The Terrorism (United Nations Measures) (Overseas Territories) Order 2001 (S.I. 2001 No. 3366)

Summary

This is a UK Order in Council made under the United Nations Act 1946, extending anti terrorist financing measures to the British Virgin Islands and other listed UK overseas territories (including the Cayman Islands) following UN Security Council Resolution 1373. It creates offences relating to raising, providing or making available funds for terrorism, gives the Governor powers to freeze suspect funds and demand information, and imposes a duty on certain institutions to report knowledge or suspicion of terrorist financing.

• Fundraising and provision of funds: It is an offence to invite, receive or provide funds intending or knowing they may be used for terrorism (article 3).
• Making funds available: It is an offence to make funds or financial services available, directly or indirectly, to persons who commit or facilitate terrorism, or their controlled entities or agents, without a Governor issued licence (article 4).
• Freezing directions: The Governor may direct that funds held for a suspected terrorism related person be frozen; recipients of such notices must forward them to the fund owner without delay (article 5).
• Facilitation and licence offences: Knowingly facilitating breaches of articles 3, 4 or 5(9), and providing false information to obtain a licence or breaching licence conditions, are offences (articles 6 and 7).
• Disclosure duty for relevant institutions: A relevant institution (monetary authority, deposit taking business, certain building societies) that knows or suspects a customer is linked to terrorism must disclose that knowledge or suspicion to the Governor as soon as reasonably practicable (article 8).
• Information gathering powers: The Governor may direct any person to furnish information or produce documents needed to secure compliance with or detect evasion of the Order, within the time and manner specified in the direction (article 9).
• Restrictions on disclosure: Information or documents obtained under the Order may only be disclosed in specified circumstances, such as with consent, to named government or UN bodies, or for related legal proceedings (article 10).
• Penalties: Breaches carry penalties up to seven years imprisonment and unlimited fines on indictment for the most serious offences, with lower penalties for lesser offences (article 11).

The Order applies broadly to any person within the territory, British nationals and bodies incorporated there, as well as to specified financial institutions. It remains in force unless the underlying UN resolution is cancelled, postponed or suspended, in which case the Governor must publish a notice in the official gazette.

Key obligations

• Persons must not invite, receive, or provide funds knowing or intending they may be used for terrorism.
• Persons must not make funds or financial services available, directly or indirectly, to persons who commit, facilitate, or participate in terrorism, or their controlled entities/agents, without a licence from the Governor.
• Recipients of a freezing notice must comply with the direction and must send a copy of the notice without delay to the owner of the frozen funds.
• Relevant institutions (monetary authorities, deposit taking businesses, qualifying building societies) must disclose to the Governor, as soon as reasonably practicable, any knowledge or suspicion that a customer is linked to terrorism or has committed an offence under the Order.
• Any person directed by the Governor to furnish information or produce documents under article 9 must comply within the time and manner specified in the direction.
• Persons applying to the Supreme Court to have a freezing direction set aside must give copies of the application and supporting evidence to the Governor not later than seven days before the hearing.
• Persons must not disclose information or documents obtained under the Order except in the limited circumstances permitted by article 10.

Applies to

relevant institutions (monetary authorities), deposit-taking businesses, building societies making loans secured on residential property funded by members, any person within the Territory, bodies incorporated or constituted under the law of the Territory, British citizens, British Dependent Territories citizens, and other listed British nationals ordinarily resident in the Territory

Deadlines

• 10th October 2001: Date the Order came into force.
• as soon as reasonably practicable: Relevant institutions must disclose to the Governor knowledge or suspicion that a customer is linked to terrorism, after the relevant information comes to their attention.
• within such time and in such manner as specified in the direction: A person directed by the Governor under article 9 to furnish information or produce documents must comply within the time specified in that direction.
• not later than seven days before the hearing: A person applying to the Supreme Court to set aside a freezing direction must give copies of the application and supporting evidence to the Governor and other fund holders before the hearing date.