Outside of the arrest itself, very little information about the case is being released at this time, in large part because a publication ban that was requested by Meng.
In 2017, ZTE pleaded guilty in US federal court to evading USA embargoes on Iran, by buying American tech parts, incorporating them into ZTE equipment, then illegally shipping them to Iran.
The country has already been warned by U.S. senators against the use of Huawei in its telecommunications networks.
Skycom at the time was a major partner of Huawei.
U.S. officials have been investigated Huawei over alleged violations of the country's sanctions on Iran and are seeking to extradite Meng.
The Wall Street Journal reported in April that USA authorities had opened an investigation into suspected violations of Iran sanctions by Huawei.
BT said Huawei's equipment had not been used in the core of its fixed-line network, and it was removing it from the core of the mobile networks it acquired when it bought operator EE.
"Americans are grateful that our Canadian partners have arrested the Chief Financial Officer of a giant Chinese telecom company for breaking US sanctions against Iran, " he said.
Meng is the daughter of Huawei's founder and CEO Ren Zhengfei, and also serves as deputy chair on Huawei's board.More news: Qatar quits Opec ahead of oil cartel crunch talks
Huawei released a statement saying its CFO was arrested while changing planes in Vancouver and is facing charges in "the Eastern District of NY".
Government Communications Security Bureau director-general Andrew Hampton said he considered Spark's proposal to use Huawei in its planned 5G RAN would, if implemented, raise significant national security risks.
The move also comes as Huawei faces other challenges overseas this week, with United Kingdom wireless provider BT Group announcing that it will no longer use the Chinese firm's equipment for its networks.
Huawei, the world's biggest network equipment maker ahead of Ericsson and Nokia, has said Beijing has no influence over its operations. This agreement remains in place today.
Huawei said that it has not been informed as to the nature of the arrest.
We'll update you as this story continues.
It has provided products and services in more than 170 countries and has more than 180,000 employees over the world.
"Until we have some clarity around the future we can't make any bold investment decisions", he said.