The Nicaragua (Sanctions) (Overseas Territories) Order 2020 (S.I. 2020 No. 279)

Summary

This UK Order in Council extends the European Union's Nicaragua sanctions regime to Overseas Territories (excluding Bermuda and Gibraltar), including the British Virgin Islands. It implements an asset freeze against persons designated for serious human rights abuses, repression of civil society, or undermining democracy and the rule of law in Nicaragua, and creates related criminal offences and enforcement powers.

• Asset freeze: It is an offence to deal with funds or economic resources belonging to, or 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 relevant businesses or professions (auditors, casinos, dealers in precious metals or stones, external accountants, independent legal professionals, real estate agents, tax advisers, and trust or company service providers) must inform the Governor as soon as practicable if they know or suspect a customer is a designated person or has committed a sanctions offence, and must supply specified identifying and account information.
• Frozen account crediting: Relevant institutions must notify the Governor when crediting a frozen account with interest, contractual payments, or judicial decision proceeds.
• Licensing regime: The Governor, with the Secretary of State's consent, may grant, vary or revoke licences authorising otherwise prohibited dealings (e.g. basic expenses, legal fees, extraordinary expenses); making false statements to obtain a licence is itself an offence.
• Enforcement powers: The Order confers powers on authorised officers (armed forces, police, customs officers, or persons authorised by the Governor) to search, detain and seize ships, aircraft and vehicles connected with sanctions contraventions, subject to conditions.

The Order entered into force on 8 April 2020 and applies to persons in the Territory, British persons or bodies incorporated there, and those on Territory-registered ships or aircraft. It is enforced through the Governor of each relevant Overseas Territory, including the BVI Governor, and contravention or circumvention of the financial sanctions is a criminal offence.

Key obligations

• Relevant institutions and relevant businesses or professions 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), providing specified identifying and holdings information.
• Relevant institutions must inform the Governor as soon as practicable when crediting a frozen account under permitted exceptions (interest, pre-existing contractual payments, or judicial/administrative/arbitral decisions).
• No person may deal with funds or economic resources of a designated person, or make funds or economic resources available to or for the benefit of a designated person, without a licence from the Governor.
• Persons seeking a licence must not make false statements or provide false documents or information to obtain it, as doing so is a criminal offence and voids any licence granted.

Applies to

relevant institutions (deposit-takers), auditors, casinos, dealers in precious metals or stones, external accountants, independent legal professionals, real estate agents, tax advisers, trust or company service providers, designated persons

Deadlines

• 8th April 2020: Coming into force date of the Order.
• as soon as practicable: Deadline for relevant institutions or relevant businesses/professions to report knowledge or suspicion of a designated person or sanctions offence to the Governor.

Related documents

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