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Sanctions and asset-freezing law
The Minister for External Relations (the Minister) made the Sanctions and Asset-Freezing (Jersey) Law 2019 (Commencement) (Jersey) Order 2019 on 3 July. The Sanctions and Asset-Freezing (Jersey) Law 2019 (SAFL) came in to force on 19 July 2019.
The Minister introduced SAFL to ensure that Jersey would be able to implement new UK sanctions that would come into effect under the Sanctions and Anti-Money Laundering Act 2018 (SAMLA) when the UK leaves the EU. SAFL forms part of the Government of Jersey’s Brexit preparations and was passed unanimously by the States Assembly on 6 December 2018. It received Royal Assent on 13 March and was registered in the Royal Court on 22 March.
SAFL repeals the Terrorist Asset-Freezing (Jersey) Law 2011 (TAFL) and the United Nations Financial Sanctions (Jersey) Law 2017 (UNFSL) and incorporates their effects, so that all UN, EU, and UK terrorism asset-freeze designations continue to be effective in Jersey immediately, and ensures that the Island can continue to meet its obligation to implement non-terrorism related UN asset-freeze designations without delay. These changes will bring all of Jersey’s main sanctions laws together into one piece of legislation.
More detailed information on the changes being introduced by SAFL can be found in the report attached to the Proposition that was lodged au Greffe on 23 October 2018.
It is important to note that with some minor exceptions detailed below, there will not be any immediate changes to the way you need to comply with sanctions in Jersey.
What happens now SAFL is in force
Jersey sanctions Orders
All existing Jersey sanctions Orders that were made under the European Union Legislation (Implementation) (Jersey) Law 2014 (the 2014 Law) will be grandfathered under SAFL and, for the time being, will continue to operate in the same way as they do presently, with two minor exceptions – see Sanctions and Asset-Freezing (Miscellaneous Amendments – Information) (Jersey) Order 2019 below. Therefore, the asset-freezing provisions and information provisions contained in the EU sanctions regulations that have been implemented through the existing Jersey sanctions Orders continue to have effect.
Sanctions Orders can be viewed on the Jersey Legal Information Board website.
Terrorist Asset-Freezing (Jersey) Law 2011 and UN Financial Sanctions (Jersey) Law 2017
As described above, SAFL will repeal both the TAFL and UNFSL and incorporate their effects. Therefore, you must continue to comply with all UN, EU, and UK asset-freeze designations as you do now.
Sanctions and Asset-Freezing (Miscellaneous Amendments – Information) (Jersey) Order 2019
The Sanctions and Asset-Freezing (Miscellaneous Amendments – Information) (Jersey) Order 2019 (the 2019 Order) also comes into force today - 19 July 2019. Of particular note it amends:
the EU Legislation (Sanctions – Russia) (Jersey) Order 2014 to reflect the fact that the information provisions of SAFL apply without restriction as there are no equivalent information provisions in Council Regulation (EU) 833/2014, which this Order implements;
the EU Legislation (Sanctions – Ukraine) (Jersey) Order 2014 to reflect the fact that the information provisions of SAFL apply without restriction in respect of Council Regulation (EU) 692/2014, which is one of the EU sanctions regulations that this Order implements, as there are no equivalent information provisions in this regulation.
Industry: licences and breaches
Existing sanctions licences that were issued under sanctions Orders made under the 2014 Law remain valid. However, if these Orders are revoked and replaced with new Orders implementing UK sanctions regulations made under SAMLA existing licences may need to be amended or replaced.
New licence applications in respect of an asset-freeze, can be made in the usual way by completing the Asset-Freeze Licence Application form. Once completed the form should be returned to email@example.com.
Licence applications in respect any other prohibitions can also continue to be made in the usual way by letter, addressed to the Minister for External Relations, and sent electronically to firstname.lastname@example.org.
Industry reporting obligations
The obligations remain effectively the same, except in respect of the changes made to the EU Legislation (Sanctions – Russia) (Jersey) Order 2014 and the EU Legislation (Sanctions - Ukraine) (Jersey) 2014 by the 2019 Order, which are referred to above.
Suspected breach notifications
Suspected breaches of sanctions prohibitions continue to be reported in the same way: by completing the Suspected Breach Notification Form. Once completed it must be returned to email@example.com.