SANCTIONS UPDATE MAY 2011 Date 10 th May 2011

SANCTIONS UPDATE  IMPORTANT NEW DEVELOPMENTS – –THE “ARAB SPRING” –IRAN FUNDS REQUIREMENTS –TERRORISM AND THE DEATH OF BIN LADEN  REMINDER OF HOW SANCTIONS APPLIED AND CHANGES NOTIFIED  THE IMPORTANCE OF KEEPING IN TOUCH

SANCTIONS UPDATE NEW DEVELOPMENTS THE “ARAB SPRING”  NEW REGIMES INVOLVING – –TUNISIA –EGYPT –LIBYA  NO NEWS YET ON SYRIA, YEMEN  EXAMPLES OF COUNTRIES THAT WERE “ACCEPTABLE” ONLY MONTHS OR WEEKS BEFORE

SANCTIONS UPDATE WITH ALL THESE NEW REGIMES  GENERALLY IMPOSED BY APPLICATION OF E.U. MEASURES  WE ENDEAVOUR TO APPLY THE SANCTIONS A.S.A.P.  ONCE IN PLACE WE TRY TO KEEP LISTS UP TO DATE & IN LINE WITH U.K.  CAN INVOLVE ALLEGED EMBEZZLEMENT OFFICIAL FUNDS BY FORMER LEADERS

SANCTIONS UPDATE LIBYAN SANCTIONS From 4 th May, General Licence No.1 Approves payment of salaries by/through banks in IOM to employees/former employees of named companies made through the British Arab Commercial Bank

SANCTIONS UPDATE NEW DEVELOPMENTS IRAN  SINCE 11 th JANUARY NEED TO NOTIFY AND/OR SEEK PRIOR APPROVAL FOR MOVEMENTS OF FUNDS  CONTINUED RATCHETING UP OF E.U. SANCTIONS  THE PROBLEM WITH USE OF THE SHIPPING REGISTER ILLUSTRATES NOT JUST A FINANCE PROBLEM

SANCTIONS UPDATE IRANIAN FUNDS €10,000 OR LESS – NO REQUIREMENT, BUT… €10-40,000 – MUST BE NOTIFIED IN ADVANCE €40,000 OR MORE – PRIOR APPROVAL UNLESS TO CERTAIN NARROW PURPOSES THRESHOLDS ARE CUMMULATIVE, AND INCLUDE MOVEMENTS IN AND OUT

SANCTIONS UPDATE IRANIAN FUNDS AFFECTS  STATE OF IRAN OR ANY IRANIAN PUBLIC AUTHORITY  ANY PERSON IN, OR RESIDENT IN, IRAN  ANY LEGAL PERSON ETC WITH REGISTERED OFFICE IN IRAN

SANCTIONS UPDATE NEW DEVELOPMENTS BIN LADEN, TERRORISM, AL-QAIDA ETC DESPITE HIS DEMISE, NO CHANGE TO SANCTIONS REGIMES INVOLVING TERRORISM FINANCE, AL-QAIDA OR THE TALIBAN

SANCTIONS UPDATE TERRORIST ASSET-FREEZING ETC ACT 2010 From 17 th March this UK Act applied by Order in IOM and replaced the long-standing 2001 UN Order concerned with terrorism. This too has no real effect on the regimes, though does provide an appeal mechanism against listing and other decisions

SANCTIONS UPDATE REMINDER HOW SANCTIONS ARE APPLIED  U.N. SANCTIONS – THROUGH ORDER-IN- COUNCIL MADE IN U.K.  E.U. SANCTIONS – –“TRADE” MEASURES APPLY AUTOMATICALLY –FINANCIAL SANCTIONS THROUGH ORDER MADE BY CHIEF SECRETARY

SANCTIONS UPDATE DIFFICULTIES ENCOUNTERED  THE U.K. SOMETIMES “FORGETS” TO MAKE THE NECESSARY ORDER…  LEGAL ADVICE NOW IS THAT NEW ORDERS CANNOT REFER TO LISTS AS ISSUED FROM TIME TO TIME…  CONSEQUENT DELAY WHEN NEW E.U. REGULATION EXTENDS/CONTRACTS A LIST BUT NO EXCUSE TO IGNORE!

SANCTIONS UPDATE FINALLY… THE IMPORTANCE OF KEEPING IN TOUCH PROVEN LAST YEAR DURING PROBLEMS RE IRANIAN VESSELS OWNED BY IOM COMPANIES OR ON THE IOM SHIP REGISTER

SANCTIONS UPDATE KEEPING IN TOUCH CO-OPERATION OF C.S.P. HELPED MINIMISE DAMAGE TO ISLAND AND, TO SOME EXTENT, TO THE C.S.P. AND ITS OFFICERS CUSTOMS LIAISED WITH THE U.K. AND U.S. AUTHORITIES TO EXPLAIN THINGS, AVOID MISUNDERSTANDINGS, ETC.

SANCTIONS UPDATE IN PASSING A REMINDER ABOUT EFFECT OF U.S. SANCTIONS  OFAC SANCTIONS DO NOT HAVE ANY FORMAL, LEGAL EFFECT IN IOM  HOWEVER, IF YOU ARE LISTED BY OFAC YOU & YOUR BUSINESS FACE ENORMOUS DIFFICULTIES  IF NECESSARY, CUSTOMS MAY BE ABLE TO HELP

SANCTIONS UPDATE THERE ARE NOW 20 DIFFERENT, ACTIVE SANCTIONS REGIMES SEE THE CUSTOMS & EXCISE WEBSITE FOR DETAILS CHANGES TO LISTS AND REGIMES WILL BE NOTIFIED BY NEWS RELEASE THE SANCTIONS NOTICES WILL BE UPDATED AS REQUIRED – WITH CHANGES NOTED

SANCTIONS UPDATE WHEN IN DOUBT – ASK THE SOONER YOU CALL, THE BETTER CONTACT – –TEL FAX – –WEBSITE HM TREASURY –