Financial Sanctions Against Businesses in Libya: A Reminder for Maltese Companies

The Maltese Registrar of Companies has issued a reminder to Maltese company directors and secretaries regarding the financial sanctions imposed on Libyan Arab Jamahiriya and designated individuals and entities.

Sanctions Imposed and Their Scope

These sanctions, which follow UN Security Council Resolution 1970 of 2011, consist of an arms embargo, travel restrictions, and an asset freeze. They apply to any person, company, or entity, including professional practitioners and individual citizens, holding funds, financial assets, or economic resources connected to the designated individuals and entities.

EU Council Regulations (No. 204/2011)

The EU Council Regulations take immediate effect in Maltese law with no need for further implementation measures. These sanctions are a criminal offense, punishable by imprisonment and fines.

Compliance Requirements for Maltese Companies

Maltese companies have been instructed to:

1. Freeze all assets, including shares, bonds, debentures, warrants, notes, related certificates, and any other debt instruments and securities belonging to the designated individuals and entities. This includes preventing all transfers, assignments, disposals, liquidations, acquisitions, or alterations in their holdings.
2. Prevent making any payments to the designated individuals and entities, such as dividends, profits, income, interests, repayment of capital, or repayment of loans.

Notification and Monitoring

Any person holding funds, financial assets, or economic resources directly or indirectly owned or controlled by the designated individuals and entities must notify the Sanctions Monitoring Board in writing at the Ministry of Foreign Affairs or email@address.

Importance of Seeking Professional Advice

As the sanctions are subject to change and updated information may emerge, companies are advised to exercise caution and vigilance and seek professional advice to ensure compliance.

Further Information

For more information, visit the MFSA website under EU & International Affairs/International affairs/International Sanctions.

MFSA Reference

MFSA Reference: 16-2011