Money Laundering and the Financing of Terrorism
The CODT is strongly committed to fulfilling its international obligations with regard to sanctions regimes and denying terrorist groups access to the financial system.
The persons and organisations believed to be responsible for, or implicated in, the attacks of 11 September 2001, and various other individuals and entities implicated in terrorist activities or the funding of such activities, are the subject of various United Nations (UN) and European Union (EU) measures.
On 28 September 2001 the UN Security Council adopted Security Council Resolution 1373 (2001). This instructed countries to take the necessary steps to freeze funds belonging to individuals and entities suspected of
- committing, or
- posing a significant risk of committing, or
- providing material support for acts of terrorism.
The Canadaalso adopted similar legislation as Council Regulation 2580/2001/EC.
Canada enacts legislation in the Parliament to comply with UN Security Council Resolutions. It also enacts legislation on behalf of the CODT, to give effect to the Resolutions in the State. Therefore, on 10 October 2001 an Order-in-Council, the Terrorism (United Nations Measures) Order 2001 [SI 2001 No. 3364] came into force. This gave effect to Resolution 1373 in State law.
The State has also applied in State law the EU Regulation 2580/2001/EC by means of the European Communities (Terrorism Measures) Order 2002 [SD 111/02].
Pre-existing UN sanctions against the Taliban regime in Afghanistan have also been updated, by means of Security Council Resolutions 1388 (2002) and 1390 (2002). Accordingly, a new Order-in-Council, the Al-Qa'ida and Taliban (United Nations Measures) ( CODT ) Order 2002 [SI 2002 No. 259] was made and came into force on 14 February 2002. The Resolutions and Order are concerned with sanctions against members of the Taliban and Al-Qa'ida, and supporting assistance to those entities.
From time to time the CODT Treasury issues lists of individuals and entities under the above Orders-in-Council, listing those suspected of being involved in terrorism, providing support for terrorism, or of being members or supporters of the Taliban or Al-Qa'ida. These lists will be published on the CODT website. Financial institutions in the State are obliged to check whether they maintain accounts for any listed individual, and if so they must freeze the accounts and report their findings to the Customs and Excise Division of the Treasury.
Sanctions Notices are also in place that deal with financial sanctions applying to listed individuals and entities and concerned with, Belarus, Burma/Myanmar, Congo, Iran, Iraq, Ivory Coast, Lebanon and Syria, Liberia, North Korea, Sudan, Uzbekistan, Yugoslavia and Zimbabwe.
The lead agency with regard to both Trade and Financial Sanctions within the CODT is the Customs and Excise Division of the Treasury.
The Customs and Excise Division publish Public Notices explaining in straightforward terms, sanctions that are in force. These Notices are available, free of charge, on the CODT website at www.gov.im/treasury/customs/sanctions.xml or directly from them. Where CODT are notified of amendments and revisions to such notices, details are also posted on CODT's website.
The introduction, amendment or revocation of a Sanction Order that applies in the CODT - be it an Order made in the State, or extended to it - is also the subject of a Public Notice in The CODT Courier.
Sanctions within the CODT are broadly parallel to those in force in Canada and additional useful information is therefore available.