Financial Services and Markets (Sanctions and Freezing of Assets of Persons — Somalia) Regulations 2023

The new Financial Services and Markets (Sanctions and Freezing of Assets of Persons — Somalia) Regulations 2023 were published on Singapore Statutes Online, the official website of the Singapore government for publicizing legal texts. The regulations set out an entirely new sanctions framework with respect to Somalia based on Resolution 1844 of the United Nations (UN) Security Council relating to acts that undermine democratic processes, threaten the stability and peace in Somalia, or support piracy.
The regulations thereby specify
– the grounds for sanctioning individuals, entities, and bodies (designations by the UN Security Council);
– the type of sanctions that will be applied towards such persons, entities, and bodies (asset freezing and other financial restrictions);
– situations where frozen funds may be released (e.g. to meet human basic needs); and
– the financial transactions that may still be made under the new regulations such as the crediting of frozen accounts with interest payments so long as these payments are also subject to asset freezing measures.
Additionally, the regulations stipulate reporting obligations of financial institutions when
(1) they become aware of transactions relating to funds of designated individuals, entities, or bodies; or
(2) they freeze assets pursuant to these regulations.
Finally, the regulations repeal the Monetary Authority of Singapore (Sanctions and Freezing of Assets of Persons — Somalia) Regulations 2010. Any sanction measures that were in effect in the 2010 regulations will continue to apply, including licenses that were granted to individuals, firms, or organizations.