The Turkey (Sanctions) (Unauthorised Drilling Activities in the Eastern Mediterranean) (Overseas Territories) Order 2020

Summary

This is a UK Order in Council that extends the EU sanctions regime on unauthorised Turkish drilling activities in the Eastern Mediterranean to the UK's Overseas Territories (excluding Bermuda and Gibraltar, which legislate separately). It creates an asset freeze on persons designated under the related EU Council Regulation and imposes criminal offences and reporting duties on regulated entities and professions operating in the Territory.

• Asset freeze offences: It is a criminal offence to deal with funds or economic resources belonging to, held by, or controlled by a designated person, or to 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 similar) and relevant businesses or professions (auditors, casinos, dealers in precious metals/stones, external accountants, independent legal professionals, real estate agents, tax advisers, 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 provide specified identifying and transactional information.
• Frozen account credits: Relevant institutions must notify the Governor when they credit a frozen account under permitted exceptions (e.g. interest, pre-existing contractual payments, judicial decisions).
• Licensing regime: The Governor, with the Secretary of State's consent, may grant licences authorising otherwise-prohibited activities, subject to conditions; falsely obtaining a licence is itself an offence.
• Enforcement powers: Authorised officers are given powers in relation to ships, aircraft and vehicles to enforce the sanctions, including boarding, search and seizure provisions set out in the Schedules.

The Order took effect on 8 April 2020 and applies to persons, bodies and vessels/aircraft connected to the Territory. There is no specified end date; obligations (asset freeze, reporting) are continuing in nature for as long as a person remains designated under Annex I of the Council Regulation.

Key obligations

• Do not deal with funds or economic resources belonging to, held by or controlled by a designated person
• Do not make funds or economic resources available, directly or indirectly, to a designated person or for their benefit
• 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 the basis for suspicion, identifying information, and details of funds/resources held
• Relevant institutions must inform the Governor as soon as practicable when they credit a frozen account under the permitted exceptions in article 5
• Persons seeking a licence for otherwise-prohibited activity must not make false statements or provide false documents/information to the Governor

Applies to

relevant institutions (deposit-taking businesses and building-society-type entities), 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, persons in the Territory and British persons ordinarily resident there, bodies incorporated under the Territory's law, persons on registered ships or aircraft of the Territory

Deadlines

• 8th April 2020: Date the Order comes into force
• as soon as practicable: Deadline for relevant institutions and relevant businesses or professions to notify the Governor upon knowledge or suspicion that a customer is a designated person or has committed a sanctions offence, or upon crediting a frozen account under permitted exceptions

Related documents

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