Sanctions and Anti-Money Laundering Bill (HL Bill 69)

Sanctions and Anti-Money Laundering BillPage 10

(4) Sections 10 and 11 contain provision about criteria for designation under a
designation power.

10 Designation of a person by name under a designation power

(1) This section applies to regulations under section 1 which authorise an
5appropriate 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
person (see subsection (3)), and

(b) 10considers that it is appropriate for that person to be designated, having
regard to the purpose of the regulations as stated under section 1(3).

(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) 15is 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
20involved.

(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,
25make 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,
30and

(b) being “associated with” another person.

11 Designation of persons by description under a designation power

(1) This section applies to regulations under section 1 which authorise an
appropriate Minister (“the Minister”) to provide that persons of a specified
35description are designated persons.

(2) The regulations must contain provision which prohibits the Minister from
specifying such a description except where the Minister—

(a) has reasonable grounds to suspect—

(i) in a case where the specified description is members of a
40particular organisation, that that organisation is an involved
person, or

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

Sanctions and Anti-Money Laundering BillPage 11

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

(3) Subsections (3) to (6) of section 10 apply to regulations which contain provision
5mentioned in subsection (2) above.

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

12 Persons named by or under UN Security Council Resolutions

(1) This section applies where—

(a) 10the 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
Security Council Resolution (“the Resolution”), and

(b) for that provision of the regulations to achieve its purpose as regards
15that 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
the purposes of that provision.

(3) Provision under subsection (2) may be expressed in any way and may in
20particular refer to the Resolution, or any other instrument, as varied or
supplemented from time to time.

(4) In this section—

  • a “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
    25purposes 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.

Specified ships

13 “Specified ships”

(1) 30In each of section 6 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
purposes of the regulations or of any provisions of the regulations.

In this subsection “the regulations” means the regulations mentioned in section
356 or section 4(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.

(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
40ships by their International Maritime Organisation number.

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

Sanctions and Anti-Money Laundering BillPage 12

(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) 5has 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)
10unless 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.

15Contents of sanctions regulations: further provision

14 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
20regulations;

(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
25such 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
30category 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) 35provide 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;

(g) 40make 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) Where regulations provide for designated persons to be excluded persons for
45the purposes of section 8B of the Immigration Act 1971, the regulations may—

Sanctions and Anti-Money Laundering BillPage 13

(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) authorise an appropriate Minister specified in the regulations to direct
5that, 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
(4)(b), make any provision mentioned (in relation to directions) in subsection
10(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) the prevention or detection of serious crime in the United Kingdom or
15elsewhere.

In this subsection “act” includes an omission.

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

15 Information

(1) Regulations under section 1 may make provision—

(a) 20requiring 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
description to provide information, or produce documents, of a
25prescribed 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
paragraph (b) or (c), and about the exercise of any such powers of entry;

(e) 30authorising 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
be used;

(ii) 35about 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
a person designated by or under the regulations to be notified to prescribed
40persons or to be publicised.

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

(a) an appropriate Minister, or

(b) such other person as may be prescribed.

16 Enforcement

(1) 45In this section “regulations” means regulations under section 1.

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(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
5under regulations, including, in particular, prohibitions or
requirements imposed by—

(i) conditions of a licence or direction issued by virtue of section 14,
or

(ii) directions given by virtue of sections 5 and 6;

(c) 10for 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—

(a) provision creating offences and dealing with matters relating to those
offences, including defences and evidentiary matters, and

(b) 15provision as to the powers and duties of any person who is to enforce
the regulations.

(4) Regulations may not create an offence punishable with imprisonment for a
period exceeding—

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

(b) 20in 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) 25in relation to Northern Ireland, 6 months.

(5) 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.

(6) 30In subsection (5) a “relevant prohibition or requirement” means—

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

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

(ii) Part 1 of Schedule 1, or

(b) 35a prohibition or requirement imposed by a condition of a licence or
direction issued by virtue of section 14 in relation to a prohibition or
requirement mentioned in paragraph (a).

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

(a) created by virtue of this section, and

(b) 40specified 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.

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

(a) contains a prohibition or requirement imposed for a purpose
45mentioned in section 2(1) or (2), and

(b) is specified by the regulations,

Sanctions and Anti-Money Laundering BillPage 15

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
penalties).

17 Extra-territorial application

(1) 5Prohibitions or requirements may be imposed by or under regulations under
section 1 in relation to—

(a) conduct 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) 10In subsection (1) “United Kingdom person” means—

(a) a United Kingdom national, or

(b) a 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) 15a British citizen, a British overseas territories citizen, a British National
(Overseas) or a British Overseas citizen,

(b) a 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) 20Her 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
constituted under the law of any of the following named in the Order—

(a) any of the Channel Islands;

(b) the Isle of Man;

(c) 25any of the British overseas territories.

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

CHAPTER 2 Review by appropriate Minister

Revocation, variation and review of designations

18 30Power to vary or revoke designation made under regulations

(1) In this section and section 19—

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

  • “the Minister”, in relation to a relevant designation, means the
    35appropriate 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
respect of a relevant designation, the Minister must revoke the designation.

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

Sanctions and Anti-Money Laundering BillPage 16

(a) if the designation is of a named person, the conditions of the provision
included in the regulations under section 10(2),

(b) if the designation is of persons of a specified description, the conditions
of the provision included in the regulations under section 11(2).

19 5Right 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) request the Minister to revoke the designation.

(2) 10But 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
considered by the Minister.

(3) 15On 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
18(3)).

(4) In this section —

  • “the designated person” means the person named by the designation or,
    20where the designation is of a specified description of person, any
    person of that description;

  • “the Minister” has the meaning given by section 18(1);

  • “relevant designation” has the meaning given by section 18(1).

20 Periodic review of certain designations

(1) 25This 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
Minister under the power.

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

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

(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
18(3)).

(3) 35In this section a “qualifying designation” means a designation which
designates 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 2(1)(a), (b)(i) or (d)(i) (asset-freezing etc), or

(b) 40provides for designated persons to be excluded persons for the
purposes 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

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

21 Right of UN-named person to request review

(1) 5This 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 that the
United Kingdom has by virtue of a UN Security Council Resolution
(“the Resolution”),

(b) 10a 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
regulations by virtue of section 12 (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
15best endeavours to secure that the person’s name is removed from the relevant
UN list.

(3) But 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
20made 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.

(5) For the purposes of this section a person’s name is “removed from the relevant
25UN 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.

Revocation and review in relation to ships

22 Power to revoke specification of ship made under regulations

(1) 30In this section and section 23—

  • “a ship specification” means a specification of a ship made under a power
    contained in regulations under section 1 by virtue of section 13;

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

(2) 35A 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 13(6).

23 40Right 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.

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(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
or 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
5which 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 22(3)).

(4) In this section—

  • “the Minister”, and

  • 10“ship specification”,

have the meaning given by section 22(1).

24 Periodic review where ships are specified

(1) This section applies where—

(a) regulations under section 1 are in force which by virtue of section 13
15contain a power to specify a ship, and

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

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

(a) consider each specification of a ship which has effect under the
20regulations, 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 22(3)).

(3) 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
25made, 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.

25 UN-designated ship: right to request review

(1) This section applies where a provision of regulations under section 1 is made
30by virtue of section 6(6) or paragraph 15 of Schedule 1 in relation to ships
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
35the 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
40grounds 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.

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Review of regulations

26 Review by appropriate Minister of regulations under section 1

(1) Where any regulations under section 1 are made, the appropriate Minister who
made them must in each relevant period review whether the regulations are
5still appropriate for their purpose (as stated in them under section 1(3)).

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

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

(b) each period of one year that begins with the date of completion of a
10review under this section in respect of the regulations.

Procedure for requests and reviews

27 Procedure for requests and reviews

An appropriate Minister may by regulations make provision about the
procedure to be followed in connection with a request under section 19, 21, 23
15or 25 or a review under section 20, 24 or 26.

CHAPTER 3 Temporary powers in relation to EU sanctions lists

28 Temporary powers in relation to EU sanctions lists

(1) This section applies where—

(a) 20a provision of retained EU sanctions law relates to persons named in
any Annex, instrument or other document, or

(b) a 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
25document must not or should not be admitted to the United Kingdom
(see section 8B of the Immigration Act 1971).

(2) An 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) 30direct 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) direct that a person’s name is to be treated as removed from the list
with effect from a date specified in the direction.

(4) The giving of a direction under paragraph (a) or (b) of subsection (3) does not
35prevent 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
years 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
40retained EU law which corresponds to any provision that by virtue of any of