Sanctions glossary

Automated screening

Using software to screen customer details.

Controlling a legal person, group or entity

 Means any of the following:

• having the right to appoint or remove a majority of the members of the administrative, management or supervisory body of such legal person, group or entity
• having appointed solely as a result of the exercise of one's voting rights a majority of the members of the administrative, management or supervisory bodies of a legal person, group or entity who have held office during the present and previous financial year
• controlling alone, pursuant to an agreement with other shareholders in or members of a legal person, group or entity, a majority of shareholders' or members' voting rights in that legal person, group or entity
• having the right to exercise a dominant influence over a legal person, group or entity, pursuant to an agreement entered into with that legal person, group or entity, or to a provision in its Memorandum or Articles of Association, where the law governing that legal person, group or entity permits its being subject to such agreement or provision
• having the power to exercise the right to exercise a dominant influence referred to in the point above, without being the holder of that right
• having the right to use all or part of the assets of a legal person, group or entity
• managing the business of a legal person, group or entity on a unified basis, while publishing consolidated accounts
• sharing jointly and severally the financial liabilities of a legal person, group or entity, or guaranteeing them.

Deal with (in relation to economic resources)

Exchange, or use in exchange, for funds, goods or services.

Deal with (in relation to funds)

• use, alter, move, allow access to, or transfer, the funds,
• deal with the funds in any other way that would result in any change in their volume, amount, location, ownership, possession, character or destination, or
• make any other change that would enable use of the funds, including by way of, or in the course of, portfolio management

Designated activity

An activity restricted or prohibited by a sanctions measure.

Designated person

A person, group or entity that is a designated person for the purpose of asset freezes against designated persons (Part 3 of SAFL) by virtue of any one or more of the following –

• a provision included, under Article 3(4)(c), in an Order implementing a UK sanctions provision or an EU sanctions provision;
• the operation of Article 19
• an interim terrorism designation made by the Minister for External Relations under Article 20
• a final terrorism designation made by the Minister for External Relations under Article 22
• the operation of Article 27(1)
• an Order under Article 27(2)
• the operation of Article 29
• an interim UN asset-freezing Order under Article 30
• a final UN asset-freezing Order under Article 31

Economic resources

Assets of every kind, whether tangible or intangible, movable or immovable, which are not funds but can be used to obtain funds, goods or services.

Escalation procedures

The process of escalating a problem up the chain of command.

False Positives

An individual or entity flagged as a potential match in screening, but on subsequent investigation turns out not to be an actual match.

Financial services

 Any services of a financial nature, including –

• insurance-related services consisting of any of the following –
  • direct life assurance
  • direct insurance other than life assurance
  • reinsurance and retrocession
  • insurance intermediation, such as brokerage and agency,
  • services auxiliary to insurance, such as consultancy, actuarial, risk assessment and claim settlement services
• banking and other financial services consisting of any of the following
  • accepting deposits and other repayable funds
  • lending (including consumer credit, mortgage credit, factoring, and financing of commercial transactions),
  • financial leasing
  • payment and money transmission services (including by credit, charge and debit cards, travellers’ cheques and bankers’ drafts)
  • providing guarantees or commitments,
  • financial trading
  • participating in issues of any kind of securities (including underwriting and placement as an agent, whether publicly or privately) and providing services related to such issues
  • money brokering
  • asset management, such as cash or portfolio management, all forms of collective investment management, pension fund management, custodial, depository and trust services
  • settlement and clearing services for financial assets (including for securities, derivative products and other negotiable instruments)
  • providing or transferring financial information, and financial data processing or related software (but only by suppliers of other financial services)
  • providing advisory or other auxiliary financial services in respect of any activity listed in this section (including credit reference and analysis, investment and portfolio research and advice, advice on acquisitions and on corporate restructuring and strategy)
• any service that
  • is provided by way of financial service business, within the meaning of Article 2 of the Financial Services (Jersey) Law 1998, and doesn’t fall within the above

Financial trading

Trading for own account or for account of customers, whether on an investment exchange, in an over-the-counter market or otherwise, in any of the following –

• money market instruments (including cheques, bills and certificates of deposit)
• foreign exchange
• derivative products (including futures and options)
• exchange rate and interest rate instruments (including products such as swaps and forward rate agreements)
• transferable securities
• other negotiable instruments and financial assets (including bullion)

Freezing of economic resources

Preventing their use to obtain funds, goods or services in any way, including, but not limited to, the selling, hiring or mortgaging of them.

Freezing of funds

Preventing any move, transfer, alteration, use of, access to, or dealing with funds in any way that would result in any change in their volume, amount, location, ownership, possession, character, destination or other change that would enable funds to be used, including portfolio management.

Funds

Financial assets and benefits of every kind, including any of the following –

• cash, cheques, claims on money, drafts, money orders and other payment instruments
• deposits with relevant financial institutions or other persons, balances on accounts, debts and debt obligations
• publicly and privately traded securities and debt instruments, including stocks and shares, certificates representing securities, bonds, notes, warrants, debentures and derivative products
• interest, dividends and other income on or value accruing from or generated by assets
• credit, rights of set-off, guarantees, performance bonds and other financial commitments
• letters of credit, bills of lading and bills of sale
• documents providing evidence of an interest in funds or financial resources
• any other instrument, being an instrument of export financing

Fuzzy testing

An information technology technique that can be used to identify additional potential matches through variations in spelling and punctuation e.g. if a search is for “Alistair”, it will also pick up “Alasdair” and “Alastair” and variations in punctuation such as the USA or U.S.A.

Indirect payment

Payment being made to someone acting on behalf of the designated person.

Licence

Written authorisation to allow an activity that would otherwise be prohibited. Conditions may be attached, such as reporting requirements.

Name match/
Potential target match

Where screening flags up a person or entity whose name matches the name of a sanctions target.  This does not necessarily mean that the person or entity identified is in fact a target match.

OFAC

Office of Foreign Assets Control.

Owning a legal person, group or entity

Being in possession of 50% or more of the proprietary rights of a legal person, group or entity, or having a majority interest therein.

Payment for the benefit of a designated person

• payment being made to third parties to satisfy an obligation of the designated person
• if that person thereby obtains, or is able to obtain, a significant financial benefit

PEP

An individual who is or has been entrusted with prominent public functions in a foreign country, for example Heads of State or of government, senior politicians, senior government, judicial or military officials, senior executives of state owned corporations and important political party officials.

Relevant financial institution

• a person (whether or not an individual) who carries on financial services business, within the meaning of the Proceeds of Crime (Jersey) Law 1999, in or from within Jersey; or
• a person (not being an individual) that is incorporated or constituted under the law of Jersey and carries on such financial services business in any part of the world;

Target

An individual or entity subject to sanctions restrictions.

Target match/
actual match

Confirmed match against a person or entity who is the target of sanctions.

UK Consolidated List

List of sanctions targets published by Her Majesty’s Treasury in the United Kingdom. Consists of the names of the individuals and entities that are listed as sanctions targets by United Nations resolutions, European Union Regulations and United Kingdom legislation.