SANCTIONS UPDATE
MAY 2011
Date 10th May 2011
SANCTIONS UPDATE
SANCTIONS UPDATE
 IMPORTANT NEW DEVELOPMENTS –
– THE “ARAB SPRING”
– IRAN FUNDS REQUIREMENTS
– TERRORISM AND THE DEATH OF BIN
LADEN
 REMINDER OF HOW SANCTIONS APPLIED
AND CHANGES NOTIFIED
 THE IMPORTANCE OF KEEPING IN TOUCH
SANCTIONS UPDATE
NEW DEVELOPMENTS
THE “ARAB SPRING”
 NEW REGIMES INVOLVING –
– TUNISIA
– EGYPT
– LIBYA
 NO NEWS YET ON SYRIA, YEMEN
 EXAMPLES OF COUNTRIES THAT WERE
“ACCEPTABLE” ONLY MONTHS OR WEEKS
BEFORE
SANCTIONS UPDATE
WITH ALL THESE NEW REGIMES
GENERALLY IMPOSED BY APPLICATION OF
E.U. MEASURES
WE ENDEAVOUR TO APPLY THE
SANCTIONS A.S.A.P.
ONCE IN PLACE WE TRY TO KEEP LISTS UP
TO DATE & IN LINE WITH U.K.
CAN INVOLVE ALLEGED EMBEZZLEMENT
OFFICIAL FUNDS BY FORMER LEADERS
SANCTIONS UPDATE
LIBYAN SANCTIONS
From 4th May, General Licence No.1
Approves payment of salaries by/through
banks in IOM to employees/former
employees of named companies made
through the British Arab Commercial Bank
SANCTIONS UPDATE
NEW DEVELOPMENTS
IRAN
 SINCE 11th JANUARY NEED TO NOTIFY
AND/OR SEEK PRIOR APPROVAL FOR
MOVEMENTS OF FUNDS
 CONTINUED RATCHETING UP OF E.U.
SANCTIONS
 THE PROBLEM WITH USE OF THE SHIPPING
REGISTER ILLUSTRATES NOT JUST A
FINANCE PROBLEM
SANCTIONS UPDATE
IRANIAN FUNDS
€10,000 OR LESS – NO REQUIREMENT, BUT…
€10-40,000 – MUST BE NOTIFIED IN ADVANCE
€40,000 OR MORE – PRIOR APPROVAL
UNLESS TO CERTAIN NARROW PURPOSES
THRESHOLDS ARE CUMMULATIVE, AND
INCLUDE MOVEMENTS IN AND OUT
SANCTIONS UPDATE
IRANIAN FUNDS
AFFECTS
STATE OF IRAN OR ANY IRANIAN PUBLIC
AUTHORITY
ANY PERSON IN, OR RESIDENT IN, IRAN
ANY LEGAL PERSON ETC WITH
REGISTERED OFFICE IN IRAN
SANCTIONS UPDATE
NEW DEVELOPMENTS
BIN LADEN, TERRORISM, AL-QAIDA ETC
DESPITE HIS DEMISE, NO CHANGE TO
SANCTIONS REGIMES INVOLVING
TERRORISM FINANCE, AL-QAIDA OR THE
TALIBAN
SANCTIONS UPDATE
TERRORIST ASSET-FREEZING ETC ACT 2010
From 17th March this UK Act applied by Order
in IOM and replaced the long-standing 2001
UN Order concerned with terrorism.
This too has no real effect on the regimes,
though does provide an appeal mechanism
against listing and other decisions
SANCTIONS UPDATE
REMINDER
HOW SANCTIONS ARE APPLIED
U.N. SANCTIONS – THROUGH ORDER-INCOUNCIL MADE IN U.K.
E.U. SANCTIONS –
– “TRADE” MEASURES APPLY
AUTOMATICALLY
– FINANCIAL SANCTIONS THROUGH
ORDER MADE BY CHIEF SECRETARY
SANCTIONS UPDATE
DIFFICULTIES ENCOUNTERED
THE U.K. SOMETIMES “FORGETS” TO MAKE
THE NECESSARY ORDER…
LEGAL ADVICE NOW IS THAT NEW ORDERS
CANNOT REFER TO LISTS AS ISSUED FROM
TIME TO TIME…
CONSEQUENT DELAY WHEN NEW E.U.
REGULATION EXTENDS/CONTRACTS A LIST
BUT NO EXCUSE TO IGNORE!
SANCTIONS UPDATE
FINALLY…
THE IMPORTANCE OF KEEPING IN TOUCH
PROVEN LAST YEAR DURING PROBLEMS RE
IRANIAN VESSELS OWNED BY IOM
COMPANIES OR ON THE IOM SHIP
REGISTER
SANCTIONS UPDATE
KEEPING IN TOUCH
CO-OPERATION OF C.S.P. HELPED MINIMISE
DAMAGE TO ISLAND AND, TO SOME
EXTENT, TO THE C.S.P. AND ITS OFFICERS
CUSTOMS LIAISED WITH THE U.K. AND U.S.
AUTHORITIES TO EXPLAIN THINGS, AVOID
MISUNDERSTANDINGS, ETC.
SANCTIONS UPDATE
IN PASSING
A REMINDER ABOUT EFFECT OF U.S.
SANCTIONS
OFAC SANCTIONS DO NOT HAVE ANY
FORMAL, LEGAL EFFECT IN IOM
HOWEVER, IF YOU ARE LISTED BY OFAC
YOU & YOUR BUSINESS FACE ENORMOUS
DIFFICULTIES
IF NECESSARY, CUSTOMS MAY BE ABLE TO
HELP
SANCTIONS UPDATE
THERE ARE NOW 20 DIFFERENT, ACTIVE
SANCTIONS REGIMES
SEE THE CUSTOMS & EXCISE WEBSITE FOR
DETAILS
CHANGES TO LISTS AND REGIMES WILL BE
NOTIFIED BY NEWS RELEASE
THE SANCTIONS NOTICES WILL BE UPDATED
AS REQUIRED – WITH CHANGES NOTED
SANCTIONS UPDATE
WHEN IN DOUBT – ASK
THE SOONER YOU CALL, THE BETTER
CONTACT –
– TEL 648138
FAX 661725
– EMAIL customs@gov.im
– WEBSITE www.gov.im/customs
HM TREASURY –
http://www.hm-treasury.gov.uk/fin_sanctions_role.htm