Sanctions and Anti-Money Laundering Bill (HC Bill 176)

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8 Other sanctions for purposes of UN obligations

(1) For the purposes of section 1(5)(f), regulations impose sanctions within this
section if they impose prohibitions or requirements, not otherwise authorised
by this Part, which the appropriate Minister making the regulations considers
5that it is appropriate to impose for the purposes of compliance with a UN
obligation.

(2) The reference in subsection (1) to prohibitions or requirements includes
prohibitions or requirements imposed on or otherwise relating to designated
persons (see section 9).

10Designation of persons

9 “Designated persons”

(1) Subsection (2) applies for the purposes of sections 3 and 4, Schedule 1 and
sections 6 to 8.

(2) In each of those provisions, “designated persons” means—

(a) 15persons designated under any power contained in the regulations that
authorises an appropriate Minister to designate persons for the
purposes of the regulations or of any provisions of the regulations, or

(b) persons who are designated persons under any provision included in
the regulations by virtue of section 13 (persons named by or under UN
20Security Council Resolutions).

(3) In subsection (2) “the regulations” means the regulations mentioned in section
3, 4, 5(1), 6, 7 or 8 (as the case may be).

(4) As regards designation of persons by virtue of subsection (2)(a), see sections 10
to 12.

(5) 25In this Act “person” includes (in addition to an individual and a body of
persons corporate or unincorporate) any organisation and any association or
combination of persons.

10 Designation powers: general

(1) In this Act a “designation power”, in relation to regulations under section 1,
30means a power (contained in the regulations by virtue of section 9(2)(a)) for an
appropriate Minister to designate persons for the purposes of the regulations
or of any provisions of the regulations.

(2) Regulations under section 1 which contain a designation power may make
provision about the way in which the power must or may be exercised,
35including provision authorising the appropriate Minister to whom the power
is granted—

(a) to designate a person by name;

(b) to provide that persons of a description specified by that Minister are
designated persons;

(c) 40to designate different persons for the purposes of different provisions
of the regulations.

(3) Regulations under section 1 which contain a designation power must provide
that where an appropriate Minister—

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(a) has made a designation under the power, or

(b) has varied or revoked a designation made under the power (see section
20),

that Minister must without delay take such steps as are reasonably practicable
5to inform the designated person of the designation, variation or revocation.

(4) The regulations may include provision, additional to that required by
subsection (3), as to steps to be taken as regards notification or publicity where
a designation has been made under the designation power or a designation
made under the power has been varied or revoked.

(5) 10The regulations need not require a person to be notified of an intention to
designate the person.

(6) Sections 11 and 12 contain provision about criteria for designation under a
designation power.

11 Designation of a person by name under a designation power

(1) 15This section applies to regulations under section 1 which authorise an
appropriate Minister (“the Minister”) to designate persons by name.

(2) The regulations must contain provision which prohibits the Minister from
designating a person by name except where the Minister—

(a) has reasonable grounds to suspect that that person is an involved
20person (see subsection (3)), and

(b) considers that the designation of that person is appropriate, having
regard to—

(i) the purpose of the regulations as stated under section 1(3), and

(ii) the likely significant effects of the designation on that person (as
25they appear to the Minister to be on the basis of the information
that the Minister has).

(3) The regulations must provide that “an involved person” means a person
who—

(a) is or has been involved in an activity specified in the regulations,

(b) 30is owned or controlled directly or indirectly by a person who is or has
been so involved,

(c) is acting on behalf of or at the direction of a person who is or has been
so involved, or

(d) is a member of, or associated with, a person who is or has been so
35involved.

(4) An activity may not be specified in the regulations by virtue of subsection (3)
unless the Minister considers that specifying the activity is appropriate having
regard to the purpose of the regulations as stated under section 1(3).

(5) The regulations may, in the case of any activity specified in the regulations,
40make provision as to the meaning for the purposes of the regulations of a
person’s being involved in that activity.

(6) The regulations may make provision, for the purposes of the regulations, as to
the meaning of a person’s—

(a) being “owned or controlled directly or indirectly by” another person,
45and

(b) being “associated with” another person.

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(7) The regulations must, in relation to any case where the Minister designates a
person by name, require the information given under the provision made
under section 10(3) to include a statement of reasons.

(8) In subsection (7) a “statement of reasons” means a brief statement of the
5matters that the Minister knows, or has reasonable grounds to suspect, in
relation to that person which have led the Minister to make the designation.

(9) The regulations may authorise matters to be excluded from that statement
where the Minister considers that they should be excluded—

(a) in the interests of national security or international relations,

(b) 10for reasons connected with the prevention or detection of serious crime
in the United Kingdom or elsewhere, or

(c) in the interests of justice,

(but the regulations may not authorise the Minister to provide no statement of
reasons).

12 15Designation of persons by description under a designation power

(1) This section applies to regulations under section 1 which grant a power for an
appropriate Minister (“the Minister”) to provide that persons of a specified
description are designated persons.

(2) The regulations must contain provision which prohibits the exercise of that
20power except where conditions A to C are met.

(3) Condition A is that the description of persons specified is such that a
reasonable person would know whether that person fell within it.

(4) Condition B is that, at the time the description is specified, it is not practicable
for the Minister to identify and designate by name all the persons falling within
25that description at that time.

(5) Condition C is that the Minister—

(a) has reasonable grounds to suspect—

(i) in a case where the specified description is members of a
particular organisation, that that organisation is an involved
30person, or

(ii) in the case of any other specified description, that any person
falling within that description would necessarily be an involved
person, and

(b) considers that the designation of persons of the specified description is
35appropriate, having regard to—

(i) the purpose of the regulations as stated under section 1(3), and

(ii) the likely significant effects of the designation (as they appear to
the Minister to be on the basis of the information that the
Minister has) on persons of that description.

(6) 40Subsections (3) to (6) of section 11 apply to regulations which contain provision
mentioned in subsection (2) above.

(7) The regulations must, in relation to any case where the Minister provides that
persons of a specified description are designated persons, require the
information given under the provision made under section 10(3) to include a
45statement of reasons.

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(8) In subsection (7) a “statement of reasons” means a brief statement of the
matters that the Minister knows, or has reasonable grounds to suspect, in
relation to persons of the specified description which have led the Minister to
make the provision designating persons of that description.

(9) 5The regulations may authorise matters to be excluded from that statement
where the Minister considers that they should be excluded—

(a) in the interests of national security or international relations,

(b) for reasons connected with the prevention or detection of serious crime
in the United Kingdom or elsewhere, or

(c) 10in the interests of justice,

(but the regulations may not authorise the Minister to provide no statement of
reasons).

(10) In this section “organisation” includes any body, association or combination of
persons.

13 15Persons named by or under UN Security Council Resolutions

(1) This section applies where—

(a) the purpose, or a purpose, of a provision of regulations under section 1
is compliance with an obligation to take particular measures in relation
to UN-named persons that the United Kingdom has by virtue of a UN
20Security Council Resolution (“the Resolution”), and

(b) for that provision of the regulations to achieve its purpose as regards
that obligation, the relevant UN-named persons need to be designated
persons for the purposes of that provision.

(2) The regulations must provide for those persons to be designated persons for
25the purposes of that provision.

(3) Provision under subsection (2) may be expressed in any way and may in
particular refer to the Resolution, or any other instrument, as varied or
supplemented from time to time.

(4) In this section—

  • 30a “UN-named person” means a person for the time being named (by the
    Security Council or a subsidiary organ of the Security Council) for the
    purposes of the Resolution so far as it provides for the taking of the
    measures in question, and

  • “the relevant UN-named persons” means each such person.

35Specified ships

14 “Specified ships”

(1) In each of section 7 and Schedule 1 “specified ships” means ships (within the
meaning of that provision) specified under any power contained in the
regulations that authorises an appropriate Minister to specify ships for the
40purposes of the regulations or of any provisions of the regulations.

In this subsection “the regulations” means the regulations mentioned in section
7 or section 5(1) (as the case may be).

(2) Subsections (3) to (8) apply to regulations under section 1 which authorise an
appropriate Minister (“the Minister”) to specify ships.

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(3) The regulations may make provision about the way in which the power must
or may be exercised, including provision authorising the Minister to specify
ships by their International Maritime Organisation number.

(4) The regulations may make provision as to the steps to be taken as regards
5notification and publicity where the power is exercised.

(5) The regulations need not require a person to be notified of an intention to
specify a ship.

(6) The regulations must contain provision which prohibits the Minister from
specifying a ship except where the Minister—

(a) 10has reasonable grounds to suspect that the ship is, has been, or is likely
to be, involved in an activity specified in the regulations, and

(b) considers that it is appropriate for that ship to be specified, having
regard to the purpose of the regulations as stated under section 1(3).

(7) An activity may not be specified in the regulations by virtue of subsection (6)(a)
15unless the Minister considers that specifying the activity is appropriate having
regard to the purpose of the regulations as stated under section 1(3).

(8) The regulations may, in the case of any activity specified in the regulations,
make provision as to the meaning for the purposes of the regulations of a ship’s
being involved in that activity.

20Contents of sanctions regulations: further provision

15 Exceptions and licences

(1) In this section “regulations” means regulations under section 1.

(2) Regulations may—

(a) create exceptions to any prohibition or requirement imposed by the
25regulations;

(b) provide for a prohibition imposed by the regulations not to apply to
anything done under the authority of a licence issued by an appropriate
Minister specified in the regulations;

(c) provide for a requirement imposed by the regulations to be subject to
30such exceptions as an appropriate Minister specified in the regulations
may direct.

(3) Regulations may, as respects any licences or directions provided for under
subsection (2)(b) or (c)

(a) provide that a licence or direction may be general or issued to a
35category of persons or a particular person;

(b) provide that a licence or direction must specify what is authorised by
the licence or excepted by the direction;

(c) make provision as to what may, or may not, be authorised by a licence
or excepted by a direction;

(d) 40provide that a licence or direction may contain conditions;

(e) provide that a licence or direction may not be issued unless criteria
specified by the regulations are met;

(f) make provision as to the duration of licences or directions, which may
enable them to be of indefinite duration or a defined duration;

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(g) make provision enabling licences or directions to be varied, revoked or
suspended;

(h) make provision as to notifications or publicity to be given in connection
with licences or directions.

(4) 5Where regulations provide for designated persons to be excluded persons for
the purposes of section 8B of the Immigration Act 1971, the regulations may—

(a) create exceptions from subsections (1) to (3) of that section in relation to
any person who under the regulations is an excluded person (a
“relevant person”);

(b) 10authorise an appropriate Minister specified in the regulations to direct
that, in relation to any relevant person specified, or of a description
specified, in the direction, subsections (1) to (3) of that section have
effect subject to exceptions specified in the direction.

(5) Regulations may, as respects any directions provided for under subsection
15(4)(b), make any provision mentioned (in relation to directions) in subsection
(3)(d) to (h).

(6) The exceptions that may be created under subsection (2)(a) include exceptions
in relation to acts done for the purposes of—

(a) national security;

(b) 20the prevention or detection of serious crime in the United Kingdom or
elsewhere.

In this subsection “act” includes an omission.

(7) Nothing in subsection (6) is to be taken to limit subsection (2).

16 Information

(1) 25Regulations under section 1 may make provision—

(a) requiring persons of a prescribed description—

(i) to inform an appropriate authority of prescribed matters;

(ii) to create and retain registers or records;

(b) authorising an appropriate authority to require persons of a prescribed
30description to provide information, or produce documents, of a
prescribed description;

(c) conferring powers to inspect and copy prescribed documents or
information;

(d) conferring powers of entry in relation to powers conferred by virtue of
35paragraph (b) or (c), and about the exercise of any such powers of entry;

(e) authorising or restricting the disclosure of information, including
provision—

(i) about the purposes for which information held in connection
with anything done under or by virtue of the regulations may
40be used;

(ii) about the persons to whom any such information may be
disclosed.

(2) Without prejudice to anything in subsection (1), regulations under section 1
may include provision authorising or requiring prescribed information about
45a person designated by or under the regulations to be notified to prescribed
persons or to be publicised.

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(3) In subsection (1) “appropriate authority” means—

(a) an appropriate Minister, or

(b) such other person as may be prescribed.

17 Enforcement

(1) 5In this section “regulations” means regulations under section 1.

(2) Regulations may make provision—

(a) for the enforcement of any prohibitions or requirements imposed by
regulations;

(b) for the enforcement of any prohibitions or requirements imposed
10under regulations, including, in particular, prohibitions or
requirements imposed by—

(i) conditions of a licence or direction issued by virtue of section 15,
or

(ii) directions given by virtue of sections 6 and 7;

(c) 15for preventing any prohibitions or requirements mentioned in
paragraph (a) or (b) from being circumvented.

(3) The provision that may be made by virtue of subsection (2) includes provision
as to the powers and duties of any person who is to enforce the regulations.

(4) Regulations—

(a) 20may create criminal offences for the purposes of the enforcement of
prohibitions or requirements mentioned in subsection (2)(a) or (b) or
for the purposes of preventing such prohibitions or requirements from
being circumvented, and

(b) may include provision dealing with matters relating to any offences
25created for such purposes by regulations (including provision that
creates defences).

(5) Regulations may not provide for an offence under regulations to be punishable
with imprisonment for a period exceeding—

(a) in the case of conviction on indictment, 10 years;

(b) 30in the case of summary conviction—

(i) in relation to England and Wales, 12 months or, in relation to
offences committed before section 154(1) of the Criminal Justice
Act 2003 comes into force, 6 months;

(ii) in relation to Scotland, 12 months;

(iii) 35in relation to Northern Ireland, 6 months.

(6) Regulations may include provision applying, for the purpose of the
enforcement of any relevant prohibition or requirement, any provision of the
Customs and Excise Management Act 1979 specified in the regulations, with or
without modifications.

(7) 40In subsection (6) a “relevant prohibition or requirement” means—

(a) a prohibition or requirement imposed by regulations for a purpose
mentioned in—

(i) section 3(1)(b) to (g) or (2), or

(ii) Part 1 of Schedule 1, or

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(b) a prohibition or requirement imposed by a condition of a licence or
direction issued by virtue of section 15 in relation to a prohibition or
requirement mentioned in paragraph (a).

(8) Regulations may provide that a particular offence which is—

(a) 5created by virtue of this section, and

(b) specified by the regulations,

is an offence to which Chapter 1 of Part 2 of the Serious Organised Crime and
Police Act 2005 (investigatory powers) applies.

(9) Regulations may provide that a particular provision of the regulations which—

(a) 10contains a prohibition or requirement imposed for a purpose
mentioned in section 3(1) or (2), and

(b) is specified by the regulations,

is to be regarded as not being financial sanctions legislation for the purposes of
Part 8 of the Policing and Crime Act 2017 (financial sanctions: monetary
15penalties).

18 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
20under 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) 25specifies 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) 30in 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
35those 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) 40for 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
45prohibition or requirement.

(4) The report must identify that other enactment.

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(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
5laid 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
10section 1 so as to create an offence as it applies to regulations which otherwise
create an offence.

19 Extra-territorial application

(1) Prohibitions or requirements may be imposed by or under regulations under
section 1 in relation to—

(a) 15conduct in the United Kingdom or in the territorial sea by any person;

(b) conduct elsewhere, but only if the conduct is by a United Kingdom
person.

(2) In subsection (1) “United Kingdom person” means—

(a) a United Kingdom national, or

(b) 20a body incorporated or constituted under the law of any part of the
United Kingdom.

(3) For this purpose a United Kingdom national is an individual who is—

(a) a British citizen, a British overseas territories citizen, a British National
(Overseas) or a British Overseas citizen,

(b) 25a person who under the British Nationality Act 1981 is a British subject,
or

(c) a British protected person within the meaning of that Act.

(4) Her Majesty may by Order in Council provide for this section to have effect as
if the list of persons in subsection (2) included a body incorporated or
30constituted under the law of any of the following named in the Order—

(a) any of the Channel Islands;

(b) the Isle of Man;

(c) any of the British overseas territories.

(5) In this section “conduct” includes acts and omissions.

CHAPTER 2 35Review by appropriate Minister

Revocation, variation and review of designations

20 Power to vary or revoke designation made under regulations

(1) In this section and section 21—

  • “a relevant designation” means a designation made under a designation
    40power contained in regulations under section 1;

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  • “the Minister”, in relation to a relevant designation, means the
    appropriate Minister who made that designation.

(2) A relevant designation may at any time be varied or revoked by the Minister.

(3) If at any time the Minister considers that the required conditions are not met in
5respect of a relevant designation, the Minister must revoke the designation.

(4) In subsection (3) “the required conditions” means—

(a) if the designation is of a named person, the conditions of the provision
included in the regulations under section 11(2) (reading that provision,
so far as made under section 11(2)(b), as if references to the designation
10were references to leaving the designation in place),

(b) if the designation is of persons of a specified description, the conditions
of the provision included in the regulations under section 12(2)
(reading that provision, so far as made under section 12(5)(b), as if
references to the designation were references to leaving the designation
15in place).

21 Right to request variation or revocation of designation

(1) At any time while a relevant designation has effect, the designated person
may—

(a) request the Minister to vary the designation, or

(b) 20request the Minister to revoke the designation.

(2) But where a request under this section has been made in respect of a
designation, no further request may be made under this section in respect of
that designation unless the grounds on which the further request is made are
or include that there is a significant matter which has not previously been
25considered by the Minister.

(3) On a request under this section the Minister must decide whether to vary or
revoke the designation or to take no action with respect to it (but see section
20(3)).

(4) In this section —

  • 30“the designated person” means the person named by the designation or,
    where the designation is of persons of a specified description, any
    person of that description;

  • “the Minister” has the meaning given by section 20(1);

  • “relevant designation” has the meaning given by section 20(1).

22 35Periodic review of certain designations

(1) This section applies where—

(a) regulations under section 1 which contain a designation power are in
force, and

(b) any qualifying designations have been made by an appropriate
40Minister under the power.

(2) That appropriate Minister must in each review period—

(a) consider each qualifying designation which has effect, and