The United Nations (UN) imposes general measures regarding terrorism and more specifically against named persons, groups, undertakings and entities. The enforcement measures are imposed to combat international terrorism and threats to international peace and security. These measures inter alia impose asset freezes and other prohibitions in respect of funds owned, held or controlled by certain named persons, groups, undertakings and entities. It is a criminal offence to breach these requirements.
The UN has also imposed sanctions against specified countries and/or government officials of certain countries. Any person or entity considering entering into any form of financial or other type of business relationship which is in any way linked with the countries or subjects referred to in the UN sanctions must exercise great caution and closely consider the details contained within the various sanctions lists and any associated local enactments or enactment which has been extended to the Turks and Caicos Islands. Many of the sanctions expressly prohibit the provision of financial services to the named individuals or entities and it is of paramount importance that the financial services industry take appropriate measures to comply with these enactments.
The UN Sanctions Committee list can be found at the link: http://www.un.org/sc/committees/
Detailed information on the work of each committee, including current measures in place and lists can be found in links in a column on the on the left side of that page.
The UN Sanctions Committee list specifically in relation to Al-Qaida can be found at the link: http://www.un.org/sc/committees/1267/aq_sanctions_list.shtml
The European Union (EU) has also applied sanctions or restrictive measures within the framework of the Common Foreign and Security Policy (CFSP) as mandated by the treaty on European Union. The EU list of Restrictive Measures can be found at: http://eeas.europa.eu/cfsp/sanctions/docs/measures_en.pdf
The EU Consolidated list of persons, groups and entities subject to EU Financial Sanctions can be found at: http://eeas.europa.eu/cfsp/sanctions/consol-list_en.htm
Informationon the United Kingdom’s (UK) financial sanctions regime is available at this link. The UK also maintains a consolidated list of asset freeze subjects as designated by the UN, EU and UK in relation to financial sanctions and has issued guidance on financial sanctions. Frequently asked questions relating to financial sanctions can be found here .Details of current arms embargoes and other restrictions are available at the following page .
Electronic copies of UK legislation, including Statutory Instruments (SI's) which applies to the Turks and Caicos Islands can be found at: http://www.legislation.gov.uk/
The UK Government through the Privy Council periodically issues Orders to extend implementation of UN and/or EU measures and sanctions to its territories. These orders are enacted domestically to give the force of law in the Turks and Caicos Islands. The FSC maintains a listing on this website as a tab on the legislation page under sanctions.
Other links & information
The Financial Action Task Force (FATF) periodically issues public statements on high risk and non-cooperative jurisdictions. The statement highlights jurisdictions which the FATF has called upon its membership to apply counter-measures to protect the international financial system from potential money laundering and terrorist financing risks.
Additionally, the statement identifies jurisdictions with strategic AML/CFT deficiencies which has not made sufficient progress in reducing the deficiencies or have not provided a high level political commitment to working the FATF through the adoption of an action plan, to correct the deficiencies. The FATF advises its memberships to consider the risks arising from the deficiencies in each country.
The FATF also periodically issues a public statement on jurisdictions and countries which its regards as having strategic AML/CFT deficiencies and which have provided high level political commitments to working towards improving their AML/CFT frameworks and will highlight jurisdictions which has made any significant progress in improving the identified deficiencies.
The full text of the abovementioned FATF Statements can be found here along with the text of past FATF Statements and Statements issued by other FATF – Styled Regional Bodies (FSRB’s).
The Caribbean Financial Action Task Force (CFATF) is an FSRB, comprising of twenty-nine jurisdictions of the Caribbean Basin. In order to protect the regional financial system from money laundering and financing of terrorism (ML/FT) risks and to encourage greater compliance with the AML/CFT standards, it works with jurisdictions that have strategic AML/CFT deficiencies to address those deficiencies that pose a risk to the international financial system. The CFATF also periodically issues a public statement on such jurisdictions.The full text of the "CFATF Public Statement" is available via the highlighted link to the CFATF website.
Financial Businesses must regularly review these advisories and lists particularly as there is a legal obligation pursuant to the Anti-Money Laundering and Prevention of Terrorist Financing Regulations 2010 (as amended) in regulation 17 (2) (c) (ii) and (iii) which requires them to establish and maintain policies, systems and controls to prevent and detect money laundering and Terrorist financing which includes aspects to determine whether “a business relationship or transaction, is with a person connected with a country that does not comply, or insufficiently applies, the FATF Recommendations.” This obligation further requires financial businesses to also determine whether “a business relationship or transaction, or proposed business relationship or transaction, is with a person subject to measures for purposes connected with the prevention and detection of money laundering or terrorist financing, imposed by one or more countries or sanctioned by the European Union or the United Nations.”
Therefore, Financial Businesses are advised to take into account the FATF, CFATF, UN, UK and EU advisories and sanctions lists above when considering establishing business relationships with individuals or businesses or transacting business emanating from or destined to, these jurisdictions.
The Anti-Money Laundering and Prevention of Terrorist Financing Code 2011 also stipulate similar requirements to consider the country risk when preparing the risk assessment with respect to a customer. In section 28, Financial Businesses are also required to consider transactions and activity connected with countries which do not or insufficiently apply the FATF Recommendations or are subject to UN or EU countermeasures. A similar obligation exists in relation to persons or entities that are subject to EU or UN sanctions or measures.
Financial Businesses should apply appropriate or enhanced due diligence measures when conducting business with jurisdictions which has been identified by FATF, regardless of whether the FATF has issued a call for action, having regard to the risk involved. This requirement is embedded in regulation 13 of the Anti-Money Laundering and Prevention of Terrorist Financing Regulations 2010 (as amended).
Financial Businesses are also advised to take into account these advisories and list in determining whether particular transactions are suspect and should be reported to the Financial Intelligence Unit. Financial Businesses must further keep, for the required record retention period, records concerning reviews and conclusions reached (regardless of whether an SAR/STR is filed with the FIU)reached in respect of customers and transactions connected with countries which do not, or do not sufficiently apply the FATF Recommendations or are the subject of UN or EU Countermeasures.