Financial Sanctions Regime Takes Effect in Bermuda

The Policing and Crime Act (Financial Sanctions) (Overseas Territories) Order 2017 has come into force in Bermuda, effective December 4, 2017. This new regime aims to implement the United Nations’ (UN) financial sanctions regime in the territory.

Amendments to Linking Regulations

• The Office of Financial Sanctions Implementation (OFSI) will amend the Linking Regulations within 48 hours of a new UN Security Council Resolution being made.
• Once amended, the listing will take direct effect in Bermuda.

Temporary Regime for New Listings

• The Policing and Crime Act (Financial Sanctions) (Overseas Territories) Order 2017 also enables the Treasury to create a temporary sanctions regime where the UN makes a new listing and there is no corresponding EU sanctions regulation in place.
• This temporary regime will last for 120 days or until the Order in Council implementing the relevant UN financial sanctions Resolution enters into force, whichever is sooner.

Using the Consolidated List

• The consolidated list is a valuable resource that contains relevant information to aid the identification of designated persons.
• The list includes details such as:
  • Full name
  • Aliases
  • Date of birth
  • Nationality
  • National identification number
  • And more

How to Check for Target Matches

• If you are dealing with an individual or entity whose name matches one or more entries on the consolidated list, this does not necessarily mean that the individual or entity is the same entity on the list.
• If you are satisfied that this is the case, you are not required to take further action.

Getting Updates and Assistance

• OFSI updates can be found on GOV.UK: https://www.gov.uk/government/collections/financial-sanctions-regime-specific-consolidated-lists-and-releases
• You can also subscribe to OFSI for email updates whenever a new Notice is published.
• The Financial Sanctions Implementation Unit (FSIU) updates its sanctions webpage and sends email notifications to Supervisory Authorities when changes are made.

Restrictions and Prohibitions

• Financial sanctions prohibit certain activities, including:
  • Making funds or other assets available to designated persons or entities
  • Dealing with frozen funds or economic resources belonging to or owned by a designated person
  • Engaging in actions that circumvent financial sanctions prohibitions

Asset Freeze

• An asset freeze prohibits dealing with frozen funds or economic resources belonging to or owned by a designated person, making funds or economic resources available to them, and engaging in actions that circumvent financial sanctions prohibitions.

What You Are Required to Do

• If you know or have reasonable cause to suspect that you are in possession of or control funds or economic resources owned by a designated person, you must:
  • Freeze the funds or resources and not deal with them unless there is an exemption in the legislation or you have been issued a licence from the FSIU.
  • Report the funds or resources to the FSIU.

Definitions

• Funds: Financial assets and benefits of every kind, including cash, cheques, claims on money, drafts, and other payment instruments.