The Libya (Restrictive Measures) (Overseas Territories) (Amendment) Order 2011 (S.I. 2011/2717)

Summary

This Order in Council amends the Libya (Restrictive Measures) (Overseas Territories) Order 2011, which imposes UN and EU sanctions relating to Libya across BVI and other Overseas Territories. It updates definitions, narrows and widens the scope of the asset freeze, and adds new exemptions, giving effect to UN Security Council resolution 2009 (2011) and various EU Council Regulations adopted through 2011.

• Designated person definition narrowed: Removes the Libyan National Oil Corporation, Zueitina Oil Company, the Central Bank of Libya, the Libyan Arab Foreign Bank, the Libyan Investment Authority and the Libyan Africa Investment Portfolio from the full asset freeze applicable to designated persons.
• New partial asset freeze: Imposes a freeze on assets and economic resources of the Central Bank of Libya, the Libyan Arab Foreign Bank, the Libyan Investment Authority and the Libyan Africa Investment Portfolio that were located outside Libya and already frozen as at 16 September 2011.
• New exemptions: Adds exemptions to the arms embargo (security/disarmament assistance and UN/media/humanitarian personnel equipment, subject to Sanctions Committee notification and no objection within five working days) and to the partial asset freeze (access to funds for humanitarian, civilian infrastructure, hydrocarbons or banking-sector purposes, subject to Sanctions Committee clearance).
• Extended humanitarian exemption: Broadens the humanitarian purposes exemption applicable to the EU autonomous asset freeze under the principal Order's Part 2 (Schedule 2 territories).
• Reporting and disclosure duties amended: Extends existing obligations on the Governor and relevant institutions (suspicion reporting under article 14, disclosure and licensing provisions under articles 15, 23, 30) to cover the newly defined 'persons referred to in paragraph 15 of Security Council resolution 2009 (2011)' in the same way as designated persons.
• Minor corrections: Updates definitions of Council Regulations, EU restricted goods, restricted goods, and relevant institution, and corrects cross-references in Schedules 3 and 6.

The Order took effect on 18 November 2011 and applies to relevant institutions and any person dealing with funds or economic resources connected to Libya-related designated persons within the Overseas Territories, including the BVI.

Key obligations

• Relevant institutions and any person must not deal with funds or economic resources owned, held or controlled by a designated person or a person referred to in paragraph 15 of Security Council resolution 2009 (2011), except under a licence granted under article 15.
• Relevant institutions and persons dealing with the Central Bank of Libya, the Libyan Arab Foreign Bank, the Libyan Investment Authority or the Libyan Africa Investment Portfolio must maintain the freeze on those entities' assets and economic resources located outside Libya as at 16 September 2011, unless licensed or exempted.
• Any proposed supply, sale or transfer to Libya of arms or related materiel for security/disarmament assistance, or temporary export of small arms for UN/media/humanitarian personnel, must be notified to the Sanctions Committee in advance and may proceed only in the absence of a negative decision within five working days.
• Any intention to authorise unfreezing of funds or economic resources of a paragraph 15 person for permitted purposes must be notified to the Sanctions Committee and shared with Libyan authorities, and may proceed only if no objection is raised within five working days.
• Where the Governor has reasonable grounds to suspect a person is a designated person or a paragraph 15 person, the relevant institution/Governor must apply the reporting and disclosure obligations under articles 14, 23 and 30 to that person.

Applies to

relevant institutions (persons responsible for regulation and supervision of financial services business), deposit-taking institutions, building societies/credit unions making loans secured on residential property, designated persons and persons referred to in paragraph 15 of Security Council resolution 2009 (2011)

Deadlines

• 18th November 2011: Date the Amendment Order comes into force.
• 5 working days of notification: Period within which the Sanctions Committee may object to notified arms embargo exemptions or proposed unfreezing of funds before the exemption/authorisation can proceed.
• 16th September 2011: Reference date used to determine which assets of the Central Bank of Libya, Libyan Arab Foreign Bank, Libyan Investment Authority and Libyan Africa Investment Portfolio outside Libya are subject to the partial asset freeze.