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

Sanctions and Anti-Money Laundering BillPage 40

(f) the import of goods, or goods of a prescribed description, for the
benefit of a prescribed country,

(g) the movement of goods of a prescribed description to, or for the
benefit of, persons as mentioned in paragraph 4(a),

(h) 5the movement of goods of a prescribed description to, or for the
benefit of, a prescribed country,

(i) the movement of goods of a prescribed description from a prescribed
country, or which originate in a prescribed country,

(j) the movement of goods of a prescribed description in specified ships,

(k) 10the transfer of technology of a prescribed description to, or for the
benefit of, persons as mentioned in sub-paragraph (a), (c) or (e) of
paragraph 5,

(l) the transfer of technology of a prescribed description to a place as
mentioned in sub-paragraph (b), (d) or (f) of paragraph 5,

(m) 15the making available of goods or technology of a prescribed
description to, or for the benefit of, persons as mentioned in
paragraph 6(a),

(n) the making available of goods or technology of a prescribed
description for the benefit of, or for use in, a prescribed country,

(o) 20the making available of goods or technology of a prescribed
description for use in connection with specified ships,

(p) the acquisition of goods or technology of a prescribed description
from, or for the benefit of, persons as mentioned in paragraph 7(a),

(q) the acquisition of goods or technology of a prescribed description in,
25or which originate in, a prescribed country,

(r) the making available of land, or land of a prescribed description, to,
or for the benefit of, persons as mentioned in paragraph 8,

(s) the acquisition of land, or land of a prescribed description, from, or
for the benefit of, persons as mentioned in paragraph 9(a),

(t) 30the acquisition of land, or land of a prescribed description, in a
prescribed country,

(u) the carrying on of activities of a prescribed description as mentioned
in sub-paragraph (a) of paragraph 10 for the benefit of persons as
mentioned in that sub-paragraph,

(v) 35the carrying on of activities of a prescribed description as mentioned
in paragraph 10(b), or

(w) the provision or procurement of other services, or services of a
prescribed description, which relate to a matter mentioned in any of
sub-paragraphs (a) to (v).

14 40Preventing services, or services of a prescribed description, from being
provided or procured, where the services relate to—

(a) the provision of other services, or services of a prescribed
description, to, or for the benefit of, persons as mentioned in
paragraph 11(a),

(b) 45the provision of other services, or services of a prescribed
description, in the United Kingdom by a prescribed description of
persons connected with a prescribed country,

(c) the procurement of other services, or services of a prescribed
description, from, or for the benefit of, persons as mentioned in
50paragraph 12(a),

Sanctions and Anti-Money Laundering BillPage 41

(d) the procurement of other services, or services of a prescribed
description, for provision in a prescribed country,

(e) projects, industries, sectors or infrastructure of a prescribed
description in a prescribed country,

(f) 5activities of a prescribed description carried on, or proposed to be
carried on, in a prescribed country,

(g) trade with a prescribed country,

(h) aircraft registered in a prescribed country,

(i) ships registered in a prescribed country,

(j) 10specified ships, or

(k) the provision or procurement of other services, or services of a
prescribed description, which relate to a matter mentioned in any of
sub-paragraphs (e) to (j).

15 So far as a UN Security Council Resolution provides for the taking of
15measures in relation to ships designated for purposes of that Resolution, and
so far as the purposes set out in this paragraph are relevant to that
Resolution, preventing—

(a) the movement outside the United Kingdom of goods of a prescribed
description in such ships,

(b) 20goods or technology of a prescribed description from being made
available for use in connection with such ships,

(c) the acquisition of goods or technology of a prescribed description
from persons on board such ships, or

(d) the provision or procurement of services which relate to such ships.

16 25Preventing—

(a) the export, import, movement, making available or acquisition of
objects of cultural interest, or objects of cultural interest of a
prescribed description, which have been removed from a prescribed
country, or

(b) 30services of a prescribed description from being provided or
procured, where the services relate to objects of cultural interest, or
objects of cultural interest of a prescribed description, which have
been removed from a prescribed country.

Part 2 35Further provision

Further provision

17 Regulations which include provision for a purpose mentioned in Part 1 may
describe goods wholly or partly by reference to—

(a) the uses to which the goods, or any information recorded on or
40derived from them, may be put,

(b) the types of users of the goods, or of any such information,

(c) the industries, sectors, infrastructure or projects to which the goods,
or any such information, may relate, or

(d) the place where the goods originate.

18 45Regulations which include provision for a purpose mentioned in paragraph
2 or 3 may describe goods wholly or partly by reference to their being of an

Sanctions and Anti-Money Laundering BillPage 42

amount, quantity or value in excess of a prescribed amount, quantity or
value.

19 Regulations which include provision for a purpose mentioned in Part 1 may
describe technology wholly or partly by reference to—

(a) 5the uses to which the technology may be put,

(b) the industries, sectors, infrastructure or projects to which the
technology may relate, or

(c) any activities carried on, or proposed to be carried on, to which the
technology may relate.

20 10Regulations which include provision for a purpose mentioned in Part 1 may
describe services wholly or partly by reference to—

(a) the uses to which the services may be put,

(b) the industries, sectors, infrastructure or projects to which the services
may relate,

(c) 15any goods, technology or land to which the services may relate,

(d) any activities carried on, or proposed to be carried on, to which the
services may relate (including the export, import, movement,
transfer, making available, acquisition, development, manufacture,
production, maintenance or use of goods, technology or land), or

(e) 20any other services to which the services in question may relate.

21 Regulations which include provision for a purpose mentioned in Part 1 may
include provision having the effect that references to specified provisions of
orders made under the Export Control Act 2002 are to operate as references
to specified provisions of such orders as amended from time to time.

22 25Regulations which include provision for a purpose mentioned in Part 1 may
include provision having the effect that references to a specified Annex of
Council Regulation (EC) No 428/2009 of 5 May 2009 (setting up a
Community regime for the control of exports, transfer, brokering and transit
of dual-use items) are to operate as references to that Annex as amended
30from time to time.

23 Regulations which include provision for a purpose mentioned in Part 1 may
include provision having the effect that references to a technical list of goods
or technology (including a list by reference to which any UN obligation
operates) are to operate as references to that list as revised or re-issued from
35time to time.

24 Regulations which include provision for a purpose mentioned in paragraph
2 may include provision in relation to the removal from the United Kingdom
of vehicles, ships and aircraft (as an export of goods), whether or not they are
moving under their own power or carrying goods or passengers.

25 40Regulations which include provision for a purpose mentioned in paragraph
3 may include provision in relation to the taking into the United Kingdom of
vehicles, ships and aircraft (as an import of goods), whether or not they are
moving under their own power or carrying goods or passengers.

26 (1) This paragraph applies where regulations include provision for a purpose
45mentioned in paragraph 15 in relation to ships designated by the Security
Council or a subsidiary organ of the Security Council for purposes of a UN
Security Council Resolution.

Sanctions and Anti-Money Laundering BillPage 43

(2) The provision may describe the ships by reference to the instrument in
which the ships are designated, including by reference to that instrument as
varied or supplemented from time to time.

Enforcement

27 (1) 5This paragraph applies in relation to any provision of CEMA which specifies
a maximum period of imprisonment with which an offence is punishable on
conviction on indictment.

(2) Regulations under this paragraph may modify any such provision in the
case of an offence committed in connection with a prohibition or
10requirement—

(a) imposed for a purpose mentioned in Part 1, and

(b) specified in the regulations.

(3) The modification may not have the effect that such an offence is punishable
with imprisonment for a period exceeding 10 years.

15Restriction

28 Regulations may not contain prohibitions for a purpose mentioned in Part 1
which have the effect of prohibiting any of the following activities—

(a) the communication of information in the ordinary course of scientific
research,

(b) 20the making of information generally available to the public, or

(c) the communication of information that is generally available to the
public,

unless the interference by the regulations in the freedom to carry on the
activity in question is necessary (and no more than is necessary).

29 25The question whether any such interference is necessary is to be determined
by the appropriate Minister making the regulations—

(a) by reference to the circumstances prevailing at the time the
regulations are made, and

(b) having considered the purpose of the regulations as stated under
30section 1(3) and the need to respect the freedom to carry on that
activity.

Interpretation

30 In this Schedule, any reference to goods, technology, land or services being
moved, made available, acquired, provided or procured is to their being
35moved, made available, acquired, provided or procured (as the case may be)
directly or indirectly.

31 For the purposes of this Schedule—

(a) “export” means export from the United Kingdom,

(b) goods removed to the Isle of Man from the United Kingdom are not
40to be regarded as exported, and

(c) goods transported out of the United Kingdom by aircraft or ship as
stores within the meaning of CEMA (see section 1(1) and (4) of that
Act) are to be regarded as exported.

32 For the purposes of this Schedule—

Sanctions and Anti-Money Laundering BillPage 44

(a) “import” means import into the United Kingdom, but

(b) goods removed to the United Kingdom from the Isle of Man are not
to be regarded as imported.

Sub-paragraph (a) does not apply for the purposes of paragraph 33.

33 5Paragraph 32(b) does not apply to goods imported into the Isle of Man in
contravention of any prohibition or requirement and which are of a
description the import of which into the United Kingdom is subject to a
corresponding prohibition or requirement imposed by regulations for a
purpose mentioned in paragraph 3.

34 10For the purposes of this Schedule—

(a) goods, technology or land are “acquired” by a person if the person
buys, leases, hires, borrows or accepts as a gift the goods, technology
or land (as the case may be), and “acquisition” is to be construed
accordingly, and

(b) 15a reference to goods which “originate” in a country includes a
reference to goods which are manufactured or produced in that
country.

35 In paragraph 5 “place” includes—

(a) any vehicle, ship or aircraft,

(b) 20any installation (including a floating installation or one resting on
the seabed or its subsoil or on other land covered with water or its
subsoil), or

(c) any tent or movable structure.

36 In this Schedule—

  • 25“aircraft” includes unmanned aircraft and aircraft capable of
    spaceflight activities;

  • CEMA” means the Customs and Excise Management Act 1979;

  • “objects of cultural interest” includes objects of historical or scientific
    interest;

  • 30“regulations” means regulations under section 1;

  • “ship” includes every description of vessel (including a hovercraft)
    used in navigation;

  • “specified ship” has the meaning given by section 13;

  • “technology” means information (including information comprised in
    35software) that is capable of use in connection with—

    (a)

    the development, production or use of any goods or
    software, or

    (b)

    the development of, or the carrying out of, an industrial or
    commercial activity or an activity of any other kind
    40whatsoever;

  • “transfer”, in relation to any technology, means a transfer by any means
    (or combination of means), including oral communication and the
    transfer of goods on which the technology is recorded or from which
    it can be derived, other than the export of such goods.

37 45Nothing in section 2 prevents any reference to services in this Schedule from
including financial services.

Sanctions and Anti-Money Laundering BillPage 45

Section 41

SCHEDULE 2 Money laundering and terrorist financing etc

Regulations under section 41

1 Without prejudice to the generality of section 41, regulations under that
5section may do any thing mentioned in paragraphs 2 to 17.

2 (1) Require prescribed persons to identify and assess risks relating to money
laundering, terrorist financing and other threats to the integrity of the
international financial system.

(2) Make provision about factors to be taken into account in the assessment of
10such risks.

3 Require prescribed persons to have policies, controls and procedures of
prescribed kinds to mitigate and manage risks relating to money laundering,
terrorist financing and other threats to the integrity of the international
financial system.

4 15Require prescribed persons to take prescribed measures in relation to their
customers in prescribed circumstances.

5 Make provision for and in connection with—

(a) the provision of information by prescribed persons, and

(b) the disclosure of information, including provision about—

(i) 20the purposes for which information held in connection with
anything done under the regulations may be used, and

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

6 Make provision for and in connection with the creation, production and
retention of—

(a) 25registers, and

(b) records,

including registers of people with significant control and registers and
records relating to the beneficial ownership of prescribed entities, trusts or
other arrangements.

7 (1) 30Confer supervisory functions on prescribed bodies (“supervisory
authorities”) in relation to prescribed persons, including powers or duties
to—

(a) collect information,

(b) give directions,

(c) 35issue guidance,

(d) approve individuals in their capacity as owner of, or in positions of
control over or responsibility in, prescribed entities, and

(e) cooperate with other supervisory authorities or other prescribed
persons.

(2) 40Make provision about the exercise of functions conferred on supervisory
authorities under sub-paragraph (1).

8 (1) Confer supervisory functions on a prescribed body (an “oversight body”) in
relation to bodies prescribed as, or seeking to be prescribed as, supervisory
authorities, including powers or duties to—

Sanctions and Anti-Money Laundering BillPage 46

(a) collect information,

(b) give directions,

(c) issue guidance, and

(d) give recommendations as to whether bodies should be, or should
5cease to be, prescribed as supervisory authorities.

(2) Make provision about the exercise of functions conferred on an oversight
body under sub-paragraph (1).

9 Make provision for and in connection with the registration of prescribed
persons by supervisory authorities, including—

(a) 10provision which prohibits a person from carrying on a business of a
prescribed description unless registered, and

(b) provision about the suspension or cancellation of a person’s
registration.

10 Make provision enabling supervisory authorities to enter into arrangements
15with other bodies for the purposes of the enforcement of the regulations.

11 (1) Confer investigatory powers on—

(a) supervisory authorities, and

(b) prescribed enforcement partners within the meaning given by
paragraph 21.

(2) 20Make provision about the exercise of investigatory powers.

(3) Make provision enabling investigatory powers to be exercised by a
supervisory authority in relation to persons supervised by another
supervisory authority.

(4) In this paragraph “investigatory powers” includes powers of entry, search,
25inspection, seizure of documents or information and retention of documents
or information.

12 (1) Authorise supervisory authorities to impose charges on persons supervised
by them in respect of expenses incurred for the purposes of the regulations.

(2) Make provision in connection with any charges for which provision is made
30under sub-paragraph (1), including provision for charges to meet expenses
incurred by enforcement partners for the purposes of the regulations.

(3) Where provision is made by virtue of paragraph 11(3), authorise
supervisory authorities to impose charges on other supervisory authorities
in respect of expenses incurred in relation to the exercise of powers in
35accordance with such provision.

(4) Authorise an oversight body to impose charges on supervisory authorities
or persons seeking to be prescribed as supervisory authorities in respect of
the exercise by the oversight body of functions conferred on it by the
regulations.

(5) 40Make provision in connection with any charges for which provision is made
under sub-paragraph (3) or (4).

13 (1) Authorise supervisory authorities to impose civil penalties in relation to the
contravention of prescribed requirements, including—

(a) monetary penalties,

(b) 45the publication of statements of censure,

Sanctions and Anti-Money Laundering BillPage 47

(c) the suspension or revocation of, or restrictions on, any permission or
authorisation granted by a supervisory authority,

(d) the suspension or cancellation of, or restrictions on, a person’s
registration as mentioned in paragraph 9, and

(e) 5restrictions on the holding of management responsibilities.

(2) Authorise an oversight body to publish statements of censure in relation to
the contravention of prescribed requirements by supervisory authorities.

(3) Make provision in connection with any civil penalties for which provision is
made under sub-paragraph (1) or (2), including provision for publishing
10details of persons who have incurred penalties.

14 Make provision for and in connection with the grant of injunctions (or, in
Scotland, interdicts) and other orders by prescribed courts in relation to the
contravention of prescribed requirements.

15 Make provision creating criminal offences and dealing with matters relating
15to those offences, including defences and evidentiary matters.

16 Make provision for and in connection with reviews of, and appeals against,
decisions of—

(a) prescribed supervisory authorities, and

(b) an oversight body.

17 20Make provision exempting prescribed persons from prescribed
requirements, generally or in prescribed circumstances.

Penalties for criminal offences

18 Regulations under section 41 may not provide for any such offence as is
mentioned in paragraph 15 to be punishable with imprisonment for a period
25exceeding—

(a) in the case of conviction on indictment, 2 years;

(b) in the case of summary conviction, 3 months.

Extra-territorial application

19 (1) Regulations under section 41 may impose requirements in relation to
30conduct outside the United Kingdom by a United Kingdom person.

(2) In sub-paragraph (1) “United Kingdom person” means—

(a) a United Kingdom national,

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

(c) 35a body within paragraph (3) or (4) of regulation 9 of the Money
Laundering Regulations 2017 (bodies to be regarded for the
purposes of those Regulations as carrying on business in the United
Kingdom), as that regulation has effect immediately before it is
saved by section 2 of the European Union (Withdrawal) Act 2017.

(3) 40For this purpose a United Kingdom national is an individual who is—

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

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

Sanctions and Anti-Money Laundering BillPage 48

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

(4) In this paragraph “conduct” includes acts and omissions.

Money Laundering Regulations 2017

20 Without prejudice to anything in section 41, paragraphs 1 to 19 or section
544(2), regulations under section 41 may—

(a) subject to any modifications the appropriate Minister making the
regulations considers appropriate, make provision corresponding or
similar to any provision of the Money Laundering Regulations 2017,
as those Regulations have effect immediately before they are saved
10by section 2 of the European Union (Withdrawal) Act 2017;

(b) amend or revoke the Money Laundering Regulations 2017.

Interpretation

21 In this Schedule—

  • “enforcement partners” means persons with which supervisory
    15authorities enter into arrangements for the purposes of the
    enforcement of regulations under section 41;

  • “money laundering” has the meaning given by section 41;

  • “Money Laundering Regulations 2017” means the Money Laundering,
    Terrorist Financing and Transfer of Funds (Information on the
    20Payer) Regulations 2017 (S.I. 2017/692S.I. 2017/692);

  • “oversight body” means a body on which functions are conferred under
    paragraph 8(1);

  • “requirements” includes prohibitions;

  • “supervisory authority” means a body on which functions are
    25conferred under paragraph 7(1);

  • “terrorist financing” has the meaning given by section 41.

Section 47(4) and (5)

SCHEDULE 3 Consequential amendments

Part 1 30Amendments consequential on Parts 1 and 2

Immigration Act 1971 (c. 77)

1 (1) Section 8B of the Immigration Act 1971 (persons excluded from the United
Kingdom under international obligations) is amended as follows.

(2) In the heading for “international obligations” substitute “certain
35instruments”.

(3) For subsection (4) substitute—

(4) “Excluded person” means—

(a) a person named by or under, or of a description specified in,
an instrument falling within subsection (5), or

Sanctions and Anti-Money Laundering BillPage 49

(b) a person who under regulations under section 1 of the
Sanctions and Anti-Money Laundering Act 2017 is an
excluded person for the purposes of this section (see section
3 of that Act).”

(4) 5In subsection (5A)(b), for the words from the beginning to “that subsection”
substitute “the person is within subsection (4)(a) and not within subsection
(4)(b) and has been exempted from the application of subsection (1), (2) or
(3), as the case may be,”.

(5) After subsection (5A) insert—

(5B) 10In relation to any person within subsection (4)(b), subsections (1) to
(3) are subject to any exception created under, or direction given by
virtue of, section 14(4) of the Sanctions and Anti-Money Laundering
Act 2017 (power to create exceptions etc).”

Senior Courts Act 1981 (c. 54)

2 15In paragraph 2 of Schedule 1 to the Senior Courts Act 1981 (business
allocated to the Queen’s Bench Division), after sub-paragraph (be) insert—

(bf) all proceedings—

(i) on an application under section 32 of the Sanctions
and Anti-Money Laundering Act 2017 (court review
20of decisions), or

(ii) on a claim arising from any matter to which such an
application relates;”.

Regulation of Investigatory Powers Act 2000 (c. 23)

3 (1) Section 18 of the Regulation of Investigatory Powers Act 2000 (exceptions to
25matters excluded from legal proceedings) is amended as follows.

(2) In subsection (1), after paragraph (de) insert—

(df) any proceedings—

(i) on an application under section 32 of the Sanctions
and Anti-Money Laundering Act 2017 (court review
30of decisions), or

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

or any proceedings arising out of such proceedings;”.

(3) In subsection (2), after paragraph (zd) insert—

(ze) 35in the case of proceedings falling within paragraph (df), to—

(i) a person, other than the Secretary of State or the
Treasury (as the case may be), who is or was a party
to the proceedings, or

(ii) any person who for the purposes of the proceedings
40(but otherwise than by virtue of appointment as a
special advocate) represents a person falling within
sub-paragraph (i);”.

Serious Organised Crime and Police Act 2005 (c. 15)

4 In section 61(1) of the Serious Organised Crime and Police Act 2005 (offences