The Yemen (Sanctions) (Overseas Territories) Order 2015 (S.I. 2015 No. 218)

Summary

This UK Order in Council extends United Nations sanctions on Yemen to the British Virgin Islands and other listed Overseas Territories. It implements UN Security Council Resolution 2140 (2014) and related designations, freezing the funds and economic resources of persons designated by the UN Sanctions Committee for threatening the peace, security or stability of Yemen.

• Asset freeze: It is an offence to deal with funds or economic resources belonging to a designated person, or to make funds or 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 entities) 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 freezing provisions, and must provide identifying and transactional details.
• Licensing regime: The Governor, with the Secretary of State's consent, may grant licences authorising otherwise prohibited activities, such as payment of basic expenses, legal fees, or debts predating designation.
• Circumvention offence: It is an offence to intentionally participate in activity intended to circumvent or facilitate contravention of the freezing prohibitions.
• Publication of designated persons: The Governor must publish and keep up to date a list of designated persons.
• Penalties: Breaches carry penalties up to seven years' imprisonment on indictment, or six months and/or a fine up to £5,000 on summary conviction, depending on the offence.

The Order applies in the Territory to any person there, to British citizens or bodies incorporated there when elsewhere, and to persons aboard Territory-registered ships or aircraft. It came into force on 11 March 2015 and remains a standing sanctions instrument relevant to compliance obligations of financial institutions and other relevant persons in the BVI.

Key obligations

• Persons must not deal with funds or economic resources belonging to, or make funds or economic resources available to, a designated person, where they know or have reasonable cause to suspect this (article 4).
• 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) (article 6(2)).
• When reporting under article 6(2), a relevant institution must state the basis for its knowledge or suspicion, identifying information about the customer, and the nature and amount of any funds or economic resources held for a designated customer (article 6(3)).
• A relevant institution must inform the Governor as soon as practicable if it credits a frozen account under the limited exceptions in article 5 (article 6(4)).
• Persons must not intentionally participate in activity intended to circumvent or facilitate contravention of the article 4 prohibitions (article 13).
• The Governor must publish and keep up to date a list of designated persons (article 10).

Applies to

relevant institutions (deposit-taking businesses), designated persons, persons in the Territory, British citizens, British Overseas Territories citizens and related persons ordinarily resident in the Territory, bodies incorporated or constituted under the law of the Territory, persons aboard Territory-registered ships or aircraft

Deadlines

• 11th March 2015: 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 that an offence under article 4 or 7(10) has been committed, and when crediting a frozen account under permitted exceptions.
• 12 months beginning with the date the person charged first enters the Territory after committing the offence: Time limit for instituting summary proceedings for an offence committed outside the Territory.