Jersey

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1. Does Jersey have a sanctions regime in place?

Yes, the Ministry for External Relations, in conjunction with the Minister, co-ordinates the introduction of sanctions measures and relevant sanctions legislation. Sanctions which are in effect generally apply to:

  • any person located in Jersey
  • any entity operating in Jersey
  • any entity incorporated or constituted under Jersey law

2. Does Jersey implement UN sanctions?

Though Jersey is not a UN member in its own right, the UK's membership of the UN extends to the island. Therefore, in common with all UN members, Jersey has an obligation to implement UNSC sanctions Resolutions.

The island has also chosen to implement autonomous EU sanctions (also known as 'restrictive measures'). This has ensured that Jersey is aligned with the UK on sanctions implementation, which during its EU membership had an obligation to implement EU sanctions regulations.

Similarly, Jersey implements both UNSC sanctions and autonomous EU sanctions by implementing the relevant EU Council Regulations through the Sanctions and Asset-Freezing (Implementation of EU Regulations) (Jersey) Order 2020 (Implementation of EU Regulations Order), made under the Sanctions and Asset-Freezing (Jersey) Law 2019 (SAFL).

Following the UK’s withdrawal from the EU on 31 December 2020, Jersey will begin implementing the UK autonomous sanctions regime created through the Sanctions and Money Laundering Act 2018 (SAMLA).Initially, the new UK sanctions regimes will be very similar to the current EU sanctions regimes, but there may be increasing divergence between UK and EU sanctions over time.

3. Does Jersey implement an autonomous sanctions regime?

Yes.

In addition to the sanctions implemented by the UN and EU, Jersey has an autonomous terrorist sanctions regime and has powers over the regulated sector under the Terrorism (Jersey) Law 2002 and related legislation, such as the Terrorist Asset-Freezing (Jersey) Law 2011, as amended, and the Money Laundering and Weapons Development (Directions) (Jersey) Law 2012, as amended.

An asset-freeze designation is a type of targeted financial sanction that requires anyone holding a listed person's (a 'person' can refer to both individuals and legal entities) assets or economic resources to freeze them (i.e. deny the listed person access), and prohibits anyone from dealing with a listed person's assets or economic resources.

When there has been a change to the asset-freeze designations in force in Jersey, a Financial Sanctions Notice (Notice) is issued by External Relations and published in the Jersey Gazette. You can register to receive email alerts when a new Notice is published.

Notices are published when: • individuals or entities have been designated for the purpose of an asset-freeze • individuals or entities are no longer subject to an asset-freeze • the details of existing asset-freeze designations (e.g. identifying information) have been changed • there are other significant changes to Jersey's sanctions regime The Notices may include identifying information on asset-freeze designations, instructions on what to do next, as well as legislative details and other relevant information.

4. What is the nature of the sanctions regime in Jersey?

The most frequently applied measures are:

  • arms embargoes and bans on associated technical assistance, training and financing
  • bans on exporting equipment that might be used for internal repression
  • export controls
  • asset freezes and financial sanctions on designated individuals and entities
  • travel bans on named individuals
  • bans on imports of raw materials or goods from the sanctions target
  • the withdrawal of financial services
  • suspension from international organisations

In general terms, it is a criminal offense to:

  • deal with funds or economic resources belonging to, owned, held or controlled by a designated person, if it is known, or if you have reasonable cause to suspect, that you are dealing with such funds or economic resources
  • make funds available to, or for the benefit of, a designated person if it is known, or if you have reasonable cause to suspect, that you are making funds so available
  • make economic funds available to, or for the benefit of, a designated person if it is known, or if you have reasonable cause to suspect, that you are making economic resources so available and, in the case of making economic resources available to a designated person, that the designated person would be likely to exchange the economic resources, or use them in exchange, for funds, goods or services

Useful guidance and FAQs may be found here: https://www.jerseyfsc.org/industry/international-co-operation/sanctions/financial-sanctions-practical-guidance/

5. Does Jersey maintain a list of sanctioned individuals and entities?

Yes. The Jersey Financial Services Commission website displays a list of individuals and entities subject to sanctions with a direct link to the UK government consolidated list of sanctions targets.

6. Are there any other lists related to sanctions?

Yes. Other lists include:

  • Office of Foreign Assets Control of the US Department of Treasury OFAC
  • the Office of Financial Sanctions Implementation Consolidated List
  • the schedule of proscribed organizations attached to the Terrorism (Jersey) Law 2002
  • The Home Office’s list of proscribed terrorist groups and organisations which are banned under UK law pursuant to the Terrorism Act 2000
  • The Department for International Trade’s UK Strategic Export Control Lists which form the basis of determining whether any products, software or technology intended for export are ‘controlled’ and therefore require an export license. These lists are published collectively as the UK Consolidated List of Strategic Military and Dual-Use Items that Require Export Authorisation. The UK Military List is another of these lists but is maintained separately

7. Does Jersey have a licensing or authorization system in place?

Yes. All sanctions-related license applications, notifications and authorizations are handled by the Ministry for External Relations (Minister). Those seeking a licence in respect of any other type of sanctions prohibition apply by emailing the minister at Sanctions.

A sanctions licence is an authorization which allows an activity that would otherwise be prohibited by sanctions legislation, for example, the release of funds for mortgage payments or rent. A licence may have conditions attached to it, such as reporting obligations. If an individual or institution wishes to carry out an action prohibited by sanctions legislation, they must request, in writing, a licence from the Minister before any action is taken.

An Asset Freeze Licence Application Form is available and should be used by individuals or Jersey regulated entities seeking a licence to allow an activity or transaction to take place that would otherwise be prohibited under sanctions asset freezing measures. Once you have completed the form you need to email the Sanctions team at sanctions@gov.je.

8. What are the consequences for a breach of sanctions in Jersey?

Failure to comply with Jersey sanctions legislation is a criminal offense and penalties include prison terms and fines.

Penalties for breaching sanctions are set out in the SAFL. A person guilty of an offense is liable on conviction to imprisonment and/or a fine.

Entities acting in breach of financial sanctions can also commit a criminal offense and be liable to an unlimited fine. Where an offense has been committed by a limited partnership or a corporate body and is proven to have been committed with the consent or connivance of, or neglect on the part of, a partner of the partnership or a director, manager, secretary or similar officer of the body corporate (or any individual purporting to act in any such capacity) that individual is guilty of an offense (as well as the partnership or body corporate) and may be proceeded against accordingly. On conviction, an entity is liable to a fine and an individual is liable to a fine or imprisonment or both.

Compliance with sanctions legislation is important for a number of reasons. If a person does not comply with sanctions measures, a person may help finance or assist:

• terrorism or terrorist organisations • the production, development or use of weapons, including chemical, nuclear and biological warfare (weapons of mass destruction) • political repression or human rights abuses within a state.

Helping to assist or finance any of the above is likely to result in reputational damage to a business, and to the Island.

9. Who are the relevant regulators in Jersey and what are their contact details?

The Jersey Financial Services Commission has overall regulatory responsibility for ensuring that the finance industry complies with sanctions orders. The commission now publishes sanctions guidance on its website to raise awareness and understanding of sanctions matters. Jersey Financial Services Commission PO Box 267 14-18 Castle Street St Helier Jersey JE4 8TP Channel Islands T: (+44) 1534 822000 F: (+44) 1534 822 002 E: info@jerseyfsc.org W: www.jerseyfsc.org

Joint Financial Crimes Unit

The Joint Financial Crimes Unit is responsible for receiving Suspicious Activity Reports, gathering intelligence on financial crime, including sanctions, and investigating possible breaches of sanctions legislation.

c/o States of Jersey Police Police Headquarters La Route du Fort St Helier JERSEY JE2 4HQ

Economic Crime and Confiscation Unit

The Economic Crime and Confiscation Unit lead criminal investigations into potential breaches of sanctions legislation.

The Minister for External Relations is the 'Competent Authority' for sanctions in Jersey and the Ministry of External Relations co-ordinates the introduction of sanctions measures and assists the Minister in carrying out his duties as Competent Authority. Ministry of External Relations PO Box 140 Cyril le Marquand House St Helier Jersey JE4 8QT T: (+44) 1534 440401 E: externalrelations@gov.je W: www.gov.je

Customs and Immigration Service The States of Jersey Customs and Immigration Service is responsible for the enforcement of any sanctions that concern the movement of goods or persons.

Private Sector

Responsibility for monitoring and ensuring compliance with sanctions rests with individual businesses, for example, banks, through their compliance officers.

Contributor law firm

Mark Holligon

Barbara Padega

Appleby Global Athol Street Douglas IM1 1LB www.applebyglobal.com

David Dorgan Group Partner | Private Client and Trusts T: +44 (0) 1534 818 060 33-37 E: ddorgan@applebyglobal.com Lisa Upham Senior Professional Support Lawyer T: +44 (0) 1481 755 605 E: lupham@applebyglobal.com

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