Global Anti-Corruption Sanctions
14 May 2021
The Global Anti-Corruption Sanctions (Overseas Territories) Order 2021 (theAnti-Corruption Order) was made on 28 April 2021 and came into force on 29 April 2021.
The Anti-Corruption Order:
- Extends with modifications the equivalent UK regime under the Global Anti-Corruption (Sanctions) Regulations 2021 (UK Regulations) to all of the UK Overseas Territories including - Anguilla, the British Virgin Islands and the Cayman Islands among others.
- Provides that a person designated by the Secretary of State for being, or having been, involved in such activities, is a designated person for the purposes of the UK Regulations. Designated persons may be excluded from the territory and may be made subject to financial sanctions, including having their funds or economic resources frozen.
- Provides for certain exceptions to this sanctions regime (for example to allow for frozen accounts to be credited with interest or other warnings and to allow acts done for the purpose of national security or the prevention of serious crime). The Governor of a UK Overseas Territory, may with the consent of the Secretary of State, issue a licence in respect of activities that would otherwise be prohibited under the UK Regulations. The Governor will also be required to publish an up-to-date list of designated persons.
- Prescribe (a) powers for the provision and sharing of information to enable the effective implementation and enforcement of the sanctions regime, and (b) make it a criminal offence to contravene, or circumvent any of the prohibitions set out, and the penalties that apply where this happens.
A copy of the Anti-Corruption Order can be found here.
Financial service providers should:
- Undertake a detailed examination of their client book to ensure that they do not have any applicants for business who may be subject to the sanctions regime described above.
- Ensure that all up-to-date enhanced client due diligence is on file.
- Ensure, that to the extent, they are dealing with a designated individual(s) that the appropriate licence(s) or consent(s) are obtained from the Governor of the relevant UK Overseas Territory.
- Ensure that they are not receiving any monies from accounts that should have been subject to an asset freeze.
- Regularly be checking various public sources to determine if anyone on their client books is or has been made subject to the sanctions regime.
- Be engaging with their respective money laundering reporting officers if any breaches are discovered so that the competent authorities can be alerted.