The Mali (Sanctions) (Overseas Territories) Order 2017 (S.I. 2017/1107)

Summary

This Order in Council extends the UK's Mali sanctions regime, imposed under UN Security Council Resolution 2374 (2017) and EU Council Regulation (EU) 2017/1770, to specified Overseas Territories including the British Virgin Islands. It creates a legal framework for freezing the funds and economic resources of persons designated under the sanctions regime and imposes criminal offences for breaches, subject to a licensing system administered by the Governor.

• Asset freeze: It is an offence to deal with funds or economic resources belonging to, or make funds or resources available to, a designated person, where the person knows or has reasonable cause to suspect this.
• Reporting duty: Relevant institutions (deposit takers and certain building society type entities) must inform the Governor as soon as practicable if they know or suspect a customer is a designated person or has committed a related offence, and must supply specified identifying and financial information.
• Crediting frozen accounts: Relevant institutions must notify the Governor as soon as practicable when they credit a frozen account with interest, earnings, or payments due under pre-designation contracts.
• Licensing regime: The Governor, with the Secretary of State's consent, may grant, vary or revoke licences authorising otherwise prohibited activities, such as payment of basic expenses, legal fees, or routine account maintenance charges.
• Publication of designated persons: The Governor must publish and keep up to date a list of designated persons.
• Offences and penalties: Breaches (dealing with frozen assets, circumventing prohibitions, failing to report, or providing false information to obtain a licence) are criminal offences, with penalties up to seven years' imprisonment on indictment for the main asset freeze offences.

The Order applies to any person in the Territory, British citizens and related categories ordinarily resident there, bodies incorporated under the Territory's law, and persons aboard Territory-registered ships or aircraft. It entered into force on 13 December 2017.

Key obligations

• Relevant institutions must not deal with funds or economic resources of a designated person, or make funds or resources available to or for the benefit of a designated person, where they know or have reasonable cause to suspect this.
• 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 4 or 7(10), including specified supporting information.
• Relevant institutions must inform the Governor as soon as practicable if they credit a frozen account under article 5(1)(b) or 5(2).
• The Governor must publish a list of designated persons and keep it up to date.
• Persons seeking to undertake otherwise prohibited activities must obtain a licence from the Governor, and must not make false statements or provide false documents/information to obtain one.

Applies to

relevant institutions (deposit-taking institutions), building societies making loans secured on residential property funded by members, designated persons, persons in the Territory, British citizens, British overseas territories citizens and related categories ordinarily resident in the Territory, bodies incorporated or constituted under the law of the Territory, persons aboard Territory-registered ships or aircraft

Deadlines

• 13th December 2017: Date the Order comes into force in the specified Overseas Territories.
• as soon as practicable: Relevant institutions must inform the Governor as soon as practicable upon knowing or suspecting a customer is a designated person or has committed a related offence, or upon crediting a frozen account.
• 12 months beginning with the date the person first enters the Territory after committing the offence: Time limit for instituting summary proceedings for an offence committed outside the Territory.

Related documents

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