combating-the-financing-of-terrorism-(cft)-matters

 

UNITED NATIONS (UN) SECURITY COUNCIL FINANCIAL SANCTIONS RELATING TO TERRORISM

Background

1. Which UN Security Council Resolutions relating to terrorism are being implemented in Brunei Darussalam?

The following UN Security Council Resolutions relating to terrorism are implemented in Brunei Darussalam:-

• ​​Resolution 1988 (2011) concerning the Taliban and associated individuals and entities who constitute a threat to the peace, stability and security of Afghanistan;
• Resolutions 1267 (1999), 1989 (2011) and 2253 (2015) concerning ISIL (Da'esh), Al-Qaida and associated individuals and entities; and
• Resolution 1373 (2001).

2. Resolutions 1988 (2011)

This sanctions regime was originally established by Resolution 1267 (1999) on 15 October 1999. On 17 June 2011, Resolution 1988 (2011) split the sanctions into two groups – an Al-Qaida regime and a country-specific Afghanistan regime. Since then, sanctions measures under Resolution 1988 (2011) apply to designated individuals and entities associated with the Taliban in constituting a threat to the peace, stability and security of Afghanistan. The names of the targeted individuals and entities are placed on the 1988 Sanctions List, which is publicly available on the UN official website (Click here).

Under Resolution 1988 (2011), Member States are required to freeze without delay the funds and other financial assets or economic resources of individuals and entities designated on the 1988 Sanctions List.

3. Resolutions 1267 (1999), 1989 (2011) and 2253 (2015)

This sanctions regime was first established by Resolution 1267 (1999) on 15 October 1999 and has been modified and strengthened by subsequent resolutions, including Resolution 1989 (2011) and Resolution 2253 (2015) so that the sanctions measures now apply to designated individuals and entities associated with the Al-Qaida and ISIL (Da'esh), wherever located. The names of the targeted individuals and entities are placed on the ISIL (Da'esh) & Al-Qaida Sanctions List, which is publicly available on the UN official website. (Click here) 

Under Resolutions 1267 (1999), 1989 (2011) and 2253 (2015), Member States are required to freeze without delay the funds and other financial assets or economic resources of individuals and entities designated on the ISIL (DA'esh) & Al-Qaida Sanctions List.

4. Resolution 1373 (2001)

On 28 September 2001, in response to the 11 September terrorist attacks in the United States, the UN Security Council adopted Resolution 1373 (2001), imposing a series of obligations on UN Member States to suppress terrorism.

Under Resolution 1373 (2001), designations are made at the national level by a country on its own motion, or at the request of another country, if the country receiving the request is satisfied, according to applicable legal principles, that a requested designation is supported by reasonable grounds, or a reasonable basis, to suspect or believe that the proposed designee meets the criteria for designation in paragraph 1(c) of Resolution 1373 (2001).

Paragraph 1(c) of Resolution 1373 (2001) requires Member States to:-

“Freeze without delay funds and other financial assets or economic resources of persons who commit, or attempt to commit, terrorist acts or participate in or facilitate the commission of terrorist acts; of entities owned or controlled directly or indirectly by such persons; and of persons and entities acting on behalf of, or at the direction of such persons and entities, including funds derived or generated from property owned or controlled directly or indirectly by such persons and associated persons and entities”

5. How are UN Security Council Resolutions 1988 (2011), 1267 (1999), 1989 (2011), 2253 (2015) and 1373 (2001) being implemented in Brunei Darussalam?

The above Resolutions are implemented through the Anti-Terrorism (Terrorist Financing) Regulations 2013, which was issued by the Minister of Energy at the Prime Minister’s Office, pursuant to his powers under section 70 of the Anti-Terrorism Order 2011, as the Minister responsible for internal security matters.

The Regulations take effect from 8 December 2012.

Information for property holders

6. What are the obligations under the Anti-Terrorism (Terrorist Financing) Regulations 2013?

The Regulations makes it a requirement for a person in Brunei Darussalam or a citizen of Brunei Darussalam outside of Brunei Darussalam to freeze without delay funds or other assets belonging to a “designated person”, defined as:-

• ​​An individual or entity associated with ISIL (Da'esh) and Al-Qaida as designated by the ISIL (Da'esh) & Al-Qaida Sanctions Committee on the ISIL (Da'esh) & Al-Qaida Sanctions List;
• An individual or entity associated with the Taliban in constituting a threat to the peace, stability and security of Afghanistan as designated by the 1988 Sanctions Committee on the 1988 Sanctions List;
• An individual or entity designated by the Minister under regulations made under the Anti-Terrorism Order 2011 pursuant to Resolution 1373 and any subsequent or successor resolutions; or
• An individual or entity declared by the Minister as a terrorist or a terrorist group under section 65 of the Anti-Terrorism Order 2011.

The obligations are contained in the following Regulations:-

• ​​Regulation 3 prohibits providing or collecting property for the use of designated persons;
• Regulation 4 prohibits dealing with any property, or associated transactions of such property, belonging to designated persons. In addition, the provision of financial services, whether in relation to property of designated persons, is also illegal.
• Regulation 5 prohibits the causing of, giving assistance or promoting of acts described in Regulations 3 and 4.

Additionally, where a person in Brunei Darussalam or a citizen of Brunei Darussalam outside of Brunei Darussalam has information which he knows or suspects to concern any transaction (or proposed transaction) relating to property belonging to any terrorist or any terrorist entity, section 59(1)(c) of the Anti-Terrorism Order 2011 requires that person to report it to the Commissioner of the Royal Brunei Police Force.

7. What are the obligations of financial institutions and designated non-financial businesses and professions under the Anti-Terrorism (Terrorist Financing) Regulations 2013?

Under Regulation 20, financial institutions and designated non-financial businesses and professions are required to inform Autoriti Monetari Brunei Darussalam as soon as practicable if:-

• ​​it knows, or has reasonable cause to suspect, that a person –

1. ​​​​is a designated person;
2. has dealt or is dealing with property owned, held or controlled by a designated person; or
3. has dealt or is dealing with property owned, held or controlled by a designated person; or
4. made or is making property or financial services available (directly or indirectly) to a designated person or for the benefit of a designated person;

• ​​​​the information or other matter on which the knowledge or suspicion is based came to it in the course of carrying on its business.

The following information needs to be included in the report:-

• ​​​the property in question;
• the information or other matter on which the knowledge or suspicion is based;
• any information it holds about the person by which the person can be identified;
• as much information about the property (including information about the owner and controller of the property) as is known;
• the nature and amount or quantity of any fund or property held by it for the customer at the time when it first had the knowledge or suspicion; and
• the reasons for the suspicion.

The report should be sent to the Financial Intelligence Unit, Autoriti Monetari Brunei Darussalam at the following address:-

 Financial Intelligence Unit

 Autoriti Monetari Brunei Darussalam

 Level 7, Ministry of Finance Building

 Commonwealth Drive

 Bandar Seri Begawan BB 3910

8. What is the Consolidated List?

Consistent with Regulation 16 the Anti-Terrorism (Terrorist Financing) Regulations 2013, Autoriti Monetari Brunei Darussalam maintains a Consolidated List (download here​​​​​​)* of all individuals and entities to which the Anti-Terrorism (Terrorist Financing) Regulations 2013 currently applies.

*To open this attachment, you must save it to your disk. Right-click the link, and then click Save. With a single button mouse, hold the button down over the link, and then click Save.

9. What if I am not sure whether an individual or entity is a “designated person”?

As it may not always be clear whether there is, in fact, a direct match, property holders may contact the Financial Intelligence Unit, Autoriti Monetari Brunei Darussalam to determine whether or not the property is in fact owned or controlled by a designated person.

The relevant contact information can be found above.

Information for designated persons

10. How can I appeal against by designation?

A person who has been designated by the ISIL (Da'esh) & Al-Qaida Sanctions Committee on the ISIL (Da'esh) & ​Al-Qaida Sanctions List or by the 1988 Sanctions Committee on the 1988 Sanctions List may apply to be removed from either list by making an application to the relevant United Nations Security Council Sanctions Committee.

A person who has been designated by the Minister under the Anti-Terrorism (Terrorist Financing) Regulations 2013 or section 65 of the Anti-Terrorism Order 2011 may apply to revoke a designation by making an application the Minister.

Application to use or deal with frozen property

11. In what circumstances can I apply to use or deal with frozen property?

The owner or holder of frozen property may apply in writing to Financial Intelligence Unit, Autoriti Monetari Brunei Darussalam for permission to use or deal with the property in a specified way.

The categories of permissible dealings are:-

• ​​a basic expense dealing (such as for foodstuffs, rent or mortgage, medicines or medical treatment, taxes, insurance premiums, public utility charges, reasonable professional fees, reimbursement of expenses associated with the provision of legal services, etc.);
• a contractual dealing (such as interest or other earnings due on frozen accounts; or payments from frozen accounts that are required under contracts, agreements or obligations made before the date on which those accounts became frozen); or
• an extraordinary expense dealing (any other kind of dealing not covered by the above).

The relevant contact information can be found above.

Application to release frozen property

12. What can I do if I am a third party who has been unduly affected by the freezing of property?

A third party acting in good faith may apply in writing to the Financial Intelligence Unit, Autoriti Monetari Brunei Darussalam for the release of frozen property if he has interest in any property belonging to or in the possession of a designated person.

Whether or not the property will be released is subject to certain strict conditions.

The frozen property shall also be released if Autoriti Monetari Brunei Darussalam is satisfied that:-

• ​​the claimant has the same or similar name as designated persons; and
• the claimant has been confirmed not to be the designated person in the Consolidated List.​​​​​