I. Relevant Security Council resolutions and Committee Guidelines
The exemptions from the asset freeze are provided for by the following:
- Security Council Resolution 2206 (2015): paragraphs 13, 14 and 15
- Committee Guidelines: Section 11
II. Who is entitled to submit the request for exemptions to the asset freeze?
Member States who intend to authorize, where appropriate, access to frozen funds or other financial assets or economic resources.
III. What type of exemptions to asset freeze can be requested?
There are five types of exemptions to asset freeze:
-
For basic expenses
- For extraordinary expenses
- For judicial, administrative or arbitral lien or judgment
- For interests or other earnings due on the accounts or payments due under prior contracts, agreements or obligations
- For payment due under a contract entered into prior to the listing of such a person or entity
1. The basic expenses exemption
Pursuant to paragraph 13 (a) of resolution 2206 (2015) as well as Section 11 (a), (b) of Committee’s Guidelines, notifications for basic expenses are to be submitted for Committee’s consideration and must, as appropriate, include the following information:
- Recipient (name and address)
- Recipient’s bank information (name and address of bank, account number)
- Purpose of payment and justification of the determination of the expenses falling under the basic expenses exemption:
- basic expenses, including payment for foodstuffs, rent or mortgage, medicines and medical treatment, taxes, insurance premiums, and public utility charges;
- payment of reasonable professional fees and reimbursement of incurred expenses associated with the provisions of legal services;
- fees or service charges for routine holding or maintenance of frozen funds or other financial assets or economic resources.
- Amount of installment
- Number of installments
- Payment starting date
- Bank transfer or direct debit
- Interests
- Specific funds being unfrozen
- Other information.
2. The extraordinary expenses exemption
Pursuant to paragraph 13 (b) of resolution 2206 (2015) as well as Section 11 (c) of Committee’s Guidelines, requests for extraordinary expenses are to be submitted for the Committee’s consideration and must, as appropriate, include the following information:
- Recipient (name and address)
- Recipient’s bank information (name and address of bank, account number)
- Purpose of payment and justification of the determination of the expenses falling under the:
- extraordinary expenses (other categories than the ones mentioned under paragraph 13 (a) of resolution 2206 (2015);
- Amount of installment
- Number of installments
- Payment starting date
- Bank transfer or direct debit
- Interests
- Specific funds being unfrozen
- Other information.
Please Note that Member States are encouraged, when submitting requests for the extraordinary expenses exemption, to report in a timely way on the use of such funds.
3. The exemption subject of a judicial, administrative or arbitral lien or judgment
Pursuant to paragraph 13 (c) of resolution 2206 (2015) as well as Section 11 (b) of Committee’s Guidelines, the Committee shall receive notifications from Member States regarding frozen assets which have been determined by relevant State to be subject of a judicial, administrative or arbitral lien or judgement, in which case the funds, other financial assets and economic resources may be used to satisfy that lien or judgment provided that the lien or judgment was entered into prior to the date of resolution 2206 (2015), is not for the benefit of a person designated by the Committee, and has been notified by the relevant State or Member States to the Committee.
4. The exemption to the interests or other earnings due on the accounts or payments due under prior contracts, agreements or obligations
Pursuant to paragraph 14 of resolution 2206 (2015) as well as Section 11 (f) of Committee’s Guidelines, Member States may permit the addition to the accounts frozen pursuant to the provisions of paragraph 12 of resolution 2206 (2015) of interest or other earnings due on those accounts or payments due under contracts, agreements or obligations that arose prior to the date on which those accounts became subject to the provisions of this resolution, provided that any such interest, other earnings and payments continue to be subject to these provisions and are frozen.
5. The exemption for payment due under a contract entered into prior to the listing of such a person or entity
Pursuant to paragraph 15 of resolution 2206 (2015) as well as Section 11 (g) of Committee’s Guidelines, the measures in paragraph 12 of resolution 2206 (2015) shall not prevent a designated person from making payment due under a contract entered into prior to the listing of such a person, provided that the relevant States have determined that the payment is not directly or indirectly received by a person or entity designated pursuant to paragraph 12 of resolution 2206 (2015), and after notification by the relevant States to the Committee of the intention to make or receive such payments or to authorize, where appropriate, the unfreezing of funds, other financial assets or economic resources for this purpose, ten working days prior to such authorization.
IV. How to make the request for exemptions to the asset freeze?
Please send the requests for exemptions from the asset freeze to:
- The Chair of the Committee, His Excellency Mr. Michael Imran Kanu (Sierra Leone), through the Permanent Mission of the Republic of Sierra Leone to the United Nations
With copy to:
- The Secretary of the Committee, Mr. David Biggs, Email address: SC-2206-Committee@un.org
V. Decision Making of the Committee
The Committee, through the Secretariat, will immediately acknowledge receipt of the notification for basic exemption request. Should no negative decision be taken by the Committee within the requisite five working day period, the Committee, through its Chair, will inform the notifying Member State thereof. The Committee will also inform the notifying Member State if a negative decision has been taken.