Financial Crime World

Criminal Offence Looms for Those Who Fail to Comply with UN Sanctions Act

Warning Issued to Individuals and Organizations

A stern warning has been issued to individuals and organizations who fail to comply with the relevant provisions of the UN Sanctions Act. Non-compliance can lead to severe penalties, including fines and imprisonment.

Provisions of the Act

According to the act:

  • Any person who holds, controls or has in their custody or possession any funds or other assets of a designated party or listed party and fails to immediately notify the National Sanctions Secretariat will be liable on conviction to:
    • A fine not exceeding one million rupees
    • Imprisonment for a term not exceeding 10 years
  • If a person deals with the funds or other assets of a designated party or listed party, they can face:
    • A fine not exceeding 5 million rupees or twice the amount of the value of the funds or other assets, whichever is greater
    • A term of imprisonment not less than 3 years
  • Any person who makes available funds or other assets or financial or other related services to a designated party or listed party can face a similar penalty

Supply and Sale of Arms

The act also criminalizes the supply, sale or transfer of arms and related materiel to designated parties or listed parties. Offenders are liable on conviction to:

  • A fine not exceeding 10 million rupees
  • Imprisonment for a term not less than 3 years

Definition of “Deal” and “Designated Party”

The UN Sanctions Act defines “deal” as including the sale, supply, lease, transfer, convert, dispose, move, use or withdraw of funds or other assets. A “designated party” refers to a party declared by the Secretary for Home Affairs.

Economic Resources

The act outlines various forms of economic resources, which include:

  • Assets such as land, buildings, equipment, office furniture, vessels, aircraft, motor vehicles, inventories of goods, works of art, and more

Warning to the Public

The authorities have warned that any person who contravenes the provisions of the UN Sanctions Act without a specific penalty stated will be liable on conviction to:

  • A fine not exceeding one million rupees
  • Imprisonment for a term not exceeding 10 years

Compliance is Key

The public is urged to take note of these severe penalties and ensure compliance with the relevant provisions of the UN Sanctions Act to avoid legal consequences.