Prevention of money laundering and the financing of terrorism
List of persons subject to financial sanctions
6.101 The UK operates financial sanctions on persons and entities following their designation at the United Nations and/or European Union. The UK also operates a domestic counter-terrorism regime, where the Government decides to impose financial restrictions on certain persons and entities. There are specific financial restrictions targeted at organisations and entities involved in terrorism and terrorist financing.
6.102 Financial restrictions in the UK are governed by various pieces of legislation. The purpose of imposing financial restrictions is to restrict access to finance by designated persons and to prevent the diversion of funds to terrorism and terrorist purposes. In all circumstances where an asset freeze is imposed, it is unlawful to make payments to, or allow payments to be made to, designated persons.
6.103 A list of all financial restrictions currently in force in the UK is maintained by HM Treasury’s Office of Financial Sanctions Implementation (OFSI). Please see the Consolidated List of persons designated as being subject to financial restrictions. The purpose of the Consolidated List is to draw together, in one place, all the names of designated persons for the various financial restrictions regimes effective in the UK. Further information on financial restrictions, including guidance, can be found on the OFSI website.
6.104 There are prohibitions for carrying out certain activities or behaving in a certain way if financial sanctions apply. This will depend on the exact terms of the EU or UK legislation which imposes the financial sanction in the given situation.
6.105 Further information regarding the prohibitions can be found in the OFSI publication.
6.106 OFSI has the power to grant licences exempting certain transactions from the financial restrictions. Requests to disapply the financial restrictions in relation to a designated person are considered by OFSI on a case-by-case basis to ensure that there is no risk of funds being diverted to otherwise restricted purposes. To apply for a licence, OFSI can be contacted using the contact details provided below. Further regime-specific guidance concerning licensing and compliance is available.
6.107 Casino operators need to have the necessary policies, procedures and controls in place to monitor financial transactions so that payments are not made to designated persons, thereby preventing breaches of the financial restrictions legislation. For manual checking, operators can register with the OFSI update service (directly or via a third party). If checking is automated, operators will need to ensure that the relevant software includes checks against the latest Consolidated List.
6.108 OFSI may also be contacted to provide guidance and to assist with any concerns regarding financial restrictions at: Office of Financial Sanctions Implementation Tel: 020 7270 5454 (Weekdays 9am to 5pm) Email: email@example.com
6.109 In the event that a customer or a payee is identified as a designated person, payments must not proceed unless a licence is granted by OFSI, as this would be a breach of the financial restrictions. OFSI should be informed immediately and the transaction suspended pending their advice. No funds should be returned to the designated person. The operator may also need to consider whether there is an obligation also to report to the NCA under POCA or the Terrorism Act.
6.110 Written reports can be made to OFSI via email.
6.111 Casino operators should consider the likelihood of sanctioned persons using the casino's facilities, taking into account matters such as where the person is resident, and the local demographics of the casino and the its customer base. Operators should bear in mind that sanctioned persons are not exclusively resident abroad, but may also live and operate in the UK and use either a high end casino or a small provincial casino.
6.112 Casino operators should also note that PEPs and financial sanctions cannot be conflated as the requirements in relation to each are different. The Regulations do not prohibit doing business with a PEP, whereas there is a prohibition on doing business with a person on the financial sanctions list, so the way in which casino operators manage the respective risks should be different.
Next chapter: Record keeping