Session 2017-19
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Consideration of Bill (Report Stage): 1 May 2018          

15

 

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

 
 

(c)    

require any person found on a ship boarded by virtue of this section to

 

provide information or produce documents;

 

(d)    

inspect and copy such documents or information;

 

(e)    

stop any person found on such a ship and search that person for—

 

(i)    

prohibited goods, or

 

(ii)    

any thing that might be used to cause physical injury or damage

 

to property or to endanger the safety of any ship;

 

(f)    

search a ship boarded by virtue of this section, or any thing found on such

 

a ship (including cargo), for prohibited goods;

 

(g)    

seize goods found on a ship, in any thing found on a ship, or on any

 

person found on a ship (but see subsection (8));

 

(h)    

for the purpose of exercising a power mentioned in paragraph (e), (f) or

 

(g), require a ship to be taken to, and remain in, a port or anchorage in the

 

United Kingdom or any other country willing to receive it.

 

(5)    

Regulations that confer a power mentioned in subsection (4)(a) to (f) or (h) must

 

provide that a person may not exercise the power in relation to a ship unless the

 

person has reasonable grounds to suspect that the ship is carrying prohibited

 

goods (and the regulations need not require the person to have reasonable grounds

 

to suspect that an offence is being or has been committed).

 

(6)    

Regulations that confer a power mentioned in subsection (4)(e)(i) or (f) must

 

provide that the power may be exercised only to the extent reasonably required

 

for the purpose of discovering prohibited goods.

 

(7)    

Regulations that confer a power mentioned in subsection (4)(e)(ii) on a person

 

(“the officer”) may permit the search of a person only where the officer has

 

reasonable grounds to believe that that person might use a thing in a way

 

mentioned in subsection (4)(e)(ii).

 

(8)    

Regulations that confer a power mentioned in subsection (4)(g) on a person—

 

(a)    

must provide for the power to be exercisable on a ship only where that

 

person is lawfully on the ship (whether in exercise of powers conferred

 

by virtue of this section or otherwise), and

 

(b)    

may permit the seizure only of—

 

(i)    

goods which that person has reasonable grounds to suspect are

 

prohibited goods, or

 

(ii)    

things within subsection (4)(e)(ii).

 

(9)    

Regulations that confer a power on a person by virtue of this section may

 

authorise that person to use reasonable force, if necessary, in the exercise of the

 

power.

 

(10)    

Regulations that confer a power by virtue of this section must provide that—

 

(a)    

the power may be exercised in relation to a British ship in foreign waters

 

only with the authority of the Secretary of State, and

 

(b)    

in relation to foreign waters other than the sea and other waters within the

 

seaward limits of the territorial sea adjacent to any relevant British

 

possession, the Secretary of State may give authority only if the State in

 

whose waters the power would be exercised consents to the exercise of

 

the power.

 

(11)    

Regulations that confer a power by virtue of this section must provide that—

 

(a)    

the power may be exercised in relation to a foreign ship only with the

 

authority of the Secretary of State, and

 

(b)    

the Secretary of State may give authority only if—

 

(i)    

the home state has requested the assistance of the United

 

Kingdom for the purpose of enforcing relevant prohibitions or

 

requirements,


 
 

Consideration of Bill (Report Stage): 1 May 2018          

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

 
 

(ii)    

the home state has authorised the United Kingdom to act for that

 

purpose, or

 

(iii)    

the United Nations Convention on the Law of the Sea 1982

 

(Cmnd 8941) or a UN Security Council Resolution otherwise

 

permits the exercise of the powers in relation to the ship.

 

(12)    

The reference in subsection (11) to the United Nations Convention on the Law of

 

the Sea includes a reference to any modifications of that Convention agreed after

 

the passing of this Act that have entered into force in relation to the United

 

Kingdom.

 

(13)    

In this section—

 

“arrangements” includes any agreement, understanding, scheme,

 

transaction or series of transactions (whether or not legally enforceable);

 

“British ship” means a ship falling within paragraph (a), (c), (d) or (e) of

 

section 7(12);

 

“foreign ship” means a ship which—

 

(a)    

is registered in a State other than the United Kingdom, or

 

(b)    

is not so registered but is entitled to fly the flag of a State other

 

than the United Kingdom;

 

“foreign waters” means the sea and other waters within the seaward limits

 

of the territorial sea adjacent to any relevant British possession or State

 

other than the United Kingdom;

 

“goods” includes technology within the meaning of Schedule 1 (see

 

paragraph 36 of that Schedule);

 

“home state”, in relation to a foreign ship, means—

 

(a)    

the State in which the ship is registered, or

 

(b)    

the State whose flag the ship is otherwise entitled to fly;

 

“international waters” means waters beyond the territorial sea of the United

 

Kingdom or of any other State or relevant British possession;

 

“prohibited goods” means goods which have been, or are being, dealt with

 

in contravention of a relevant prohibition or requirement (see subsection

 

(3));

 

“regulations” means regulations under section 1;

 

“relevant British possession” has the same meaning as in section 7 (see

 

subsection (14) of that section);

 

“ship” has the same meaning as in section 7 (see subsection (14) of that

 

section);

 

“ship without nationality” means a ship which—

 

(a)    

is not registered in, or otherwise entitled to fly the flag of, any

 

State or relevant British possession, or

 

(b)    

sails under the flags of two or more States or relevant British

 

possessions, or under the flags of a State and relevant British

 

possession, using them according to convenience.

 

(14)    

In the definition of “prohibited goods” in subsection (13), the reference to goods

 

dealt with in contravention of a relevant prohibition or requirement includes a

 

reference to a case where—

 

(a)    

arrangements relating to goods have been entered into that have not been

 

fully implemented, and

 

(b)    

if those arrangements were to be fully implemented, the goods would be

 

dealt with in contravention of that prohibition or requirement.”


 
 

Consideration of Bill (Report Stage): 1 May 2018          

17

 

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

 
 

Member’s explanatory statement

 

This new clause allows regulations under section 1 to provide for powers to stop and search a ship

 

outside the United Kingdom, and to seize goods or technology found on the ship. The powers are

 

exercisable for the purpose of enforcing prohibitions in sanctions regulations relating to the goods

 

or technology.

 


 

Sir Alan Duncan

 

NC16

 

To move the following Clause—

 

         

“Goods etc on ships: non-UK conduct

 

(1)    

Regulations may make provision conferring on prescribed persons powers

 

exercisable—

 

(a)    

in relation to—

 

(i)    

British ships in foreign waters or international waters,

 

(ii)    

ships without nationality in international waters, and

 

(iii)    

foreign ships in international waters,

 

(b)    

for the purpose of—

 

(i)    

investigating the suspected carriage of relevant goods on such

 

ships, or

 

(ii)    

preventing the continued carriage on such ships of goods

 

suspected to be relevant goods.

 

(2)    

The powers that may be conferred by virtue of this section include powers to—

 

(a)    

stop a ship;

 

(b)    

board a ship;

 

(c)    

require any person found on a ship boarded by virtue of this section to

 

provide information or produce documents;

 

(d)    

inspect and copy such documents or information;

 

(e)    

stop any person found on such a ship and search that person for—

 

(i)    

relevant goods, or

 

(ii)    

any thing that might be used to cause physical injury or damage

 

to property or to endanger the safety of any ship;

 

(f)    

search a ship boarded by virtue of this section, or any thing found on such

 

a ship (including cargo), for relevant goods;

 

(g)    

seize goods found on a ship, in any thing found on a ship, or on any

 

person found on a ship (but see subsection (6));

 

(h)    

for the purpose of exercising a power mentioned in paragraph (e), (f) or

 

(g), require a ship to be taken to, and remain in, a port or anchorage in the

 

United Kingdom or any other country willing to receive it.

 

(3)    

Regulations that confer a power mentioned in subsection (2)(a) to (f) or (h) must

 

provide that a person may not exercise the power in relation to a ship unless the

 

person has reasonable grounds to suspect that the ship is carrying relevant goods.

 

(4)    

Regulations that confer a power mentioned in subsection (2)(e)(i) or (f) must

 

provide that the power may be exercised only to the extent reasonably required

 

for the purpose of discovering relevant goods.

 

(5)    

Regulations that confer a power mentioned in subsection (2)(e)(ii) on a person

 

(“the officer”) may permit the search of a person only where the officer has


 
 

Consideration of Bill (Report Stage): 1 May 2018          

18

 

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

 
 

reasonable grounds to believe that that person might use a thing in a way

 

mentioned in subsection (2)(e)(ii).

 

(6)    

Regulations that confer a power mentioned in subsection (2)(g) on a person—

 

(a)    

must provide for the power to be exercisable on a ship only where that

 

person is lawfully on the ship (whether in exercise of powers conferred

 

by virtue of this section or otherwise), and

 

(b)    

may permit the seizure only of—

 

(i)    

goods which that person has reasonable grounds to suspect are

 

relevant goods, or

 

(ii)    

things within subsection (2)(e)(ii).

 

(7)    

Regulations that confer a power on a person by virtue of this section may

 

authorise that person to use reasonable force, if necessary, in the exercise of the

 

power.

 

(8)    

Regulations that confer a power by virtue of this section must provide that—

 

(a)    

the power may be exercised in relation to a British ship in foreign waters

 

only with the authority of the Secretary of State, and

 

(b)    

in relation to foreign waters other than the sea and other waters within the

 

seaward limits of the territorial sea adjacent to any relevant British

 

possession, the Secretary of State may give authority only if the State in

 

whose waters the power would be exercised consents to the exercise of

 

the power.

 

(9)    

Regulations that confer a power by virtue of this section must provide that—

 

(a)    

the power may be exercised in relation to a foreign ship only with the

 

authority of the Secretary of State, and

 

(b)    

the Secretary of State may give authority only if—

 

(i)    

the home state has requested the assistance of the United

 

Kingdom for a purpose mentioned in subsection (1)(b),

 

(ii)    

the home state has authorised the United Kingdom to act for such

 

a purpose, or

 

(iii)    

the United Nations Convention on the Law of the Sea 1982

 

(Cmnd 8941) or a UN Security Council Resolution otherwise

 

permits the exercise of the powers in relation to the ship.

 

(10)    

The reference in subsection (9) to the United Nations Convention on the Law of

 

the Sea includes a reference to any modifications of that Convention agreed after

 

the passing of this Act that have entered into force in relation to the United

 

Kingdom.

 

(11)    

In this section—

 

“regulations” means regulations under section 1;

 

“relevant goods” means goods in relation to which relevant non-UK

 

conduct is occurring or has occurred;

 

“relevant non-UK conduct” means conduct outside the United Kingdom by

 

a person other than a United Kingdom person that would constitute a

 

contravention of a relevant prohibition or requirement if the conduct had

 

been—

 

(a)    

in the United Kingdom, or

 

(b)    

by a United Kingdom person;

 

“relevant prohibition or requirement” has the same meaning as in section

 

(Enforcement: goods etc on ships) (see subsection (3) of that section);

 

“United Kingdom person” has the same meaning as in section 19 (see

 

subsection (2) of that section).

 

(12)    

In the definition of “relevant non-UK conduct” in subsection (11), the reference

 

to conduct that would constitute a contravention of a relevant prohibition or


 
 

Consideration of Bill (Report Stage): 1 May 2018          

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

 
 

requirement if the conduct had been in the United Kingdom or by a United

 

Kingdom person includes a reference to a case where—

 

(a)    

arrangements relating to goods have been entered into that have not been

 

fully implemented, and

 

(b)    

if those arrangements were to be fully implemented (and if the conduct

 

had been in the United Kingdom or by a United Kingdom person) the

 

goods would be dealt with in contravention of that prohibition or

 

requirement.

 

(13)    

In this section, the following expressions have the same meaning as in section

 

(Enforcement: goods etc on ships)—

 

“arrangements”,

 

“British ship”,

 

“foreign ship”,

 

“foreign waters”,

 

“goods”,

 

“home state”,

 

“international waters”,

 

“relevant British possession”,

 

“ship”, and

 

“ship without nationality”.”

 

 

Member’s explanatory statement

 

This new clause allows regulations under section 1 to provide for powers to stop and search a ship

 

outside the United Kingdom, and to seize goods or technology found on the ship. The powers are

 

exercisable for the purpose of seizing goods or technology where there has been conduct (or

 

suspected conduct) which would be a contravention of a prohibition in sanctions regulations

 

relating to the goods or technology, but for the fact that the conduct falls outside the territorial

 

scope mentioned in Clause 19 of the Bill.

 


 

Sir Alan Duncan

 

NC17

 

To move the following Clause—

 

         

“Procedure for dealing with goods etc seized from ships

 

(1)    

The Secretary of State may by regulations make provision about the procedure to

 

be followed in connection with goods seized under a power conferred by

 

regulations under section 1 by virtue of section (Enforcement: goods etc on ships)

 

or (Goods etc on ships: non-UK conduct).

 

(2)    

Regulations under this section relating to goods seized on suspicion of being

 

prohibited goods or relevant goods may include provision—

 

(a)    

requiring prescribed persons to be notified of the seizure of the goods;

 

(b)    

requiring the Secretary of State to determine whether the seized goods

 

were, at the time of their seizure, prohibited goods (where the goods were

 

seized under a power conferred by virtue of section (Enforcement: goods

 

etc on ships)) or relevant goods (where the goods were seized under a

 

power conferred by virtue of section (Goods etc on ships: non-UK

 

conduct));

 

(c)    

enabling the making of a claim by prescribed persons in relation to the

 

seized goods;


 
 

Consideration of Bill (Report Stage): 1 May 2018          

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

 
 

(d)    

about the determination by a prescribed court of any such claim;

 

(e)    

about the publicity to be given to any such determination by a court;

 

(f)    

for and about the return of seized goods to prescribed persons before or

 

after any such determination of a claim by a court;

 

(g)    

about the treatment of seized goods not so returned (including, in

 

prescribed circumstances, their destruction or sale);

 

(h)    

for and about the payment of compensation by the Secretary of State

 

following a determination by a court that the goods were not, at the time

 

of their seizure, prohibited goods (where the goods were seized under a

 

power conferred by virtue of section (Enforcement: goods etc on ships))

 

or relevant goods (where the goods were seized under a power conferred

 

by virtue of section (Goods etc on ships: non-UK conduct)).

 

(3)    

In this section—

 

“goods” has the same meaning as in sections (Enforcement: goods etc on

 

ships) and (Goods etc on ships: non-UK conduct) (see subsections (13)

 

of those sections);

 

“prohibited goods” has the same meaning as in section (Enforcement: goods

 

etc on ships) (see subsection (13) of that section);

 

“relevant goods” has the same meaning as in section (Goods etc on ships:

 

non-UK conduct) (see subsection (11) of that section).”

 

Member’s explanatory statement

 

This new clause provides a power for the Secretary of State to make regulations setting out how

 

goods or technology seized from ships under the new clauses which would be inserted by NC15

 

and NC16 must be dealt with.

 


 

Alison Thewliss

 

NC2

 

To move the following Clause—

 

         

“Companies House: due diligence and resources

 

(1)    

For the purposes of preventing money laundering, the Companies Act 2006 is

 

amended as follows.

 

(2)    

In section 1061 (the registrar’s functions) after subsection (1) insert—

 

“(1A)    

Functions directed by the Secretary of State under subsection (1)(b) must

 

include due diligence on a person wishing to register a company.

 

(1B)    

In this section “due diligence” has the same meaning as “customer due

 

diligence measures” in regulation 3 of the Money Laundering, Terrorist

 

Financing and Transfer of Funds (Information on the Payer) Regulations

 

2017 (S.I. 692/2017).”

 

(3)    

In section 1063 (Fees payable to the registrar), in subsection (2)(a) after

 

“Secretary of State” insert “including the duty of due diligence under section

 

1061(1A).”


 
 

Consideration of Bill (Report Stage): 1 May 2018          

21

 

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

 
 

Member’s explanatory statement

 

This new clause would amend the duties of Companies House to ensure that any person wishing

 

to register a company must be checked for due diligence by Companies House, in line with the

 

measures included in the Money Laundering Regulations 2017. It also ensures that the Secretary

 

of State can charge fees for due diligence checks to cover costs incurred by Companies House.

 


 

Helen Goodman

 

Anneliese Dodds

 

NC7

 

To move the following Clause—

 

         

“Money laundering exemptions

 

The Money Laundering, Terrorist Financing and Transfer of Funds (Information

 

on the Payer) Regulations 2017 (S.I. 2017/692) are exempted from amendment

 

or revocation under the Legislative and Regulatory Reform Act 2006 and under

 

the European Union (Withdrawal) Act 2018.”

 

Member’s explanatory statement

 

This new clause would prevent any amendment or repeal of the 2017 Money Laundering

 

Regulations via powers contained in the Legislative and Regulatory Reform Act 2006 and the

 

European Union (Withdrawal) Act 2018.

 


 

Helen Goodman

 

Anneliese Dodds

 

Frank Field

 

Dame Margaret Hodge

 

Catherine West

 

Lloyd Russell-Moyle

 

NC8

 

To move the following Clause—

 

         

“Public register of beneficial owners of overseas entities

 

(1)    

The Secretary of State must, in addition to the provisions made under paragraph

 

6 of Schedule 2, create a public register of beneficial ownership information for

 

companies and other legal entities registered outside of the UK that own or buy

 

UK property, or bid for UK government contracts.

 

(2)    

The register must be implemented within 12 months of the day on which this Act

 

is passed.

 

(3)    

For the purposes of this section “a register of beneficial ownership for companies

 

and other legal entities registered outside of the UK” means a public register—

 

(a)    

which contains information about overseas entities and persons with

 

significant control over them, and

 

(b)    

which in the opinion of the Secretary of State will assist in the prevention

 

of money laundering.”


 
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Revised 01 May 2018