Circular CN/2024/9091: Implementation of Targeted Financial Sanctions

بسم الله الرحمن الرحيم

FINANCIAL INTELLIGENCE UNIT MALDIVES MONETARY AUTHORITY

Circular No: CN/2024/9091

10 October 2024

To: All Reporting Entities

IMPLEMENTATION OF TARGETED FINANCIAL SANCTIONS

Background

Targeted financial sanctions refer to applying financial sanctions (such as freezing financial assets) to specific individuals and entities to prevent and disrupt terrorism financing and proliferation of weapons of mass destruction, to ensure that no funds and other assets are made available, directly or indirectly, to or for the benefit of those individuals and entities. These individuals and entities are designated by the United Nations Security Council acting under Chapter VII of the United Nations Charter.

Implementation Requirements

Under Section 52 of Law No. 10/2014 (Prevention of Money Laundering and Financing of Terrorism Act), Reporting Entities are required to implement targeted financial sanctions against individuals and entities designated by the United Nations Security Council acting under Chapter VII of the United Nations Charter.

This Circular is issued under the provisions of Law No. 10/2014 (Prevention of Money Laundering and Financing of Terrorism Act) and shall be treated as a standing legal notice issued by this Unit to implement targeted financial sanctions against individuals and entities designated by the United Nations Security Council acting under Chapter VII of the United Nations Charter.

On the date of issuing this Circular, the following United Nations Security Council Resolutions are in effect. This Unit will be providing updates on the future Resolutions subject to targeted financial sanctions.

RESOLUTIONS	DESCRIPTION
UNSCR 1988 (2011) and its successor resolutions	Designations relating to Taliban, and associated individuals, groups, undertakings, and entities.
Resolutions 1267 (1999) and 1989 (2011) and its successor resolutions	Islamic State in Iraq and the Levant (Da'esh), Al-Qaida, and associated individuals, groups, undertakings and entities.
Resolution 1718 (2006) and its successor Resolutions	Designations made on Democratic People's Republic of Korea for the prevention and disruption of the financing of proliferation of weapons of mass destruction.
Resolution 2231 (2015)	Endorsing the Joint Comprehensive Plan of Action (JCPOA), terminated all provisions of UNSCRs relating to Iran and proliferation financing, including 1737(2006), 1747(2007), 1803(2008) and 1929(2010), but established specific restrictions including targeted financial sanctions. This lifts sanctions as part of a step by step approach with reciprocal commitments endorsed by the Security Council. Implementation day of the JCPOA was on 16 January 2016.

1- LISTINGS OR ADDITIONS

Listings and additions refer to the individuals or entities listed or added to UN sanctions lists by the relevant UN Sanctions Committee. Reporting Entities are required to implement the following measures immediately on listings, or additions to the UN Sanctions lists:

a) Cease any business relationship or a single transaction involving any sanctioned individuals and entities, and promptly notify the FIU of the actions taken. b) Freeze the funds belonging to the sanctioned individuals and entities until further notice and promptly inform the FIU. c) Notify FIU even if no financial assets belonging to the sanctioned individuals and entities are identified. d) Refuse any transactions involving the individuals and entities and report such refusals to the FIU.

2- DE-LISTINGS OR REMOVAL

De-listing or removal refers to instances where the relevant UN Sanctions Committee removes an entity from any UN Sanctions list.

Reporting Entities shall immediately release any financial sanction previously imposed against sanctioned individuals and entities and update their customer information accordingly. Reporting Entities shall immediately inform the FIU if any financial sanctions previously imposed against sanctioned individuals and entities are lifted.

3- AMENDMENTS

Amendment refers to instances where the relevant UN Sanctions Committees changes information of previously sanctioned individuals and entities.

Reporting Entities shall continue to maintain the targeted financial sanctions previously implemented on the individuals and entities of whom information has been amended.

Customer Due Diligence Measures

To effectively implement the targeted financial sanctions prescribed in this Circular, Reporting Entities must implement sufficient level of customer due diligence measures to ensure business relationships are not established with or transactions are not conducted with sanctioned individuals and entities. This should include the proper identification and verification of ultimate beneficial owners of legal entities and legal arrangements to ensure business relationships are not established with and transactions are not conducted with legal entities and legal arrangements owned or controlled by sanctioned individuals and entities.

Reporting Entities are also advised to identify and exercise caution on previous transactions involving the sanctioned individual and entities.

As the sanctions lists are available online, Reporting Entities are instructed to refer to the following website for further information and to obtain the full and updated lists.

https://main.un.org/securitycouncil/en/content/un-sc-consolidated-list

Enforcement

This Circular shall be enforceable until further notice. Failure to comply with this Circular shall result in enforcement of relevant penalties prescribed in Section 52 (f) of Law No. 10/2014 (Prevention of Money Laundering and Financing of Terrorism Act) and any other applicable penalties prescribed in the relevant regulations issued under that Act.

Reporting Entities are encouraged to contact this Unit where they need any assistance in complying with this Circular.

Yours Sincerely,

Abdulla Ashraf Head of Financial Intelligence Unit

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Phone: +960 3012139 Email: fiu@mma.gov.mv Website: www.mma.gov Web page: www.mma.gov.mv/#/fiu Maldives Monetary Authority Boduthakurufaanu Magu Male' 20182, Maldives