Financial Crime World

De-Listing Procedures for Designated Individuals and Entities

In a significant development, designated individuals and entities under various United Nations Security Council resolutions can now submit de-listing requests to the relevant UN Focal Point. This comes after the Committee determines that the individual or entity no longer meets the criteria for designation.

De-Listing Requests

  • Designated individuals and entities under UNSCR 1267 (1999), 1718 (2006), and 2231 (2015) and their successor resolutions can submit de-listing requests to the relevant UN Focal Point.
  • Similarly, individuals and entities specified by the Minister of Finance under UNSCR 1373 (2001) may apply for revocation of their listing within 60 days of notification.

Freezing Mechanism

A freezing mechanism is in place to prohibit designated persons or entities from dealing with funds or assets. This includes:

  • Transactions related to such individuals or entities
  • Provision of financial services

Guidance for Reporting Entities

Reporting entities are required to inform the Director-FIU if they suspect a customer or client is a listed person or entity. The Director will verify whether it is a positive match and instruct the reporting entity not to deal with the funds or assets for five days, allowing the Director of Public Prosecutions (DPP) to apply for a freeze order.

Unfreezing Funds

Once an individual or entity is de-listed by the relevant UN Security Council Committee:

  • The obligation to freeze no longer exists.
  • In cases where a court-issued freeze order is in place, the DPP may apply to have it revoked if verifiable evidence of de-listing can be provided.

Similarly, if an individual or entity specified by the Minister of Finance is found to no longer meet the criteria for specification:

  • The Director-FIU may advise the DPP to apply for a revocation order.
  • If satisfied, the court will revoke the freeze order made in relation to the funds or assets of such individual or entity.

Purpose of De-Listing Procedures

These de-listing procedures aim to ensure that individuals and entities are not unfairly targeted by sanctions while also maintaining the integrity of the financial system.