Financial Crime World

Financial Sanctions and Compliance in South Georgia and South Sandwich Islands: A Complex History

The British overseas territory of South Georgia and South Sandwich Islands has a complex history when it comes to financial sanctions and compliance, spanning from its early days as a dependency of the Falkland Islands to its current status as a separate entity.

Early Days

In the early 20th century, the Falkland Islands government was responsible for making laws that applied to the Dependencies, which included South Georgia and South Sandwich Islands. However, this led to some confusion about how Falkland Islands ordinances were intended to be applied in the Dependencies.

  • The Letters Patent of 21 July 1908 gave the Governor of the Falkland Islands the power to make laws for the peace, order and good government of the Dependencies.
  • The Dependencies Ordinance 1908 was enacted, which provided that certain Falkland Islands ordinances would apply in the Dependencies.
  • However, this system had its problems, including issues about how to determine whether a particular ordinance applied to the Dependencies, and on occasion ordinances were passed with express declarations that they did not apply to the territory.

Constitutional Changes

In 1948, the Letters Patent of 13 December ushered in significant constitutional changes in the relationship between the Falkland Islands and its Dependencies. The Falkland Islands lost its ability to legislate for the Dependencies, and a new system was established under which certain Falkland Islands ordinances would automatically extend to the Dependencies where the principal ordinance was in force there.

  • The Application of Colony Laws Ordinance (Cap 1 DS) was enacted in 1949, providing that certain Falkland Islands ordinances would apply in the Dependencies, and set out how they were to be interpreted.
  • The 1951 Consolidation of the laws in force in the Falkland Islands and the Dependencies was also published, bringing together all the legislation in force at a particular point in time.

Modern Developments

In 1985, the South Georgia and South Sandwich Islands Order came into effect, which confirmed the continuance of the existing laws and gave the Commissioner of South Georgia and South Sandwich Islands the power to enact ordinances for the territory. This is subject to the underpinnings of English law and the right retained by the Crown to disallow any local ordinance.

  • Today, the British overseas territory of South Georgia and South Sandwich Islands has a complex system of financial sanctions and compliance in place.
  • The territory is subject to a range of international sanctions and embargoes, and there are strict controls in place to prevent money laundering and other financial crimes.
  • Despite these challenges, the territory has made significant progress in recent years in developing its financial systems and complying with international standards. However, there is still much work to be done to ensure that the territory is fully compliant with all relevant laws and regulations.

Overall, the history of financial sanctions and compliance in South Georgia and South Sandwich Islands is complex and multifaceted, reflecting the territory’s unique status as a British overseas territory with a rich history and distinct legal framework.