Terrorist Asset-Freezing etc. Act 2010 (c. 38)

Summary

This Act establishes a terrorist asset-freezing regime under which the Treasury may designate individuals or entities believed or suspected to be involved in terrorist activity, and imposes criminal prohibitions on dealing with, or making funds or economic resources available to, those designated persons. It also carries forward designations and licences made under the predecessor 2009 Order and gives the Treasury power to make, vary, renew and revoke designations.

• Designations: The Treasury may make a final designation (based on reasonable belief of terrorist involvement) or an interim designation (based on reasonable suspicion), must give written notice to the designated person and take steps to publicise the designation unless disclosure is restricted for national security, serious crime prevention or justice reasons.
• Duration and renewal: A final designation lasts one year unless renewed; an interim designation lasts 30 days or ends earlier if superseded by a final designation.
• Variation and revocation: The Treasury may vary or revoke a designation at any time, with written notice to the designated person and reasonable steps to inform others who were told of the designation.
• Confidentiality: Where only certain persons are informed of a restricted designation, that information may be marked confidential; unauthorised disclosure by anyone who knows or suspects it is confidential is a criminal offence.
• Core prohibitions: No person may deal with funds or economic resources owned, held or controlled by a designated person, or make funds, financial services or economic resources available (directly or indirectly, or for the benefit of) a designated person, if they know or have reasonable cause to suspect this is the case; these prohibitions are subject to exceptions and licences and breach is a criminal offence.
• Transitional carry-over: Designations, licences and information requests in force under the previous 2009 Order continue to have effect as if made under this Act, but any carried-over final designation lapses three months after this Part comes into force unless renewed or revoked.
• Sunset mechanism: If the UN Security Council permanently terminates the relevant resolutions underpinning this regime, the Treasury must lay a draft order before Parliament to repeal this Part.

Note: the source text supplied is UK primary legislation (in force in the UK from 16-17 December 2010) as reproduced in the BVI FSC's legislation library; sections covering licensing procedures, disclosure/reporting duties and enforcement detail fall within the middle portion of the document that was not available for this summary, so readers should consult the full text for those provisions.

Key obligations

• Do not deal with funds or economic resources owned, held or controlled by a designated person if you know or have reasonable cause to suspect this (section 11).
• Do not make funds or financial services available, directly or indirectly, to a designated person if you know or have reasonable cause to suspect this (section 12).
• Do not make funds or financial services available to any person for the benefit of a designated person if you know or have reasonable cause to suspect this (section 13).
• Do not make economic resources available to a designated person if you know or have reasonable cause to suspect this (section 14).
• Anyone provided with or who obtains information marked confidential in connection with a restricted designation must not disclose it unless the disclosure is made with lawful authority (section 10).
• Any carried-over final designation from the predecessor 2009 Order must be renewed by the Treasury within three months of this Part coming into force or it will lapse.

Applies to

designated persons, financial institutions and any person dealing with funds or economic resources of a designated person, persons provided with confidential designation information

Deadlines

• December 16, 2010 / December 17, 2010: Dates the Act and its Part 1 provisions come into force.
• 30 days beginning with the date an interim designation is made: An interim designation expires after this period unless superseded earlier by a final designation.
• one year beginning with the date a final designation is made or renewed: A final designation expires after one year unless renewed by the Treasury.
• three months after this Part comes into force: Final designations carried over from the 2009 Order cease to have effect unless renewed or revoked by the Treasury.