General Certificate no. 5 dated May 28, 2003 pursuant to section 9 of the United Nations Iraq Regulations.

This certificate states that most transactions with Iraq, including most financial transactions, have been approved by the UNSC pursuant to Resolution 1483 and are therefore allowed without further approval from DFAIT. As a result, Canadian financial institutions can undertake most financial transactions with Iraq with the following two limitations.

First, financial institutions are not to release or deal in property located in Canada that is directly or indirectly owned or controlled by the Government of Iraq. DFAIT must first approve, on a case-by-case basis, dealings in this property by issuing a specific certificate.

Second, financial institutions are not to release or deal in property that has been removed from Iraq, or acquired by Saddam Hussein or other senior officials of the former Iraqi regime or their immediate family members. This includes any entities directly or indirectly owned or controlled by such individuals. The UNSC is in the process of preparing a list containing the names of individuals and entities whose assets must be frozen.

For further information, please consult DFAIT’s Web site for a copy of the press release on the removal of barriers to commercial and financial transactions with Iraq (http://webapps.dfait-maeci.gc.ca/minpub/Publication.asp?FileSpec=/Min_Pub_Docs/106221.htm&Language=E) or for a copy of Certificate no. 5 (http://www.dfait-maeci.gc.ca/trade/sanctions-en.asp) issued under the United Nations Iraq Regulations or contact the Department of Foreign Affairs and International Trade at (613) 995-1108.

As always, OSFI expects federally regulated financial institutions to observe the relevant laws and regulations of all jurisdictions in which they operate.