The Libya (Restrictive Measures) (Overseas Territories) (Amendment) Order 2013 (S.I. 2013/3160)

Summary

This is a UK Order in Council that amends the Libya (Restrictive Measures) (Overseas Territories) Order 2011, extending updated UN and EU Libya sanctions measures to Overseas Territories including the British Virgin Islands. It implements UN Security Council Resolution 2095 (2013) and related EU Council Decisions/Regulation, changing the arms embargo rules and adding new exemptions to the asset freeze on designated and EU listed persons.

• Arms embargo relaxed: Supply, sale or transfer of non-lethal military equipment for security or disarmament assistance to Libyan authorities no longer requires advance approval from the UN Sanctions Committee.
• New arms notification route: Supply, sale or transfer of other arms and related materiel is permitted if notified to the Sanctions Committee in advance and no negative decision is issued within five working days.
• Judicial/arbitral lien exemption (designated persons): Payments to a designated person under a judicial, administrative or arbitral lien or judgment entered into before the person's designation are now permitted.
• Judicial/arbitral lien exemption (EU listed persons): Payments to or benefiting an EU listed person under certain judicial, administrative or arbitral decisions rendered before, on, or after their listing date are permitted, subject to conditions and Sanctions Committee notification.
• New humanitarian exemption: A new exemption permits payments necessary for humanitarian purposes, including delivery of humanitarian aid, essential civilian supplies, medical products, electricity provision, or evacuations from Libya.

The Order does not itself impose new reporting duties on BVI regulated entities beyond compliance with the amended sanctions framework, but financial institutions and other persons dealing with Libya-related transactions, frozen accounts, or designated/EU listed persons must apply the revised rules and exemptions when processing payments or arms-related transactions.

Key obligations

• Persons or entities wishing to supply, sell or transfer arms or related materiel to Libya (other than non-lethal equipment for security/disarmament assistance) must notify the UN Sanctions Committee in advance and may only proceed if no negative decision is received within five working days.
• Financial institutions and other persons must apply the amended exemptions in articles 12 and 15 of the principal Order when permitting payments to designated persons or EU listed persons under qualifying judicial, administrative or arbitral liens or judgments.
• Payments made for humanitarian purposes under the new exemption must meet the specified criteria (humanitarian aid, essential civilian supplies, medical products, electricity, or evacuations from Libya).

Applies to

financial institutions, persons subject to Libya sanctions measures in the Overseas Territories, persons dealing with designated persons or EU listed persons

Deadlines

• 8th January 2014: Date the Order comes into force.
• within five working days of notification: Period within which the Sanctions Committee may issue a negative decision on notified arms transfers before the transfer is permitted to proceed.