Sanctions relating to Proliferation Financing

In the Island, there are a number of sanctions regimes that relate to proliferation and proliferation financing. This page provides further details on the law, what you need to do, and where to find further information.

For information on what is meant by proliferation and proliferation financing and the potential risks to businesses in the Island and how to mitigate those risks, please read the following guidance:

About proliferation and proliferation financing

What is proliferation and proliferation financing

Proliferation is defined as:

‘the manufacture, acquisition, possession, development, export, transshipment, brokering, transport, transfer, stockpiling or use of Chemical, Biological, Radiological or Nuclear (CBRN) weapons (weapons of mass destruction or WMD) and their means of delivery and related materials (including technologies and dual-use goods), in contravention of domestic law and/or international obligations’

Proliferation financing is defined as:

‘the act of providing funds or financial services that are used, in whole or in part, for the manufacture, acquisition, possession, development, export, transshipment, brokering, transport, transfer, stockpiling or use of nuclear, chemical or biological weapons and their means of delivery and related materials (including both technologies and dual use goods used for non-legitimate purposes), in contravention of national laws or, where applicable, international obligations.’

Proliferation and proliferation financing ('PF') can be difficult to identity. This page and the guidance documents are designed to help you understand the risks of proliferation and PF and how you can mitigate those risks in your business.

This page provides further information about proliferation financing.

Legislation

The United Nations sanctions regimes relating to proliferation and proliferation financing that have effect in the Island are stated below.

Democratic People's Republic of Korea

United Nations Security Council Resolution 1718 (2006) which is legally given effect in the Island by:

a) Sections 44-50 of the Terrorism and Other Crime (Financial Restrictions)  Act 2014

b) The Democratic People's Republic of Korea (Sanctions) (EU Exit) Regulations 2019 which have effect in the Island by the Sanctions (Implementation of UK Sanctions) Regulations 2024

Impose the following types of sanctions:

  • Targeted asset freeze
  • Investment, financial services and financial markets restrictions
  • Trade
  • Aircraft and shipping sanctions
  • Immigration

Iran

United Nations Security Council Resolution 2231 (2015) which is legally given effect in the Island by:

a) Sections 44-50 of the Terrorism and Other Crime (Financial Restrictions) Act 2014

b) The Iran (Sanctions) (Nuclear) (EU Exit) Regulations 2019 which have effect in the Island by the Sanctions (Implementation of UK Sanctions) Regulations 2024

Impose the following types of sanctions:

  • Targeted asset freeze
  • Trade
  • Immigration

The United Nations sanctions regimes relating to proliferation and proliferation financing that have effect in the Island are stated below.

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What do I need to do

If you suspect a person or entity is a match to a person or entity included in the UK Sanctions List, and you hold or otherwise deal with funds or economic resources of that person:

  1. You must freeze the assets immediately

  2. You must review the information you hold for that person against the UK Sanctions List to ensure you do not have a false positive identification

  3. Do not deal with those assets or make them available to, or for the benefit of the designated person unless:
    • You have a legal exemption
    • You have a licence

  4. You must report the frozen assets to the FIU

If you have a suspicion or knowledge that there has been a breach of sanctions law, or any attempted transactions that you have blocked, report your suspicions to the FIU.

If you are a relevant firm, you must have appropriate AML/CFT/CPF policies, procedures and controls in place to mitigate the risk of breaching sanctions law.

You must have appropriate procedures in place to be able to:

  • Determine if a customer is included on the UK Sanctions List
  • Know how to freeze an account if you have a sanctions match
  • Know how to report frozen assets or a suspicion to the Financial Intelligence Unit ('FIU')
  • Know what to do if a person or entity is removed from the UK Sanctions List ('delisting')

Note: determining if a customer is on the UK Sanctions List includes whether any corporate entity is owned or controlled, directly or indirectly, by a person on the UK Sanctions List.

You should also ensure that you and your employees have appropriate training and keep this up to date. Further guidance on sanctions compliance can be found using the link below:

Further guidance on false positives and delistings and what to do can be found in the Financial sanctions General Guidance:

Reporting requirements

The financial sanctions regimes have two reporting components to them. The first is a general obligation that applies to everyone. The second is a more targeted obligation that applies to specified businesses and professions.

General reporting requirement

There is a requirement for natural and legal persons, entities and bodies to supply the Financial Intelligence Unit ('FIU') as soon as practicable with any information that would 'facilitate compliance' with sanctions legislation. Any information provided will only be used for the purposes for which it was provided or received.

This requirement applies to natural and legal persons, entities and bodies in the Isle of Man or under Isle of Man jurisdiction and not just to credit or financial institutions or to individuals working for them. If you are unsure of your reporting obligations, you should seek independent legal advice.

Relevant firm reporting requirements

‘relevant firm’ means:

(a) A business in the regulated sector within the meaning of Schedule 4 to the Proceeds of Crime Act 2008 (of Tynwald) (see in particular paragraph 2 of that Schedule)

(b) A person engaged in the business of making, supplying, selling (including selling by auction) or exchanging articles made from gold, silver, platinum, palladium, precious stones or pearls

(c) For the purposes of paragraph (a), the definition of "estate agent" in that Act is to be read as if references to the sale of proposed sale of land in section 15 of the Estate Agents Act 1975 included references to the sale or proposed sale of land outside the Isle of Man

If you are a relevant institution or relevant business or profession you must report to the FIU as soon as practicable if you know or have reasonable cause to suspect that a person:

  • Is a designated person
  • Has committed an offence under sanctions legislation

You are required to report this information, or other matter on which your knowledge or suspicion is based, if it came to you in the course of carrying on your business.

How do I make a report

Many businesses on the Island in the regulated sector will already be familiar with the FIU's online reporting system THEMIS. Those registered to use THEMIS should make their reports via this online system.

If you are not registered on Themis, please contact the FIU in the first instance.

Reporting frozen assets

Include in your report:

  • Value of the funds or economic resources
  • Details of any accounts held, e.g. account numbers, policy references etc
  • Where funds or economic resources are located
  • Ownership and control structures if applicable

Reporting a suspicion or knowledge of a sanctions breach

Include in your report:

  • The information or other matter on which the knowledge or suspicion is based
  • Any information you hold about the person or designated person by which they can be identified

Financial Intelligence Unit contact details

Telephone: +44 1624 686000
Email: fiu@gov.im
Website: www.fiu.im/

Challenging designations

Those who are subject to financial sanctions can challenge their listing and request their delisting. The financial sanctions will remain in place while the challenge or request is being considered.

UN listing

For UN listings, a request should be sent to the UN focal point for delisting. More information about the focal point is available on the UN's website.

Alternatively, if you are a UK resident or citizen (which for the purposes of UN listing includes an Isle of Man resident), you can petition the UK by submitting a Sanctions Review Request Form to the UK directly at sanctions.reassessment@fcdo.gov.uk (see more below).

UK listings

If you are a 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, or it is incompatible with the Human Rights Act 1998. For further information, including eligibility to apply for a variation or revocation of a designation, submitting a sanction challenge form and other information, consult the Foreign and Commonwealth Office guidance.

Further information and guidance

Further information on sanctions regimes, and more details about the exceptions and licences that may be applicable can be found in the following guidance:

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