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Understanding Sanctions Ordinances and Reporting Obligations
Sanctions ordinances and regulations, such as the International Sanctions Act (ISG), have strict rules for reporting suspicious activities and freezing funds associated with sanctioned individuals, entities, or organizations. This overview aims to provide a general understanding of key points related to these sanctions ordinances.
Triggering the Reporting Obligation
The reporting obligation is triggered when someone holds, manages, or knows about funds or economic resources that must be assumed to fall under the freeze. A suspicion or suspicious facts are sufficient to give rise to the reporting obligation.
- Suspicious Activities: The Financial Intelligence Unit (FIU) emphasizes that a report of suspicion under Article 17(1) SPG does not replace the obligation to submit a report immediately under the sanctions ordinances issued pursuant to the ISG.
- Immediate Reporting: A report must be made immediately to the FIU if it is known or suspected that funds or economic resources are being held, managed, or controlled by sanctioned individuals, entities, or organizations.
Sanctions List and Ownership
The sanctions ordinances generally list natural persons, entities, and organizations subject to the ordinances in an annex thereof. It is prohibited to transfer funds to sanctioned individuals, entities, or organizations or provide them with funds or economic resources in any other way, directly or indirectly.
- Ownership and Control: The assessment of ownership and control must be made by those subject to the law. Direct or indirect control includes factors such as majority interest, voting rights, appointment power over administrative bodies, and dominant influence.
- Freezing Funds: Even if a court ruling lifts the asset freeze, the freezing of funds imposed under a sanctions ordinance remains unaffected unless approved by the Government on an exceptional basis.
Financial Intelligence Unit (FIU)
The Financial Intelligence Unit (FIU) is responsible for monitoring and enforcing these regulations to prevent illegal activities such as money laundering and terrorist financing. If you have specific questions or concerns related to your situation, consult with the FIU or seek legal advice from a qualified professional.
Remember that this is a general overview of sanctions ordinances and reporting obligations, not specific advice on individual cases. For personalized guidance, please consult with the relevant authorities or a qualified professional.