The Lebanon and Syria (United Nations Measures) (Channel Islands) Order 2006

• Citation: S.I. 2006/1250
• Sections: 25

Section 1 Citation, commencement, extent and application

(1) This Order may be cited as the Lebanon and Syria (United Nations Measures) (Channel Islands) Order 2006 and shall come into force on 31st May 2006.

(2) This Order shall extend to the Channel Islands so as to be law, respectively, in the Bailiwick of Guernsey and the Bailiwick of Jersey.

(3) Articles 3, 4 and 6 shall apply to any person within the Bailiwick of Guernsey or the Bailiwick of Jersey and to any person elsewhere who is—

(a) a British citizen, a British overseas territories citizen, a British Overseas citizen, a British subject, a British National (Overseas) or a British protected person and who is ordinarily resident in the Bailiwick of Guernsey or the Bailiwick of Jersey;

(b) a body incorporated or constituted under the law of any part of the Bailiwick of Guernsey or the Bailiwick of Jersey.

Section 2 Interpretation

In this Order—

“Attorney General” means—

in the application of this Order to Guernsey, the Attorney General or the Solicitor General for Guernsey;

in the application of this Order to Jersey, the Attorney General for Jersey;

“designated person” means any person for the time being designated under paragraph 3(a) of the Security Council Resolution and registered by the Committee of the Security Council established pursuant to paragraph 3(b) that Resolution;

“document” includes information recorded in any form and, in relation to information recorded otherwise than in legible form, references to its production include references to producing a copy of the information in legible form;

“economic resources” means assets of every kind, whether tangible or intangible, movable or immovable, which are not funds but can be used to obtain funds, goods or services;

“funds” means financial assets and benefits of every kind, including (but not limited to)—

cash, cheques, claims on money, drafts, money orders and other payment instruments;

deposits with relevant institutions or other persons, balances on accounts, debts and debt obligations;

publicly and privately traded securities and debt instruments, including stocks and shares, certificates representing securities, bonds, notes, warrants, debentures and derivatives contracts;

interest, dividends or other income on or value accruing from or generated by assets;

credit, right of set-off, guarantees, performance bonds or other financial commitments;

letters of credit, bills of lading, bills of sale; and

documents evidencing an interest in funds or financial resources;

“Guernsey” means the Bailiwick of Guernsey;

“Jersey” means the Bailiwick of Jersey;

“officer”, in relation to a body corporate, means a director, manager, secretary or other similar officer of the body corporate or any person who has purported to act in any such capacity;

“relevant authority” means—

in respect of Guernsey, the Attorney General;

in respect of Jersey, the Chief Minister of the States of Jersey,

and reference to “the Bailiwick” in relation to the relevant authority means the Bailiwick in respect of which that authority operates;

“relevant institution” means—

in the application of this Order to Guernsey, a financial services business within the meaning of section 49 of and the Schedule to the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law 1999;

in the application of this Order to Jersey, a financial services business within the meaning of Article 36(1) and the Second Schedule to the Proceeds of Crime (Jersey) Law 1999;

“the Security Council Resolution” means resolution 1636 (2005) adopted by the Security Council of the United Nations on 31st October 2005;

“the standard scale” means—

in the application of this Order to Guernsey, the uniform scale of fines specified for the time being in section 1 of the Uniform Scale of Fines (Bailiwick of Guernsey) Law 1989, as amended;

in the application of this Order to Jersey, the standard scale of fines specified for the time being in the Schedule to the Criminal Justice (Standard Scale of Fines) (Jersey) Law 1993, as amended.

Section 3 Freezing funds and economic resources

(1) A person (including the designated person) must not deal with funds or economic resources owned, held or controlled by a designated person unless he does so under the authority of a licence granted under article 8.

(2) A person who contravenes the prohibition in paragraph (1) is guilty of an offence.

(3) In proceedings for an offence under this article, it is a defence for a person to show that he did not know and had no reasonable cause to suspect that he was dealing with funds or economic resources owned, held or controlled by a designated person.

(4) In this article, “to deal with” means—

(a) in respect of funds—

(i) to use, alter, move, allow access to or transfer;

(ii) to deal with in any other way that would result in any change in volume, amount, location, ownership, possession, character or destination; or

(iii) to make any other change that would enable use, including portfolio management;

(b) in respect of economic resources, to use those resources in any way to obtain funds, goods or services, including (but not limited to) selling, hiring or mortgaging the resources.

Section 4 Making funds and economic resources available

(1) A person must not make funds or economic resources available, directly or indirectly, to or for the benefit of a designated person unless he does so under the authority of a licence granted under article 8.

(2) A person who contravenes the prohibition in paragraph (1) is guilty of an offence.

(3) In proceedings for an offence under this article, it is a defence for a person to show that he did not know and had no reasonable cause to suspect that he was making funds or economic resources available, directly or indirectly, to or for the benefit of a designated person.

Section 5 Exceptions

(1) A person is not guilty of an offence under article 3 or 4 if he credits a frozen account with interest or other earnings on the account.

(2) A relevant institution is not guilty of an offence under article 3 or 4 if the institution credits a frozen account with funds transferred by a third party, provided that the institution informs the relevant authority without delay.

(3) For the avoidance of doubt, article 3 applies to any funds credited to a frozen account in accordance with this article.

(4) In this article—

“frozen account” means an account of a designated person;

“third party” means a person other than the account-holder or the relevant institution with which the account is maintained.

Section 6 Circumventing prohibitions etc

A person is guilty of an offence if he participates, knowingly and intentionally, in activities the object or effect of which is, directly or indirectly, to—

(a) circumvent a prohibition in article 3(1) or 4(1); or

(b) enable or facilitate the commission of an offence under article 3 or 4.

Section 7 Acting on behalf of a designated person etc

(1) Where the condition in paragraph (2) is satisfied, the relevant authority may direct that articles 3 to 6 are to apply in respect of a person identified in the direction as if he were a designated person.

(2) The condition in this paragraph is that the relevant authority has reasonable grounds for suspecting that the person identified in the direction is or may be—

(a) owned or controlled by a designated person; or

(b) acting on behalf of or at the direction of a designated person.

(3) A direction under paragraph (1) has effect—

(a) for such period as the relevant authority may specify in the direction; or

(b) until the direction is revoked or set aside.

(4) The relevant authority may revoke a direction at any time.

(5) The relevant authority, where it issues or revokes a direction, must—

(a) give written notice of the direction or revocation to the person identified in the direction; and

(b) make information as to the direction or revocation publicly available.

(6) The Royal Court may set aside a direction on the application of—

(a) the person identified in the direction; or

(b) any other person affected by the direction.

(7) A person who makes an application under paragraph (6) must give a copy of the application and any witness statement or affidavit in support to the relevant authority not later than seven days before the date fixed for the hearing of the application.

Section 8 Licences

(1) The relevant authority may grant a licence to exempt acts specified in the licence from the prohibition in article 3(1) or 4(1).

(2) A licence may relate to—

(a) basic expenses, including payments for foodstuffs, rent or mortgage, medicines, medical treatment, taxes, insurance premiums and public utility charges;

(b) payment of reasonable professional fees and expenses associated with the provision of legal services;

(c) payment of fees or service charges for the routine holding or maintenance of frozen funds or economic resources.

(3) A licence may be—

(a) general or granted to a particular person;

(b) absolute or subject to conditions;

(c) of indefinite duration or subject to an expiry date.

(4) The relevant authority may vary or revoke a licence at any time.

(5) The relevant authority, where it grants a licence, must—

(a) in the case of a licence granted to a particular person, give a written copy of the licence to that person;

(b) in the case of a general licence, make information as to the licence publicly available.

(6) The relevant authority, where it varies or revokes a licence, must—

(a) in the case of a licence granted to a particular person, give written notice of the variation or revocation to that person; and

(b) in the case of a general licence, make information as to the variation or revocation publicly available.

(7) Any person who, for the purpose of obtaining a licence, knowingly or recklessly makes any statement or furnishes any document or information which is false in a material particular is guilty of an offence.

(8) Any person who has done any act under the authority of a licence and who fails to comply with any conditions attaching to that licence is guilty of an offence.

Section 9 Evidence and information

The Schedule (which contains further provisions about evidence and information) shall have effect.

Section 10 Penalties: Guernsey

(1) This article applies to a person guilty of an offence in Guernsey.

(2) A person guilty of an offence under article 3, 4 or 6 is liable—

(a) on conviction on indictment, to imprisonment for a term not exceeding seven years or to a fine or to both; or

(b) on summary conviction, to imprisonment for a term not exceeding six months or to a fine not exceeding level 5 on the standard scale or to both.

(3) A person guilty of an offence under article 8(7) or (8) or under paragraph 4(b) or (d) of the Schedule is liable—

(a) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or to both; or

(b) on summary conviction, to imprisonment for a term not exceeding six months or to a fine not exceeding level 5 on the standard scale or to both.

(4) A person guilty of an offence under paragraph 2(3) or 4(a) or (c) of the Schedule is liable on summary conviction to imprisonment for a term not exceeding six months or to a fine not exceeding level 5 on the standard scale or to both.

Section 11 Penalties: Jersey

(1) This article applies to a person guilty of an offence in Jersey.

(2) A person guilty of an offence under article 3, 4 or 6 is liable on conviction to imprisonment for a term not exceeding seven years or to a fine or to both.

(3) A person guilty of an offence under article 8(7) or (8) or under paragraph 4(b) or (d) of the Schedule is liable on conviction to imprisonment for a term not exceeding two years or to a fine or to both.

(4) A person guilty of an offence under paragraph 2(3) or 4(a) or (c) of the Schedule is liable on conviction to imprisonment for a term not exceeding six months or to a fine not exceeding level 4 on the standard scale or to both.

Section 12 Penalties: supplementary

If an offence under this Order committed by a body corporate is shown—

(a) to have been committed with the consent or connivance of an officer of the body corporate; or

(b) to be attributable to any neglect on his part,

the officer as well as the body corporate is guilty of the offence and is liable to be proceeded against and punished accordingly.

Section 13 Proceedings

(1) No proceedings for an offence may be instituted except by or with the consent of the Attorney General.

(2) Irrespective of whether such consent has been given, paragraph (1) does not prevent—

(a) the arrest of any person in respect of an offence under this Order; or

(b) the remand in custody or on bail of any person charged with such an offence.

Section 14 Proceedings

(1) This article applies to proceedings in Guernsey.

(2) Summary proceedings against any person for an offence under this Order may be taken before the court having summary jurisdiction in the place where that person is for the time being.

Section 15 Notices

(1) This article has effect in relation to any notice to be given to a person by the relevant authority under article 7(5)(a) and to a copy of a licence to be given to a person under article 8(5)(a).

(2) Any such notice or copy may be given—

(a) by posting it to his last known address; or

(b) where the person is a body corporate, by posting it to the registered or principal office of the body corporate in the Bailiwick.

(3) Where the relevant authority does not have such an address for the person, they must make arrangements for the notice or copy to be given to him at the first available opportunity.

Section 16 Functions of the relevant authority

(1) The relevant authority may, to such extent and subject to such restrictions and conditions as it may think proper, delegate or authorise the delegation of any of its functions under this Order to any person or class or description of persons.

(2) References in this Order to the relevant authority are to be construed accordingly.

Section 17 Postponement etc of the operation of the Security Council Resolution

(1) If the Security Council of the United Nations takes any decision which has the effect of postponing, suspending or cancelling the operation of the Security Council Resolution, in whole or in part, this Order shall cease to have effect or its operation shall be postponed or suspended, in whole or in part as the case may be, in accordance with that decision.

(2) The relevant authority must make particulars of the decision publicly available.

Section 1

The relevant authority must take such steps as it considers appropriate to cooperate with any international investigation relating to the funds, economic resources or financial transactions of—

(a) a designated person;

(b) a person owned or controlled by a designated person; or

(c) a person acting on behalf of or at the direction of a designated person.

Section 2

(1) A relevant institution must as soon as practicable inform the relevant authority if it knows or suspects that a relevant person—

(a) is a designated person;

(b) is a person owned or controlled by a designated person;

(c) is a person acting on behalf of or at the direction of a designated person; or

(d) has committed an offence under article 3, 4, 6 or 8.

(2) A relevant institution, where it informs the relevant authority under sub-paragraph (1), must state—

(a) the information or other matter on which the knowledge or suspicion is based;

(b) any information it holds about the relevant person by which the person can be identified; and

(c) the nature and amount or quantity of any funds or economic resources held by the relevant institution for the relevant person since this Order came into force.

(3) A relevant institution that fails to comply with a requirement in paragraph (1) or (2) is guilty of an offence.

(4) In this article, “relevant person” means—

(a) a customer of the institution;

(b) a person who has been a customer of the institution since this Order came into force; or

(c) a person with whom the institution has had dealings in the course of its business since then.

Section 3

(1) The relevant authority may request any person in or resident in the Bailiwick to give any information or to produce any document in that person’s possession or control which the relevant authority may require for the purpose of—

(a) securing compliance with or detecting evasion of this Order;

(b) obtaining evidence of the commission of an offence under this Order;

(c) establishing the nature and amount or quantity of any funds or economic resources owned, held or controlled by—

(i) a designated person; or

(ii) a person who is the subject of a direction under article 7; or

(d) establishing the nature of any financial transactions entered into by any such person.

(2) This includes power to—

(a) take copies of or extracts from any document so produced;

(b) request any person producing a document to give an explanation of it; and

(c) where that person is a body corporate, request any person who is a present or past officer of, or employee of, the body corporate to give such an explanation.

(3) Any person to whom a request is made must comply with it within such time and in such manner as may be specified in the request.

(4) Nothing in this paragraph shall be taken to require any person who has acted as a professional legal advisor for any person to give or produce any privileged information or document in his possession in that capacity.

Section 4

A person is guilty of an offence if he—

(a) without reasonable excuse refuses or fails within the time and in the manner specified (or, if no time has been specified, within a reasonable time) to comply with any request made under paragraph 3;

(b) knowingly or recklessly gives any information or produces any document which is false in a material particular in response to such a request;

(c) otherwise wilfully obstructs the relevant authority in the exercise of its powers under this Schedule;

(d) with intent to evade the provisions of this Schedule, destroys, mutilates, defaces, conceals or removes any document.

Section 5

Where a person is convicted of an offence under paragraph 4(a), the court may make an order requiring him, within such period as may be specified in the order, to give the requested information or to produce the requested document.

Section 6

(1) The relevant authority may only disclose any information given or document produced under this Schedule (including any copy or extract made of any such document)—

(a) to any person holding or acting in any office under or in the service of—

(i) the Crown in respect of the Government of the United Kingdom;

(ii) the Government of the Isle of Man;

(iii) the States of Guernsey or Alderney or the Chief Pleas of Sark;

(iv) the States of Jersey;

(v) any British overseas territory;

(b) for the purpose of giving assistance or cooperation, pursuant to the Security Council Resolution, to—

(i) any organ of the United Nations;

(ii) any person in the service of the United Nations, the Council of the European Union, the European Commission or the Government of any country;

(c) with a view to instituting, or otherwise for the purposes of, any proceedings—

(i) in the Bailiwick in question, for an offence under this Order or, with respect to any of the matters regulated by this Order, for an offence against any enactment relating to customs; or

(ii) in the other Bailiwick to which this Order applies, the United Kingdom, the Isle of Man or any British overseas territory, for an offence under a similar provision in any such jurisdiction;

(d) with the consent of a person who, in his own right, is entitled to the information or to the possession of the document, to any third party.

(2) In this paragraph, “in his own right” means not merely in the capacity as a servant or agent of another person.

Section 7

In this Schedule as it applies to Jersey, reference to the “relevant authority” includes the Attorney General.

Section 8

An action done under this Schedule is not to be treated as a breach of any restriction imposed by any enactment or otherwise.