Prohibitions

Part III of the Sanctions Act establishes the offences for prohibitions which include (1) dealing with assets and (2) making assets and financial services available to designated persons or entities. Part III of the Sanctions Act also further provides for the process to be adhered too in enabling a person to seek authorisation to act in contravention of a prohibition- deal with frozen assets or making an asset or financial service available in certain circumstances.

 

PROHIBITION AGAINST DEALING WITH ASSETS

This prohibition makes it an offence to deal with an asset. The term “deal” is defined as transferring, converting, disposing, moving and using assets that are owned by a designated person or entity.

The scope of the prohibition is applicable to assets that are also owned, controlled or held (directly or, indirectly, in whole or in part) by designated persons or entities themselves, or on their behalf.

There are two penalties for breaching the prohibition subject to the mental state of that person. The first penalty is the greater of the two penalties and is applied to persons who know that the asset in their possession is owned, controlled or held (directly or, indirectly, in whole or in part) by designated persons or entities and still contravenes the prohibition. The second penalty is lesser than the first penalty and applies to circumstance where the person who deals with the asset may not have actual knowledge that an asset in their custody is owned, controlled or held (directly or, indirectly, in whole or in part) by designated persons or entities however, is reckless to that fact and contravenes the prohibition.

 

PROHIBITION AGAINST MAKING ASSETS AND FINANCIAL SERVICES AVAILABLE

This prohibition operates by preventing a person from making assets or financial services available to, or for the benefit of, designated persons or entities or persons or entities owned, controlled or acting on their behalf. It is immaterial whether the assets are located inside or outside of PNG. As long as the designated person or entity has some level of ownership over those assets, a breach of this prohibition would be an offence under the Sanctions Act.

There are two penalties for contravening the prohibition subject to the mental state of the person. The first penalty is the greater of the two penalties and is applied to persons who knowingly make an asset or financial service available to or for the benefit of, by designated persons or entities or persons or entities owned, controlled or acting on their behalf.

The second penalty is lesser than the first penalty and applies to circumstance where the person who makes an asset or financial service available may not have actual knowledge that it is made available to or for the benefit of, by designated persons or entities or persons or entities owned, controlled or acting on their behalf but, is reckless in doing so therefore, committing an offence.

 

Contact Us                       Related Sites 

PNG Sanctions Office 

Department of Prime Minister & NEC

P.O Box 639, WAIGANI, NCD

Level 3, Morauta Haus

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BPNG

APG

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