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

Sanctions and Anti-Money Laundering BillPage 20

(b) decide in the case of each such designation whether to vary or revoke
the designation or to take no action with respect to it (but see section
20(3)).

(3) In this section a “qualifying designation” means a designation which
5designates a named person, or persons of a specified description, for the
purposes of any provision of the regulations that—

(a) imposes a prohibition or requirement for a purpose mentioned in
section 3(1)(a), (b)(i) or (d)(i) (asset-freezing etc), or

(b) provides for designated persons to be excluded persons for the
10purposes of section 8B of the Immigration Act 1971.

(4) For the purposes of this section each of the following is a “review period”—

(a) the period of 3 years beginning with the date when the regulations are
made, and

(b) each period of 3 years that begins with the date of completion of a
15review under this section of qualifying designations under the
regulations.

23 Right of UN-named person to request review

(1) This section applies where—

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

(b) a person is a designated person for the purposes of that provision, and

(c) the person is such a designated person under provision included in the
25regulations by virtue of section 13 (persons named by or under UN
Security Council Resolutions).

(2) The person may request the Secretary of State to use the Secretary of State’s
best endeavours to secure that the person’s name is removed from the relevant
UN list.

(3) 30But where a person has made a request under this section in respect of a
designation, that person may make no further request 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 considered by the Secretary of State.

(4) 35On a request under this section the Secretary of State must decide whether or
not to comply with the request.

(5) For the purposes of this section a person’s name is “removed from the relevant
UN list” if the person ceases to be named (by the Security Council or a
subsidiary organ of the Security Council) for the purposes of the Resolution so
40far as it provides for the taking of the measures in question.

Revocation and review in relation to ships

24 Power to revoke specification of ship made under regulations

(1) In this section and section 25—

    Sanctions and Anti-Money Laundering BillPage 21

  • “a ship specification” means a specification of a ship made under a power
    contained in regulations under section 1 by virtue of section 14;

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

(2) 5A ship specification may at any time be revoked by the Minister.

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

(4) In subsection (3) “the required conditions” means the conditions of the
provision included in the regulations under section 14(6).

25 10Right to request revocation of specification of ship

(1) At any time while a ship specification has effect, any person affected by it may
request the Minister to revoke the specification.

(2) But where a person has made a request under this section in respect of a
specification, no further request may be made under this section by that person
15or any other person in respect of that specification unless the grounds on which
the further request is made are or include that there is a significant matter
which has not previously been considered by the Minister.

(3) On a request under this section the Minister must decide whether to revoke the
specification or to take no action with respect to it (but see section 24(3)).

(4) 20In this section—

  • “the Minister”, and

  • “ship specification”,

have the meaning given by section 24(1).

26 Periodic review where ships are specified

(1) 25This section applies where—

(a) regulations under section 1 are in force which by virtue of section 14
contain a power to specify a ship, and

(b) any specifications have been made by an appropriate Minister under
that power.

(2) 30That appropriate Minister must in each review period—

(a) consider each specification of a ship which has effect under the
regulations, and

(b) decide in the case of each such specification whether to revoke it or to
take no action with respect to it (but see section 24(3)).

(3) 35For the purposes of this section each of the following is a “review period”—

(a) the period of 3 years beginning with the date when the regulations are
made, and

(b) each period of 3 years that begins with the date of completion of a
review under this section of specifications made under the regulations.

27 40UN-designated ship: right to request review

(1) This section applies where a provision of regulations under section 1 is made
by virtue of section 7(6) or paragraph 15 of Schedule 1 in relation to ships

Sanctions and Anti-Money Laundering BillPage 22

designated by the Security Council or a subsidiary organ of the Security
Council for any purposes of a UN Security Council Resolution (“the
Resolution”).

(2) Any person affected by that provision may request the Secretary of State to use
5the Secretary of State’s best endeavours to secure that a ship so designated
ceases to be designated for any purposes of the Resolution.

(3) But where a person has made a request under this section in respect of the
designation of a ship, no further request may be made under this section by
that person or any other person in respect of that designation unless the
10grounds on which the further request is made are or include that there is a
significant matter which has not previously been considered by the Secretary
of State.

(4) On a request under this section the Secretary of State must decide whether or
not to comply with the request.

15Review of regulations

28 Review by appropriate Minister of regulations under section 1

(1) Subsection (2) applies where any regulations under section 1 are in force.

(2) The appropriate Minister who made the regulations must in each relevant
period review whether the regulations are still appropriate for the purpose
20stated in them under section 1(3).

(3) If a purpose so stated in any regulations under section 1 is a purpose other than
compliance with a UN obligation or other international obligation, any review
of those regulations under this section must also include a consideration of—

(a) whether carrying out that purpose would meet any one or more of the
25conditions in paragraphs (a) to (h) of section 1(2),

(b) whether there are good reasons to pursue that purpose, and

(c) whether the imposition of sanctions is a reasonable course of action for
that purpose.

(4) In subsection (3)(c) “sanctions” means prohibitions and requirements of the
30kinds which are imposed by the regulations for the purpose in question (or
both for that purpose and for another purpose of the regulations).

(5) An appropriate Minister who has carried out a review under this section must
lay before Parliament a report containing—

(a) the conclusions of the review,

(b) 35the reasons for those conclusions, and

(c) a statement of any action that that Minister has taken or proposes to
take in consequence of the review.

(6) Nothing in subsection (5) requires the report to contain anything the disclosure
of which may, in the opinion of that Minister, damage national security or
40international relations.

(7) For the purposes of this section each of the following is a “relevant period” in
relation to regulations under section 1—

(a) the period of one year beginning with the date when the regulations are
made;

Sanctions and Anti-Money Laundering BillPage 23

(b) each period of one year that begins with the date when a report under
this section containing the conclusions of a review of the regulations is
laid before Parliament.

Procedure for requests and reviews

29 5Procedure for requests and reviews

(1) An appropriate Minister may by regulations make provision about the
procedure to be followed in connection with a request under section 21, 23, 25
or 27 or a review under section 22, 26 or 28.

(2) Regulations made under this section in relation to a request under section 21,
1023, 25 or 27 must require—

(a) the decision on any such request to be made as soon as reasonably
practicable after the receipt by the appropriate Minister dealing with
the request of the information needed for making the decision, and

(b) the person who made the request to be informed of the decision and the
15reasons for it as soon as reasonably practicable after the decision is
made.

(3) The regulations may authorise matters to be excluded from the reasons given
for the decision where the appropriate Minister who made the decision
considers that those matters should be excluded—

(a) 20in 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) in the interests of justice,

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

CHAPTER 3 25Temporary powers in relation to EU sanctions lists

30 Temporary powers in relation to EU sanctions lists

(1) This section applies where—

(a) a provision of retained EU sanctions law relates to persons named in
any Annex, instrument or other document, or

(b) 30a provision of an instrument made by the Council of the European
Union (however expressed) requires or recommends that persons
named, or of a description specified, in that instrument or any other
document must not or should not be admitted to the United Kingdom
(see section 8B of the Immigration Act 1971).

(2) 35An Annex, instrument or other document mentioned in subsection (1)(a) or (b)
is an “EU sanctions list” for the purposes of this section.

(3) An appropriate Minister may, in respect of any EU sanctions list—

(a) direct that a person’s name is to be treated as added to the list with
effect from a date specified in the direction, or

(b) 40direct that a person’s name is to be treated as removed from the list
with effect from a date specified in the direction.

Sanctions and Anti-Money Laundering BillPage 24

(4) The giving of a direction under paragraph (a) or (b) of subsection (3) does not
prevent the giving of any subsequent direction under either of those
paragraphs in respect of the same person.

(5) The power to give a direction under this section is not exercisable after two
5years beginning with the day on which this section comes into force.

(6) In this section “a provision of retained EU sanctions law” means a provision of
retained EU law which corresponds to any provision that by virtue of any of
sections 3 and 5 to 7 could be made by regulations under section 1 in relation
to designated persons.

(7) 10Section 31 makes further provision about directions under this section.

31 Directions under section 30: further provision

(1) An appropriate Minister may not under section 30 direct that a person’s name
is to be treated as added to an EU sanctions list except where that Minister—

(a) has reasonable grounds to suspect that the person is an involved person
15(see subsections (2) and (3) below), and

(b) considers that it is appropriate to give the direction, having regard to—

(i) the purpose of the EU provision which relates to persons in that
list (see subsections (4) and (5) below), and

(ii) the likely significant effects of the direction on the person to
20whom it relates (as they appear to that Minister to be on the
basis of the information that the Minister has).

(2) In subsection (1)(a) “an involved person” means a person who—

(a) is or has been involved in an activity which is specified, by regulations
made by an appropriate Minister, in relation to the list in question,

(b) 25is 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
30involved.

(3) An activity may not be specified by regulations under subsection (2)(a) unless
the appropriate Minister making the regulations considers that specifying the
activity is appropriate having regard to the purpose of the EU provision which
relates to persons in the list in question.

(4) 35In subsections (1) and (3) any reference to the “purpose” of any EU provision
is to such purpose, or purposes, as may be prescribed in relation to that
provision by regulations made by an appropriate Minister.

(5) Any purpose prescribed under subsection (4) must be a purpose that it is
reasonable to assume was the purpose (or one of the purposes) of the provision
40in question.

(6) Regulations under subsection (2)(a) which specify an activity may also make
provision as to the meaning, for the purposes of subsection (2) as it applies in
relation to the list in question, of a person’s—

(a) being involved in the specified activity;

(b) 45being “owned or controlled directly or indirectly by” another person;

(c) being “associated with” another person.

Sanctions and Anti-Money Laundering BillPage 25

(7) Regulations made by an appropriate Minister may make provision as to the
steps to be taken as regards notification and publicity where a direction is
given under section 30.

(8) Regulations made under subsection (7) must, in relation to any case where a
5direction under section 30 has been given, require the appropriate Minister
who gave the direction (“the Minister”) to take without delay such steps as are
reasonably practicable—

(a) to inform the person to whom it relates that the direction has been
given, and

(b) 10where the direction is under section 30(3)(a), to include with that
information a brief statement of the matters that the Minister knows, or
has reasonable grounds to suspect, in relation to that person which
have led the Minister to give the direction.

(9) The regulations may authorise the statement required by virtue of subsection
15(8)(b) to exclude matters 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) 20in the interests of justice,

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

(10) The regulations need not require a person to be notified of an intention to make
a direction under section 30.

(11) 25In this section—

  • EU sanctions list” has the same meaning as in section 30;

  • EU provision” means—

    (a)

    a provision of retained EU sanctions law (within the meaning of
    section 30), or

    (b)

    30a provision of an instrument made by the Council of the
    European Union.

32 Rights of person on EU sanctions list

(1) A person whose name is included, or treated as included, in an EU sanctions
list may make a request for a direction under section 30(3)(b) that the person’s
35name be treated as removed from the list.

This is subject to section 33 (UN-named persons).

(2) Any request under this section must be made—

(a) if the person is treated as included in the list by virtue of a direction
under section 30(3)(a), to the appropriate Minister who gave that
40direction;

(b) in any other case, to an appropriate Minister.

(3) Where a request under this section has been made for a direction in respect of
a person and a list, no further request may be made under this section in
respect of that person and that list unless the grounds on which the further
45request is made are or include that there is a significant matter which has not
previously been considered.

Sanctions and Anti-Money Laundering BillPage 26

(4) On a request under this section the appropriate Minister to whom the request
is made must decide whether or not to comply with the request.

(5) An appropriate Minister may by regulations make provision about the
procedure to be followed in connection with a request under this section or
5section 33.

(6) Regulations made under subsection (5) in relation to a request under this
section or section 33 must require—

(a) the decision on any such request to be made as soon as reasonably
practicable after the receipt by the appropriate Minister dealing with
10the request of the information needed for making the decision, and

(b) the person who made the request to be informed of the decision and the
reasons for it as soon as reasonably practicable after the decision is
made.

(7) The regulations may authorise matters to be excluded from the reasons given
15for the decision where the appropriate Minister who made the decision
considers that those matters 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) 20in the interests of justice,

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

(8) In this section “EU sanctions list” has the same meaning as in section 30.

33 Rights of UN-named person on EU sanctions list

(1) This section applies where—

(a) 25a person whose name is included or treated as included in an EU
sanctions list is a person in relation to whom, by virtue of a UN Security
Council Resolution (“the Resolution”), the United Kingdom has an
obligation to take particular measures, and

(b) that obligation is met by—

(i) 30provision mentioned in section 30(1)(a) which relates to that EU
sanctions list, or

(ii) the application to the person, by virtue of that EU sanctions list,
of any provision of section 8B of the Immigration Act 1971.

(2) The person—

(a) 35may not make a request under section 32 in respect of the EU sanctions
list concerned, but

(b) may at any relevant time make a request under this section for the
Secretary of State to use the Secretary of State’s best endeavours to
secure that the person’s name is removed from the relevant UN list.

(3) 40Where a person has made a request under this section by virtue of being on an
EU sanctions list, the person may make no further request under this section
by virtue of being on that list unless the grounds on which the further request
is made are or include that there is a significant matter which has not
previously been considered by the Secretary of State.

(4) 45On a request under this section the Secretary of State must decide whether or
not to comply with the request.

Sanctions and Anti-Money Laundering BillPage 27

(5) For the purposes of this section a person’s name is “removed from the relevant
UN list” if the person ceases to be 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.

(6) 5In subsection (2) a “relevant time” means a time when no provision of
regulations under section 1 has been made the purpose (or a purpose) of which
is compliance with the United Kingdom’s obligation to take the measures in
question.

(7) For the purposes of subsection (3) a person is “on” an EU sanctions list if the
10person’s name is included or treated as included in that list.

(8) In this section “EU sanctions list” has the same meaning as in section 30.

CHAPTER 4 Court reviews

34 Court review of decisions

(1) This section applies to—

(a) 15any decision under section 21(3) or 22(2) (decision, following a request
to or review by an appropriate Minister, on whether a designation of a
person made under a designation power should be varied or revoked);

(b) any decision under section 25(3) or 26(2) (decision, following a request
to or review by an appropriate Minister, on whether a ship specification
20should be revoked);

(c) any decision under section 23(4), 27(4), 32(4) or 33(4) not to comply with
a request;

(d) any other decision of an appropriate Minister in connection with
functions of that Minister under this Part or regulations under this Part,
25other than—

(i) a decision to make or vary, or not to revoke or vary, a
designation under a designation power where the designated
person has a right to make a request under section 21 or would
have but for section 21(2),

(ii) 30a decision to make a ship specification, or not to revoke a ship
specification, where a person has a right to make a request in
respect of that specification under section 25 or would have but
for section 25(2), or

(iii) a decision to give a direction under section 30(3)(a) where the
35person has a right to make a request under section 32 or would
have but for section 32(3) or 33.

(2) The appropriate person may apply to the High Court or, in Scotland, the Court
of Session, for the decision to be set aside.

(3) “The appropriate person” means—

(a) 40in relation to a decision within subsection (1)(a), the person named by
the designation or, where the designation is of persons of a specified
description, any person of that description;

(b) in relation to a decision within subsection (1)(b) or (d), any person
affected by the decision;

Sanctions and Anti-Money Laundering BillPage 28

(c) in relation to a decision within subsection (1)(c), the person who made
the request.

(4) In determining whether the decision should be set aside, the court must apply
the principles applicable on an application for judicial review.

(5) 5If the court decides that a decision should be set aside it may make any such
order, or give any such relief, as could in the absence of this section be made or
given in proceedings for judicial review of the decision; but this is subject to
section 35(1) to (4).

(6) In this section and section 35 “a ship specification” means a specification of a
10ship made under a power contained in regulations under section 1 by virtue of
section 14.

35 Court reviews: further provision

(1) Subsection (2) applies to the court in any of the following proceedings—

(a) any proceedings on an application under section 34 in respect of a
15decision mentioned in section 34(1)(a), (b) or (c) (“a relevant
application”);

(b) any proceedings on a claim arising from any matter to which a relevant
application relates;

(c) if—

(i) 20a designation made under a designation power contained in
regulations under section 1 is revoked without an application
under section 34 being made,

(ii) a ship specification (within the meaning of section 34) is
revoked without such an application being made, or

(iii) 25a corrective direction is given under section 30(3)(b) without
such an application being made,

any proceedings on a relevant claim.

(2) If the court would, in the absence of this subsection, have power to award
damages, the court may not award damages unless—

(a) 30the reason (or one of the reasons) that the court would have that power
is that it is satisfied that the tort of negligence was committed, or, in
Scotland, that there has been negligence, or

(b) the court is satisfied that the decision concerned was made in bad faith.

(3) In subsection (1)(c)

  • 35a “corrective direction” means a direction given in respect of a person and
    a list following the giving of a direction under section 30(3)(a) in respect
    of that person and list;

  • a “relevant claim” means a claim made by (as the case may be)—

    (a)

    a person designated by the designation,

    (b)

    40a person affected by the ship specification, or

    (c)

    the person in respect of whom the direction under section
    30(3)(a) was given,

    which arises from any matter relating to the designation, ship
    specification or direction.

(4) 45In subsection (2) “the decision concerned” means—

Sanctions and Anti-Money Laundering BillPage 29

(a) in relation to proceedings within subsection (1)(a) or (b) where the
relevant application was in respect of a decision mentioned in section
34(1)(a), the decision in respect of which the relevant application was
made or the designation to which that decision related;

(b) 5in relation to any other proceedings within subsection (1)(a) or (b), the
decision in respect of which the relevant application was made;

(c) in relation to proceedings within subsection (1)(c), the designation or
ship specification or the decision to give the direction under section
30(3)(a).

(5) 10A decision mentioned in sub-paragraph (i), (ii) or (iii) of section 34(1)(d) may
not be questioned by way of proceedings for judicial review (and nor may a
decision to which section 34 applies).

36 Rules of court

(1) Sections 66 to 68 of the Counter-Terrorism Act 2008 (supplementary provisions
15relating to rules of court and special advocates) apply in relation to
proceedings—

(a) on an application under section 34 (court review of decisions), or

(b) on a claim arising from any matter to which such an application relates,

as they apply in relation to financial restrictions proceedings within the
20meaning of section 65 of that Act, but with the following modification.

(2) That modification is that any reference in those sections to the Treasury is to be
read, in relation to proceedings on an application under section 34 of this Act
in respect of a decision of the Secretary of State or a claim arising from any
matter to which such an application relates, as a reference to the Secretary of
25State.

(3) The first time after the passing of this Act that rules of court are made in
exercise of the powers conferred by subsection (1) in relation to proceedings in
England and Wales—

(a) on an application under section 34, or

(b) 30on a claim arising from any matter to which such an application relates,

those rules (together with any related rules of court) may be made by the Lord
Chancellor instead of by the person who would otherwise make them.

(4) The first time after the passing of this Act that rules of court are made in
exercise of the powers conferred by subsection (1) in relation to proceedings in
35Northern Ireland—

(a) on an application under section 34, or

(b) on a claim arising from any matter to which such an application relates,

those rules (together with any related rules of court) may be made by the Lord
Chancellor instead of by the person who would otherwise make them.

(5) 40Before making rules of court under this section, the Lord Chancellor must
consult—

(a) in relation to rules applicable to proceedings in England and Wales, the
Lord Chief Justice of England and Wales;

(b) in relation to rules applicable to proceedings in Northern Ireland, the
45Lord Chief Justice of Northern Ireland.

(6) The Lord Chancellor is not required to undertake any other consultation before
making the rules.