1. TERRORIST FINANCING  Terrorist Financing Offence  Terrorist Financing Sanctions  Non-profit Organisations Desiree A. Downes Gogontle K. Gatang Attorney General’s Chambers COMPLIANCE CONFERENCE TURKS AND CAICOS ISLANDS MARCH 23 AND 24, 2015 1

2. OBJECTIVES To discuss the criminalisation of terrorist financing To discuss sanctions relating to terrorism and terrorist financing To discuss measures to prevent the misuse of non-profit organisations for the financing of terrorism 2

3. Terrorist Financing  FATF recommendation 5: Criminalising terrorist financing  criminalise terrorist financing on the basis of the Terrorist Financing Convention  criminalise not only the financing of terrorist acts but also the financing of terrorist organisations and individual terrorists 3

4. Terrorist Financing cont…. The Prevention of Terrorism Ordinance 2014 implements the United Nations Convention respecting the suppression of the financing of terrorism and the United Nations Security Council Resolution relating to the prevention and suppression of terrorism and terrorist financing 4

5. Definition of “terrorism” Section 3 of the PTO defines “terrorism” broadly and includes a list of acts which constitute terrorism Section 3(2)(a) - “action” includes an offence within the scope of a counter-terrorism related convention or protocol listed in Schedule 1 (Financing of Terrorism convention listed) includes any promotion, sponsorship, contribution to, command, aid, incitement, encouragement, attempt, threat, conspiracy, organising, or procurement of any person, with the intent to commit any act listed 5

6. Terrorist Financing Offences Section of PTOOffencePenalty Section 9 (1) Raising funds for terrorism Inviting another to give, lend or otherwise make available, whether or not for consideration, money or other property and intending that it should be used for, or having reasonable cause to suspect that it might be used for the purposes of terrorism Indictment to a fine or imprisonment of 14 years, or to both. 6

7. Terrorist Financing Offences cont…. Section of PTOOffencePenalty Section 9 (2)Receiving money or other property and intending that it should be used, or having reasonable cause to suspect that it may be used for the purpose of terrorism Indictment to a fine or imprisonment of 14 years, or to both. Section 9 (3)Giving, lending or otherwise making available, whether or not for consideration, money or other property and knowing or having reasonable cause to suspect that it will or may be used for the purposes of terrorism Indictment to a fine or imprisonment of 14 years, or to both. 7

8. Terrorist Financing Offences cont.… Section of PTOOffencePenalty Section 10(1) Use and possession of money or other property for terrorism Using money or property for the purposes of terrorism Indictment to a fine or imprisonment of 14 years, or to both. Section 10 (2)Possession of money or other property with intention that it should be used or having reasonable cause to suspect it may be used for purposes of terrorism Indictment to a fine or imprisonment of 14 years, or to both. 8

9. Terrorist Financing Offences cont…. Section of PTOOffencePenalty Section 11 Arranging funds for terrorism Entering into or becoming concerned in an arrangement as a result of which money or property is made or to be made available to another where it is known or there is reasonable cause to suspect that it will or may be used or the purposes of terrorism Indictment to a fine or imprisonment of 14 years, or to both. 9

10. Terrorist Financing Offences cont…. Section of PTOOffencePenalty Section 12 Arrangement for retention or control of terrorist property Entering into or being concerned in an arrangement which facilitates the retention or control of terrorist property by or on behalf of another person by- (a)concealment (b)removal from he jurisdiction (c)transfer to nominees; or (d)in any other way Indictment to a fine or imprisonment of 14 years, or to both. 10

11. Terrorist Financing Offences cont…. Disclosure of information  Section 13 of PTO: Duty - requires a person to disclose to police, suspicious financial activities observed during the course of a trade, profession, business or employment that a person is committing any terrorist financing offences  Section 32 of FIA Ordinance - disclose to FIA  Section 13 of PTO: Failure to disclose suspicion and the information on which suspicion is based as soon as is reasonably practicable is an offence punishable by up to 7 years imprisonment and a fine  Section 16 of PTO: Failure to disclose by financial institutions  It is a defence if the person has reasonable excuse for not making the disclosure or he reported the information to his employer in accordance with procedure established for that purpose 11

12. Sanctions FATF recommendation 6: Targeted financial sanctions related to terrorism and terrorist financing Countries required to implement targeted financial sanctions regimes to comply with UNSC resolutions relating to prevention and suppression of terrorism and terrorist financing Freeze without delay funds or other assets to ensure no funds/assets are made available for benefit of any person or entity for purposes of terrorism 12

13. Sanctions cont…. Maximum penalties for terrorist financing offences following conviction on indictment is 14 years imprisonment and a fine. Section 21 of PTO permits a court before which a person has been convicted of a terrorist financing offence to make a forfeiture order in respect of money or property which the person knew or had reasonable cause to suspect would or might be used for the purposes of terrorism. Section 71A of POCO permits the FIA to apply to a court for a property freezing order before or after proceedings have been instituted. Section 6 of FIA Ordinance - FIA given power to freeze without warrant for a period of three days. Section 54 of, and Schedule 8 to PTO enables police, customs and immigration officer to seize and detain cash for 48 hrs. 13

14. Non-profit Organisations FATF recommendation 8: Combating the abuse of non-profit organisations for the financing of terrorism Supervision and monitoring of non-profit organisations to ensure that they cannot be misused:  by terrorist organisations posing as legitimate organisations;  to exploit legitimate entities as conduits for terrorist financing;  to conceal or obscure the clandestine diversion of funds intended for legitimate purposes to terrorist organisations. 14

15. Non-profit Organisations cont….. Non-profit Organisations Regulations 2014 Reg. 6: NPOs required to be registered with NPO Supervisor:  if incorporated, formed or otherwise established in the Islands;  if administered in or from within the Islands NPO exempted from requirement to register if it has gross annual income not exceeding $10,000 or assets not exceeding $20,000 in value (Note: NPO must apply for exemption) 15

16. Non-profit Organisations cont….. Reg. 12: NPOs required to keep records of:  the purpose and objectives of their stated activities;  the identity of persons who own, control or direct their activities;  the identity of senior, officers, board members and trustees; and  financial records that-  show and explain its transactions, within and outside the Islands, and are sufficiently detailed to show that its funds are being used in a manner consistent with its purpose, objectives and activities  show the source of its gross annual income 16

17. Non-profit Organisations cont…. Reg. 14: NPOs required to submit annual financial statements to NPO Supervisor which shall include:  a list of donors who have donated in excess of $10,000 in a single donation of cumulatively during the year;  a breakdown of any funds raised, or donations received and disbursed by the NPO Reg. 15: NPO Supervisor may require audit of NPOs accounts where it has reasonable cause to suspect that an NPO is being used, or may in the future be used, for, or to assist in, terrorist financing or money laundering Part V: NPO Supervisor may take disciplinary action against NPO if NPO has contravened a provision of the Anti-Money Laundering and Terrorist Financing Regulations or AMLTF Code Reg. 10: NPO supervisor may deregister an NPO 17

18. THANK YOU! 18