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The States of Guernsey has repealed its existing sanctions measures against Al-Qaida and replaced them with a new Ordinance. All financial institutions and other bodies should be aware that the new Ordinance includes a reporting obligation. All financial services businesses are requested to check their records to ensure they comply.
The States of Guernsey has repealed its existing sanctions measures against Al-Qaida and replaced them with a new Ordinance. All financial institutions and other bodies should be aware that the new Ordinance includes a reporting obligation. All financial services businesses are requested to check their records to ensure they comply.
The Al-Qaida (Restrictive Measures) (Guernsey) Ordinance, 2013 came into force on 27 August 2013. It implements the measures set out in Council Regulation (EC) No. 881/2002 as amended which concerns restrictive measures against the Al-Qaida network. The previous Ordinance that implemented these measures has been repealed.
Section 4 of the new Ordinance introduces a reporting obligation for all financial services businesses. All financial services businesses must inform the Policy Council as soon as possible if they know or have reasonable cause to suspect that a person is a designated person or is a person who infringes any of the prohibitions in Council Regulation (EC) No. 881/2002. They must also state the nature and amount or quantity of any funds or economic resources held by them for the customer at the time when they first had the knowledge or suspicion.
Failure to comply with the reporting obligation is a criminal offence punishable with up to 12 months imprisonment or a fine up to £5,000.
The new reporting obligation is in addition to the obligation to report suspicion of money laundering and/or terrorism financing to the Financial Investigation Unit under the Disclosure (Bailiwick of Guernsey) Law 2007 and the Terrorism and Crime (Bailiwick of Guernsey) Law 2002. If dealings involving a designated person give rise to knowledge or suspicion that another person is engaged in money laundering or terrorist financing, or reasonable grounds for such knowledge or suspicion, a disclosure should be made in the form and manner prescribed by the Disclosure (Bailiwick of Guernsey) Regulations 2007 and the Terrorism and Crime (Bailiwick of Guernsey) Regulations 2007, in addition to any report to the Policy Council.
All financial institutions and other bodies and persons in Guernsey will need to ensure they do not maintain any accounts or otherwise hold any funds or economic resources for the entities and individuals named in the HMT consolidated list. Financial institutions are advised to take a cautious approach to satisfy this sanction regime. The Policy Council is the competent authority and licensing authority in relation to these sanctions. Any queries should be sent to sanctions@gov.gg subject line 'Al-Qaida sanctions'.
