Where any funds are received in the Island which have come from, or via, a designated person or entity based outside the European Union, they must be frozen and placed in a suspense account (or another separate account) by the receiving bank.
This applies if the funds have come via a designated person or entity at any stage of their routing. A licence would then be required from the Treasury for the release of the funds to any intended recipient.
Previously, Treasury took the view that if any funds were received by, or in the name of, a non-designated person in the Island they did not have to be frozen and no licence was required.
This change applies with effect from 1 August 2014, and only in respect of any funds received on or after that date from outside the European Union. Transfers prior to that date are not affected. If neither you nor the person sending you the funds are designated, but the funds have come from, or via, a bank that is itself designated then any funds received in the Island must be frozen and a licence sought.
The change is required following recent case law of the European Court of Justice, and aligns practice in the Island with that in the United Kingdom and other Member States.
A “designated person or entity” is one included in the Consolidated List of persons and entities subject to financial sanctions imposed by means of European Union Regulations or United Nations measures that have been given effect in the Island.
For more information contact Customs and Excise.
More information about sanctions and the various current regimes may be found on the Customs and Excise pages of the Isle of Man Government website.
