Proliferation Financing (Prohibition) Law
The Proliferation Financing (Prohibition) Law (2017 Revision) (‘PFPL’) defines proliferation as ‘the development or production, or the facilitation of the development of production, of nuclear, radiological, biological, chemical weapons or systems for their delivery.’
Section 23A makes it an offence for anyone to provide funds and economic resources to fund unauthorised proliferation activities; or to enter into or become concerned in an arrangement which that person knows or suspects facilitates, by whatever means, the acquisition, retention, use or control of funds and economic resources to fund unauthorised proliferation activities.
The PFPL also states that persons who have funds in their possession that are owned or controlled by a designated person or derived from economic resources of a designated person must freeze these funds immediately and report to the FRA.
Failure to do so may result in an administrative monetary penalty imposed by the FRA or in criminal prosecution.
The FRA, in relation to any country, has been given powers to issue directions to any relevant persons operating in the financial sector, concerning the unauthorised financing of proliferation once they meet the conditions expressed in section 5 of the PFPL.