Sanctions

​​​About international sanctions

Sanctions are used as an enforcement tool to maintain and restore international peace and security: these sanctions are made by the United Nations Security Council (UNSC) and must be implemented by all UN members.

Sanctions are also used as a foreign policy tool by individual states, or groups of countries working together, when all other diplomatic methods have failed. These sanctions are sometimes referred to as autonomous sanctions and are made outside the UNSC framework.

In addition to UNSC sanctions, the UK also implements its own autonomous sanctions. Jersey implements both UNSC sanctions and autonomous UK sanctions. 

Sanctions are used:

• to prevent and suppress the financing of terrorism and terrorist acts: for example, terrorist asset-freeze designations in place against certain individuals, groups or organisations engaged in, or supporting, terrorism
• to encourage a change in the behaviour of a target country or regime: for example, the sanctions against Russia for its bombing and invasion of Ukraine, in addition to previous actions since 2014 that include the annexation of Crimea and other attempts to destabilise the country
• to apply pressure on a target country or regime to comply with set objectives: for example, the sanctions against the Democratic People's Republic of Korea (North Korea) were put in place to encourage the regime to give up its nuclear weapons programme and to increase the cost on the regime of pursuing this policy

Sanctions are only used in the most serious of circumstances. In international relation terms the only action considered more serious than sanctions is military action. Countries usually try to achieve their aims diplomatically, but if that is not possible they may introduce sanctions.

A wide range of measures can be enforced under sanctions regimes, from asset-freeze designations (see below for more information on asset-freezes) to restrictions on the import or export of specified goods, and prohibitions on the provision of financial and other services.

How sanctions are implemented

Though Jersey is not a UN member in its own right, the UK's membership of the UN extends to the island. Therefore, in common with all UN members, Jersey has an obligation to implement UNSC sanctions Resolutions.

Both UNSC sanctions and autonomous UK sanctions are implemented by the UK under the relevant sanctions Regulations made under the Sanctions and Money Laundering Act 2018 ("SAMLA").

Jersey implements both UNSC sanctions and autonomous UK sanctions by implementing the relevant SAMLA Regulations through the Sanctions and Asset-Freezing (Jersey) Law 2019 ("SAFL"), and the Sanctions and Asset-Freezing (Implementation of External Sanctions) (Jersey) Order 2021 (the "External Sanctions Order").

Sanctions legislation

Sanctions and Asset-Freezing (Jersey) Law 2019

SAFL is Jersey's key piece of sanctions legislation, and together with the External Sanctions Order, ensures that the Island can implement UNSC and autonomous UK sanctions without delay, in line with international standards.

Sanctions and Asset-Freezing (Implementation of External Sanctions) (Jersey) 2021

The External Sanctions Order was made under SAFL and gives effect to both UNSC sanctions Resolutions and autonomous UK sanctions regimes, by implementing the relevant SAMLA Regulations.

Financial Sanctions Notices

New UNSC and autonomous UK asset-freeze designations are effective immediately in Jersey.

When there has been a change to the asset-freeze designations in force in Jersey, a Financial Sanctions Notice ("Notice") is issued by External Relations and published on the Jersey Gazette. You can register to receive email alerts when a new Notice is published.

Notices are published when:

• individuals or entities have been designated for the purpose of an asset-freeze
• individuals or entities are no longer subject to an asset-freeze
• the details of existing asset-freeze designations (for example, identifying information) have been changed
• there are other significant changes to Jersey's sanctions regime
  

The Notice may include identifying information on asset-freeze designations and what you must do, as well as legislative details and other relevant information.

Asset-Freeze Designations 

What they do 

Where a person is subject to an asset freeze designation, it is generally prohibited to: 

What you must do 

Asset freezing terminology  

Unfreezing Assets for Delisted Persons / Entities

The obligation to freeze funds or assets no longer exist in circumstances where:

• Following a UN delisting of a person/entity, the UK gives effect to the de-listing under the relevant Regulations made under the Sanctions and Anti-Money Laundering Act 2018 ("SAMLA")*
• The UK has de-listed a person subject an autonomous UK asset-freeze designation implemented under Regulations made under SAMLA
  
• the Minister considers that the required conditions are not met in respect of a relevant designation (i.e. an interim or final terrorism designation made under SAFL), and has taken the decision to revoke the designation
  

In this regard, where a FSIU Financial Sanctions Notice has been published on the Jersey Gazette, which confirms that a person/entity has been removed from the Consolidated List or a designation has been revoked by the Minister, then the following measures must be undertaken by the relevant institution:

• determine whether any of the assets held on account are the assets of a person/entity who has been removed from the OFSI Consolidated List and ensure that they are no longer subject to an asset freeze
  
• remove the name of the person/entity from the institution's list of persons/entities subject to financial sanction
  
• unfreeze the assets of the person/entity (as applicable) and re-activate all relevant accounts
  
• notify the person/entity that the assets are no longer subject to an asset freeze
  
• immediately notify the Minister of the actions which have been undertaken upon completion through sanctions@gov.je
  

*All new asset-freeze designations made by the UN have immediate and automatic effect in Jersey. However, when a person/entity is de-listed by the UN, the de-listing does not have legal effect in Jersey until the UK has given effect to it under the relevant SAMLA Regulations.

False Positives and Unfreezing Assets

It may sometimes happen that the assets of a person or entity with the same or similar name as a designated person or entity, but who is not a designated person or entity, is inadvertently affected by a freezing mechanism (i.e., a false positive).

The responsibility to freeze an asset subject to targeted financial sanctions rests with the person or entity that holds the asset, for example the financial institution that holds the funds of a designated person or entity.

If your assets have been wrongly frozen

If you consider that an asset that you directly or indirectly own or control has been frozen in error, you should contact the asset holder in the first instance. If, following contact with the asset holder, you continue to consider that the asset has been frozen in error, you should email FSIU at sanctions@gov.je to provide the following information:

• your full name and contact details
  
• the details of the asset and asset holder, including details of your legal or other interest in the asset
  
• details of your contact with the asset holder
  
• the reasons for your belief that the asset has been frozen in error.
  

If you have frozen assets and believe they have been wrongly frozen

If, for example, you are financial institution that has frozen the assets of a person or entity with the same or similar name as a designated person or entity, but who you believe may not be a designated person or entity, or you are having trouble verifying that the person or entity is designated, you can email the FSIU at sanctions@gov.je and provide the following information:

• your full name and contact details
  
• the name and address of your company
  
• the details of the asset and asset owner/controller, including details of their legal or other interest in the asset
  
• details of any contact you have had with the asset owner/controller
  
• what action you have undertaken to verify that the asset owner/controller is a designated person
  
• the reasons for your belief that the asset may have been frozen in error or that asset owner/controller is not a designated person.

What the FSIU will do

The FSIU will examine the evidence provided and the relevant circumstances surrounding the issue to determine the way forward. The possible scenarios and respective outcomes are as follows:

• Where the FSIU has determined that the person/entity concerned is not the designated person/entity from the sanctions list, they will inform the relevant institution and person/entity of their findings. The relevant institution should take the steps necessary to unfreeze the funds or economic resources of the person/entity and thereafter inform the FSIU of the action undertaken
  
• Where the FSIU has determined that the person/entity concerned is the designated person/entity from the sanctions list, they will inform the relevant institution and person/entity of their findings and the asset freeze will remain in effect
  

Jersey terrorism asset-freeze designations

Under Part 4 of SAFL the Minister can designate a person for the purpose of an asset-freeze if the Minister suspects or believes that that person is involved with or connected with terrorist activity. There are currently no such Jersey terrorist asset-freeze designations

A person who has been designated for the purpose of an asset freeze under SAFL by the Minister may request their designation be reviewed. Guidance on how to request a review and the requisite review request form can be found below:

Guidance how to request review if designated under SAFL

Sanctions review request form - designated person

Offences and prohibitions

Column 5 of Schedule 1 to the External Sanctions Order sets out the regime-specific ( for example, Syria) non asset-freeze prohibitions in the UK regulations to which an offence will apply in Jersey. Other offences are set out in SAFL and the External Sanctions Order.

See JFSC guidance by country and category and OFSI guidance for detailed information on individual regimes.

The maximum custodial sentence for a breach of financial sanctions is a term of 7 years imprisonment.

Reporting obligations

Reporting obligations are set out in Article 32 of SAFL and apply to all sanctions regimes in force. These obligations include requirements for a relevant financial institution* (the "institution") to inform the Minister if:

• it holds an account of a person, has entered into dealings or an agreement with a person or has been approached by or on behalf of a person
  
• it knows, or has reasonable cause to suspect, that the person:
  
      i) is a designated person, or
      ii) has committed, is committing or intends to commit an offence, and

• the information or other matter on which the knowledge or reasonable cause for suspicion is based came to it in the course of carrying on its business
  
• reports must also include any information on any actions taken in compliance with obligations imposed under Article 37 of the Proceeds of Crime (Jersey) Law 1999 (under which the Money Laundering (Jersey) Order 2008 is made)
  

The information given to the Minister must include:

• the information or other matter on which the relevant financial institution's knowledge or reasonable cause for suspicion is based
  
• any information that the relevant financial institution holds about the person by which the person can be identified
  
• if the person is a customer or client of the institution, the nature and amount or quantity of any funds or economic resources held by the institution for the person at the time when the institution first had the knowledge or reasonable cause for suspicion
  

You should use the Sanctions Compliance Reporting Form​ to comply with any reporting obligations in respect of financial sanctions and return the completed form to sanctions@gov.je 

To request a copy of this form by email, or should you have any issues accessing this document, please contact sanctions@gov.je​

These reporting obligations are in addition to the obligation to report suspicious activities to the Financial Intelligence Unit.

If you are unsure of your reporting obligations, you should seek independent legal advice.

Relevant Financial Institution*

The definition of a relevant financial institution can be found in Article 1 of SAFL. This definition includes:

• a person (whether or not an individual) who carries on financial services business (as defined in Schedule 2 of the Proceeds of Crime (Jersey) Law 1999), including Financial Institutions, DNFBPs and VASPs, in or from within Jersey; or
  

• a person (not being an individual) that is incorporated or constituted under the law of Jersey and carries on such financial services business in any part of the world​.
  

Additional Reporting Requirements – Russia Regime

On 26 December 2023 UK Government updated The Russia (Sanctions) (EU Exit) Regulations 2019 through the Russia (Sanctions) (EU Exit) (Amendment) (No. 4) Regulations 2023 (the “UK Amendment Regulations").

Regulation 16 and Regulation 17 of the UK Amendment Regulations introduced two additional reporting requirements which are effective in Jersey subject to the general modifications provisions of Schedule 2 of the Sanctions and Asset-Freezing (Implementation of External Sanctions) (Jersey) Order 2021, and which place an obligation on designated Persons and Relevant firms to report to the Minister for External Relations (the “Minister").

Immobilised Assets Reporting Requirements

Since 26 December 2023 a Relevant Financial Institution is required to inform the Minister as soon as practicable if it knows, or has reasonable cause to suspect, that it holds funds or economic resources for:

• The Central Bank of the Russian Federation,

• The National Wealth Fund of the Russian Federation,

• The Ministry of Finance of the Russian Federation,

• A person owned or controlled directly or indirectly by these entities, or

• A person acting on behalf of or at the direction of these entities.

To comply with this requirement, please send a completed version of the Immobilised Assets Reporting Form, including any associated documents, to sanctions@gov.je

​Designated Person reporting requirements

If you are a designated person under the Russia (Sanctions) (EU Exit) Regulations 2019, since 26 December 2023 you are required to disclose any funds or economic resources you own, hold or control to the Minster. This requirement requires designated persons to provide the Minister with details of their Jersey assets (or their worldwide assets if they are Jersey Persons). A Jersey Person in this context is an individual who is ordinarily resident in Jersey, or a person incorporated or constituted under the law of Jersey.

The UK Amendment Regulations required a report to be provided within 10 weeks of the relevant date, which is either:

• 10 weeks after the date the legislation came into force on 26 December 2023, or

• 10 weeks after the date of your designation if you were designated after 26 December 2023.

The deadline for reporting was Tuesday 5 March 2024 and therefore any such assets that have not already been reported to the Minister, must be reported immediately. Further, any new assets obtained or assets which have been disposed of since Tuesday 5 March 2024 must be reported to the Minister as soon as practicable.

Please use the following forms, as appropriate, to comply with this reporting obligation:

DP Reporting Template - Jersey Persons

DP Reporting Template – Non-Jersey Persons

Designated persons must report any funds or economic resource if the value of those funds or economic resources exceeds the value of £10,000. If multiple funds or economic resources of the same type (for example, jewellery, art, bank accounts), taken together exceed £10,000, this must also be reported.

A completed version of the relevant form, along with any additional attachments you wish to provide, should be sent to sanctions@gov.je. Before submitting the form, please make sure you sign the declaration in Part 5.​

Sanctions licences and exceptions

You should use the sanctions licence application form​​ to apply for a sanctions licence and return the completed form to sanctions@gov.je. Should you require a copy of this form by email, or have any issues accessing this document, please contact sanctions@gov.je

A licence will only normally be granted by the Minister if there is scope in the relevant UK Sanctions Regulations (e.g. Russia (Sanctions) (EU Exit) Regulations 2019) implemented in Jersey under the External Sanctions Order.

• A licence will only normally be granted by the Minister if there is scope in the relevant UK Sanctions Regulations for an equivalent licence to be granted by the UK Treasury
• Exceptions to prohibitions apply automatically in certain defined circumstances as set out in Article 15 of SAFL, and in UK Sanctions Regulations implemented in Jersey under the External Sanctions Order, and do not require you to obtain a licence from the Minister.
• UK General Licences (non-Russia or Belarus) do not apply to Jersey persons or institutions operating in Jersey; however, they may be considered as the basis for a licence application
• UK General Licences (Russia and Belarus Regimes): all UK General Licences issued in respect of the Russia and Belarus regime have automatic effect in Jersey and may be relied upon by Jersey persons. All reporting requirements also apply to the UK General Licences and reports should be submitted to the Minister in line with the terms of the licence.
• You should be particularly cautious when seeking to rely on exceptions in implemented UK Sanctions Regulations and/or Russia or Belarus UK General Licences; many of the provisions used are drafted for a specific UK-context (e.g. referring to UK legislation). We recommend that you consider taking legal advice before seeking to rely on them.

  Find out more about licences and exceptions.

Sanctions evasion

Sanctions evasion is the deliberate attempt to avoid or circumvent the impact of the sanctions prohibitions in place against a targeted country, group, or individual. 

The techniques used to evade sanctions will vary depending on the type of sanction imposed. It could involve pre-emptively transferring assets to avoid an asset-freeze, facilitating the import of prohibited items, or disguising military goods to circumvent an export ban. In every case, the goal is to engage in the prohibited activity while remaining undetected. In July 2022, the UK's National Economic Crime Centre (NECC) issued an alert to industry about the financial sanctions evasion typologies used by Russian elites and their 'enablers' (close associates and professional services firms) to evade sanctions. While some of the information in the report is UK-specific, the vast majority will be relevant to individuals and businesses operating in or from within Jersey.

The document shows that Designated Persons (DPs) are using a range of methods to evade targeted financial sanctions, including transferring assets to trusted proxies and moving funds to jurisdictions where sanctions are not in place. In order to move funds, DPs are circumventing usual payment methods such as SWIFT and are moving towards alternatives, and there has been an increasing use of crypto-asset services (e.g. Blockchain). 

While some enablers may be criminally complicit with, or wilfully blind to, sanctions evasion, others may be unintentionally involved due to weak controls and a lack of due diligence on high-risk clients.

The document provides useful guidance and recommendations for businesses on how to detect suspicious payments, prevent the transfer of frozen assets, and avoid becoming an unwitting facilitator of sanctions evasion.

Read the full report on the NCA website.

In November 2023, the NECC also issued a Red Alert on Gold-based Financial and Trade Sanctions circumvention.

The Red Alert also tackles sanctions circumvention by calling on businesses to report suspicious activity, including any attempts to breach sanctions and providing guidance on how to do so.

NECC Red Alert on Gold-based Financial and Trade Sanctions circumvention

In December 2023, NECC issued a further Red Alert concerning Exporting High Risk Goods.

This Red Alert warns businesses that Russia is attempting to circumvent sanctions to purchase restricted goods and services, through intermediary countries.

NECC Red Alert on Exporting High Risk Goods

The JFSC have published a webpage relating to sanction evasion techniques, expanding on their previously published guidance on Proliferation Financing sanctions evasion techniques. 

Sanctions obligations and sanctions evasion techniques — Jersey Financial Services Commission (jerseyfsc.org)

Oil Price Cap

The Oil Price Cap on Russian crude oil came into immediate effect in both Jersey and the UK on 05 December 2022, and the Oil Price Cap on Russian refined oil products will come into effect from the 05 February 2023.

General Licences to facilitate the Oil Price Cap can be found on the OFSI website here. These General Licences are also in effect in Jersey.

The UK Government has published detailed guidance on the Oil Price Cap, which can be found here. A number of new forms have been created by the UK Government in relation to the Oil Price Cap, namely:

• Breach Reporting Form
  
• Extraordinary Situation Licence Application Form
  
• Emergency Use of Exemption Notification Form
  

Jersey versions of these forms are being developed and will be available for use in due course.

Responsibility for sanctions in Jersey

Minister for External Relations and Financial Services

The Minister for External Relations and Financial Services is the 'Competent Authority' for Jersey.

Financial Sanctions Implementation Unit

The Financial Sanctions Implementation Unit (FSIU) coordinates the introduction of sanctions measures and assists the Minister in carrying out his duties as Competent Authority: this includes receiving sanctions compliance reports, processing sanctions licence applications, and publishing financial sanctions notices and guidance.

Private Sector

Responsibility for monitoring and ensuring compliance with sanctions rests with individual businesses, for example, banks, through their compliance officers.

Jersey Financial Services Commission

The Jersey Financial Services Commission (JFSC) has an overall regulatory role with regard to the finance industry generally, which includes checking that institutions have effective systems and procedures to implement compliance with sanctions. 

Joint Financial Crimes Unit

The Joint Financial Crimes Unit is responsible for receiving Suspicious Activity Reports, gathering intelligence on financial crime, including sanctions, and investigating possible breaches of sanctions legislation.

Law Officers' Department

The Law Officers' Department consists of both the Civil and Criminal Divisions. The Civil Division provides legal advice to the Government and the Criminal Division is responsible for prosecutions.

Economic Crime and Confiscation Unit

The Economic Crime and Confiscation Unit lead criminal investigations into potential breaches of sanctions legislation.

Customs and Immigration Service

The States of Jersey Customs and Immigration Service is responsible for the enforcement of any sanctions that concern the movement of goods or persons.

Combatting the financing of terrorism

Find out more about the legislative measures Jersey has in place to combat the financing of terrorism.

Combatting proliferation financing 

Find out more about the legislative measures Jersey has in place to combat proliferation financing.

Additional information about non-financial sanctions

Customs and Immigration: enforcement of travel bans in Jersey

Travel bans imposed on specified individuals or nationals of a particular country are applied locally in accordance with the relevant sanctions in a similar way as they are in the United Kingdom. For further information contact the Jersey Customs and Immigration Service. 

Export controls and sanctions

Jersey implements the same trade restrictions as the UK. The UK provides guidance on trade sanctions, arms embargoes and other trade restrictions.

Further guidance on sanctions

Further information is available on the JFSC website:

• sanctions guidance on the JFSC website
• practical guidance on the JFSC website
• individual sanctions regimes with country and category on the JFSC website

Challenging sanctions designations 

Those who are subject to financial sanctions can request a reassessment of their listing. The financial sanctions will remain in place while the reassessment is taking place.  

UN listings 

If you are a designated person who is named in a UN list, you, or a person acting on your behalf, can request that the Government of Jersey (GoJ) use its best endeavours to secure the removal of your name from the relevant UN list. You may wish to request such an action if you believe that the reasons for your designation are incorrect. 

The GoJ cannot contact the UN directly in this regard. However, the Ministry of External Relations ("External Relations") and the UK Foreign, Commonwealth and Development Office (FCDO) have in place an arrangement in respect of requests for the de-listing of UN listed persons. Under this arrangement, External Relations can request that the FCDO make a de-listing request on its behalf. Such a request for assistance to the FCDO will only be made if, in the view of the Minister for External Relations and Financial Services, there are sufficient grounds for doing so.

UK listings 

If you are a UK designated person (other than a person designated under a UN list), you, or a person acting on your behalf, have the right to request a revocation or variation of your designation. You may wish to request a revocation, for instance, if you believe that the reasons for your designation are incorrect, or a variation if, for instance, particular information associated with your designation, such as your date of birth, is incorrect. Other reasons for seeking a revocation could include if you believe your designation is inappropriate having regard to the purpose of the regime, or the likely significant effects of the designation. 

For further information, including eligibility to apply for a variation or revocation of a UK designation, submitting a sanctions challenge form and other information, consult the Foreign, Commonwealth and Development Office at sanctions@fcdo.gov.uk.

Jersey listings

There are currently no autonomous Jersey listings in force.

Submitting a request  

In the first instance, UN listed persons should make a de-listing request directly to the UN.

In respect of UN listings made under the ISIL (Da'esh) and Al Qaida sanctions regime, persons can contact the Office of the Ombudsperson. A full description of the procedure for making such requests can be found on the UN website. In respect of UN listings made under any other UNSC sanctions regime, persons can contact the UN Focal Point for De-Listing.

UN listed persons can also make a request to the UK for revocation, variation or review of your designation, as can any persons designated or listed under a UK sanctions regime. You should complete a UK review request form.

By properly and fully completing the form, you will ensure that you meet the requirements for a valid request. This form can also be completed by another person on the behalf of the designated or listed person, if confirmation of authority is provided. It is recommended that Jersey persons wishing to make a de-listing request in respect of a UK designation do so directly through the UK.

You can also submit a request for a UN or UK de-listing to the Minister for External Relations at sanctions@gov.je, providing equivalent information to that required in a UK review request form.

SAFL: Article 37A Procedures

Under Article 37A of SAFL, the Minister is required to publish procedures for the performance of the Ministers functions under Articles 43A, 45A, and 45B: 

• Article 43A requests for assistance with a UN de-listing 
  
• Article 45A request to or from another country for terrorism designation 
  
• Article 45B request to UN for terrorism designation
  

• MoU between FCDO and FSIU: Listing and De-listing from UN and UK Sanctions Measures