The ISIL (Da'esh) and Al-Qaida (Sanctions) (Overseas Territories) Order 2016

Summary

This is a UK Order in Council that extends United Nations and EU sanctions against ISIL (Da'esh) and Al-Qaida to the listed Overseas Territories, including the British Virgin Islands. It replaces the 2012 Al-Qaida sanctions order and creates a framework of asset-freezing and trade-restriction offences tied to persons and entities designated under UN Security Council resolutions and EU regulations.

• Asset freeze: It is a criminal offence to deal with funds or economic resources belonging to, owned, held or controlled by a designated person, or to make funds or economic resources available to or for the benefit of a designated person, where the person knows or has reasonable cause to suspect this.
• Reporting duty: Relevant institutions (deposit-takers and certain building societies) must inform the Governor as soon as practicable if they know or suspect a customer is a designated person or has committed a freezing offence, and must supply identifying and account information.
• Restricted goods and military assistance: It is an offence to knowingly sell, supply, transfer or export restricted goods, or provide assistance relating to restricted goods or military activities, to a designated person or someone acting on their behalf.
• Licensing: The Governor, with the Secretary of State's consent, may grant licences authorising activities that would otherwise be prohibited, such as payment of basic expenses, legal fees, or pre-existing contractual obligations.
• Frozen accounts: Relevant institutions may credit a frozen account with interest, payments due under pre-existing obligations, or judicial/arbitral awards, without breaching the freeze, but must notify the Governor when doing so.

The Order applies to any person in the Territory, British-connected persons ordinarily resident there, bodies incorporated there, and persons or vessels/aircraft registered or operating there. It came into force on 20 December 2016 and revoked the earlier 2012 Al-Qaida sanctions order, with existing licences continuing to have effect.

Key obligations

• Persons must not deal with funds or economic resources of a designated person, or make funds/economic resources available to or for the benefit of a designated person, where they know or suspect this (article 5).
• Relevant institutions must inform the Governor as soon as practicable if they know or suspect a customer is a designated person or has committed an offence under article 5 or 11(10), and must provide specified identifying and account information (article 7).
• Relevant institutions must inform the Governor as soon as practicable when they credit a frozen account under the permitted exceptions (article 7(4)).
• Persons must not knowingly sell, supply, transfer or export restricted goods, or provide assistance relating to restricted goods or military activities, to a designated person or their agent (articles 8-10).
• Any activity otherwise prohibited under article 5 requires a licence granted by the Governor with the Secretary of State's consent (article 11).

Applies to

relevant institutions (deposit-takers), building societies, persons in the Territory, bodies incorporated in the Territory, ship and aircraft owners, charterers, masters and operators, designated persons

Deadlines

• 20th December 2016: Order comes into force.
• as soon as practicable: Relevant institutions must notify the Governor upon knowing or suspecting a customer is a designated person, has committed an offence, or when crediting a frozen account under permitted exceptions.

Related documents

• The Sanctions (Overseas Territories) (Revocations) Order 2020 repeals this document