The Global Human Rights Sanctions (Overseas Territories) Order 2020 (S.I. 2020/773)

Summary

This is a UK Order in Council that extends the Global Human Rights Sanctions Regulations 2020 (as amended) to the British Overseas Territories listed in its Schedule 1, including the Cayman Islands and the Virgin Islands, with territory specific modifications. It creates a sanctions regime targeting persons designated by the UK Secretary of State for involvement in serious human rights violations, allowing for asset freezes and immigration exclusion, and sets out the Governor's role in administering licences and publishing designation lists.

• Designated persons: Persons designated by the Secretary of State under the UK Regulations are subject to an asset freeze and must not enter or remain in the Territory (subject to human rights and refugee convention exceptions).
• Financial sanctions licences: The Governor may, only with the Secretary of State's consent, issue, vary, revoke or suspend a financial sanctions licence permitting otherwise prohibited acts under regulations 11 to 15 (asset freeze provisions).
• Publication duty: The Governor must publish and keep up to date a list of designated persons, subject to confidentiality restrictions set by the Secretary of State.
• Reporting obligations on relevant firms: Relevant institutions and other 'relevant firms' (currency exchanges, money transmitters, cheque cashers, accountants, tax advisers, auditors, lawyers/notaries, trust or company service providers, estate agents, casino licence holders, and dealers in precious metals, stones or pearls) are subject to reporting obligations under regulation 25, now directed to the Governor rather than the Treasury.
• Frozen account notifications: A relevant institution must inform the Governor without delay if it credits a frozen account under the interest/earnings exception in regulation 18(4).
• Immigration directions: The Governor, with the Secretary of State's consent, may direct exceptions to the immigration exclusion applying to designated persons.

The Order also extends specific protective and administrative provisions of the Sanctions and Anti-Money Laundering Act 2018 (protection for compliance acts, Crown application, and saving of prerogative powers) to the listed territories for the purposes of the modified Regulations. It took effect the day after it was made.

Key obligations

• A person designated by the Secretary of State must not enter or remain in the Territory, subject to human rights and refugee convention exceptions.
• The Governor must publish a list of designated persons and keep that list up to date.
• A relevant institution must inform the Governor without delay if it credits a frozen account under regulation 18(4).
• Relevant firms (financial institutions, money service businesses, accountants, tax advisers, auditors, lawyers/notaries, trust or company service providers, estate agents, casino licence holders, and dealers in precious metals, stones or pearls) are subject to the finance reporting obligations in regulation 25, now owed to the Governor.
• The Governor may only issue, vary, revoke or suspend a financial sanctions licence with the consent of the Secretary of State, and must give written notice to specific licence holders or publicise general licences as appropriate.
• Anyone wishing to undertake acts otherwise prohibited by regulations 11 to 15 must obtain a financial sanctions licence from the Governor.

Applies to

relevant institutions (financial services businesses), currency exchange and money transmission businesses, cheque cashing services, accountants, tax advisers, auditors, lawyers and notaries, trust or company service providers, estate agents, casino licence holders, dealers in precious metals, stones or pearls, designated persons

Deadlines

• 22nd July 2020: Date the Order comes into force.
• without delay: A relevant institution must inform the Governor without delay if it credits a frozen account under regulation 18(4).