Sanctions Notices - Russian Federation and ISIL (Da'esh) and Al-Qaida Network1st April 2016
Please be advised that there have been a number of developments in relation to the Bailiwick's sanctions regime which are set out below. These developments concern sanctions relating to the Russian Federation, together with ISIL (Da’esh) and the Al-Qaida Network.
EU officials have issued a warning to EU banks about the first issuance of sovereign bonds by the Russian Federation since EU sanctions were imposed in 2014 following concerns about Russian involvement in the events in Ukraine. The relevant sanctions have been implemented in the Bailiwick by the Russian Federation (Restrictive Measures) (Guernsey) Ordinance, 2014, the Russian Federation (Restrictive Measures) (Alderney) Ordinance, 2014 and the Russian Federation (Restrictive Measures) (Sark) Ordinance, 2014. While these sanctions do not prohibit the purchase of Russian sovereign debt, they significantly restrict the access of Russian state banks to international financial systems and the EU has advised that banks should be alert to the possibility that the bonds may be used to circumvent these restrictions. The EU has also recommended putting preventive measures in place, such as clauses that prevent funds generated by the sale being transferred to sanctioned entities.
Although this warning is not addressed to financial institutions in the Bailiwick, it is drawn to your attention on the basis that the Bailiwick authorities are likely to take a similar approach to that expressed by the EU when considering the issue of circumvention of restrictive measures in the Bailiwick.
MEASURES WHICH SHOULD BE TAKEN
All businesses must familiarise themselves with the legislation and check whether they have any kind of relationship that may relate to prohibited activity or to attempts to circumvent the restrictions. Any findings must be reported to the Policy Council immediately. The information referred to above is required by the Policy Council in the exercise of its powers under the Schedule to each of the Ordinances listed above.
Any information or queries should be sent to [email protected] with the subject line 'Russian Federation'.
Further information on sanctions measures and related issues including licences is available on the States of Guernsey website at http://www.gov.gg/sanctions.
ISIL (DA’ESH) AND AL-QAIDA NETWORK
The United Nations Security Council has added one individual (“the listed person”) to the list of persons associated with ISIL (Da’esh) and Al-Qaida maintained under United Nations Security Council Resolution 1267. All persons on the UN list are subject to restrictive measures which include targeted financial sanctions.
Further information is available here:
The listed person is expected to be added imminently to the list maintained by the European Union under Council Regulation (EC) No 881/2002. Once the addition to the EU list is made, it will be automatically effective in the Bailiwick under the Al-Qaida (Restrictive Measures) (Guernsey) Ordinance, 2013, the Al-Qaida (Restrictive Measures) (Alderney) Ordinance, 2013 and the Al-Qaida (Restrictive Measures) (Sark) Ordinance, 2013.
In the meantime businesses are advised to refrain from making assets of any kind directly or indirectly available to the listed person, as this would be likely to constitute a terrorist financing offence under sections 8 to 11 of the Terrorism and Crime (Bailiwick of Guernsey) Law, 2002. Requests to do so may also give rise to knowledge, suspicion or reasonable grounds for knowledge or suspicion that another person is engaged in terrorist financing, in which case a disclosure should be made to the Financial Intelligence Service in the form and manner prescribed by the Terrorism and Crime (Bailiwick of Guernsey) Regulations, 2007, as amended.
MEASURES WHICH SHOULD BE TAKEN
Businesses must check whether they maintain any accounts or otherwise hold any funds or economic resources for the listed person or for other person designated under the legislation listed above, and must treat any such accounts, funds or economic resources as frozen with immediate effect if this is not already the case. They must report any findings to the Policy Council immediately. Businesses must also refrain from making any funds or economic resources available directly or indirectly to any listed person unless this is in connection with a transaction that comes within a permitted derogation as determined by the Policy Council.
The information referred to above is required by the Policy Council in the exercise of its powers under the Schedule to each of the Ordinances listed above.
Any information or queries should be sent to [email protected] with the subject line 'ISIL/Al-Qaida'.
Further information on the effect of asset freezes and related issues including licences is available on the States of Guernsey website at http://www.gov.gg/sanctions.