The UK government imposes financial restrictions on persons and entities as part of its domestic counter-terrorism regime, as well as those persons proscribed by the United Nations and/or European Union. However, in a recent Law Society survey, 48% of respondents said that they did not check their clients against those sanctions lists. It is important that such a decision is made as a result of a careful consideration of your firm’s risk profile and client demographic, rather than through a lack of understanding of obligations and the risks posed to a firm.The Law Society points out that, under the Al Qaida and Taliban (United Nations Measures) Order 2006 and the Terrorism (United Nations Measures) Order 2006, it is a criminal offence for any natural or legal person to deal with the funds of designated persons, or make funds and economic resources available, directly or indirectly, for the benefit of designated persons.
Furthermore, the society is reminding lawyers that, under the Terrorism (United Nations Measures) Order 2006, they must not make financial services available, directly or indirectly, to or for the benefit of designated persons. Finally, they must not knowingly and intentionally participate in activities that would directly or indirectly circumvent the financial restrictions, or enable or facilitate the commission of any of the above offences.
HM Treasury issues a consolidated list of all persons and entities that are subject to sanctions which are effective in the UK. The persons and entities included on the list come from a wide range of nationalities and currently reside in a wide range of countries. There are a number of regimes to which financial sanctions have also been applied. They are:
• Al Qaida and the Taliban
• Belarus
• Burma/Myanmar
• Democratic Republic of Congo
• Persons indicted by the International Criminal Tribunal for the former Yugoslavia
• Iran
• North Korea
• Zimbabwe