Sanctions Notice - Brexit (1)

CHANGES RELATING TO BREXIT

Please note the following changes to the legal framework for implementing sanctions measures in the Bailiwick as a result of Brexit. These changes come into force at 11pm on 31st December 2020.

Overview

The Policy & Resources Committee has made the Sanctions (Implementation of UK Regimes) (Bailiwick of Guernsey) (Brexit) Regulations, 2020 (the 2020 regulations). A copy of the 2020 regulations can be found here. Their overarching effect is to change the Bailiwick’s sanctions framework from one that implements EU sanctions regimes to one that implements UK sanctions regimes. This is largely a technical change, as the UK sanctions regimes broadly replicate the EU sanctions regimes that they replace. However, there are some differences, both as to the scope of the UK sanctions regimes themselves and as to the persons that are designated under those regimes.

The 2020 regulations

The 2020 regulations have been made under the regulation-making powers in the Sanctions (Bailiwick of Guernsey) Law, 2018 and the European Union (Brexit) (Bailiwick of Guernsey) Law, 2018. They give effect within the Bailiwick to all of the sanctions regimes that have been made by the UK under the Sanctions and Anti-Money Laundering Act, 2018 as a result of Brexit and which are scheduled to come into force at 11pm on 31st December 2020. The 2020 regulations make a number of modifications to the UK regimes to facilitate domestic implementation, for example by specifying that references to a licensing authority within the UK should be read as a licensing authority within the Bailiwick.

The 2020 regulations also repeal the domestic Ordinances that have been enacted to give effect to corresponding EU regimes within the Bailiwick. In addition, they repeal and replace regulations that have been made to give effect to the UK’s autonomous sanctions regime relating to global human rights. As this regime did not emanate from the EU it is not affected by Brexit, but it has been dealt with under the 2020 regulations in the same way as all other UK regimes, so as to bring all UK regimes within a single enactment for ease of reference going forward.

MEASURES WHICH SHOULD BE TAKEN

Changes are currently being made to the States of Guernsey website to reflect these changes and are expected to be finalised shortly. In the meantime, information about UK listings will be provided on the website with effect from 1st  January 2021 to assist businesses in establishing whether they maintain any accounts or otherwise have any kind of relationship involving a person or an activity that is covered by the prohibitions in the UK regimes. Up to date information about the UK sanctions regimes will also be available on the UK government website with effect from 11pm on 31st December 2020.

Businesses must refrain from taking any action that would breach a UK sanctions regime and in particular must treat any funds, other assets or economic resources

• directly or indirectly belonging to, owned, held or controlled by a listed person, whether wholly or jointly, or
• derived from any funds or economic resources directly or indirectly belonging to, owned, held or controlled by them, whether wholly or jointly, or
• belonging to individuals or entities acting on their behalf or at their direction, whether wholly or jointly

as frozen with immediate effect if this is not already the case. Businesses must report any findings to the Policy & Resources Committee immediately. They must also ensure that they have taken all other steps that may be required in order to comply with the reporting obligations at section 14 of the Sanctions Law or under a specific UK sanctions regime.

Businesses must also refrain from making any funds or economic resources available directly or indirectly, wholly or jointly, to or for the benefit of

• any designated person, entity or body
• any entity directly or indirectly owned or controlled by a designated person, entity or body, whether wholly or jointly
• any individuals or entities acting on behalf or at the direction of a designated person, entity or body, whether wholly or jointly

other than in respect of transactions that come within a permitted derogation as determined by the Policy & Resources Committee, or in accordance with a licence issued by the Policy & Resources Committee, as the case may be.

The information referred to above is required by the Policy & Resources Committee in the exercise of its powers under section 15 of the Sanctions Law.

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