Decree No. 2024-053/PR/MJDH on the Implementation Regime for Targeted Financial Sanctions Related to Terrorism Financing and the Proliferation of Weapons of Mass Destruction

Decree No. 2024-053/PR/MJDH on the Implementation Regime for Targeted Financial Sanctions Related to Terrorism Financing and the Proliferation of Weapons of Mass Destruction.

• Measure: General
• Publication Date: 07/03/2024
  Edition No. 02 of 07/03/2024
  THE PRESIDENT OF THE REPUBLIC, HEAD OF GOVERNMENT VU the Constitution of September 15, 1992; VU Constitutional Law No. 92/AN/10/6th L of April 21, 2010 amending the Constitution; VU Law No. 104/AN/24/9th L of March 6, 2024 amending Law No. 110/AN/11/6th L on combating the financing of terrorism; VU Law No. 105/AN/24/9th L of March 6, 2024 amending Law No. 111/AN/11/6th L on combating terrorism and other serious offenses; VU Law No. 106/AN/24/9th L of March 6, 2024 on combating money laundering, the financing of terrorism, and the proliferation of weapons of mass destruction; VU Decree No. 2006-0083/PR/MJAPM of March 27, 2006 on the organization and operational procedures of the Financial Intelligence Service created within the Central Bank of Djibouti; VU Decree No. 2023-083/PRE of March 30, 2023 on reorganizing the institutional framework responsible for combating terrorism; VU Decree No. 2021-105/PRE of May 24, 2021 appointing the Prime Minister; VU Decree No. 2021-106/PRE of May 24, 2021 appointing members of the Government; VU Decree No. 2021-114/PRE of May 31, 2021 defining the responsibilities of Ministries; VU Decree No. 2022-001/PRE of January 2, 2022 on ministerial reshuffling; ON the proposal of the Minister of Justice and Penitentiary Affairs, responsible for Human Rights. DECREES

Article 1: Object
This decree aims to ensure the implementation of targeted financial sanctions related to terrorism, the financing of terrorism, and the proliferation of weapons of mass destruction in accordance with United Nations Security Council Resolutions (UNSCR) 1267 (1999), 1373 (2001), 1718 (2006), 1988 (2011), 1989 (2011), 2231 (2015), 2253 (2015), and subsequent resolutions; the standards of the Financial Action Task Force (FATF); and provisions relating to laws against terrorism, the financing of terrorism, and money laundering.

Article 2: Terminology.

1. For the purposes of this decree, the following terms:
   a. "Technical Committee" means: the committee established pursuant to Article 3 of this decree. b. "Basic Expenses" means: payments for foodstuffs, rent or mortgage, medicines and medical treatment, taxes, insurance premiums, and utility bills, or exclusively for the payment of reasonable professional fees and reimbursement of expenses incurred in connection with the provision of legal services, or service charges for the routine custody or maintenance of frozen funds, other financial assets, or economic resources.
   c. "Extraordinary Expenses" means: expenses other than those that the Technical Committee considers to be basic expenses.
   d. "Designated Person or Entity" means: an identified person or entity subject to targeted financial sanctions at the United Nations or national level. e. "Entity" means: any unregistered association, organization, partnership, fund, group, or other body without legal personality. f. "ex parte" means: the initiation of proceedings without prior notice and without the participation of the affected party. g. "Funds and Other Assets" means: any property, including, but not limited to, financial assets, economic resources (including oil and other natural resources), property of any kind, tangible or intangible, movable or immovable, regardless of how it was acquired, as well as legal instruments or documents in any form, including electronic or digital, attesting to the ownership of such funds and other assets or rights related thereto, including, but not limited to, bank credits, traveler's checks, bank checks, money orders, shares, securities, bonds, bills of exchange or letters of credit, and any interest, dividends, and other income or values derived from or generated by such funds and other assets, and all other assets that could be used to obtain funds, assets, or services. h. "Freeze" means: the prohibition on the transfer, conversion, disposition, or movement of all funds and other assets held or controlled by designated persons or entities following a measure taken by the United Nations Security Council (UNSC) or a competent authority or court in accordance with applicable UNSCRs, for the duration of the validity of said measure.
   i. "Continuous Prohibition" means: the prohibition referred to in Article (10) of this decree.
   j. "List/Sanctions List" means: a list of names of persons and entities identified as being subject to targeted financial sanctions. k. "Person" means: any natural or legal person.
   l. "Delisted/De-listing" means: the removal of a person or entity from a sanctions list or otherwise identifying a person or entity as no longer subject to targeted financial sanctions.
   m. "Economic Resources" means: all types of assets, tangible or intangible, movable or immovable, including assets that are not considered money but can be used to obtain funds, assets, or services, including, but not limited to: land, buildings, other real estate, equipment, machinery, computers, electronic systems, furniture, precious metals and others, gemstones, oil, other natural resources, weapons, materials, equipment, patents, property rights, brand names, trademarks, and online publications or related services. n. "Targeted Financial Sanctions" means: both the freezing of funds and other assets and prohibitions aimed at preventing funds and other assets from being made available, directly or indirectly, to designated persons and entities.
2. Terms not defined in Law No. 110/AN/11/6th L on combating the financing of terrorism but defined in this decree shall have the meaning attributed to them by this decree.
3. Terms not defined in this decree but defined in Law No. 110/AN/11/6th L on combating the financing of terrorism shall have the meaning attributed to them by Law No. 110/AN/11/6th L on combating the financing of terrorism.

Article 3: Establishment of the Technical Committee.
The Technical Committee for the Implementation and Management of Targeted Financial Sanctions Related to Terrorism and the Proliferation of Weapons of Mass Destruction (hereinafter "the Technical Committee") is hereby established.

Article 4: Composition of the Technical Committee.
The Technical Committee shall be composed as follows:

1. Representative of the Ministry of Budget, Chairman
2. A representative of National Security, Vice-Chairman
3. A representative of the Presidency, member
4. A representative of the Ministry in charge of Finance, member
5. A representative of the Ministry in charge of Foreign Affairs, member
6. A representative of the Ministry of Justice, member
7. A representative of the Ministry of the Interior, member
8. A representative of the Public Prosecutor's Office, member
9. A representative of the Central Bank, member

Article 5: Functions of the Technical Committee.
The Technical Committee:

1. Shall be seized by its members and by any other competent authority of the Republic of Djibouti when they identify and propose the designation of a person or entity likely to meet the designation criteria set forth in UNSCR 1267/1989, UNSCR 1988, or UNSCR 1373.
2. Shall receive and examine any designation proposal from a third State, in accordance with UNSCR 1373.
3. Shall intervene ex parte against any person or entity that has been identified and whose designation proposal is under examination.
4. Shall collect from its members, any other competent authority of the Republic of Djibouti, and any competent foreign authority all available information to identify persons and entities for which there is a reasonable basis to suspect or believe that they meet the designation criteria set forth in UNSCR 1267/1989, UNSCR 1988, or UNSCR 1373.
5. Shall promptly adopt any designation proposal supported by reasonable grounds to suspect or believe that the proposed person or entity meets the specific designation criteria set forth in:
   a. UNSCR 1267/1989; b. UNSCR 1988; or
   c. UNSCR 1373.
6. Shall adopt any designation proposal in accordance with paragraph (5) of this Article:
   a. By consensus; and b. Without prejudice to the existence or non-existence of criminal proceedings against the person or entity subject to the proposal.
7. Shall formulate and provide to designated financial institutions, designated non-financial businesses and professions (DNFBPs), virtual asset service providers (VASPs), and any other person or entity likely to hold funds or other assets, guidelines regarding their obligations concerning designation/freezing and de-listing/unfreezing actions.
8. Shall facilitate the examination of designations made under UNSCR 1988 by the competent sanctions committee, in accordance with all applicable guidelines or procedures it has adopted, including those relating to the Focal Point mechanism established by UNSCR 1730.
9. Shall establish and maintain a publicly accessible website.
10. Shall exercise any other functions assigned to it under this decree.

Article 6: Exercise of the Technical Committee's Functions.

1. In exercising its functions, the Technical Committee:
   a. Shall meet as needed, upon summons by the Chairman or Vice-Chairman. b. Shall establish its procedures and other internal rules by order proposed by the Minister of Budget and develop its own forms.
2. The Technical Committee shall be assisted in carrying out its functions by the National Financial Intelligence Agency (ANRF), which shall serve as the secretariat for the purposes of this decree.

Article 7: Transmission of Designation Proposals.

1. The Technical Committee shall promptly transmit to the competent United Nations sanctions committee any designation proposal adopted in accordance with sub-paragraphs (a) and (b) of paragraph (5) of Article (5) of this decree.
2. The Technical Committee shall promptly transmit to a third State any designation proposal adopted in accordance with sub-paragraph (c) of paragraph (5) of Article (5) of this decree when it considers that the targeted person or entity meets the designation criteria applicable in that third State.
3. Any transmission pursuant to paragraph (1) of this Article:
   a. Shall follow the procedures and list inscription models adopted by the competent United Nations sanctions committee; and b. In the case of a proposal to the 1267/1989 Sanctions Committee, shall specify whether Djibouti's status as a designating State may be made public.
4. Any transmission pursuant to paragraphs (1) and (2) of this Article shall include as much relevant information as possible on the proposed person or entity, including information necessary to identify them with certainty, as well as the most detailed possible statement of reasons for listing.
5. The transmissions referred to in paragraphs (1) and (2) of this Article shall be effected via diplomatic channels.

Article 8: Designations.

1. The Minister of Budget shall order, by administrative decision, the designation of:
   a. Persons and entities listed on the United Nations Sanctions List under resolutions 1267/1989; b. Persons and entities listed on the United Nations Sanctions List under resolution 1988;
   c. Persons and entities listed on the United Nations Sanctions List under resolution 1718;
   d. Persons and entities listed on the United Nations Sanctions List under resolution 2231; and e. Any person or entity subject to a designation proposal adopted by the Technical Committee in accordance with sub-paragraph (c) of paragraph (5) of Article (5) of this decree.
2. The administrative decision referred to in paragraph (1) of this Article:
   a. Shall be issued within a maximum of 16 hours from, as applicable:
   i. The press release announcement by the United Nations of the addition of a name to the [Sanctions] List 1267/1989, 1988, 1718, or 2231; or
   ii. The adoption of a designation proposal by the Technical Committee in accordance with sub-paragraph (c) of paragraph (5) of Article (5) of this decree.
   b. Shall be published without delay on the Technical Committee's website and in the next edition of the Official Journal of the Republic of Djibouti.
   c. Shall be accompanied by information on the Technical Committee's website regarding the procedures to be followed by:
   i. Any designated person or entity to request de-listing from the Technical Committee in accordance with Article (19) of this decree.
   ii. Any designated person or entity pursuant to paragraphs (a)-(d) of paragraph (1) of this Article to submit a de-listing request directly to the United Nations Office of the Ombudsman or the United Nations Focal Point, as applicable.
   iii. Any designated person to request an exemption from the freeze on funds and other assets in accordance with Articles (16) and (17) of this decree.
   iv. Any person or entity that believes it is subject to erroneous application of freeze measures and/or a continuous prohibition due to a name match with the designated person or entity.
   d. Shall be communicated to financial institutions, DNFBPs, and VASPs, according to procedures established by the Technical Committee in accordance with sub-paragraph (b) of paragraph (1) of Article (6) of this decree.

Article 9: Freeze Measures.

1. All designated financial institutions, designated non-financial businesses and professions (DNFBPs), virtual asset service providers (VASPs), and any other natural or legal person and entity likely to hold funds shall freeze the funds and other assets of designated persons and entities.
2. The freeze referred to in paragraph (1) of this Article:
   a. Shall take effect:
   i. Within a maximum of eight (8) hours from the publication of an administrative decision on the Technical Committee's website in accordance with section (i) of sub-paragraph (b) of paragraph (2) of Article (8) of this decree; or
   ii. Notwithstanding the provisions of the first section of this sub-paragraph, as soon as any transaction involving or related to the funds or other assets subject to the administrative decision is requested.
   b. Shall apply without prior notice:
   i. To designated persons or entities;
   ii. To representatives or associates of designated persons or entities; or
   iii. To other persons likely to alert designated persons or entities.
   c. Shall extend:
   i. To all funds or other assets owned or controlled by the designated entity or person;
   ii. To funds or other assets owned or controlled, wholly or jointly, directly or indirectly, by designated persons or entities;
   iii. To funds or other assets derived from or generated by funds and other assets owned or controlled, directly or indirectly, by designated persons or entities; and
   iv. To funds or other assets of persons and entities acting on behalf of or at the direction of designated persons or entities.

Article 10: Continuous Prohibition.
It is prohibited for any person or entity to make funds and other assets, economic resources, or financial services and other related services available, directly or indirectly, wholly or jointly, for the benefit of designated persons or entities; entities owned or controlled, directly or indirectly, by designated persons or entities; and persons and entities acting on behalf of or at the direction of designated persons or entities, except under a license, authorization, or notification to the contrary, in accordance with applicable UNSCRs.

Article 11: Compliance with Freeze and Continuous Prohibition.
It is prohibited for any person or entity to knowingly carry out or participate in transactions intended or having the effect of circumventing, directly or indirectly, the provisions of Articles (9) and (10) of this decree.

Article 12: Respect for Third-Party Rights in Good Faith.
The rights of third parties acting in good faith shall be respected in the implementation of Articles (9) and (10) of this decree.

Article 13: Duty to Report on Measures Taken in Application of Designations.

1. Financial institutions, DNFBPs, and VASPs shall notify the ANRF within a maximum of 24 hours of the existence of frozen funds and other assets in accordance with Article (9) of this decree, as well as of any other measures taken in accordance with Article (10) of this decree, including attempted transactions involving or related to the funds and other assets subject to the freeze or to designated persons and entities.
2. The notification referred to in paragraph (1) of this Article shall be made according to the procedures and using the forms established by the Technical Committee in accordance with sub-paragraph (b) of paragraph (1) of Article (6) of this decree.

Article 14: Contestation of Measures Applied in Case of Possible Error.

1. Any person or entity that believes it is subject to erroneous application of freeze measures and/or a continuous prohibition [pursuant to the provisions of Articles (9) and (10) of this decree] due to a name match with the [actually] designated person or entity may file an appeal with the Technical Committee.
2. The appeal referred to in paragraph (1) of this Article:
   a. Shall be filed according to the procedures and using the forms established by the Technical Committee in accordance with sub-paragraph (b) of paragraph (1) of Article (6) of this decree. b. Shall be accompanied by all elements that can demonstrate the error.
   c. Shall be examined by the Technical Committee within a period not exceeding five (5) working days.
3. If applicable, the Technical Committee shall immediately notify the person or entity applying the freeze measures and/or continuous prohibition that the appellant referred to in paragraph (1) of this Article is not designated.
4. The person or entity notified pursuant to paragraph (3) of this Article shall immediately unfreeze the appellant's funds and other assets and/or immediately lift the continuous prohibition applied against the appellant.

Article 15: Additions to Frozen Accounts.

1. Interest due to frozen accounts as well as any income derived from frozen funds and other assets shall be credited to the holders' frozen accounts and shall themselves become frozen.
2. Payments due to designated persons and entities under contracts, agreements, or obligations arising prior to their designation shall be credited to frozen accounts and shall themselves become frozen.

Article 16: Common Exemption Requests.

1. Any designated person may submit an exemption request to the Technical Committee to access frozen funds or other assets and related financial services to cover basic or extraordinary expenses.
2. The request referred to in paragraph (1) of this Article:
   a. Shall be submitted according to the procedures and using the forms established by the Technical Committee in accordance with sub-paragraph (b) of paragraph (1) of Article (6) of this decree. b. Shall be accompanied by all elements justifying the requested amount(s).
   c. Shall be examined by the Technical Committee within five (5) working days.
   d. May be approved without modification, approved with modification, or rejected.
3. An exemption request to cover basic expenses:
   a. Submitted by a designated person pursuant to sub-paragraphs (a) or (b) of paragraph (1) of Article (8) of this decree:
   i. Shall be communicated to the competent United Nations sanctions committee via diplomatic channels after approval by the Technical Committee.
   ii. Shall be granted by default if the competent United Nations sanctions committee does not object within three (3) working days of the notice referred to in section (i) of this sub-paragraph.
   b. Submitted by a designated person pursuant to sub-paragraphs (c) or (d) of paragraph (1) of Article (8) of this decree:
   i. Shall be communicated, as applicable, to the competent United Nations sanctions committee or the United Nations Security Council via diplomatic channels after approval by the Technical Committee.
   ii. Shall be granted by default if the competent United Nations sanctions committee or the United Nations Security Council does not object within five (5) working days of the notice referred to in section (i) of this sub-paragraph.
   c. Submitted by a designated person pursuant to sub-paragraph (e) of paragraph (1) of Article (8) of this decree shall be granted after approval by the Technical Committee.
4. An exemption request to cover extraordinary expenses:
   a. Submitted by a designated person pursuant to sub-paragraphs (a), (b), (c), or (d) of paragraph (1) of Article (8) of this decree:
   i. Shall be communicated, as applicable, to the competent United Nations sanctions committee or the United Nations Security Council via diplomatic channels after approval by the Technical Committee.
   ii. Shall be granted after approval by the competent United Nations sanctions committee or the United Nations Security Council.
   b. Submitted by a designated person pursuant to sub-paragraph (e) of paragraph (1) of Article (8) of this decree shall be granted after approval by the Technical Committee.

Article 17: Uncommon Exemption Requests.

1. Any designated person pursuant to sub-paragraphs (c) or (d) of paragraph (1) of Article (8) of this decree may submit an exemption request to the Technical Committee to access frozen funds or other assets and related financial services to make any necessary payment to satisfy privileges or judicial, administrative, or arbitral judgments registered prior to their designation.
2. Any designated person desig