Terrorist asset freezing sanctions
All United Nations Security Council (“UNSC”), United Kingdom, and European Union terrorist asset-freeze designations are implemented in Jersey and any changes are effective immediately.
This remains the case also after BREXIT, and the coming into force of the Sanctions and Asset-Freezing (Implementation of External Sanctions) (Jersey) Order 2021 on 12 February 2021. There will, however, be a further legislative change in 2021 following which EU terrorist asset-freezing designations will no longer be automatically implemented.
UNSC terrorist asset freezes
The UNSC has established a number of Security Council Committees that are mandated to, inter alia:
- designate individuals and entities who meet the listing criteria set out in the relevant resolutions;
- consider and decide upon notifications and requests for exemptions from the sanctions measures;
- consider and decide upon requests to remove a name from a Sanctions List.
In fulfilment of their mandates the Security Council Committees issue press releases which add to, or amend, the details of individuals and/or organisations on their respective sanctions list.
Links to some key UNSC press releases concerning terrorism are set out below:
- Resolutions 1267 (1999) and 1989 (2011) concerning ISIL (Da’esh) & Al-Qaida and associated individuals and entities;
- Resolution 1988 (2011) concerning the Taliban.
- Resolution 1373 concerning terrorism prevention.
In Jersey, these measures have been implemented by the:
- Sanctions and Asset-Freezing (Jersey) Law 2019
- Sanctions and Asset-Freezing (Implementation of External Sanctions) (Jersey) Order 2021
- Terrorism (Jersey) Law 2002
Sanctions and Asset-Freezing (Jersey) Law 2019 (the “SAFL”)
Article 19 of the SAFL defines a person, group or entity as a designated person, if he she or it:
a) is a designated person within the meaning of the Sanctions and Anti-Money Laundering Act 2018 of the UK, by virtue of Regulations under that Act that-
(i) state, under section 2(3) of that Act, their purpose as being a particular purpose that is within section 1(2)(a) of that Act, or
(ii) are specified by the Minister by Order for the purpose of this sub-paragraph, as Regulations that appear to the Minister to designate persons on the basis of being, or being suspected of being, involved in terrorist activity;
aa) at any time before the commencement of section 59(1) of the Sanctions and Anti-Money Laundering Act 2018 of the UK, is a person designated under section 2 or 6 of the Terrorist Asset-Freezing etc. Act 2010 of the UK;
b) is included in the list (as in force from time to time) provided for by Article 2(3) of Council Regulation (EC) No 2580/2001 of 27 December 2001 on specific restrictive measures directed against certain persons and entities with a view to combating terrorism (as that Regulation is amended from time to time);
c) or is listed on –
(i) the ISIL (Da’esh) and Al-Qaida Sanctions List maintained and amended from time to time by the Committee established by the UN Security Council under resolutions 1267 (1999), 1989 (2011) and 2253 (2015) concerning ISIL (Da’esh), Al-Qaida and associated individuals and entities,
(ii) a list maintained and amended from time to time by the Committee established by the UN Security Council under resolution 1988 (2011), as being associated with the Taliban,
(iii) or a list maintained and amended from time to time by the Counter Terrorism Committee established by the UN Security Council under resolution 1373 (2001).
The Minister for External Relations and Financial Services has the power to issue interim and final designations under Articles 20 and 22 of the SAFL respectively. However, given that those designated by the United Kingdom and European Union are automatically ‘designated persons’ under Article 19, it is considered unlikely that this power will be extensively used, if at all. Presently no designations have been made by the Minister for External Relations and Financial Services.
Part 3 of the SAFL contains a number of prohibitions in relation to designated persons. Those prohibitions are as follows:
- Dealing with funds or economic resources owned, held or controlled by a designated person, knowing or having reasonable cause to suspect such funds or economic resources are being dealt with (Article 10).
- Making funds or financial services available (directly or indirectly) to a designated person, knowing or having reasonable cause to suspect, the funds or financial services are being made so available (Article 11).
- Making funds or financial services available to any person for the benefit of a designated person, knowing or having reasonable cause to suspect the funds or financial services are being made so available (Article 12).
- Making economic resources available (directly or indirectly) to a designated person, knowing or having reasonable cause to suspect that the economic resources are being made so available and that the designated person would be likely to exchange the economic resources, or use them in exchange, for funds, goods or services (Article 13).
- Making economic resources available to any person for the benefit of a designated person, knowing or having reasonable cause to suspect that the economic resources are being made so available (Article 14).
- Intentionally participating in activities, knowing that the object or effect of such activities (whether directly or indirectly), is to circumvent or facilitate the contravention of any of the above prohibitions (Article 17).
A breach of any of the prohibitions is a criminal offence carrying a penalty of imprisonment for a term of 7 years and a fine. The offences apply to United Kingdom nationals ordinarily resident in Jersey and persons incorporated or constituted under the law of Jersey, in respect of conduct committed anywhere in the world.
Article 15 of the SAFL sets out certain exceptions to the prohibitions set out above, for example in relation to credits to a frozen account and the payment of social security benefits.
The prohibitions do not apply to anything done under the authority of a licence granted by the Minister for External Relations and Financial Services under Article 16 of the SAFL.
Under Article 32 of the SAFL, relevant financial institutions must inform the Minister for External Relations and Financial Services of certain information as soon as practicable if-
a) it holds an account of a person, has entered into dealings or an agreement with a person or has been approached by or on behalf of a person;
b) it knows or has reasonable cause to suspect, that the person –
- is a designated person, or
- has committed an offence under the SAFL; and
- the information or other matter on which the knowledge or reasonable cause for suspicion is based came to it in the course of carrying on its business.
Such information may be reported to the Minister for External Relations and Financial Services by e-mail to firstname.lastname@example.org and is in addition to any Suspicious Activity Report (SAR) that may be reported separately to the Financial Intelligence Unit of the Joint Financial Crimes Unit.
For a relevant financial institution, failure to comply with the obligation to provide information to the Minister for External Relations and Financial Services is an offence attracting up to 12 months imprisonment and a fine of level 3 on the standard scale.
Further to BREXIT the Sanctions and Asset-Freezing (Implementation of External Sanctions) (Jersey) Order 2021 (the Jersey Order) was made under the SAFL on 29 January 2021, coming into force on 12 February 2021.
The Jersey Order:
- Implements all UK sanctions regulations made under SAMLA
- Repeals and replaces the Sanctions and Asset-Freezing (Implementation of EU Regulations) (Jersey) Order 2020
- Repeals and replaces the Sanctions and Asset-Freezing (UK Human Rights Designations) (Jersey) Order 2020 and incorporates its effects
- Repeals and replaces the Sanctions and Asset-Freezing (Designation of Lugovoy and Kovtun) (Jersey) Order 2020 and incorporates its effects.
Alongside the UK Regulations, the Jersey Order still implements four EU Regulations that prohibit the satisfaction of claims affected by UN Security Council Resolutions passed between 1990 and 1994 in relation to Iraq, Libya, Haiti and Serbia and Montenegro. Those EU Regulations have not been implemented by the UK under its own sanctions legislation and have instead been retained in EU legislation.
Where any of the UK Regulations require an asset-freeze, the Jersey Order imposes the standard asset-freeze under Part 3 of SAFL.
All UN, UK and EU terrorist asset-freezing designations will continue to be implemented in Jersey, however, there will be a further legislative change in 2021 following which EU terrorist asset-freezing designations will no longer be automatically implemented. Currently, however, you must continue to comply with all UN, EU, and UK asset-freeze designations.
Terrorism (Jersey) Law 2002 (the Terrorism Law) - Proscribed organisations and persons connected with terrorism or terrorist financing
Under Article 6 of the Terrorism Law, the Minister for Home Affairs may ‘proscribe’ an organization as being concerned in terrorism.
An organisation is proscribed if-
a) it is listed in Schedule 1 (as amended from time to time) to the Terrorism Law; or
b) it operates under the same name as an organization listed in that Schedule; or
c) it is proscribed by virtue of or under section 3 of the Terrorism Act 2000 (c. 11) of the United Kingdom Parliament.
For the purposes of the Terrorism Law all proscribed organisations are terrorist entities. Part 3 of the Terrorism law sets out the offences relating to terrorist financing.
Financial Sanctions Notices
When there has been a change to the asset-freeze designations in force in Jersey, a Financial Sanctions Notice ("Notice") is issued by Government and published on the Jersey Gazette. You can register to receive email alerts when a new Notice is published.
Notices are published when:
- individuals or entities have been designated for the purpose of an asset-freeze.
- individuals or entities are no longer subject to an asset-freeze.
- the details of existing asset-freeze designations (e.g. identifying information) have been changed.
- there are other significant changes to Jersey's sanctions regime.
The Notices may include identifying information on asset-freeze designations and what you must do, as well as legislative details and other relevant information.
United Kingdom Consolidated List (the UK Consolidated List)
Jersey does not produce its own list of those persons designated for terrorism, Afghanistan or Al- Qaida purposes. Instead reference is made to the UK Consolidated List. The UK Consolidated List includes individuals and entities targeted by the United Nations, European Union and United Kingdom.
Those designated under Article 19 of the SAFL will appear in the UK Consolidated List under the subheading “terrorism/terrorist financing”, with the exception of any additional designations made locally by the Minister for External Relations and Financial Services.