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Regulatory Spotlight: Reporting & Information Requests under the Terrorist Asset-Freezing etc. Act 2010

  • When one reports on having found a designated person or someone contravening the Act (as soon as is practical), one has to explain to HMT on what basis the decision was made (was information sources), as well as any identifying information about the relevant person. If the person is a customer, the firm doing the reporting has to include information about the nature and amount of assets the customer had when the firm first had suspicions about the person.
  • HMT can request information from the designated person (assets held and disposal of those assets) when it deems it necessary to determine and monitor compliance or lack therefore. It can also request information about assets utilized from one availing themselves of any license. Thirdly, it can request information from anyone regarding assets with any nexus to (e.g. controlled by, benefitting, contractual obligations with) designated persons.
  • Information requests can be for the period of time a person is subject to a designation – or any period before that time. Information requests can also include a requirement to keep HMT abreast of any changes in circumstances regarding the initial response to the request for information.
  • Treasury may request the production of documents. They can make copies of all or part of these documents, and may ask for explanations of the documents from the person providing them or, in the cases of organizations, from current or former officers, partners or employees. People requested to produce documents must take reasonable steps to get the documents and to safeguard them.
  • Treasury may disclose information gathered to law enforcement, government officials, legal aid societies, and financial services commissions of the various bits of the UK (England, Scotland, Jersey, Isle of Man, Guernsey, Alderney, Sark, British Overseas Terriroties), as well as to the UN, EU and European Commission or, with permission of the person who has ownership of relevant documents, to any third party. These disclosures to governmental and regulatory bodies are for the purposes of sanctions enforcement and/or for prosecution of violations.
  • Treasury is obligated to cooperate with UK and/or international investigations with regard to designated persons.
  • And the applicability section states:

Nothing done under this Chapter is to be treated as a breach of any restrictionimposed by statute or otherwise.

But nothing in this Chapter authorises a disclosure that—

(a) contravenes the Data Protection Act 1998, or(b) is prohibited by Part 1 of the Regulation of Investigatory Powers Act2000.

Nothing in this Chapter is to be read as requiring a person who has acted ascounsel or solicitor for any person to disclose any privileged information intheir possession in that capacity.

This Chapter does not limit the circumstances in which information may bedisclosed apart from this Chapter.

This Chapter does not limit the powers of the Treasury to impose conditions inconnection with the discharge of their functions under section 17 (licences).


Categories: OFSI Updates Sanctions Regulations Terrorism


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