The Venezuela (Sanctions) (Overseas Territories) Order 2018 (2018-05-22)

Summary

This is a CIMA general industry notice informing regulated entities that the UK's Venezuela (Sanctions) (Overseas Territories) Order 2018 (SI 2018 No. 179) came into force in the Cayman Islands on 8 March 2018. The Order extends EU sanctions measures against Venezuela (adopted under Council Decision (CFSP) 2017/2074 and Council Regulation (EU) 2017/2063) to specified UK Overseas Territories, including the Cayman Islands.

• Arms embargo: A prohibition on arms-related trade with Venezuela.
• Internal repression equipment: Restrictions on equipment that could be used for internal repression.
• Communications equipment: Restrictions on communications equipment that could be misused for surveillance or repression.
• Asset freezes: Asset-freezing measures against individuals and entities designated by the EU Council for serious human rights abuses, repression of civil society or democratic opposition, or actions undermining democracy and the rule of law in Venezuela, as well as persons associated with them.
• Licensing power: The Order also empowers the Governor to license certain otherwise-prohibited activities where exemptions apply.

The notice itself is informational, alerting industry to the existence and commencement of the Order and providing a link to the full legislative text, but the underlying Order creates binding sanctions compliance obligations for persons and entities operating in or connected to the Cayman Islands.

Key obligations

• Persons and entities in the Cayman Islands must comply with the asset-freezing measures against EU-designated Venezuelan persons and associated persons, including not making funds or economic resources available to them.
• Persons and entities must observe the arms embargo and restrictions on equipment that could be used for internal repression in Venezuela.
• Persons and entities must observe restrictions on the export/supply of communications equipment or technology that could be misused for internal repression or surveillance.
• Any party wishing to undertake activities otherwise prohibited under the sanctions regime must apply to the Governor for a licence under the exemptions provided.

Applies to

all persons and entities within the Cayman Islands subject to the sanctions Order (including CIMA-regulated financial institutions)

Deadlines

• 8 March 2018: Date the Venezuela (Sanctions) (Overseas Territories) Order 2018 came into force in the Cayman Islands.