Sanctions and Anti-Money Laundering Bill [HL]

Commons amendments

[The page and line references are to Bill 157, the Bill as first printed for the Commons]

Clause 1

1

Page 2, line 10, at end insert—

 

“(ea)    

provide accountability for or be a deterrent to gross violations of

 

human rights, or otherwise promote—

 

(i)    

compliance with international human rights law, or

 

(ii)    

respect for human rights,”

2

Page 2, line 11, leave out “and human rights”

3

Page 2, line 15, leave out “human rights,”

4

Page 2, line 37, after “to” insert “17, (Enforcement: goods etc on ships), (Goods etc on

 

ships: non-UK conduct) and”

5

Page 2, line 37, at end insert—

 

“(6A)    

In this Act any reference to a gross violation of human rights is to conduct

 

which—

 

(a)    

constitutes, or

 

(b)    

is connected with,

 

    

the commission of a gross human rights abuse or violation; and whether

 

conduct constitutes or is connected with the commission of such an abuse

 

or violation is to be determined in accordance with section 241A of the

 

Proceeds of Crime Act 2002.”

6

Page 3, line 2, after first “to” insert “(e), (ea) and (f) to”

7

Page 3, line 2, leave out “(d)” and insert “(h)”

Clause 2

8

Page 3, line 25, after “to” insert “(e), (ea) and (f) to”

 
 
 

 
 

2

 

Clause 17

9

Page 16, line 12, at end insert—

 

“( )    

Regulations—

 

(a)    

may create criminal offences for the purposes of the enforcement of

 

prohibitions or requirements mentioned in subsection (2)(a) or (b)

 

or for the purposes of preventing such prohibitions or requirements

 

from being circumvented, and

 

(b)    

may include provision dealing with matters relating to any offences

 

created for such purposes by regulations (including provision that

 

creates defences).

 

( )    

Regulations may not provide for an offence under regulations to be

 

punishable with imprisonment for a period exceeding—

 

(a)    

in the case of conviction on indictment, 10 years;

 

(b)    

in 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)    

in relation to Northern Ireland, 6 months.”

After Clause 17

10

Insert the following new Clause—

 

“Report in respect of offences in regulations

 

(1)    

In this section “relevant regulations” means regulations under section 1

 

which create any offence for the purposes of—

 

(a)    

the enforcement of any prohibitions or requirements imposed by or

 

under regulations under section 1, or

 

(b)    

preventing any such prohibitions or requirements from being

 

circumvented.

 

(2)    

The appropriate Minister making any relevant regulations (“the Minister”)

 

must at the required time lay before Parliament a report which—

 

(a)    

specifies the offences created by the regulations, indicating the

 

prohibitions or requirements to which those offences relate,

 

(b)    

states that the Minister considers that there are good reasons for

 

those prohibitions or requirements to be enforceable by criminal

 

proceedings and explains why the Minister is of that opinion, and

 

(c)    

in the case of any of those offences which are punishable with

 

imprisonment—

 

(i)    

states the maximum terms of imprisonment that apply to

 

those offences,

 

(ii)    

states that the Minister considers that there are good reasons

 

for those maximum terms, and

 

(iii)    

explains why the Minister is of that opinion.

 

(3)    

Subsection (4) applies where an offence created by the regulations relates

 

to a particular prohibition or requirement and the Minister considers that a

 

good reason—

 

(a)    

for that prohibition or requirement to be enforceable by criminal

 

proceedings, or

 
 

 


 
 

3

 
 

(b)    

for a particular maximum term of imprisonment to apply to that

 

offence,

 

    

is consistency with another enactment relating to the enforcement of a

 

similar prohibition or requirement.

 

(4)    

The report must identify that other enactment.

 

(5)    

In subsection (3) “another enactment” means any provision of or made

 

under an Act, other than a provision of the regulations to which the report

 

relates.

 

(6)    

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

 

(a)    

in the case of regulations contained in a statutory instrument which

 

is laid before Parliament after being made, the same time as the

 

instrument is laid before Parliament;

 

(b)    

in the case of regulations contained in a statutory instrument a draft

 

of which is laid before Parliament, the same time as the draft is laid.

 

(7)    

This section applies to regulations which amend other regulations under

 

section 1 so as to create an offence as it applies to regulations which

 

otherwise create an offence.”

11

Insert the following new Clause—

 

“Enforcement: goods etc on ships

 

(1)    

The provision that may be made by virtue of section 17(2) (enforcement of

 

prohibitions or requirements) includes provision as to the powers and

 

duties of prescribed persons in relation to—

 

(a)    

British ships in foreign waters or international waters,

 

(b)    

ships without nationality in international waters, and

 

(c)    

foreign ships in international waters.

 

(2)    

Regulations may make provision by virtue of this section only for the

 

purpose of enforcing relevant prohibitions or requirements.

 

(3)    

A prohibition or requirement is a “relevant prohibition or requirement” for

 

the purposes of this section if it is—

 

(a)    

a prohibition or requirement specified by the regulations which is

 

imposed by regulations for a purpose mentioned in any of

 

paragraphs 2 to 7, 15(a), (b) or (c) or 16(a) of Schedule 1, or

 

(b)    

a prohibition or requirement imposed by a condition of a licence or

 

direction issued by virtue of section 15 in relation to a prohibition

 

or requirement mentioned in paragraph (a).

 

(4)    

The powers that may be conferred by virtue of this section include powers

 

to—

 

(a)    

stop a ship;

 

(b)    

board a ship;

 

(c)    

require any person found on a ship boarded by virtue of this section

 

to provide information or produce documents;

 

(d)    

inspect and copy such documents or information;

 

(e)    

stop any person found on such a ship and search that person for—

 

(i)    

prohibited goods, or

 

(ii)    

any thing that might be used to cause physical injury or

 

damage to property or to endanger the safety of any ship;

 

 


 
 

4

 
 

(f)    

search a ship boarded by virtue of this section, or any thing found

 

on such a ship (including cargo), for prohibited goods;

 

(g)    

seize goods found on a ship, in any thing found on a ship, or on any

 

person found on a ship (but see subsection (8));

 

(h)    

for the purpose of exercising a power mentioned in paragraph (e),

 

(f) or (g), require a ship to be taken to, and remain in, a port or

 

anchorage in the United Kingdom or any other country willing to

 

receive it.

 

(5)    

Regulations that confer a power mentioned in subsection (4)(a) to (f) or (h)

 

must provide that a person may not exercise the power in relation to a ship

 

unless the person has reasonable grounds to suspect that the ship is

 

carrying prohibited goods (and the regulations need not require the person

 

to have reasonable grounds to suspect that an offence is being or has been

 

committed).

 

(6)    

Regulations that confer a power mentioned in subsection (4)(e)(i) or (f)

 

must provide that the power may be exercised only to the extent

 

reasonably required for the purpose of discovering prohibited goods.

 

(7)    

Regulations that confer a power mentioned in subsection (4)(e)(ii) on a

 

person (“the officer”) may permit the search of a person only where the

 

officer has reasonable grounds to believe that that person might use a thing

 

in a way mentioned in subsection (4)(e)(ii).

 

(8)    

Regulations that confer a power mentioned in subsection (4)(g) on a

 

person—

 

(a)    

must provide for the power to be exercisable on a ship only where

 

that person is lawfully on the ship (whether in exercise of powers

 

conferred by virtue of this section or otherwise), and

 

(b)    

may permit the seizure only of—

 

(i)    

goods which that person has reasonable grounds to suspect

 

are prohibited goods, or

 

(ii)    

things within subsection (4)(e)(ii).

 

(9)    

Regulations that confer a power on a person by virtue of this section may

 

authorise that person to use reasonable force, if necessary, in the exercise of

 

the power.

 

(10)    

Regulations that confer a power by virtue of this section must provide

 

that—

 

(a)    

the power may be exercised in relation to a British ship in foreign

 

waters only with the authority of the Secretary of State, and

 

(b)    

in relation to foreign waters other than the sea and other waters

 

within the seaward limits of the territorial sea adjacent to any

 

relevant British possession, the Secretary of State may give

 

authority only if the State in whose waters the power would be

 

exercised consents to the exercise of the power.

 

(11)    

Regulations that confer a power by virtue of this section must provide

 

that—

 

(a)    

the power may be exercised in relation to a foreign ship only with

 

the authority of the Secretary of State, and

 

(b)    

the Secretary of State may give authority only if—

 

(i)    

the home state has requested the assistance of the United

 

Kingdom for the purpose of enforcing relevant prohibitions

 

or requirements,

 

 


 
 

5

 
 

(ii)    

the home state has authorised the United Kingdom to act for

 

that purpose, or

 

(iii)    

the United Nations Convention on the Law of the Sea 1982

 

(Cmnd 8941) or a UN Security Council Resolution otherwise

 

permits the exercise of the powers in relation to the ship.

 

(12)    

The reference in subsection (11) to the United Nations Convention on the

 

Law of the Sea includes a reference to any modifications of that Convention

 

agreed after the passing of this Act that have entered into force in relation

 

to the United Kingdom.

 

(13)    

In this section—

 

“arrangements” includes any agreement, understanding, scheme,

 

transaction or series of transactions (whether or not legally

 

enforceable);

 

“British ship” means a ship falling within paragraph (a), (c), (d) or (e)

 

of section 7(12);

 

“foreign ship” means a ship which—

 

(a)    

is registered in a State other than the United Kingdom, or

 

(b)    

is not so registered but is entitled to fly the flag of a State

 

other than the United Kingdom;

 

“foreign waters” means the sea and other waters within the seaward

 

limits of the territorial sea adjacent to any relevant British

 

possession or State other than the United Kingdom;

 

“goods” includes technology within the meaning of Schedule 1 (see

 

paragraph 36 of that Schedule);

 

“home state”, in relation to a foreign ship, means—

 

(a)    

the State in which the ship is registered, or

 

(b)    

the State whose flag the ship is otherwise entitled to fly;

 

“international waters” means waters beyond the territorial sea of the

 

United Kingdom or of any other State or relevant British

 

possession;

 

“prohibited goods” means goods which have been, or are being, dealt

 

with in contravention of a relevant prohibition or requirement (see

 

subsection (3));

 

“regulations” means regulations under section 1;

 

“relevant British possession” has the same meaning as in section 7 (see

 

subsection (14) of that section);

 

“ship” has the same meaning as in section 7 (see subsection (14) of that

 

section);

 

“ship without nationality” means a ship which—

 

(a)    

is not registered in, or otherwise entitled to fly the flag of,

 

any State or relevant British possession, or

 

(b)    

sails under the flags of two or more States or relevant British

 

possessions, or under the flags of a State and relevant British

 

possession, using them according to convenience.

 

(14)    

In the definition of “prohibited goods” in subsection (13), the reference to

 

goods dealt with in contravention of a relevant prohibition or requirement

 

includes a reference to a case where—

 

(a)    

arrangements relating to goods have been entered into that have

 

not been fully implemented, and

 

 


 
 

6

 

(b)    

if those arrangements were to be fully implemented, the goods

 

would be dealt with in contravention of that prohibition or

 

requirement.”

12

Insert the following new Clause—

 

“Goods etc on ships: non-UK conduct

 

(1)    

Regulations may make provision conferring on prescribed persons powers

 

exercisable—

 

(a)    

in relation to—

 

(i)    

British ships in foreign waters or international waters,

 

(ii)    

ships without nationality in international waters, and

 

(iii)    

foreign ships in international waters,

 

(b)    

for the purpose of—

 

(i)    

investigating the suspected carriage of relevant goods on

 

such ships, or

 

(ii)    

preventing the continued carriage on such ships of goods

 

suspected to be relevant goods.

 

(2)    

The powers that may be conferred by virtue of this section include powers

 

to—

 

(a)    

stop a ship;

 

(b)    

board a ship;

 

(c)    

require any person found on a ship boarded by virtue of this section

 

to provide information or produce documents;

 

(d)    

inspect and copy such documents or information;

 

(e)    

stop any person found on such a ship and search that person for—

 

(i)    

relevant goods, or

 

(ii)    

any thing that might be used to cause physical injury or

 

damage to property or to endanger the safety of any ship;

 

(f)    

search a ship boarded by virtue of this section, or any thing found

 

on such a ship (including cargo), for relevant goods;

 

(g)    

seize goods found on a ship, in any thing found on a ship, or on any

 

person found on a ship (but see subsection (6));

 

(h)    

for the purpose of exercising a power mentioned in paragraph (e),

 

(f) or (g), require a ship to be taken to, and remain in, a port or

 

anchorage in the United Kingdom or any other country willing to

 

receive it.

 

(3)    

Regulations that confer a power mentioned in subsection (2)(a) to (f) or (h)

 

must provide that a person may not exercise the power in relation to a ship

 

unless the person has reasonable grounds to suspect that the ship is

 

carrying relevant goods.

 

(4)    

Regulations that confer a power mentioned in subsection (2)(e)(i) or (f)

 

must provide that the power may be exercised only to the extent

 

reasonably required for the purpose of discovering relevant goods.

 

(5)    

Regulations that confer a power mentioned in subsection (2)(e)(ii) on a

 

person (“the officer”) may permit the search of a person only where the

 

officer has reasonable grounds to believe that that person might use a thing

 

in a way mentioned in subsection (2)(e)(ii).

 

 


 
 

7

 
 

(6)    

Regulations that confer a power mentioned in subsection (2)(g) on a

 

person—

 

(a)    

must provide for the power to be exercisable on a ship only where

 

that person is lawfully on the ship (whether in exercise of powers

 

conferred by virtue of this section or otherwise), and

 

(b)    

may permit the seizure only of—

 

(i)    

goods which that person has reasonable grounds to suspect

 

are relevant goods, or

 

(ii)    

things within subsection (2)(e)(ii).

 

(7)    

Regulations that confer a power on a person by virtue of this section may

 

authorise that person to use reasonable force, if necessary, in the exercise of

 

the power.

 

(8)    

Regulations that confer a power by virtue of this section must provide

 

that—

 

(a)    

the power may be exercised in relation to a British ship in foreign

 

waters only with the authority of the Secretary of State, and

 

(b)    

in relation to foreign waters other than the sea and other waters

 

within the seaward limits of the territorial sea adjacent to any

 

relevant British possession, the Secretary of State may give

 

authority only if the State in whose waters the power would be

 

exercised consents to the exercise of the power.

 

(9)    

Regulations that confer a power by virtue of this section must provide

 

that—

 

(a)    

the power may be exercised in relation to a foreign ship only with

 

the authority of the Secretary of State, and

 

(b)    

the Secretary of State may give authority only if—

 

(i)    

the home state has requested the assistance of the United

 

Kingdom for a purpose mentioned in subsection (1)(b),

 

(ii)    

the home state has authorised the United Kingdom to act for

 

such a purpose, or

 

(iii)    

the United Nations Convention on the Law of the Sea 1982

 

(Cmnd 8941) or a UN Security Council Resolution otherwise

 

permits the exercise of the powers in relation to the ship.

 

(10)    

The reference in subsection (9) to the United Nations Convention on the

 

Law of the Sea includes a reference to any modifications of that Convention

 

agreed after the passing of this Act that have entered into force in relation

 

to the United Kingdom.

 

(11)    

In this section—

 

“regulations” means regulations under section 1;

 

“relevant goods” means goods in relation to which relevant non-UK

 

conduct is occurring or has occurred;

 

“relevant non-UK conduct” means conduct outside the United

 

Kingdom by a person other than a United Kingdom person that

 

would constitute a contravention of a relevant prohibition or

 

requirement if the conduct had been—

 

(a)    

in the United Kingdom, or

 

(b)    

by a United Kingdom person;

 

“relevant prohibition or requirement” has the same meaning as in

 

section (Enforcement: goods etc on ships) (see subsection (3) of that

 

section);

 

 

 

 


 
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2 May 2018