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

Sanctions and Anti-Money Laundering BillPage 20

sections 2 and 4 to 6 could be made by regulations under section 1 in relation
to designated persons.

(7) Section 29 makes further provision about directions under this section.

29 Directions under section 28: further provision

(1) 5An appropriate Minister may not under section 28 direct that a person’s name
is to be treated as added to an EU sanctions list except where the appropriate
Minister—

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

(b) 10considers that it is appropriate to give the direction, having regard to
the purpose of the EU provision which relates to persons in that list (see
subsections (4) and (5) below).

(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
15made by an appropriate Minister, in relation to the list in question,

(b) is 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) 20is a member of, or associated with, a person who is or has been so
involved.

(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
25relates to persons in the list in question.

(4) In 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
30reasonable to assume was the purpose (or one of the purposes) of the provision
in 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) 35being “involved in” the specified activity;

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

(c) being “associated with” another person.

(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
40given under section 28.

(8) The regulations need not require a person to be notified of an intention to make
any such direction.

(9) In this section—

  • EU sanctions list” has the same meaning as in section 28;

  • 45EU provision” means—

    Sanctions and Anti-Money Laundering BillPage 21

    (a)

    a provision of retained EU sanctions law (within the meaning of
    section 28), or

    (b)

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

30 5Rights 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 28(3)(b) that the person’s
name be treated as removed from the list.

This is subject to section 31 (UN-named persons).

(2) 10Any 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 28(3)(a), to the appropriate Minister who gave that
direction;

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

(3) 15Where 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
request is made are or include that there is a significant matter which has not
previously been considered.

(4) 20On 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
section 31.

(6) 25In this section “EU sanctions list” has the same meaning as in section 28.

31 Rights of UN-named person on EU sanctions list

(1) This section applies where—

(a) a 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
30Council Resolution (“the Resolution”), the United Kingdom has an
obligation to take particular measures, and

(b) that obligation is met by—

(i) provision mentioned in section 28(1)(a) which relates to that EU
sanctions list, or

(ii) 35the 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) may not make a request under section 30 in respect of the EU sanctions
list concerned, but

(b) 40may 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) Where 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

Sanctions and Anti-Money Laundering BillPage 22

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) On a request under this section the Secretary of State must decide whether or
5not 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
far as it provides for the taking of the measures in question.

(6) 10In 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
15person’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 28.

CHAPTER 4 Court reviews

32 Court review of decisions

(1) 20This section applies to—

(a) any decision under section 19(3) or 20(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 23(3) or 24(2) (decision, following a request
25to or review by an appropriate Minister, on whether a ship specification
should be revoked);

(c) any decision under section 21(4), 25(4), 30(4) or 31(4) not to comply with
a request;

(d) any other decision of an appropriate Minister in connection with
30functions of that Minister under this Part or regulations under this Part,
other 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 19 or would
35have but for section 19(2),

(ii) a 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 23 or would have but
for section 23(2), or

(iii) 40a decision to give a direction under section 28(3)(a) where the
person has a right to make a request under section 30 or would
have but for section 30(3) or 31.

(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—

Sanctions and Anti-Money Laundering BillPage 23

(a) in 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
5affected by the decision;

(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) 10If 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 33(1) to (4).

(6) In this section and section 33 “a ship specification” means a specification of a
15ship made under a power contained in regulations under section 1 by virtue of
section 13.

33 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 32 in respect of a
20decision mentioned in section 32(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) 25a designation made under a designation power contained in
regulations under section 1 is revoked without an application
under section 32 being made,

(ii) a ship specification (within the meaning of section 32) is
revoked without such an application being made, or

(iii) 30a corrective direction is given under section 28(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) 35the 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)—

  • 40a “corrective direction” means a direction given in respect of a person and
    a list following the giving of a direction under section 28(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)

    45a person affected by the ship specification, or

    (c)

    the person in respect of whom the direction under section
    28(3)(a) was given,

    Sanctions and Anti-Money Laundering BillPage 24

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

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

(a) in relation to proceedings within subsection (1)(a) or (b) where the
5relevant application was in respect of a decision mentioned in section
32(1)(a), the decision in respect of which the relevant application was
made or the designation to which that decision related;

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

(c) 10in relation to proceedings within subsection (1)(c), the designation or
ship specification or the decision to give the direction under section
28(3)(a).

(5) A decision mentioned in sub-paragraph (i), (ii) or (iii) of section 32(1)(d) may
not be questioned by way of proceedings for judicial review (and nor may a
15decision to which section 32 applies).

34 Rules of court

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

(a) 20on an application under section 32 (reviews by the court), 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
meaning 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
25read, in relation to proceedings on an application under section 32 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
State.

(3) The first time after the passing of this Act that rules of court are made in
30exercise of the powers conferred by subsection (1) in relation to proceedings in
England and Wales—

(a) on an application under section 32, 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
35Chancellor 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
Northern Ireland—

(a) on an application under section 32, or

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

(a) 45in relation to rules applicable to proceedings in England and Wales, the
Lord Chief Justice of England and Wales;

Sanctions and Anti-Money Laundering BillPage 25

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

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

(7) 5The 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) if not approved by a resolution of each House before the end of 28 days
10beginning 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
or during which both Houses are adjourned for more than 4 days.

(10) 15If 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) The following provisions do not apply to rules of court made by the Lord
20Chancellor 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
(statutory rules procedure).

(12) 25Section 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) Until section 85 of the Courts Act 2003 (process for making civil procedure
30rules) 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)

    are contained in the same instrument as the rules mentioned in
    35subsection (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
    be followed in the High Court or the Court of Appeal.

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CHAPTER 5 Miscellaneous

35 Suspension of prohibitions and requirements

(1) An appropriate Minister may make regulations (“suspending regulations”)
5providing that—

(a) while 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.

(2) 10In 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) the period begins when a specified condition is met and lasts for so long
15as the suspending regulations or a specified provision of those
regulations has effect.

36 Guidance about regulations under section 1

(1) Where regulations are made under section 1, the appropriate Minister who
made the regulations must issue guidance about any prohibitions and
20requirements 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) circumstances where the prohibitions and requirements do not apply.

37 25Protection 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) directions given by virtue of section 5 or 6.

(2) 30A 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.

38 Revocation and amendment of regulations under section 1

(1) Section 1 includes a power, by further regulations under that section (“new
35regulations”)—

(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.

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(2) The condition referred to in subsection (1)(b) is that the appropriate Minister
making the new regulations considers that the regulations being amended will,
as amended, still be sanctions regulations (within the meaning given by section
1(4)) that are appropriate for the purpose stated in them under section 1(3).

(3) 5Accordingly the requirements of section 1(1) and (3) do not apply to
regulations made by virtue of this section.

(4) The purpose stated 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
10that of the revoked regulations).

(5) 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).

39 Power to amend Part 1 so as to authorise additional sanctions

(1) An appropriate Minister may by regulations amend this Part so as to authorise
15regulations under section 1 to impose prohibitions or requirements of kinds
additional to those for the time being authorised by Chapter 1.

(2) Without prejudice to the generality of subsection (1) or section 44(2),
regulations under this section—

(a) may amend the definition of “sanctions regulations” in section 1(4), and

(b) 20where they make any such amendment, may amend this Part in
connection with that amendment,

(but this is not to be taken to confer any power to add to or amend the purposes
mentioned in section 1(1) or to amend section 1(2)).

40 Power to make provision relating to certain appeals

(1) 25In this section an “immigration designation” means a designation of a person
(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
30regulations that provides for designated persons to be excluded
persons 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,
35and

(b) is 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
40Rights Convention (“human rights obligations”), or

(ii) breach 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

Sanctions and Anti-Money Laundering BillPage 28

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

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

(a) 5about the effect of an immigration claim, or a prescribed description of
immigration claim, for the purposes of prescribed provisions of the
Immigration 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
10prescribed matters, to be treated as a decision from which a person may
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) 15preventing the court in proceedings on an application under section 32
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
20proceedings 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
25that section until the end of a prescribed period or until the occurrence
of a prescribed event.

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

Part 2 30Anti-money laundering

41 Money laundering and terrorist financing etc

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

(a) the detection, investigation or prevention of money laundering;

(b) 35the detection, investigation or prevention of terrorist financing;

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

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

(3) 40In this section and in Schedule 2—

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

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

    (a)

    section 15 (fund-raising), 16 (use and possession), 17 (funding
    45arrangements), 18 (money laundering) or 63 (terrorist finance:
    jurisdiction) of the Terrorism Act 2000,

    Sanctions and Anti-Money Laundering BillPage 29

    (b)

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

    (c)

    regulation 10 (contravention and circumvention of
    prohibitions) of the ISIL (Da’esh) and Al-Qaida (Asset-
    5Freezing) Regulations 2011 (S.I. 2011/2742), or

    (d)

    section 11 (freezing of funds and economic resources), 12
    (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
    10available 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.

Part 3 General

15Supplementary

42 Crown application

(1) Regulations under section 1 or 41 may make provision binding the Crown.

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

(3) Nothing in this Act affects Her Majesty in Her private capacity (within the
20meaning of the Crown Proceedings Act 1947).

43 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.

44 Regulations: general

(1) 25Regulations under this Act may—

(a) make different provision for different purposes;

(b) confer functions on a prescribed person;

(c) confer jurisdiction on any court or tribunal.

(2) Regulations under this Act may make supplemental, incidental, consequential,
30transitional or saving provision, including—

(a) in the case of regulations under section 1 or 41, provision amending,
repealing or revoking enactments (whenever passed or made), and

(b) in the case of regulations under section 1 which repeal or revoke an
enactment, provision for persons designated by or under that
35enactment to be treated as persons designated under the regulations.

(3) Regulations under section 1 may amend section 41(3) so as to—

(a) add to the definition of “terrorist financing” a reference to any
provision of the regulations that creates an offence, or

(b) remove from that definition, in consequence of any revocation made by
40the regulations, any reference to a provision of regulations that is so
revoked.