Terrorist Asset-Freezing etc. Act 2010 (c. 38)

Summary

This is the UK Terrorist Asset-Freezing etc. Act 2010, which the Guernsey Financial Services Commission lists as applicable legislation for AML/CFT purposes. It establishes a UK Treasury-led regime for freezing the funds and economic resources of persons designated as being involved in terrorism, and imposes reporting and compliance obligations on relevant institutions such as banks and other financial businesses that hold or deal with such funds.

• Designations: HM Treasury may make 'final' or 'interim' designations of persons reasonably believed or suspected to be involved in terrorist activity, triggering financial restrictions.
• Prohibitions: Persons must not deal with funds or economic resources owned or controlled by a designated person, or make funds, financial services or economic resources available to or for the benefit of a designated person, subject to exceptions and Treasury licences.
• Reporting duties: Relevant institutions have reporting obligations to the Treasury, including informing the Treasury without delay when crediting a frozen account under permitted exceptions.
• Information powers: The Treasury may request information and require production of documents from relevant institutions; failure to comply or providing false information is an offence.
• Confidentiality: Where designation information is restricted, recipients must not disclose it except with lawful authority; unauthorised disclosure is an offence.
• Offences and penalties: Contravention of the freezing and availability prohibitions, and of confidentiality or information obligations, constitutes a criminal offence with associated penalties.
• Extraterritorial extent: Section 54 provides for extension of the Act's provisions to the Channel Islands, Isle of Man and British overseas territories by Order in Council, which is the basis for its relevance to Guernsey.

The Act also amends Schedule 7 to the Counter-Terrorism Act 2008 in Part 2, dealing with directions to credit and financial institutions in terrorist financing and money laundering cases, and contains consequential amendments and repeals in Schedules 1 and 2.

Key obligations

• Persons must not deal with funds or economic resources owned, held or controlled by a designated person (section 11).
• Persons must not make funds, financial services or economic resources available, directly or indirectly, to a designated person or for their benefit, except under an exception or Treasury licence (sections 12 to 15).
• Relevant institutions must inform the Treasury without delay if they credit a frozen account under the permitted exceptions in section 16(1)(b) or (2).
• Relevant institutions have ongoing reporting obligations to the Treasury under section 19.
• Persons must comply with Treasury requests for information and production of documents relating to designated persons; failure to comply is an offence (sections 20 to 22).
• A person informed of confidential designation information must not disclose it except with lawful authority (section 10).

Applies to

relevant institutions (including banks and other financial institutions), designated persons, branches and subsidiaries of credit institutions and financial institutions

Deadlines

• 30 days beginning with the date the interim designation was made: An interim designation of a person expires after this period unless superseded by a final designation.
• one year beginning with the date a final designation was made: A final designation expires at the end of this period unless renewed by the Treasury.
• without delay: A relevant institution must inform the Treasury if it credits a frozen account under the section 16 exceptions.