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

Sanctions and Anti-Money Laundering BillPage 30

(7) The requirements of subsection (5)(a) and (b) may be satisfied by consultation
that took place wholly or partly before the passing of this Act.

(8) Rules of court made by the Lord Chancellor under this section—

(a) must be laid before Parliament, and

(b) 5if not approved by a resolution of each House before the end of 28 days
beginning with the day on which they were made, cease to have effect
at the end of that period.

(9) In calculating a period of 28 days for the purposes of subsection (8), no account
is to be taken of any time during which Parliament is dissolved or prorogued
10or during which both Houses are adjourned for more than 4 days.

(10) If rules cease to have effect in accordance with subsection (8)(b)

(a) that does not affect anything done under the rules, and

(b) subsection (3) or (as the case may be) (4) applies as if the rules had not
been made.

(11) 15The following provisions do not apply to rules of court made by the Lord
Chancellor under this section—

(a) section 3(6) of the Civil Procedure Act 1997 (Parliamentary procedure
for civil procedure rules);

(b) section 56(1), (2) and (4) of the Judicature (Northern Ireland) Act 1978
20(statutory rules procedure).

(12) Section 4(1) of the Statutory Instruments Act 1946 (statutory instruments which
are required to be laid before Parliament) applies to any such rules applicable
to proceedings in Northern Ireland as it applies to a statutory instrument
which is required to be laid before Parliament after being made.

(13) 25Until section 85 of the Courts Act 2003 (process for making civil procedure
rules) comes into force, in subsection (11)(a) above “section 3(6)” is to be read
as “section 3(2)”.

(14) In this section—

  • “related rules of court” means rules of court that—

    (a)

    30are contained in the same instrument as the rules mentioned in
    subsection (3) or (as the case may be) (4), and

    (b)

    relate specifically to the same kind of proceedings as those
    rules,

  • “rules of court” means rules for regulating the practice and procedure to
    35be followed in the High Court or the Court of Appeal.

CHAPTER 5 Miscellaneous

37 Suspension of prohibitions and requirements

(1) An appropriate Minister may make regulations (“suspending regulations”)
providing that—

(a) 40while the suspending regulations have effect, or

(b) for a specified period,

a specified prohibition or requirement of regulations under section 1 is not to
have effect.

Sanctions and Anti-Money Laundering BillPage 31

(2) In this section “specified” means specified in the suspending regulations.

(3) A period specified under subsection (1)(b) may be expressed in any way,
including, for example, being expressed in a way such that—

(a) the period begins, or ends, when a specified condition is met, or

(b) 5the period begins when a specified condition is met and lasts for so long
as the suspending regulations or a specified provision of those
regulations has effect.

38 Guidance about regulations under section 1

(1) Where regulations are made under section 1, the appropriate Minister who
10made the regulations must issue guidance about any prohibitions and
requirements imposed by the regulations.

(2) The guidance may include guidance about—

(a) best practice for complying with the prohibitions and requirements;

(b) the enforcement of the prohibitions and requirements;

(c) 15circumstances where the prohibitions and requirements do not apply.

39 Protection for acts done for purposes of compliance

(1) This section applies to an act done in the reasonable belief that the act is in
compliance with—

(a) regulations under section 1, or

(b) 20directions given by virtue of section 6 or 7.

(2) A person is not liable to any civil proceedings to which that person would, in
the absence of this section, have been liable in respect of the act.

(3) In this section “act” includes an omission.

40 Revocation and amendment of regulations under section 1

(1) 25Section 1 includes a power, by further regulations under that section (“new
regulations”)—

(a) to revoke any regulations under that section, or

(b) to amend any regulations under that section where the condition in
subsection (2) below is met.

(2) 30The condition referred to in subsection (1)(b) is that the appropriate Minister
making the new regulations—

(a) considers that the regulations being amended will, as amended, be
sanctions regulations within the meaning given by section 1(5) that are
appropriate for the purpose stated in them under section 1(3), and

(b) 35if any purpose stated in the regulations being amended is a purpose
other than compliance with a UN obligation or other international
obligation, considers in respect of each such purpose—

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

(ii) 40that there are good reasons to pursue that purpose, and

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

Sanctions and Anti-Money Laundering BillPage 32

(3) In subsection (2)(b)(iii) “sanctions” means prohibitions and requirements of the
kinds imposed by the amended regulations for the purpose in question (or
both for that purpose and for another purpose of those regulations).

In this subsection “the amended regulations” means the regulations being
5amended as those regulations will be when amended.

(4) Except as permitted by subsection (5), the purpose stated under section 1(3) in
any regulations under section 1 may not be amended (but this does not prevent
regulations under that section from being revoked and replaced by regulations
with a purpose that is to any extent different from that of the revoked
10regulations).

(5) Where the purpose stated under section 1(3) in any regulations under section
1 is or includes compliance with a specified UN obligation or other
international obligation, regulations made by virtue of this section may amend
that purpose so as to—

(a) 15add a reference to a UN obligation, or other international obligation, to
which the United Kingdom is for the time being subject,

(b) substitute such a reference for another reference to a UN obligation or
other international obligation, or

(c) remove a reference to a UN obligation, or other international
20obligation, to which the United Kingdom is no longer subject.

(6) The requirements of section 1(1) and (3), section 2 and section 28 do not apply
in relation to regulations made by virtue of this section.

(7) In relation to section 1, this section has effect in place of section 14 of the
Interpretation Act 1978 (implied power to revoke and amend).

41 25Report where regulations for a purpose within section 1(2) are amended

(1) This section applies where—

(a) by virtue of section 40 regulations under section 1 are amended by
further regulations under section 1 (“new regulations”), and

(b) the regulations being amended state under section 1(3) a purpose other
30than compliance with a UN obligation or other international obligation.

(2) The appropriate Minister making the new regulations must at the required
time lay before Parliament a report which explains why that Minister is of the
opinion mentioned in section 40(2)(b).

(3) Nothing in subsection (2) requires the report to contain anything the disclosure
35of which may in the opinion of that Minister damage national security or
international relations.

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

(a) where the new regulations are contained in a statutory instrument
which is laid before Parliament after being made, the same time as the
40instrument is laid before Parliament;

(b) where a draft of a statutory instrument containing the new regulations
is laid before Parliament, the same time as the draft is laid.

42 Power to amend Part

1

so as to authorise additional sanctions

(1) 45An appropriate Minister may by regulations amend this Part so as to authorise
regulations under section 1 to impose prohibitions or requirements of kinds—

Sanctions and Anti-Money Laundering BillPage 33

(a) which are not for the time being authorised by Chapter

1

(ignoring
section 8), but

(b) 5which are kinds of prohibition or requirement that the United
Kingdom—

(i) has any UN obligation or other international obligation to
impose, or

(ii) has at any time had any UN obligation or other international
10obligation to impose.

(2) Without prejudice to the generality of subsection (1) or section 48(2),
regulations under this section—

(a) may amend the definition of “sanctions regulations” in section 1(5), and

(b) where they make any such amendment, may amend this Part in
15connection with that amendment.

(3) For the avoidance of doubt, regulations under this section may not add to or
amend the purposes mentioned in section 1(1) or amend section 1(2).

43 Power to make provision relating to certain appeals

(1) In this section an “immigration designation” means a designation of a person
20(whether by name or by description) which—

(a) is made under a designation power contained in regulations under
section 1, and

(b) designates the person for the purposes of any provision of the
regulations that provides for designated persons to be excluded
25persons for the purposes of section 8B of the Immigration Act 1971.

(2) In this section an “immigration claim” means any representation made by a
person to an appropriate Minister which—

(a) is made in connection with an immigration designation of that person,
and

(b) 30is within subsection (3).

(3) A representation is within this subsection if it is a representation by a person—

(a) that removal from the United Kingdom of that person would—

(i) breach the United Kingdom’s obligations under the Human
Rights Convention (“human rights obligations”), or

(ii) 35breach the United Kingdom’s obligations under the Refugee
Convention (“Refugee Convention obligations”),

(b) that requiring that person to leave the United Kingdom would breach
human rights obligations or breach Refugee Convention obligations, or

(c) that refusal of entry of that person into the United Kingdom would
40breach human rights obligations or breach Refugee Convention
obligations.

(4) The Secretary of State may by regulations make provision—

(a) about the effect of an immigration claim, or a prescribed description of
immigration claim, for the purposes of prescribed provisions of the
45Immigration Acts;

(b) for a decision of a prescribed description made by an appropriate
Minister under this Part, or such a decision so far as relating to
prescribed matters, to be treated as a decision from which a person may

Sanctions and Anti-Money Laundering BillPage 34

appeal under section 82(1) of the Nationality, Immigration and Asylum
Act 2002 (“the 2002 Act”);

(c) modifying Part 5 of the 2002 Act in relation to an appeal relating to such
a decision;

(d) 5preventing the court in proceedings on an application under section 34
above from considering prescribed issues where—

(i) an immigration claim has been made and the circumstances are
such as may be prescribed, or

(ii) a representation within subsection (3) is made in the
10proceedings and the circumstances are such as may be
prescribed;

(e) in relation to any case where under regulations under section 1 above a
person is an excluded person for the purposes of section 8B of the
Immigration Act 1971, disapplying any of subsections (1), (2) and (3) of
15that section until the end of a prescribed period or until the occurrence
of a prescribed event.

(5) In this section “the Human Rights Convention” and “the Refugee Convention”
have the same meaning as in section 8B of the Immigration Act 1971.

Part 2 20Anti-money laundering

44 Money laundering and terrorist financing etc

(1) An appropriate Minister may by regulations make provision for one or more
of the following purposes—

(a) enabling or facilitating the detection or investigation of money
25laundering, or preventing money laundering;

(b) enabling or facilitating the detection or investigation of terrorist
financing, or preventing terrorist financing;

(c) the implementation of Standards published by the Financial Action
Task Force from time to time relating to combating threats to the
30integrity of the international financial system.

(2) Schedule 2 makes further provision about regulations under this section.

(3) In this Part—

  • “money laundering” has the meaning given by section 340(11) of the
    Proceeds of Crime Act 2002;

  • 35“terrorist financing” means an act which constitutes an offence under—

    (a)

    section 15 (fund-raising), 16 (use and possession), 17 (funding
    arrangements), 18 (money laundering) or 63 (terrorist finance:
    jurisdiction) of the Terrorism Act 2000,

    (b)

    paragraph 7(2) or (3) of Schedule 3 (freezing orders: offences) to
    40the Anti-terrorism, Crime and Security Act 2001,

    (c)

    regulation 10 (contravention and circumvention of
    prohibitions) of the ISIL (Da’esh) and Al-Qaida (Asset-
    Freezing) Regulations 2011 (S.I. 2011/2742S.I. 2011/2742), or

    (d)

    section 11 (freezing of funds and economic resources), 12
    45(making funds or financial services available to designated
    person), 13 (making funds or financial services available for
    benefit of designated person), 14 (making economic resources

    Sanctions and Anti-Money Laundering BillPage 35

    available to designated person), 15 (making economic resources
    available for benefit of designated person) or 18 (circumventing
    prohibitions etc) of the Terrorist Asset-Freezing etc Act 2010.

45 Reports on progress towards register of beneficial owners of overseas entities

(1) 5The Secretary of State must, after the end of each reporting period, publish a
report explaining the progress that has been made during that period towards
putting in place a register of beneficial owners of overseas entities.

(2) For the purposes of this section, the following are reporting periods—

(a) the period of 12 months beginning with the day on which this section
10comes into force;

(b) the period of 12 months beginning with the day after the end of the
period mentioned in paragraph (a);

(c) the period of 12 months beginning with the day after the end of the
period mentioned in paragraph (b).

(3) 15The first and second reports under this section must include—

(a) a statement setting out the steps that are to be taken in the next
reporting period towards putting the register in place, and

(b) an assessment of when the register will be put in place.

(4) The third report under this section must include a statement setting out what
20further steps, if any, are to be taken towards putting the register in place.

(5) Where a report is published under this section the Secretary of State must lay
a copy of it before Parliament.

(6) For the purposes of this section “a register of beneficial owners of overseas
entities” means a public register—

(a) 25which 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.

Part 3 30General

Supplementary

46 Crown application

(1) Regulations under section 1 or 44 may make provision binding the Crown.

(2) The regulations may not provide for the Crown to be criminally liable.

(3) 35Nothing in this Act affects Her Majesty in Her private capacity (within the
meaning of the Crown Proceedings Act 1947).

47 Saving for prerogative powers

Nothing in this Act affects any power to exclude a person from the United
Kingdom by virtue of the prerogative of the Crown.

Sanctions and Anti-Money Laundering BillPage 36

48 Regulations: general

(1) Regulations under this Act may—

(a) make different provision for different purposes;

(b) confer functions on a prescribed person;

(c) 5confer jurisdiction on any court or tribunal.

(2) Regulations under this Act may make supplemental, incidental, consequential,
transitional or saving provision, including—

(a) in the case of regulations under section 1 or 44, provision amending,
repealing or revoking enactments (whenever passed or made), and

(b) 10in the case of regulations under section 1 which repeal or revoke an
enactment, provision for persons designated by or under that
enactment to be treated as persons designated under the regulations.

(3) Regulations under section 1 may amend the definition of “terrorist financing”
in section 44(3) so as to remove any reference to a provision of regulations that
15is revoked by regulations under section 1.

(4) Regulations under section 1 may amend the definition of “terrorist financing”
in section 44(3) 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
20section 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
25of a purpose stated in those regulations under section 1(3) would
further the prevention of terrorism in the United Kingdom or
elsewhere.

(5) Any power under this Act to make regulations is exercisable by statutory
instrument.

(6) 30In this section “enactment” includes—

(a) an enactment contained in any Order in Council, order, rules,
regulations or other instrument made under an Act,

(b) an enactment contained in, or in an instrument made under, an Act of
the Scottish Parliament,

(c) 35an enactment contained in, or in an instrument made under, a Measure
or Act of the National Assembly for Wales,

(d) an enactment contained in, or in an instrument made under, Northern
Ireland legislation, and

(e) any retained direct EU legislation.

(7) 40In subsection (2)(b) the reference to persons “designated” by or under a
repealed or revoked enactment includes, where the enactment is retained
direct EU legislation, persons listed in or under that enactment.

(8) This section does not apply to regulations under—

(a) section 50 (regulations under section 1: transitory provision), or

(b) 45section 57 (commencement).

Sanctions and Anti-Money Laundering BillPage 37

49 Parliamentary procedure for regulations

(1) Subsection (3) applies to a statutory instrument which—

(a) contains non-UN regulations under section 1 (see subsection (7)),

(b) does not contain any UN regulations under that section, and

(c) 5is not a statutory instrument mentioned in subsection (5)(a) to (d).

(2) Subsection (3) also applies to a statutory instrument which contains only
regulations under section 44 which make new provision about high-risk
countries (see subsection (9)).

(3) A statutory instrument to which this subsection applies—

(a) 10must be laid before Parliament after being made, and

(b) if not approved by a resolution of each House of Parliament before the
end of 28 days beginning with the day on which it is made, ceases to
have effect at the end of that period (but without that affecting anything
done under the regulations or the power to make new regulations).

(4) 15In calculating a period of 28 days for the purposes of subsection (3), no account
is to be taken of any time during which Parliament is dissolved or prorogued
or during which both Houses are adjourned for more than 4 days.

(5) A statutory instrument containing (whether alone or with other provision)—

(a) regulations under section 1 that repeal, revoke or amend any provision
20of primary legislation,

(b) regulations under section 42,

(c) regulations under section 43, or

(d) regulations under section 44,

may not be made unless a draft of the instrument has been laid before, and
25approved by a resolution of, each House of Parliament.

This subsection does not apply to a statutory instrument to which subsection
(3) applies by virtue of subsection (2).

(6) A statutory instrument containing regulations under this Act which is not—

(a) a statutory instrument to which subsection (3) applies,

(b) 30a statutory instrument mentioned in subsection (5)(a) to (d),

(c) a statutory instrument containing only regulations under section 50, or

(d) a statutory instrument containing only regulations under section 57,

is subject to annulment in pursuance of a resolution of either House of
Parliament.

(7) 35In subsection (1)UN regulations” means regulations under section 1 that—

(a) are regulations the stated purpose of which, or one of the stated
purposes of which, is compliance with a UN obligation, or

(b) amend regulations under section 1 the stated purpose of which, or one
of the stated purposes of which, is compliance with a UN obligation,

40and “non-UN regulations” means any regulations under section 1 which are
not UN regulations.

(8) For the purposes of subsection (7), a purpose is a “stated purpose” of
regulations under section 1 if it is stated under section 1(3) in the regulations.

(9) For the purposes of subsection (2), regulations under section 44 “make new
45provision about high-risk countries” if they add or remove an entry in a list of

Sanctions and Anti-Money Laundering BillPage 38

countries in relation to which enhanced customer due diligence measures are
required to be taken by virtue of—

(a) the Money Laundering Regulations 2017 (S.I. 2017/692S.I. 2017/692), or

(b)
regulations under section 44.

(10) 5In this section “primary legislation” means—

(a) an Act of Parliament,

(b) an Act of the Scottish Parliament,

(c) a Measure or Act of the National Assembly for Wales, or

(d) Northern Ireland legislation.

50 10Regulations under section 1: transitory provision

(1) If the appropriate Minister making a statutory instrument containing (whether
alone or with other provision) any regulations under section 1 considers it is
appropriate to do so in consequence of, or otherwise in connection with, the
withdrawal of the United Kingdom from the EU, the instrument may provide
15that it comes into force, or that any provision of regulations contained in the
instrument comes into force, on such day as that Minister may by regulations
under this section appoint.

(2) Any power of an appropriate Minister to appoint a day under this section
includes—

(a) 20a power to appoint different days for different purposes, and

(b) a power to appoint a time on a day if that Minister considers it
appropriate to do so (including a time that has effect by reference to the
coming into force of any other enactment).

(3) Any power under this section to make regulations is exercisable by statutory
25instrument.

(4) Subsection (5) applies in the case of a statutory instrument—

(a) which contains provision by virtue of subsection (1) of this section, and

(b) to which section 49(3) applies by virtue of subsection (1) of that section.

(5) Where this subsection applies—

(a) 30the reference in section 49(3)(b) to the day on which the statutory
instrument is made is to be read as a reference to the first day on which
any provision of the regulations contained in the instrument comes into
force for any purpose in accordance with regulations under this section,
and

(b) 35any reference in section 49(3) or (4) to 28 days is to be read as a reference
to 60 days.

(6) In this section “enactment” includes an enactment mentioned in any of
paragraphs (a) to (d) of section 48(6).

51 Duties to lay certain reports before Parliament: further provision

(1) 40In this section “a reporting provision” means section 2(4), 18(2) or 40(2) or
paragraph 21(2) of Schedule 2 (duties to lay before Parliament certain reports
relating to regulations).

Sanctions and Anti-Money Laundering BillPage 39

(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
5should 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,

10is 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) 15before the House of Lords at the time that instrument or draft is laid
before the House of Lords.

52 Consequential amendments and repeals

(1) Part 1 of the Terrorist Asset-Freezing etc Act 2010 is repealed, except for—

(a) paragraphs 1 to 5 of Schedule 1 to that Act (amendments of rules of
20court), and

(b) section 45(1) of that Act so far as it introduces that Schedule.

(2) Neither paragraphs 1 to 5 of Schedule 1 to that Act, nor the exception of those
paragraphs from the repeal made by subsection (1), affects any power to
amend or revoke any provision of—

(a) 25the Rules of the Court of Judicature (Northern Ireland) 1980 (S.R. 1980/
346), or

(b) the Civil Procedure Rules 1998 (S.I. 1998/3132S.I. 1998/3132)).

(3) Subsection (1) does not affect the power in section 54 of the Terrorist Asset-
Freezing etc Act 2010 to make provision by Order in Council extending to any
30of the Channel Islands, the Isle of Man or any British overseas territory.

(4) Part 1 of Schedule 3 contains amendments consequential on Parts

1

and

2

35 of
this Act.

(5) Part 2 of Schedule 3 contains repeals and other provision consequential on
subsection (1).

Definitions

53 40Meaning of “funds”, “economic resources” and “freeze”

(1) In this Act “funds” means financial assets and benefits of every kind, including
(but not limited to)—

(a) cash, cheques, claims on money, drafts, money orders and other
payment instruments;

(b) 45deposits, balances on accounts, debts and debt obligations;