The Ukraine (Sanctions) (Overseas Territories) (No. 3) Order 2014 (SI 2014/1098)

Summary

This UK Order in Council extends the EU sanctions regime concerning Ukraine to a list of British Overseas Territories, including the Cayman Islands, the British Virgin Islands, Anguilla, Bermuda-adjacent territories and others named in Schedule 1. It came into force on 30 April 2014 and implements Council Regulation (EU) No 269/2014, freezing the funds and economic resources of persons designated as responsible for undermining Ukraine's territorial integrity or sovereignty, and persons or entities associated with them.

• Asset freeze: It is a criminal offence to deal with funds or economic resources belonging to, owned, 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 similar bodies) 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 the Order, and must provide specified identifying and account information.
• Crediting frozen accounts: Institutions may credit a frozen account with interest, other earnings, or payments due under pre-existing contracts, but must notify the Governor when doing so.
• Licensing regime: The Governor, with the Secretary of State's consent, may grant, vary or revoke licences authorising otherwise prohibited dealings (e.g. basic expenses, legal fees, extraordinary expenses); making false statements to obtain a licence is an offence.
• Publication of designated persons: The Governor must publish and keep up to date a list of designated persons.
• Circumvention offence: It is an offence to intentionally participate in activity known to circumvent or facilitate contravention of the freezing prohibitions.
• Penalties: Breaches carry criminal penalties including up to seven years' imprisonment on indictment for freezing/circumvention offences, and up to two years for reporting or information-related offences, plus fines.

The Order applies broadly to any person in the relevant Territory, British nationals ordinarily resident there, bodies incorporated under the Territory's law, and persons aboard ships or aircraft registered there. It is primarily of relevance to financial institutions and other 'relevant institutions' (deposit-taking businesses) that may hold funds or economic resources for or deal with designated persons.

Key obligations

• Relevant institutions must not deal with funds or economic resources belonging to, owned, held or controlled by a designated person, and must not make funds or economic resources available 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 the suspicion, identifying information, and details of funds/resources held since the customer became designated.
• Relevant institutions must inform the Governor as soon as practicable when crediting a frozen account under article 5(1)(b) or 5(2).
• Any person seeking to undertake an otherwise prohibited transaction must obtain a licence from the Governor (with the Secretary of State's consent) and comply with its conditions.
• The Governor must publish and maintain an up-to-date list of designated persons.

Applies to

relevant institutions (deposit-taking businesses), persons and bodies incorporated in the Territory, designated persons and their associates, banks and financial institutions holding customer funds

Deadlines

• 30th April 2014: Order comes into force in the listed Overseas Territories, including the Cayman Islands.
• as soon as practicable: Relevant institutions must notify the Governor upon knowing or suspecting a customer is a designated person, has committed a relevant offence, or when crediting a frozen account.

Related documents

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