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What is Proliferation Financing?

Proliferation is defined by the Financial Action Task Force (FATF) as the illegal manufacture, acquisition development, export, trans-shipment, brokering, transport, transfer, stockpiling or use of nuclear, chemical, or biological weapons and their means of delivery and related materials.

Proliferation financing is defined by the FATF as the provision of funds or financial services used for the manufacture, acquisition, possession, development, export, trans-shipment, brokering, transport, transfer, stockpiling or use of nuclear, chemical or biological weapons and their means of delivery and related materials (including both technologies and dual-use goods used for non-legitimate purposes), in contravention of national laws or, where applicable, international obligations.

Preventing proliferation financing is an important part of combatting proliferation. It is essential to disrupt the financial flows available to proliferators and to obstruct and complicate the procurement of the illicit goods, services and technology needed for the development of weapons of mass destruction and their means of delivery.

The Bailiwick of Guernsey has put in place measures to counter the proliferation of weapons of mass destruction and the financing of weapons of mass destruction, and to ensure understanding of the context and scope of the framework applicable to Guernsey, additional outreach has been carried out in order to assist businesses to understand the effect of the counter-proliferation and counter-proliferation financing sanctions regimes in place.

In December 2022 the Policy & Resources Committee and Committee for Home Affairs issued a guidance paper on combatting proliferation and proliferation financing (see link).  The paper had been prepared with input from the Sanctions committee and builds on previous guidance and outreach provided by P&R (click here).  This most recent guidance aims to:-

  • raise awareness of proliferation and proliferation financing;
  • outline the legal obligations in the Bailiwick concerning proliferation and proliferation financing; and

provide practical guidance on good practices to identify, assess, manage and reduce the risks of proliferation and proliferation financing, and to emphasise that such practices involve more than screening databases against lists of individuals and entities subject to international sanctions.

The FIU is an active member of the Bailiwick of Guernsey's Sanctions Committee.  Click here for guidance on proliferation financing that has been published by the Policy and Resources Committee, the jurisdiction's competent authority for sanctions.

The FIU in conjunction with the Policy and Resources committee has created an e-learning workshop on Proliferation and Proliferation Financing Workshop.  Please click here to access the workshop.

 

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