Background

1. The United Nations Security Council (UNSC) has imposed certain measures relating to prevention, suppression and disruption of proliferation of weapons of mass destruction (WMD) and its finance via specific resolutions such as  resolutions 1737 (2006), 1718 (2006) and their successors. One of these measures is targeted financial sanctions related to proliferation of WMD.

2. The targeted financial sanctions related to proliferation of WMD consist of:

a. freezing of  property of a designated person (individual and entity) listed under the UNSC sanction lists, as well as any person owned or controlled by that person, or any person acting on behalf of, or at the direction of that person; and

b. prohibition against making such property available to or for the benefit of the aforementioned persons.

Instruments for Implementation of targeted financial sanctions related to proliferation of WMD

3. The targeted financial sanctions related to proliferation of WMD are implemented in Malaysia via the following instruments:

a. Subsidiary legislation under the Strategic Trade Act 2010 (STA)

i. Strategic Trade (United Nations Security Council Resolutions) Regulations 2010

The Regulations specify the measures of the targeted financial sanctions related to WMD to be taken against a designated person listed in the Second Schedule to the Strategic Trade (Restricted End-Users and Prohibited End-Users) Order 2010.

ii. Strategic Trade (Restricted End-Users and Prohibited End-Users) Order 2010

The Second Schedule to this Order provides a list of a designated person, i.e. any individual or entity designated as a prohibited end-user under section 8 of the STA.

iii. Strategic Trade (Delisting of Prohibited End-Users) Regulations 2014

The Regulations provide for the procedures for submission of the delisting petition to the Security Council Committee by a designated person who is in Malaysia and no longer meets the criteria for designation under the respective UNSC sanctions related to proliferation of WMD.

iv. Strategic Trade (Unfreezing of Property in Relation to Prohibited End-Users) Regulations 2014

The Regulations provide for the procedures for the submission of an application to unfreeze the property by a person inadvertently affected by the freezing mechanism on the reason of having the same or similar name with a designated person.

b. Circular of the Controller of Strategic Trade No. 1/2014 on the Guidelines on Application for Access Authorization to Frozen Property

The Circular provides for the procedure for an application for access authorization by a person whose property has been affected by the targeted financial sanctions under Strategic Trade (United Nations Security Council Resolutions) Regulations 2010

4. The following documents are available here:

a. List of a designated person;

b. Strategic Trade (Delisting of Prohibited End-Users) Regulations 2014;

c. Strategic Trade (Unfreezing of Property in Relation to Prohibited End-Users) Regulations 2014;

d. Circular of the Controller of Strategic Trade No. 1/2014 on the Guidelines on Application for Access Authorization to Frozen Property; and

e. Manual Procedure for the implementation of the targeted financial sanctions related to proliferation under the STA