Sanctions

Sanctions is a general term used for a defined set of actions including permissions or restrictions, taken by countries on a global basis, to which other countries or persons are subject. There are various types of international sanctions as follows:

  • Diplomatic: Reduction or removal of cooperation between countries.
  • Military
  • Economic: Limitations or tariffs imposed on trade with exceptions such as food and medicine.
  • Environmental: International efforts to protect the environment.

Sanctions lists include those natural persons or legal persons who may be subject to financial sanctions such as the freezing of assets or certain restrictive measures. The provision of such lists allows for the implementation of any measures to which those on the list may be subject.


Terrorist Names, Anti-Terrorism Orders and Sanctions

Gibraltar is a member of the EU by reason of Article 355(3) of the Treaty on the Functioning of the European Union. As such, legislative acts of the EU apply to Gibraltar, with Regulations being directly applicable without the need for local transposition.

EU Sanction Regime

The EU implements all sanctions imposed by the United Nations Security Council (“UNSC”). When it comes to counterterrorist sanctions against individuals or entities, the EU has taken over the listing of terrorist suspects on behalf of Gibraltar. The EU implements the 1267 sanctions regime by instituting asset freezes, travel bans and arms embargoes against those included on the UNSC list. Moreover, the EU may impose autonomous sanctions against suspected individuals and entities, in line with its obligations under UNSCR 1373. Like the UNSC, the EU insists on the preventative/ administrative nature of the restrictive measures.

The EU gave effect to the UNSC 1267 sanctions regime by means of Common Position 2002/402/CFSP, implemented by Council Regulation (EC) No 881/2002, both adopted on 27 May 2002. The Annex to Regulation 881/2002 includes all the names on the 1267 Sanctions List to which EU restrictive measures will apply. The EU has amended the Regulation each time the UNSC or the Sanctions Committee has modified its sanctions list. In addition, Council Common Position 2003/140/CFSP of 27 February 2003 incorporates UNSC Resolution 1452(2002) allowing for humanitarian exceptions.

In 2011, when the UNSC created a separate sanctions regime for the Taliban, Council Common Position 2002/402/CFSP was amended accordingly to apply only to the individuals/entities associated with Al-Qaeda (Council Decision 2011/487/CFSP).

Following the adoption of UNSCR 2253(2015), the Council adopted Decision (CFSP) 2016/368 on 14 March 2016 amending the Common Position 2002/402/CFSP to extend the scope of application of restrictive measures to certain persons, groups, undertakings and entities associated with ISIL/Da'esh. Regulation 881/2002 was amended by Council Regulation (EU) 2016/363 accordingly.

On 20 September 2016, the Council adopted Council Decision (CFSP) 2016/1693 concerning restrictive measures against ISIL (Da'esh) and Al-Qaeda and persons, groups, undertakings and entities associated with them, and repealing Common Position 2002/402/CFSP. Since the Council decision establishes additional restrictive measures, a new Council Regulation (EU) 2016/1686 was adopted, instituting an asset freeze against the persons and entities to be listed in its Annex I.

Council Decision (CFSP) 2016/1693 fulfils two objectives. The first is to continue to implement/transpose the sanctions against ISIL (Da'esh) and Al-Qaeda associates and supporters as designated on the UNSC Sanctions List. Secondly, it institutes the possibility of 'autonomous' restrictive measures against persons associated with ISIL (Da'esh) and Al-Qaeda or any group deriving thereof, in addition to those listed by the UNSC, to be designated in an annex to the Council Decision. The Council decides unanimously on the composition of the list and modifications to it on a proposal from any Member State or from the HR/VP.

As regards EU sanctions implementing the UNSC Sanctions List, each time the UNSC list is modified, the Regulation implementing the asset freeze at EU level – its annex listing the individuals and entities – is amended accordingly. The Commission was given the power to amend the annexes, 'for reasons of expediency'.

The Terrorist Asset Freezing Regulations 2011 (‘TAFR’) transposed Council Regulation (EC) No. 2580/2001 on specific restrictive measures directed against certain persons and entities with a view to combating terrorism into Gibraltar law and thereby supplements the EU framework in respect of UNSCR 1373.

A designation under TAFR results in the freezing of the funds or economic resources owned, held or controlled by the designated person. Moreover, TAFR prohibits making funds, economic resources or financial services available directly or indirectly to or for the benefit of a designated person where the person making them available knows or has reasonable cause to suspect that they are doing so (and, in the case of economic resources, that the designated person would be likely to exchange the economic resources, or use them in exchange, for funds, goods or services).


A registration process through the below link must be completed in order to obtain access to the EU sanctions listings:

https://webgate.ec.europa.eu/europeaid/fsd/fsf

Institutions are requested to check whether they maintain any accounts for the entities and/or individuals listed and, if they do, are asked to freeze the accounts and report their findings to the GFIU.


Procedures

Countries should have publicly known procedures to de-list and unfreeze the funds or other assets of persons and entities which do not, or no longer, meet the criteria for designation. These should include:

(a) procedures to submit de-listing requests to the relevant UN sanctions Committee in the case of persons and entities designated pursuant to the UN Sanctions Regimes , in the view of the country, do not or no longer meet the criteria for designation. Such procedures and criteria should be in accordance with procedures adopted by the 1267/1989 Committee or the 1988 Committee, as appropriate;

The United Nations Act 1946 (UK) read with section 47(1)(a) of the Gibraltar Constitution Order 2006 enables Gibraltar to rely on UK law for present purposes.

In this regard, please see link to and selected extracts for relevant procedures, as follows:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/513838/OFSI_Financial_Sanctions_-_Guidance_-_April_2016_Final.pdf

Challenging designations

Designated persons who have been subject to sanctions are able to challenge their listing and request their delisting. The financial sanctions will remain in place while the challenge or request is being considered.

For UN listings under the UN ISIL (Daesh) AQ regime:

A petition for delisting can be made to the UN Office of the Ombudsperson to the ISIL (Da'esh) and Al-Qaida Sanctions Committee. More information about the Office of the Ombudsperson can be found here:

https://www.un.org/sc/suborg/en/node/189

False Positive (‘Mistaken identity’)

If you believe that your assets have been frozen mistakenly, for instance as a result of mistaken identity, you should first contact the institution that froze your assets requesting an explanation, including a request that they identify whom they believe you are a target match for on the consolidated list.

If you are unable to obtain a satisfactory answer from the institution you should request the institution that it tell you under what legislation your assets have been frozen, and then contact the relevant competent authority mentioned in that legislation.

For all other UN listings:

A request should be sent to the UN focal point for delisting. More information about the focal point is available here:

http://ww.un.org/sc/committees/dfp.shtml

Alternatively, a UK resident or citizen you can also petition the UK to submit a delisting request to the UN. This can be done through the FCO Sanctions Section at:

Sanctions Section International Organisations Department Foreign and Commonwealth Office Room E.302

King Charles Street

London SW1A 2AH

Or via email to: sanctions@fco.gov.uk

For EU listings you should write in the first instance to the EU at relex-sanctions@ec.europa.eu

For UK listings, there are avenues of appeal and judicial review within the specific legislation under which the designation is made. The address for the service of legal correspondence on OFSI is:

The Treasury Solicitor

Government Legal Department

One Kemble Street

London WC2B 4TS

DX 123242 Kingsway

If a person has been de-listed, but their name still appears on the consolidated list, they should email OFSI at ofsi@hmtreasury.gsi.gov.uk with evidence of your de-listing.

If assets in the UK have been frozen mistakenly, for instance as a case of mistaken identity, the contact is ofsi@hmtreasury.gsi.gov.uk in the first instance.


For latest sanctions links please see below: