The countering of terrorism and terrorist financing has been a priority for the international community ever since the terrorist attacks on the United States in September 2001.
More recently, the emergence of new terrorist groups in the Middle East and events such as the November 2015 terrorist attacks in Paris have led to an increased focus on counter-terrorism measures by the United Nations and the Financial Action Task Force. Areas of particular concern at present are the number of individuals from Europe and elsewhere travelling to Iraq and Syria to join terrorist groups as foreign fighters, and the increased use by terrorists and their supporters of new information and communication technologies (in particular, the internet, for the purposes of recruitment and incitement to commit terrorist acts as well as for the planning and preparation of their activities). Specific concerns in relation to funding involve kidnap and ransom, oil revenues and the smuggling of cultural artefacts.
Against that background, the international community has stressed the need for vigilance. This does not only apply to financial services businesses but extends to any businesses offering services that might be relevant to the activities referred to above such as travel agents, internet service providers, those working in the oil industry and antique dealers.
Guernsey Legislation
- There are comprehensive counter-terrorism measures in place under the Terrorism and Crime (Bailiwick of Guernsey) Law, 2002. These measures are in addition to terrorism financing sanctions regimes and specific sanctions regimes relating to Afghanistan and ISIL and Al-Qaida. Details of these regimes are available here - Current sanction regimes - States of Guernsey (gov.gg)
- Counter terrorism measures under the Terrorism and Crime (Bailiwick of Guernsey) Law, 2002 include some measures that are applicable to proscribed organisations. In addition, any action taken for the benefit of a proscribed organisation is action taken for the purposes of terrorism and therefore comprises a terrorist financing offence. Proscribed organisations are defined as organisations proscribed by the UK under Schedule 2 of the Terrorism Act 2000, or organisations that operate under the same name as an organisation listed in Schedule 2. Details of organisations that are currently proscribed under Schedule 2 are available here: https://www.gov.uk/government/publications/proscribed-terror-groups-or-organisations--2
- Guernsey remains committed to playing a full part in the international fight against terrorism and terrorist financing. While the risks posed to the Bailiwick in this area are considered to be very low, it is important that all businesses and individuals are alert to the issues referred to above and the applicable legal framework. The Policy & Resources Committee has therefore issued an Advisory Memorandum on the implementation in Guernsey of various UN measures relating to terrorism and terrorist financing. The
Advisory Memorandum is available to download [199kb]. It updates and replaces previous versions that have been in place since 2015. Like the previous versions, the Advisory Memorandum is of wide application, extending beyond areas confined to financial services businesses and NPOs.
- Guidance on terrorist financing risks to the Bailiwick has been published by the Policy & Resources Committee following the publication of the report on the Bailiwick's second National Risk Assessment of Money Laundering and Terrorist Financing. This guidance updates the guidance document issued by the Committee on 5 November 2019. The latest guidance is available here: Guidance on Terrorist Financing Risks to the Bailiwick 2024 [277kb]
- The Policy & Resources Committee has powers to designate individuals and entities under theTerrorist Asset Freezing (Bailiwick of Guernsey) Law, 2011.Where a person considers that the Committee should use its power of designation, and this can be substantiated, information, including the substantiation should be provided in writing to the Committee.
Outreach
- Members of the Sanctions Committee regularly provide outreach in relation to terrorism - related sanctions. In the first quarter of 2017 the Policy and Resources Committee, in liaison with the Sanctions Committee, held a conference with international speakers on International Terrorist Financing: Risk Awareness and Mitigation for businesses in Guernsey. The slides
Further Information
- The Financial Action Task Force has published two typologies papers that address the financing of Islamic State and Levant and emerging terrorist financing risks generally. Both are available on the FATF website.
- HM Treasury has issued a guidance note for NGOs about operating within the UK's counter -terrorism legislation which is relevant for other sectors. This is neither applicable in Guernsey nor binding on Guernsey's authorities but Guernsey's counter-terrorism legislation mirrors that of the UK in most areas. In addition, HM Procureur (the Attorney General) has confirmed that prosecution decisions in Guernsey would be made following a similar approach to that referred to in the guidance note. It is also important to be aware that much of the UK's counter-terrorism legislation has extra -territorial effect and applies to the actions of British nationals wherever they are in the world. The guidance note is available to read by following this link.
- Further information on terrorist financing, including case studies and typologies, is available on the website of the Guernsey Financial Services Commission and on the website of the Guernsey Registry for charities and NPOs.
- For information on sanctions against the financing of terrorism please follow this link.
