UN Security Council Resolution 1970 (2011) - Libya (2017-10-17)

Summary

This is a general industry notice issued by the Cayman Islands Monetary Authority (CIMA) reproducing the full text of United Nations Security Council Resolution 1970 (2011) concerning Libya. The resolution, adopted under Chapter VII of the UN Charter, responds to violence against civilians by the Libyan authorities and imposes an arms embargo, a travel ban, and an asset freeze on named individuals associated with the Qadhafi regime, listed in Annexes I and II. It also refers the situation in Libya to the International Criminal Court and establishes a UN Sanctions Committee to monitor and administer the measures.

CIMA republishes this resolution to inform Cayman Islands regulated entities of an applicable international sanctions measure, consistent with its AML/CFT supervisory role. The notice itself does not create new Cayman-specific rules but flags that the UN measures are relevant to compliance and sanctions-screening obligations of financial institutions and other regulated persons operating in or from the Cayman Islands.

• Travel ban: Applies to individuals named in Annex I.
• Asset freeze: Applies to individuals named in Annex II; funds, assets or economic resources linked to those persons within an entity's control must not be made available to them.

The practical effect for compliance officers is that customer and transaction screening processes should incorporate the individuals named in Annexes I and II, in line with Cayman Islands sanctions and AML/CFT legislation implementing UN Security Council resolutions.

Key obligations

• Regulated entities must freeze without delay any funds, other financial assets or economic resources owned or controlled by the individuals or entities listed in Annex II of the resolution, or by persons/entities acting on their behalf.
• Regulated entities must ensure funds, financial assets or economic resources are not made available, directly or indirectly, to or for the benefit of the individuals or entities listed in Annex II.
• Entities should screen clients and transactions against the individuals listed in Annex I (subject to travel ban) and Annex II (subject to asset freeze) as part of sanctions/AML-CFT compliance.
• Any proposed use of frozen funds for basic or extraordinary expenses, or payments under pre-existing contracts, must be notified to and, where required, approved by the UN Sanctions Committee before being permitted.

Applies to

CIMA-regulated entities, financial institutions, licensees subject to AML/CFT obligations