Wednesday 01 February 2012
The Terrorist Asset-Freezing (Bailiwick of Guernsey) Law 2011 ("the Law") came into force on 25 January 2012. All financial institutions and other bodies are requested to check their records to ensure they comply with the Law.
Following the terrorist attacks of 11 September 2001, the UN Security Council adopted Resolution 1373 (2001). It denounced terrorism and required members to deny all forms of financial support for those who participate in terrorist acts; to deny the provision of safe haven, support for terrorists; and to share with other governments information about any groups practicing or planning terrorist acts.
The Law gives effect to Resolution 1373 (2001) in the Bailiwick. It contains asset freezing provisions applicable to persons or entities designated by the Policy Council, by HM Treasury under section 2 of the Terrorist Asset Freezing etc. Act 2010, or by the European Union under Council Regulation (EC) No 2580/2001 of 27 December 2001. The Law also contains reporting obligations that apply to financial services businesses and which must be complied with as soon as practicable.
Guernsey does not maintain its own list of asset freeze targets. However, all current asset freeze targets designated under the Terrorist Asset Freezing etc. Act 2010 or Council Regulation (EC) No 2580/2001 are included in the consolidated list of individuals and entities targeted by sanctions on the HM Treasury website. Financial services businesses will be informed by the Guernsey Financial Services Commission of any legal or natural persons designated by Policy Council who are not on the consolidated lists.
It is the responsibility of financial institutions and other bodies and persons to comply with the Law. Firms should ensure that they have policies and procedures in place to ensure that they do so. Failure to identify and freeze the account(s) of designated persons may lead, for example, to funds being made available to or for the benefit of a designated person, which could constitute a breach of the Law. A breach of any of the prohibitions in the Law is a criminal offence carrying a penalty of up to 7 years imprisonment and/or a fine.
The Law replaces the Terrorism (United Nations Measures) (Channel Islands) Order 2011 and the The Terrorist Asset-Freezing etc. Act 2010 (Guernsey) Order 2011.
