The Ukraine (Sanctions) (Overseas Territories) (No. 2) Order 2014 (S.I. 2014/1100)

Summary

This Order in Council extends UK sanctions on Ukraine (implementing EU Council Regulation 208/2014) to the Cayman Islands, the British Virgin Islands and other listed Overseas Territories. It freezes funds and economic resources of persons designated as responsible for misappropriation of Ukrainian state funds, and creates related criminal offences. It revokes and replaces the earlier Ukraine (Sanctions) (Overseas Territories) Order 2014 (S.I. 2014/497).

• Asset freeze: It is a criminal offence to deal with funds or economic resources belonging to, held or controlled by a designated person, or to make funds or economic resources available to a designated person or for their benefit, where the person knows or has reasonable cause to suspect this.
• Reporting duty: Relevant institutions (deposit takers and certain building-society-type entities) must inform the Governor as soon as practicable if they know or suspect a customer is a designated person or has committed a freezing offence, and must supply identifying information and details of funds held.
• Frozen account credits: Relevant institutions must notify the Governor as soon as practicable whenever they credit a frozen account with contractual payments or incoming transfers.
• Licensing regime: The Governor, with Secretary of State consent, may license otherwise-prohibited dealings (e.g. basic expenses, legal fees, extraordinary expenses) and must publicise or give written notice of licences granted, varied or revoked.
• Published list: The Governor must publish and keep up to date a list of designated persons.
• Anti-circumvention offence: It is an offence to intentionally participate in activity known to circumvent or facilitate contravention of the asset-freeze prohibitions.

The Order applies to persons in the Territory, British nationals/protected persons ordinarily resident there, bodies incorporated under Territory law, and persons on ships or aircraft registered in the Territory. Breach of the core prohibitions carries penalties of up to seven years' imprisonment on indictment; breach of reporting duties carries up to two years.

Key obligations

• Relevant institutions must not deal with, or make available, funds or economic resources to or for the benefit of a designated person where they know or suspect this.
• Relevant institutions 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, customer identifying information, and (if applicable) details of funds/economic resources held since the customer became designated.
• Relevant institutions must inform the Governor as soon as practicable whenever they credit a frozen account under article 5(1)(b) or (2).
• Persons must not intentionally participate in activity that circumvents or facilitates contravention of the freezing prohibitions.
• The Governor must publish and maintain an up-to-date list of designated persons.
• Any person granted a licence must comply with its conditions; false statements made to obtain a licence are an offence and void the licence.

Applies to

relevant institutions (deposit-taking businesses), building-society-type entities making loans secured on residential property, designated persons, persons in the Territory, British citizens/subjects/protected persons ordinarily resident in the Territory, bodies incorporated under Territory law, persons on ships or aircraft registered in the Territory

Deadlines

• 30th April 2014: Date the Order comes into force.
• as soon as practicable: Relevant institutions must notify the Governor upon knowing or suspecting a customer is a designated person or has committed an offence under article 4 or 7(10).
• as soon as practicable: Relevant institutions must notify the Governor when crediting a frozen account under article 5(1)(b) or (2).
• within 12 months of first entering the Territory after committing the offence: Time limit for instituting summary proceedings for an offence committed outside the Territory.

Related documents

• This document repeals The Ukraine (Sanctions) (Overseas Territories) Order 2014 (SI 2014/497)
• This document replaces The Ukraine (Sanctions) (Overseas Territories) Order 2014 (SI 2014/497)
• The Sanctions (Overseas Territories) (Revocations) Order 2020 repeals this document