Session 2017-19
Internet Publications
Other Bills before Parliament


 
 

Public Bill Committee: 27 February 2018                  

8

 

Sanctions and Anti-Money Laundering Bill-[Lords], continued

 
 

InterAgency Standing Committee’s Sanctions Assessment Handbook: Assessing

 

the Humanitarian Implications of Sanctions, published in 2004.”

 

Member’s explanatory statement

 

This amendment, which is consequential on Amendment 24, would require the Government to

 

carry out a humanitarian impact assessment when reviewing the regulations issued under section

 

1.

 

Sir Alan Duncan

 

5

 

Clause  27,  page  21,  line  5,  leave out “(d)” and insert “(h)”

 

Member’s explanatory statement

 

The provision amended here concerns a Minister’s review of regulations made under Clause 1

 

which state a purpose within Clause 1(2). The amendment expands the reference to Clause 1(2) so

 

that it covers paragraphs (e) to (h) of Clause 1(2) (as well as paragraphs (a) to (d)).

 

Helen Goodman

 

26

 

Clause  27,  page  21,  line  8,  at end insert—

 

“(d)    

the steps taken to promote the adoption of sanctions on a multilateral

 

basis;

 

(e)    

a summary of any representations made in relation to the exercise or

 

proposed exercise of the powers and the response of the appropriate

 

Minister to the same;

 

(f)    

a review from the Independent Reviewer, appointed pursuant to section

 

20 of the Terrorism Prevention and Investigation Measures Act 2011

 

(‘the 2011 Act’), of the operation of this Act in the reports by the

 

Independent Reviewer produced pursuant to the 2011 Act.”

 

Member’s explanatory statement

 

This amendment would require the review of regulations to include consideration of the steps taken

 

to promote the adoption of sanctions, a summary of the representations made in relation to powers

 

under this Act and an independent review of the operation of this Act.

 

Helen Goodman

 

36

 

Clause  27,  page  21,  line  17,  at end insert—

 

“(5A)    

The Appropriate Minister who made the regulations must in each quarterly period

 

lay before Parliament a report for each sanctions regime and regulation

 

containing—

 

(a)    

the aggregate value of funds and other assets frozen;

 

(b)    

the number of suspected breaches and the aggregate value of such

 

breaches; and

 

(c)    

actions taken on suspected breaches.”

 

Member’s explanatory statement

 

This amendment would require the Government to report to Parliament on a quarterly basis about

 

the impact of sanctions regimes, including the number and value of suspected breaches of those

 

sanctions.

 



 
 

Public Bill Committee: 27 February 2018                  

9

 

Sanctions and Anti-Money Laundering Bill-[Lords], continued

 
 

Helen Goodman

 

28

 

Clause  37,  page  29,  line  39,  at end insert—

 

“(d)    

reporting obligations;

 

(e)    

licensing requirement provisions.

 

(3)    

Where civilian payments and humanitarian activity are exempt from any

 

prohibitions and requirements imposed by the regulations, the appropriate

 

Minister must issue guidance.

 

(4)    

The guidance under subsection (3) must include—

 

(a)    

best practice for complying with the processing of civilian and

 

humanitarian activities to reduce the risk of funds benefiting designated

 

individuals, entities or organisations;

 

(b)    

mechanisms to limit the impact of prohibitions and requirements on a

 

permissible civilian and humanitarian activity;

 

(c)    

circumstances where the prohibitions and requirements may be relevant

 

in the context of the otherwise permissible delivery of a humanitarian

 

activity; and

 

(d)    

options setting out effective banking and payment corridors for the

 

processing of payments in support of a civilian and humanitarian activity

 

which is not subject to any prohibitions or requirements.”

 

Member’s explanatory statement

 

This amendment would require that the guidance issued about regulations under section 1 includes

 

guidance on reporting obligations and licensing requirements. It would also require the

 

Government to issue guidance on civilian payments and humanitarian activity exempt from

 

prohibitions and requirements imposed by regulations.

 

Helen Goodman

 

27

 

Clause  37,  page  29,  line  39,  at end insert—

 

“(3)    

Where regulations under section 1 make provision as to the meaning of any

 

reference in the regulations to a person “owned” or “controlled” by another

 

person pursuant to section 50(3), the appropriate Minister must issue guidance.”

 

Member’s explanatory statement

 

This amendment would require the Government to issue guidance setting out the meaning of a

 

person “owned” or “controlled” by another person when regulations are issued to make provision

 

for this purpose under section 50(3).

 


 

Sir Alan Duncan

 

6

 

Clause  39,  page  30,  line  24,  leave out “(d)” and insert “(h)”

 

Member’s explanatory statement

 

The provision amended here is a condition which applies to the power to amend regulations made

 

under Clause 1 which state a purpose within Clause 1(2). The amendment expands the reference

 

to Clause 1(2) so that it covers paragraphs (e) to (h) of Clause 1(2) (as well as paragraphs (a) to

 

(d)).

 



 
 

Public Bill Committee: 27 February 2018                  

10

 

Sanctions and Anti-Money Laundering Bill-[Lords], continued

 
 

Anneliese Dodds

 

Helen Goodman

 

38

 

Parliamentary Star    

Clause  43,  page  33,  line  12,  at end insert—

 

“(1A)    

Provision made under subsection (1)(a) may in particular include provision for

 

enabling or facilitating the detection or investigation of money laundering, or

 

preventing money laundering, through limited partnerships registered in

 

Scotland.”

 

Member’s explanatory statement

 

This amendment would ensure that regulations under this section made in relation to money

 

laundering particularly applied to money laundering through limited partnerships in Scotland.

 

Sir Alan Duncan

 

7

 

Clause  43,  page  33,  line  13,  leave out subsection (2)

 

Member’s explanatory statement

 

This amendment removes the provision that prevents contraventions of regulations under Clause

 

43 (money laundering and terrorist financing etc) from being enforceable by criminal

 

proceedings.

 


 

Sir Alan Duncan

 

10

 

Schedule  2,  page  53,  line  32,  leave out paragraph 15 and insert—

 

“15      

Make provision—

 

(a)    

creating criminal offences for the purposes of the enforcement of

 

requirements imposed by or under regulations under section 43, and

 

(b)    

dealing with matters relating to any offences created for such purposes

 

by regulations under section 43,

 

            

but see paragraphs 18 and 19.”

 

Member’s explanatory statement

 

This amendment, read with Amendment 12, makes clear that any offences included in regulations

 

under Clause 43 must be for the purposes of enforcing requirements imposed by or under

 

regulations under Clause 43 or (while they remain in force) the Money Laundering Regulations

 

2017.

 

Sir Alan Duncan

 

11

 

Schedule  2,  page  54,  line  11,  at end insert—

 

“20A (1)  

In this paragraph “relevant regulations” means regulations under section 43

 

which create any offence for the purposes of the enforcement of any

 

requirements imposed by or under regulations under section 43.

 

      (2)  

The appropriate Minister making any relevant regulations (“the Minister”)

 

must at the required time lay before Parliament a report which—

 

(a)    

specifies the offences created by the regulations, indicating the

 

requirements to which those offences relate,

 

(b)    

states that the Minister considers that there are good reasons for those

 

requirements to be enforceable by criminal proceedings and explains

 

why the Minister is of that opinion, and


 
 

Public Bill Committee: 27 February 2018                  

11

 

Sanctions and Anti-Money Laundering Bill-[Lords], continued

 
 

(c)    

in the case of any of those offences which are punishable with

 

imprisonment—

 

(i)    

states the maximum terms of imprisonment that apply to those

 

offences,

 

(ii)    

states that the Minister considers that there are good reasons

 

for those maximum terms, and

 

(iii)    

explains why the Minister is of that opinion.

 

      (3)  

Sub-paragraph (4) applies where an offence created by the regulations relates

 

to particular requirements and the Minister considers that a good reason—

 

(a)    

for those requirements to be enforceable by criminal proceedings, or

 

(b)    

for a particular maximum term of imprisonment to apply to that

 

offence,

 

            

is consistency with another enactment relating to the enforcement of similar

 

requirements.

 

      (4)  

The report must identify that other enactment.

 

      (5)  

In sub-paragraph (3) “another enactment” means any provision of or made

 

under an Act, other than a provision of the regulations to which the report

 

relates.

 

      (6)  

In sub-paragraph (2) “the required time” means the same time as the draft of

 

the statutory instrument containing the regulations is laid before Parliament.

 

      (7)  

This paragraph applies to regulations which amend other regulations under

 

section 43 so as to create an offence as it applies to regulations which otherwise

 

create an offence.”

 

Member’s explanatory statement

 

This amendment requires that where regulations under Clause 43 are made which include

 

offences, a report specifying the offences and giving reasons for any terms of imprisonment that

 

apply to them must be laid before Parliament.

 

Sir Alan Duncan

 

12

 

Schedule  2,  page  54,  line  39,  at end insert—

 

    “( )  

In paragraph 15 (offences), any reference to regulations under section 43

 

includes the Money Laundering Regulations 2017.

 

      ( )  

In paragraph 20A (report in respect of offences)—

 

(a)    

the reference in sub-paragraph (1) to requirements imposed by or

 

under regulations under section 43 includes requirements imposed by

 

or under the Money Laundering Regulations 2017, and

 

(b)    

the reference in sub-paragraph (7) to other regulations under section

 

43 includes the Money Laundering Regulations 2017.”

 

Member’s explanatory statement

 

This amendment has the effect that, while the Money Laundering Regulations 2017 remain in

 

force, offences may be created by regulations under Clause 43 for the purposes of enforcing

 

requirements in the 2017 regulations.

 



 
 

Public Bill Committee: 27 February 2018                  

12

 

Sanctions and Anti-Money Laundering Bill-[Lords], continued

 
 

Sir Alan Duncan

 

8

 

Clause  47,  page  34,  line  38,  leave out subsection (3) and insert—

 

“(3)    

Regulations under section 1 may amend the definition of “terrorist financing” in

 

section 43(4) so as to remove any reference to a provision of regulations that is

 

revoked by regulations under section 1.

 

(3A)    

Regulations under section 1 may amend the definition of “terrorist financing” in

 

section 43(4) so as to add a reference to a provision of regulations under section

 

1 that contains an offence, but only if—

 

(a)    

each purpose of the regulations containing the offence, as stated under

 

section 1(3), is compliance with a UN obligation or other international

 

obligation, or

 

(b)    

paragraph (a) does not apply but the report under section 2 in respect of

 

the regulations containing the offence indicates that, in the opinion of the

 

appropriate Minister making those regulations, the carrying out of a

 

purpose stated in those regulations under section 1(3) would further the

 

prevention of terrorism in the United Kingdom or elsewhere.”

 

Member’s explanatory statement

 

This amendment provides that regulations under Clause 1 may amend the definition of “terrorist

 

financing” in the Bill to add a reference to an offence only where the purpose of the regulations

 

containing the offence is compliance with a UN or other international obligation or a purpose

 

related to the prevention of terrorism.

 


 

Alison Thewliss

 

37

 

Clause  48,  page  36,  line  5,  

 

“(5A)    

A statutory instrument containing regulations under section 1 that repeals,

 

revokes or amends—

 

(a)    

an Act of the Scottish Parliament,

 

(b)    

a Measure or Act of the National Assembly for Wales, or

 

(c)    

Northern Ireland legislation,

 

    

must receive the consent of the Scottish Parliament, the National Assembly for

 

Wales and the Northern Ireland Assembly, respectively.”

 

Member’s explanatory statement

 

This amendment would require the UK Government to obtain the consent of the devolved

 

administrations before repealing, revoking or amending devolved legislation using a statutory

 

instrument containing regulations under section 1.

 


 

Sir Alan Duncan

 

9

 

Clause  56,  page  42,  line  3,  leave out subsection (2)

 

Member’s explanatory statement

 

This amendment removes the privilege amendment inserted by the Lords.

 



 
 

Public Bill Committee: 27 February 2018                  

13

 

Sanctions and Anti-Money Laundering Bill-[Lords], continued

 
 

Sir Alan Duncan

 

NC3

 

To move the following Clause—

 

         

“Report in respect of offences in regulations

 

(1)    

In this section “relevant regulations” means regulations under section 1 which

 

create any offence for the purposes of—

 

(a)    

the enforcement of any prohibitions or requirements imposed by or under

 

regulations under section 1, or

 

(b)    

preventing any such prohibitions or requirements from being

 

circumvented.

 

(2)    

The appropriate Minister making any relevant regulations (“the Minister”) must

 

at the required time lay before Parliament a report which—

 

(a)    

specifies the offences created by the regulations, indicating the

 

prohibitions or requirements to which those offences relate,

 

(b)    

states that the Minister considers that there are good reasons for those

 

prohibitions or requirements to be enforceable by criminal proceedings

 

and explains why the Minister is of that opinion, and

 

(c)    

in the case of any of those offences which are punishable with

 

imprisonment—

 

(i)    

states the maximum terms of imprisonment that apply to those

 

offences,

 

(ii)    

states that the Minister considers that there are good reasons for

 

those maximum terms, and

 

(iii)    

explains why the Minister is of that opinion.

 

(3)    

Subsection (4) applies where an offence created by the regulations relates to a

 

particular prohibition or requirement and the Minister considers that a good

 

reason—

 

(a)    

for that prohibition or requirement to be enforceable by criminal

 

proceedings, or

 

(b)    

for a particular maximum term of imprisonment to apply to that offence,

 

    

is consistency with another enactment relating to the enforcement of a similar

 

prohibition or requirement.

 

(4)    

The report must identify that other enactment.

 

(5)    

In subsection (3) “another enactment” means any provision of or made under an

 

Act, other than a provision of the regulations to which the report relates.

 

(6)    

In subsection (2) “the required time” means—

 

(a)    

in the case of regulations contained in a statutory instrument which is laid

 

before Parliament after being made, the same time as the instrument is

 

laid before Parliament;

 

(b)    

in the case of regulations contained in a statutory instrument a draft of

 

which is laid before Parliament, the same time as the draft is laid.

 

(7)    

This section applies to regulations which amend other regulations under section

 

1 so as to create an offence as it applies to regulations which otherwise create an

 

offence.”

 

Member’s explanatory statement

 

This new clause requires that where regulations under Clause 1 are made which include offences,

 

a report specifying the offences and giving reasons for any terms of imprisonment that apply to

 

them must be laid before Parliament.

 



 
 

Public Bill Committee: 27 February 2018                  

14

 

Sanctions and Anti-Money Laundering Bill-[Lords], continued

 
 

Sir Alan Duncan

 

NC4

 

To move the following Clause—

 

         

“Duties to lay certain reports before Parliament: further provision

 

(1)    

In this section “a reporting provision” means section 2(4), (Report in respect of

 

offences in regulations)(2) or 40(2) or paragraph 20A(2) of Schedule 2 (duties to

 

lay before Parliament certain reports relating to regulations).

 

(2)    

Where more than one reporting provision applies in relation to particular

 

regulations under section 1, the reports to which those provisions relate may be

 

contained in a single document.

 

(3)    

If a reporting provision is not complied with, the appropriate Minister who should

 

have complied with that provision must publish a written statement explaining

 

why that Minister failed to comply with it.

 

(4)    

Subsection (5) applies where a reporting provision applies and—

 

(a)    

a statutory instrument containing the regulations concerned, or

 

(b)    

a draft of such an instrument,

 

    

is laid before the House of Commons and House of Lords on different days.

 

(5)    

Where this subsection applies, the reporting provision in question is to be read as

 

requiring the laying of a copy of the report to which that provision relates—

 

(a)    

before the House of Commons at the time the instrument or draft

 

mentioned in subsection (4) is laid before the House of Commons, and

 

(b)    

before the House of Lords at the time that instrument or draft is laid

 

before the House of Lords.”

 

Member’s explanatory statement

 

This new clause enables certain reports relating to regulations to be combined in one document,

 

requires a written statement to be made by the Minister if certain reporting requirements are not

 

complied with, and clarifies how those requirements apply.

 


 

Helen Goodman

 

Anneliese Dodds

 

NC1

 

To move the following Clause—

 

         

“Public registers of beneficial ownership of companies in the British overseas

 

territories

 

(1)    

For the purpose of preventing money laundering, the Secretary of State must

 

provide all reasonable assistance to the governments of—

 

(a)    

Anguilla;

 

(b)    

Bermuda;

 

(c)    

the British Virgin Islands;

 

(d)    

the Cayman Islands;

 

(e)    

Montserrat; and

 

(f)    

the Turks and Caicos Islands,

 

    

to enable each of those governments to establish a publicly accessible register of

 

the beneficial ownership of companies registered in that government’s

 

jurisdiction.


 
PreviousBack to StartNext
 

Revised 27 February 2018