Council Regulation (EC) No 881/2002

Summary

This is EU Council Regulation (EC) No 881/2002, an asset-freezing measure implementing UN Security Council sanctions against Usama bin Laden, the Al-Qaida network and the Taliban. It appears on the GFSC's legislation and guidance page as a reference instrument relevant to AML/CFT and financial sanctions compliance. The regulation freezes funds and economic resources of designated persons, groups and entities listed in its Annex I and imposes related prohibitions and reporting duties on natural and legal persons, entities and bodies.

• Asset freeze: All funds and economic resources belonging to, owned or held by a person, group or entity listed in Annex I must be frozen, and no funds or economic resources may be made available to them, directly or indirectly.
• Military-related services ban: It is prohibited to supply technical advice, assistance or training related to military activities to any listed person, group or entity.
• Anti-circumvention: Knowing and intentional participation in activities designed to circumvent the freezing measures or promote prohibited transactions is prohibited.
• Reporting and cooperation: Natural and legal persons, entities and bodies must immediately provide information facilitating compliance (e.g. frozen accounts and amounts) to the competent authority of the Member State where they are located and, directly or through it, to the European Commission, and must cooperate with verification requests.
• Historical information duty: Available information on funds or economic resources owned or controlled by listed persons during the six months before the Regulation's entry into force had to be provided to the competent authorities.
• Notification of circumvention: Any information indicating that the Regulation's provisions are being or have been circumvented must be notified to the competent authorities of the Member States and to the Commission.
• Sanctions for breach: Member States must determine effective, proportionate and dissuasive sanctions for infringements and are responsible for bringing proceedings against persons, groups or entities under their jurisdiction who breach the prohibitions.

The list of designated persons and entities is set out in Annex I, and the competent national authorities to which reports must be made are listed in Annex II (both subject to amendment by the European Commission). The Regulation is directly applicable within EU Member State territory and to EU nationals and entities incorporated or doing business within the Community; its inclusion on the GFSC site reflects its relevance to Guernsey firms' sanctions screening obligations, though the instrument itself is EU legislation rather than Guernsey domestic law.

Key obligations

• Freeze all funds and economic resources belonging to, owned or held by persons, groups or entities listed in Annex I.
• Do not make funds or economic resources available, directly or indirectly, to or for the benefit of listed persons, groups or entities.
• Do not supply technical advice, assistance or training related to military activities to listed persons, groups or entities.
• Do not knowingly or intentionally participate in activities designed to circumvent the freezing measures or promote prohibited military-related transactions.
• Immediately provide information facilitating compliance (such as frozen accounts and amounts) to the relevant competent authority and, directly or through it, to the European Commission.
• Provide available information on funds or economic resources owned or controlled by listed persons during the six months before the Regulation's entry into force.
• Cooperate with competent authorities in any verification of information provided.
• Notify competent authorities and the Commission of any information indicating circumvention of the Regulation.

Applies to

natural and legal persons, groups and entities, competent authorities of Member States, persons, groups or entities designated by the Sanctions Committee (listed persons/entities subject to the freeze)