On this page you will find background on sanctions issues and information about the administration of Guernsey's sanctions regime.
For information on the sanctions regimes which are in place follow this link. Updates on new sanctions regimes and changes to existing regimes are available here.You can also find out more information from this frequently asked questions document [353kb]. The UK Office of Financial Sanctions Implementation at HM Treasury has also issued an FAQ document on sanctions which is available by following this link and the UK Financial Conduct Authority has issued guidance on financial crime that includes sanctions which is available by following this link. These documents are not binding on the Guernsey authorities but they may take them into account when considering any question of implementation within the Bailiwick.
The United Nations and the European Union are key bodies that adopt sanctions measures. Sanctions may implement the following measures:
- Financial sanctions including asset freezes and investment bans
- Travel bans
- Import and Export bans
- Arms embargo
- Trade restrictions
- The Bailiwick implements all types of international sanctions.
- Travel bans are implemented administratively under the Immigration Act 1971, as extended to the Bailiwick by the Immigration (Guernsey) Order 1993, rather than under specific sanctions legislation.
- Arms embargoes and related export restrictions are principally implemented in the Bailiwick under general export control legislation rather than by specific sanctions legislation (although there may be an overlap with Guernsey's specific sanctions legislation in cases where this includes certain import and export restrictions). The relevant legislation is the Export Control (Military, Security, and Related Matters) (Bailiwick of Guernsey) Order, 2010. This Order expressly mirrors and incorporates restrictions under the UK's Export Control Order 2008 and any changes made under the UK Order are automatically effective under the Guernsey Order. The Committee for Home Affairs, through the Guernsey Border Agency, is the competent authority for any import or export licensing matters. Further information about the restrictions in place under export control legislation is available by following this link.
- In all other areas, Guernsey has introduced regime-specific sanctions legislation. Although this is based on legislation that broadly mirrors equivalent legislation in the UK (and in one case directly incorporates designations made by HM Treasury) it is completely separate from, and operates independently of, the UK regime.
- The legislation gives local effect to sanctions imposed by the United Nations and/or the European Union using one of three legislative routes:
- Implemented by Ordinance under section 1 of the European Communities (Implementation) (Bailiwick of Guernsey) Law 1994 Ordinance e.g. Tunisia (Freezing of Funds) (Guernsey) Ordinance, 2011
- Implemented by Order in Council under section 1 of the United Nations Act 1946 e.g. Democratic Republic of the Congo (United Nations Sanctions) (Channel Islands) Order 2005
- Primary Bailiwick legislation e.g. Terrorist Asset-Freezing (Bailiwick of Guernsey) Law 2011
- It is the responsibility of each individual or institution to comply with the relevant legislation and failure to comply is a criminal offence.
- It is important to note that most changes to EU Regulations or UN Security Council Resolutions are automatically effective under the original Order in Council or Ordinance that implemented the Regulation or Resolution in question, without the need for any further domestic legislation. These changes may involve the addition of further prohibitions or, more commonly, the adding or removing of names from lists of designated persons or entities targeted by a particular sanctions regime. Therefore in order to be aware of the full scope of sanctions under an EU Regulation or UN Security Council Resolution at a particular time, all amendments made to the Regulation or Resolution in question up to that time must be taken into account.
- Several of the sanctions regimes implemented in Guernsey are subject to reporting obligations. These vary depending on the regime in question, but they primarily relate to financial restrictions. Details of the applicable reporting obligations are available by following this link.
- The Bailiwick's position as a leading international financial sector means that financial restrictions are the most likely to be relevant to businesses in this jurisdiction. As well as comprehensive prohibitions on dealing with sanctioned countries and their governments, financial restrictions include targeted measures such as asset freezes and prohibitions on providing specific financial services or making funds or other economic resources available to designated individuals or entities. Generally speaking, any person who fails to treat as frozen all accounts, funds or economic resources belonging to, owned, held or controlled by a designated person, entity, body or group, or who makes any funds, economic resources (or, in some circumstances, financial or technical assistance) available directly or indirectly to or for the benefit of designated persons, is guilty of an offence unless the transaction in question has been licensed (see section on licences below).
- It is important to be aware that asset freezes and prohibitions on making funds or economic resources available apply irrespective of whether the relevant assets are held solely by a designated person or are held jointly with a third party, and they extend to interest and other assets that are derived from the assets subject to an asset freeze.
- Changes to the lists of designated persons or entities targeted by a particular sanctions regime (whether under an EU Regulation, a United Nations Security Council Resolution or Terrorist Asset-Freezing etc. Act 2010) are automatically effective in Guernsey. They are incorporated into lists maintained by HM Treasury when they are made by the appropriate designating body. As well as regime -specific lists, HM Treasury maintains a consolidated list of designated persons under all regimes. It is the responsibility of each individual or institution to familiarise itself with changes to designations by checking these lists.
- Regime-specific and consolidated lists of financial sanctions targets can be found on the HM Treasury website.
- A licence is a written authorisation from a named competent authority to allow an activity which would otherwise be prohibited by sanctions measures.
- In the Ordinances made under the European Communities (Implementation) (Bailiwick of Guernsey) Law, the Bailiwick competent authority is usually the States of Guernsey Policy & Resources Committee. The Policy & Resources Committee is also the competent authority under the Terrorist Asset - Freezing (Bailiwick of Guernsey) Law. In the Orders in Council made under the United Nations Act, the Bailiwick competent authority is usually HM Procureur.
- All applications for licences should be addressed to the Regulatory and Financial Crime Policy Team of the Policy & Resources Committee in the first instance. Further information on licence applications in relation to financial sanctions is available to download here [257kb].
Unfreezing and De-Listing
- It may sometimes happen that assets are frozen in the belief that they are linked to a designated person when that is not in fact the case. The Policy & Resources Committee may assist with unfreezing any assets in the Bailiwick to which this applies, provided that it is satisfied that the assets are not linked to a designated person.
- The Policy & Resources Committee may also assist with requests to be removed from a list of designated persons in appropriate cases. The Policy & Resources Committee may vary or revoke its own designations made under the Terrorist Asset Freezing Law, if satisfied that it is appropriate to do so. In addition there is a right of appeal against decisions as to designations made by the Policy & Resources Committee under section 24 of the Terrorist Asset Freezing Law. This is available to any person who is aggrieved by a particular decision, not just to the designated person.
- The Policy & Resources Committee cannot amend or revoke designations made by other designating authorities such as the UN or the EU, but it may be able to assist a listed person within the Bailiwick in dealing with the relevant designating authority.
- Any queries in respect of unfreezing or de-listing should be sent in writing by email or post to the address below.
- De-listing requests or challenges may also be addressed directly to the relevant designating authority as follows:
- United Nations - any person who wishes to be removed or delisted from the United Nations Al-Qaida and Taliban list or other UN sanctions listing can access the United Nations focal point for delisting and obtain further information here.
- Alternatively a person may petition his or her state of residence or citizenship. British citizens should send the petition with the details specified by the UN to:
- Foreign and Commonwealth Office
King Charles Street
- European Union - requests to be removed from listings under EU Regulations may be sent to firstname.lastname@example.org
- HM Treasury - there is a right of appeal against designations under section 26 of the Terrorist Asset Freezing etc Act 2010. The address for service of legal correspondence for the Treasury is:
- The Treasury Solicitor's Department
One Kemble Street
- Phone: 020 7210 3000.
- DX number: 123242 Kingsway.
Relationship to Other Jurisdictions
- Although the Bailiwick's sanctions regime operates independently, trans-jurisdictional issues may arise at times. Many transfers of funds will be made to or from another jurisdiction that operates a sanctions regime and in such cases a licence may be required in both jurisdictions.
- In addition, the legislative frameworks of some jurisdictions contain provisions that are expressed to have extra-territorial effect, so that they may apply to some of the parties involved in a Bailiwick transaction on the grounds of nationality or place of incorporation even if the jurisdiction in question is not involved in that transaction. See for example the UK's Libya (Financial Sanctions) Order 2011 and Libya (Asset-Freezing) Regulations 2011.
United States Sanctions (OFAC)
- Businesses in Guernsey should be aware of sanctions implemented by the Office of Foreign Assets Control (OFAC). OFAC regulations can be applied to:
- U.S. citizens and permanent residents regardless of where they are located.
- Persons and entities within the United States.
- Persons and entities trading in U.S. Dollars
- U.S. incorporated entities and their foreign branches.
- In the cases of certain sanctions, such as those regarding Cuba and North Korea, all foreign subsidiaries owned or controlled by U.S. companies.
- Foreign persons in possession of U.S. origin goods in some cases
Administration of Sanctions Matters in Guernsey
- The Sanctions Committee was established to co-ordinate sanction activities, to ensure information is distributed publicly and to provide advice on sanctions. It reports to the Policy & Resources Committee and the Bailiwick's AML/CFT Advisory Committee.
- The Sanctions Committee comprises members from the Regulatory and Financial Crime Policy Team of the Policy & Resources Committee, the Law Officers Chambers, the Guernsey Financial Services Commission, the Guernsey Border Agency, the Alderney Gambling Control Commission and the States of Alderney. Sark is also regularly kept informed of any sanctions related matters.
- The Policy & Resources Committee is mandated to:
- agree to implement new sanctions measures
- license frozen funds
- administer notifications and authorisations, e.g. those under The Iran (Restrictive Measures) (Guernsey) Ordinance, 2012.
- The Policy & Resources Committee also works with HM Treasury and the Foreign and Commonwealth Office.
For more information, use the following links:
- HM Treasury - UK consolidated list of financial sanctions targets.
- Department for Business Innovation and Skills - UK sanctions and export controls by country.
- Foreign & Commonwealth Office - UK policy and guidance.
- European Union - sanctions policy.
- GFSC - Guernsey Financial Services Commission.
- U.S. Treasury Department - Office of Foreign Assets and Control.
- EUR-Lex - search for consolidated EU Regulations.