The Libya (Asset-Freezing) Regulations 2011 (S.I. 2011/605)

Summary

This is a UK statutory instrument (S.I. 2011/605) implementing EU sanctions against Libya, circulated by the BVI Financial Services Commission as an alert. It freezes the funds and economic resources of persons and entities designated under Council Regulation (EU) No 204/2011 concerning Libya, and prohibits making funds or resources available to or for the benefit of those designated persons.

• Core prohibitions: No person may deal with funds or economic resources belonging to a designated person, or make funds or economic resources available directly or indirectly to a designated person or for their benefit, if they know or have reasonable cause to suspect this.
• Frozen accounts: Relevant institutions may credit a frozen account with interest, other earnings, or payments due under pre-existing obligations, or with incoming transfers, but must inform HM Treasury without delay when they do so.
• Licensing: The Treasury may grant licences authorising otherwise prohibited acts, which may be general or specific, conditional, and varied or revoked at any time.
• Reporting duty: Relevant institutions must inform HM Treasury as soon as practicable if they know or suspect a person is a designated person or has committed an offence under the Regulations, and must provide identifying and account information.
• Information requests: HM Treasury may require designated persons to provide information about their funds, economic resources, disposals and expenditure for compliance monitoring or evasion detection.
• Offences and penalties: Contravening the prohibitions, breaching licence conditions, providing false information to obtain a licence, or failing to make required reports are criminal offences, with penalties up to two years' imprisonment on indictment.

The Regulations apply UK-wide and bind UK nationals and UK-incorporated bodies even where conduct occurs outside the UK, and impose specific reporting obligations on 'relevant institutions' as defined under the UK Financial Services and Markets Act 2000 (deposit-takers, EEA passporting firms, and money service/currency exchange businesses). The document's direct application to BVI-regulated entities is not stated in the text itself; it appears on the FSC's alerts page as an awareness notice regarding UK/EU Libya sanctions.

Key obligations

• Relevant institutions and other persons must not deal with funds or economic resources of a designated person if they know or suspect this.
• Persons must not make funds or economic resources available, directly or indirectly, to a designated person or for their benefit.
• A relevant institution must inform HM Treasury without delay if it credits a frozen account under the permitted exceptions.
• A relevant institution must inform HM Treasury as soon as practicable if it knows or suspects a person is a designated person or has committed an offence, providing supporting information and customer account details.
• A designated person must provide information to HM Treasury on request concerning funds, economic resources, disposals, and expenditure.
• A person acting under a licence must comply with any conditions attached to that licence.

Applies to

relevant institutions (deposit-takers, EEA passporting firms), undertakings operating currency exchange, money transmission or cheque cashing businesses, designated persons, UK nationals, bodies incorporated or constituted under UK law

Deadlines

• without delay: Relevant institution must inform HM Treasury when it credits a frozen account under permitted exceptions.
• as soon as practicable: Relevant institution must inform HM Treasury upon knowing or suspecting a person is a designated person or has committed an offence.
• 3.30 p.m. on 3rd March 2011: Commencement/coming into force of the Regulations.

Related documents

• This document amends The Libya (Financial Sanctions) Order 2011 (S.I. 2011 No. 548)
• The Libya (Asset-Freezing) (Amendment) Regulations 2012 (S.I. 2012/56) amends this document
• The Libya (Asset-Freezing) (Amendment) Regulations 2011 (S.I. 2011/2390) amends this document
• The Libya (Asset-Freezing) (Amendment) Regulations 2013 (S.I. 2013/2071) amends this document