The Terrorist Asset-Freezing etc. Act 2010 (Overseas Territories) (Amendment) Order 2017 (S.I. 2017/157)

Summary

This is a UK Order in Council that amends the Terrorist Asset-Freezing etc. Act 2010 (Overseas Territories) Order 2011, which extends the UK's terrorist asset-freezing regime to Overseas Territories including the British Virgin Islands. It came into force on 8 March 2017 and makes technical and procedural changes to how designations and licences under that regime operate.

• Designated person definition: Broadens the definition of designated person to include those designated by HM Treasury under the UK regime, those listed under EU Council Regulation 2580/2001, and those designated by the territory Governor.
• Consultation before designation: Requires the Governor to consult the Secretary of State before making or renewing a final or interim designation of a person as subject to an asset freeze.
• Consultation before licensing decisions: Requires the Governor to consult the Treasury (for Treasury or EU-listed designees) or the Secretary of State (for Governor-designated persons) before granting, varying or revoking a licence.
• Extraterritorial licences: Clarifies that the prohibitions on dealing with designated persons' assets do not apply to acts done outside the territory under a licence validly granted under corresponding foreign law.
• Other minor amendments: Updates penalty amounts, court jurisdiction and prosecution consent provisions, and extends certain modifications to the Sovereign Base Areas, Falkland Islands, South Georgia and South Sandwich Islands, and St Helena, Ascension and Tristan da Cunha.

The obligations created run primarily between the territory Governor and UK central government (Secretary of State and Treasury) rather than directly on financial institutions, but the widened definition of designated person is relevant to firms conducting sanctions and asset-freeze screening in the BVI.

Key obligations

• The Governor must consult the Secretary of State before making a final or interim designation of a person under the asset-freezing regime.
• The Governor must consult the Secretary of State before renewing or further renewing a final designation.
• The Governor must consult the Treasury before granting, varying or revoking a licence relating to a person designated by the Treasury or listed under EU Regulation 2580/2001.
• The Governor must consult the Secretary of State before granting, varying or revoking a licence relating to a person designated by the Governor.
• Proceedings for an offence under the relevant Part must not be instituted in the Territory except with the consent of the principal public officer responsible for criminal prosecutions.

Deadlines

• 8th March 2017: Date the Order comes into force.