Maldives Asset-Freezing (2018-11-14)

Summary

This is a CIMA General Industry Notice, dated 14 November 2018, informing industry of a UK statutory instrument -- the Republic of Maldives (Asset Freezing) Regulations 2018 (UK SI 2018/861) -- which gives effect in relevant jurisdictions to EU Council Regulation 2018/1001 imposing restrictive measures over the situation in the Maldives. The notice reproduces the Explanatory Note of that instrument and links to the full legislative text hosted on legislation.gov.uk.

The underlying Regulations require the freezing of funds and economic resources belonging to, owned, held or controlled by persons and entities listed in Annex I to the EU Council Regulation ("designated persons"), and prohibit making funds or economic resources available, directly or indirectly, to or for the benefit of such designated persons. They also set out several further provisions, listed below.

• Crediting exception: An exception for crediting frozen accounts in permitted circumstances.
• Licensing procedure: A licensing procedure for exemptions.
• Offences: Offences for breaching the prohibitions.
• Officer liability and penalties: Provisions on officer liability and penalties.
• Information-gathering and disclosure: An information-gathering/disclosure regime with associated offences for non-compliance.

CIMA's notice itself does not create new obligations distinct from the underlying UK statutory instrument; it serves to alert Cayman Islands regulated entities and the wider industry to the existence and content of the sanctions regime so they can ensure compliance with the asset-freezing prohibitions and related offences.

Key obligations

• Do not deal with funds or economic resources belonging to, owned, held or controlled by a designated person listed in Annex I to the Council Regulation.
• Do not make funds or economic resources available, directly or indirectly, to a designated person.
• Do not make funds or economic resources available for the benefit of a designated person.
• Comply with any request for information issued under the Schedule's information-gathering provisions, and disclose relevant information as required.
• Apply for a licence under Regulation 9 if seeking an exemption from the prohibitions in permitted circumstances.
• Ensure any crediting of a frozen account falls within the permitted exception under Regulation 8 before proceeding.

Applies to

all persons and entities subject to the Republic of Maldives (Asset Freezing) Regulations 2018, bodies corporate and their officers