Freezing of funds connected with terrorism

(1) Where the Financial Intelligence Unit has reasonable grounds for believing that the person by, for or on behalf of whom any funds are held is or may be– (a) a terrorist or a person who facilitates or finances a terrorist act; 40[CAP. 104 Money Laundering and Terrorism (Prevention) (b) a person controlled or owned directly or indirectly by a person in (a); or (c) a person acting on behalf, or at the direction, of a person in (a), the Financial Intelligence Unit may by notice direct that those funds shall be frozen and shall not be made available to any person. (2) A direction given under sub-section (1) of this section shall specify either– (a) the period for which the direction is to have effect; or (b) that the direction is to have effect until it is revoked by notice under sub-section (3). (3) The Financial Intelligence Unit may by notice revoke a direction given under sub-section (1) at any time. (4) A notice under sub-section (1) or (3) shall be given in writing to the person holding the funds in question (“the recipient”), and shall require the recipient to send a copy of the notice without delay to the person whose funds they are, or for or on whose behalf they are held (“the owner”). (5) A recipient shall be treated as complying with that requirement if, without delay, he sends a copy of the notice to the owner at his last known address or, if he does not have an address for the owner, he makes arrangements for a copy of the notice to be supplied to the owner at the first available opportunity. (6) Where a direction has been given under sub-section (1), any person by, for or on behalf of whom those funds are held may apply to the Supreme Court for the direction to be set aside; and on such application the Court may set aside the direction. (7) A person who makes an application under sub-section (6) shall give a copy of the application and any witness statement or affidavit in support to the Financial Intelligence Unit, and to any other person by, for or on behalf of whom those funds are held, not later than seven days before the date fixed for the hearing of the application. (8) Any person who contravenes or fails to comply with the requirements of this section commits a money laundering offence and is liable to the penalties prescribed in section 4.