The Sanctions (Overseas Territories) (Amendment of Information Provisions) Order 2018 (SI 2018/1076)

Summary

This UK Order in Council amends a series of existing sanctions Orders (covering Lebanon and Syria, Tunisia, Libya, Egypt, Belarus, and other sanctions regimes) that apply across the Overseas Territories, including the Cayman Islands. It extends existing financial sanctions reporting and disclosure obligations, previously aimed only at 'relevant institutions' (financial institutions), so that they also apply to a defined list of designated non-financial businesses and professions (DNFBPs).

• Who is newly caught: Auditors, casinos, dealers in precious metals or stones, external accountants, independent legal professionals, real estate agents, tax advisers, and trust or company service providers operating in the Territory.
• What changes: Each amended sanctions Order's 'failure to disclose knowledge or suspicion' provisions now apply to these businesses and professions in the same way they already applied to financial institutions.
• Trigger for disclosure: Knowledge or suspicion that a customer (current, former since 7 November 2018, or a person the business has dealt with since that date) is the subject of an asset freeze under the relevant sanctions regime, or has committed an offence under the relevant Order.
• Definitions added: The Order inserts detailed definitions of 'auditor', 'casino', 'dealer in precious metals or stones', 'external accountant', 'independent legal professional', 'real estate agent', 'tax adviser' and 'trust or company service provider' into each amended instrument.

The Order does not itself impose new substantive sanctions but broadens who must report suspected breaches of the existing sanctions regimes to the Governor of the relevant territory, and extends associated offences for failure to disclose to the newly covered DNFBP sectors. It came into force on 7 November 2018 and extends to the listed Overseas Territories, including the Cayman Islands.

Key obligations

• 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 disclose to the Governor (or as specified in the relevant sanctions Order) any knowledge or suspicion that a customer or person they have dealt with is subject to an asset freeze under the relevant sanctions regime.
• These businesses and professions must also disclose knowledge or suspicion that a person has committed an offence under the relevant sanctions Order (e.g. breach of financial sanctions), consistent with obligations previously imposed only on relevant financial institutions.
• Failure to make the required disclosure is an offence under the amended Orders, as it already was for financial institutions.

Applies to

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

Deadlines

• 7th November 2018: Date the Order comes into force and from which customers/dealings are relevant for the extended disclosure obligations.