The Terrorist Asset-Freezing etc. Act 2010 (Overseas Territories) Order 2011 (S.I. 2011 No. 750)

Summary

This Order in Council extends Part 1 (the asset-freezing powers) of the UK Terrorist Asset-Freezing etc. Act 2010 to a list of British Overseas Territories, including the Virgin Islands, with modifications set out in the attached Schedules. It replaces the territories' previous UN Measures Order 2001 asset-freezing regime, which had become legally vulnerable after the UK Supreme Court's Ahmed v HM Treasury decision.

• Who exercises the power: References to HM Treasury in the 2010 Act are replaced by the Governor of the Territory, who may designate persons for asset-freezing purposes and delegate his powers.
• Courts and terminology: References to the High Court are replaced with the territory's Supreme Court (or Senior Judges' Court for the Sovereign Base Areas), and references to the United Kingdom are generally replaced with the Territory.
• Relevant institutions: The definition of relevant institution is amended to cover the territory's monetary authority, deposit-takers, and mutual building/loan societies operating in the territory, bringing them within scope of the asset-freezing and information provisions of Part 1.
• Information sharing: The Governor is given powers to disclose information obtained under Part 1 to police, other territories' authorities, financial services regulators, UN bodies, and for use in related legal proceedings.
• Offences and penalties: Provisions on offences, penalties, and prosecution consent are modified so that proceedings require the consent of the Attorney General or equivalent officer of the Territory, with territory-specific penalty maxima.
• Sovereign Base Areas variant: Schedule 3 applies additional modifications for the Sovereign Base Areas of Akrotiri and Dhekelia, including different penalty provisions and disapplication of section 36.

The Order is a framework instrument rather than a firm-facing compliance circular: it establishes the legal basis under which the Governor can designate persons, freeze assets, grant licence exemptions, and require or share information within the territory, mirroring HM Treasury's powers under the 2010 Act.

Key obligations

• Relevant institutions (including deposit-taking bodies, the territory's monetary authority, and qualifying building societies) fall within the asset-freezing regime and are subject to the Governor's powers under Part 1 of the Act as extended to the Territory.
• Any information obtained by the Governor under Part 1 may be disclosed only to the specific categories of recipients listed in the modified section 23(1).
• No proceedings for an offence under the Act may be instituted in the Territory except by or with the consent of the Attorney General or other responsible public officer.

Applies to

relevant institutions (deposit-takers), monetary authority of the Territory, building/loan societies, designated persons, Governor of the Territory

Deadlines

• 31 March 2011: Date the Order (and the extension of Part 1 of the Terrorist Asset-Freezing etc. Act 2010 to the Territories) comes into force.