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Terrorist Asset-Freezing etc. Bill [HL]


Terrorist Asset-Freezing etc. Bill [HL]
Part 1 — Terrorist Asset-Freezing
Chapter 1 — Designated persons

1

 

[NOTE: The words marked in bold type were inserted by the Lords to avoid

questions of privilege.]

A

Bill

To

Make provision for imposing financial restrictions on, and in relation to,

certain persons believed or suspected to be, or to have been, involved in

terrorist activities; to amend Schedule 7 to the Counter-Terrorism Act 2008;

and for connected purposes. 

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and

consent of the Lords Spiritual and Temporal, and Commons, in this present

Parliament assembled, and by the authority of the same, as follows:—

Part 1

Terrorist Asset-Freezing

Chapter 1

Designated persons

Introductory

5

1       

Meaning of “designated person”

In this Part “designated person” means—

(a)   

a person designated by the Treasury for the purposes of this Part, or

(b)   

a natural or legal person, group or entity included in the list provided

for by Article 2(3) of Council Regulation (EC) No 2580/2001 of 27

10

December 2001 on specific restrictive measures directed against certain

persons and entities with a view to combating terrorism.

Final designations

2       

Treasury’s power to make final designation

(1)   

The Treasury may make a final designation of a person for the purposes of this

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Part if—

 

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Terrorist Asset-Freezing etc. Bill [HL]
Part 1 — Terrorist Asset-Freezing
Chapter 1 — Designated persons

2

 

(a)   

they reasonably believe—

(i)   

that the person is or has been involved in terrorist activity,

(ii)   

that the person is owned or controlled directly or indirectly by

a person within sub-paragraph (i), or

(iii)   

that the person is acting on behalf of or at the direction of a

5

person within sub-paragraph (i), and

(b)   

they consider that it is necessary for purposes connected with

protecting members of the public from terrorism that financial

restrictions should be applied in relation to the person.

(2)   

For this purpose involvement in terrorist activity is any one or more of the

10

following—

(a)   

the commission, preparation or instigation of acts of terrorism;

(b)   

conduct that facilitates the commission, preparation or instigation of

such acts, or that is intended to do so;

(c)   

conduct that gives support or assistance to persons who are known or

15

believed by the person concerned to be involved in conduct falling

within paragraph (a) or (b) of this subsection.

(3)   

It is immaterial whether the acts of terrorism in question are specific acts of

terrorism or acts of terrorism generally.

(4)   

In this section—

20

“terrorism” has the same meaning as in the Terrorism Act 2000 (see

section 1(1) to (4) of that Act);

   

and the reference in subsection (1)(b) above to financial restrictions includes a

reference to restrictions relating to economic resources.

3       

Notification of final designation

25

(1)   

Where the Treasury make a final designation of a person, they must—

(a)   

give written notice of the designation to the designated person, and

(b)   

take steps to publicise the designation.

(2)   

Unless one or more of the following conditions is met, the Treasury must take

steps to publicise the designation generally.

30

(3)   

The conditions are that—

(a)   

the Treasury believe that the designated person is an individual under

the age of 18, or

(b)   

the Treasury consider that disclosure of the designation should be

restricted—

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(i)   

in the interests of national security,

(ii)   

for reasons connected with the prevention or detection of

serious crime, or

(iii)   

in the interests of justice.

(4)   

If one or more of those conditions is met, the Treasury must inform only such

40

persons as they consider appropriate.

(5)   

If that ceases to be the case, the Treasury must—

(a)   

give written notice of that fact to the designated person, and

(b)   

take steps to publicise the designation generally.

 
 

Terrorist Asset-Freezing etc. Bill [HL]
Part 1 — Terrorist Asset-Freezing
Chapter 1 — Designated persons

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4       

Duration of final designation

(1)   

A final designation expires at the end of the period of one year beginning with

the date on which it was made, unless it is renewed.

(2)   

The Treasury may renew a final designation at any time before it expires, if the

requirements in section 2(1)(a) and (b) continue to be met.

5

(3)   

A renewed final designation expires at the end of the period of one year

beginning with the date on which it was renewed (or last renewed), unless it is

renewed again.

(4)   

The provisions of section 3 (notification of final designation) apply where a

final designation is renewed (or further renewed) as in relation to the original

10

making of a final designation.

(5)   

Where a final designation expires the Treasury must—

(a)   

give written notice of that fact to the designated person, and

(b)   

take reasonable steps to bring that fact to the attention of the persons

informed of the designation.

15

5       

Variation or revocation of final designation

(1)   

The Treasury may vary or revoke a final designation at any time.

(2)   

Where a final designation is varied or revoked the Treasury must—

(a)   

give written notice of the variation or revocation to the designated

person, and

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(b)   

take reasonable steps to bring the variation or revocation to the

attention of the persons informed of the designation.

Interim designations

6       

Treasury’s power to make interim designation

(1)   

The Treasury may make an interim designation of a person for the purposes of

25

this Part if—

(a)   

they reasonably suspect—

(i)   

that the person is or has been involved in terrorist activity,

(ii)   

that the person is owned or controlled directly or indirectly by

a person within sub-paragraph (i), or

30

(iii)   

that the person is acting on behalf of or at the direction of a

person within sub-paragraph (i), and

(b)   

they consider that it is necessary for purposes connected with

protecting members of the public from terrorism that financial

restrictions should be applied in relation to the person.

35

(2)   

Subsections (2) to (4) of section 2 (Treasury’s power to make final designation:

definitions) apply for the purposes of this section as they apply for the

purposes of that section.

(3)   

The Treasury may not make more than one interim designation of the same

person in relation to the same, or substantially the same, evidence.

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Terrorist Asset-Freezing etc. Bill [HL]
Part 1 — Terrorist Asset-Freezing
Chapter 1 — Designated persons

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7       

Notification of interim designation

(1)   

Where the Treasury make an interim designation of a person, they must—

(a)   

give written notice of the designation to the designated person, and

(b)   

take steps to publicise the designation.

(2)   

Unless one or more of the following conditions is met, the Treasury must take

5

steps to publicise the designation generally.

(3)   

The conditions are that—

(a)   

the Treasury believe that the designated person is an individual under

the age of 18, or

(b)   

the Treasury consider that disclosure of the designation should be

10

restricted—

(i)   

in the interests of national security,

(ii)   

for reasons connected with the prevention or detection of

serious crime, or

(iii)   

in the interests of justice.

15

(4)   

If one or more of those conditions is met, the Treasury must inform only such

persons as they consider appropriate.

(5)   

If that ceases to be the case, the Treasury must—

(a)   

give written notice of that fact to the designated person, and

(b)   

take steps to publicise the designation generally.

20

8       

Duration of interim designation

(1)   

An interim designation expires—

(a)   

at the end of the period of 30 days beginning with the date on which it

was made, or

(b)   

on the making of a final designation in relation to the same person,

25

   

whichever is the earlier.

(2)   

Where an interim designation expires the Treasury must—

(a)   

give written notice of that fact to the designated person, and

(b)   

take reasonable steps to bring that fact to the attention of the persons

informed of the designation.

30

(3)   

Where an interim designation expires on the making of a final designation in

relation to the same person—

(a)   

a notice under subsection (2) above may be combined with a notice

under section 3(1)(a), and

(b)   

steps under subsection (2) above may be combined with steps under

35

section 3 to publicise the final designation.

9       

Variation or revocation of interim designation

(1)   

The Treasury may vary or revoke an interim designation at any time.

(2)   

Where an interim designation is varied or revoked the Treasury must—

(a)   

give written notice of the variation or revocation to the designated

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person, and

 
 

Terrorist Asset-Freezing etc. Bill [HL]
Part 1 — Terrorist Asset-Freezing
Chapter 2 — Prohibitions in relation to designated persons

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(b)   

take reasonable steps to bring the variation or revocation to the

attention of the persons informed of the designation.

Confidential information

10      

Confidential information

(1)   

Where the Treasury in accordance with section 3(4) or 7(4) inform only certain

5

persons of a designation, they may specify that information contained in it is

to be treated as confidential.

(2)   

A person (“P”) who—

(a)   

is provided with information that is to be treated as confidential in

accordance with subsection (1), or

10

(b)   

obtains such information,

   

must not, subject to subsection (3), disclose it if P knows, or has reasonable

cause to suspect, that the information is to be treated as confidential.

(3)   

The prohibition in subsection (2) does not apply to any disclosure made by P

with lawful authority.

15

(4)   

For this purpose information is disclosed with lawful authority only if and to

the extent that—

(a)   

the disclosure is by, or is authorised by, the Treasury,

(b)   

the disclosure is by or with the consent of the designated person,

(c)   

the disclosure is necessary to give effect to a requirement imposed

20

under or by virtue of this Part or any other enactment, or

(d)   

the disclosure is required, under rules of court, tribunal rules or a court

or tribunal order, for the purposes of legal proceedings of any

description.

(5)   

This section does not prevent the disclosure of information that is already, or

25

has previously been, available to the public from other sources.

(6)   

A person who contravenes the prohibition in subsection (2) commits an

offence.

(7)   

The High Court (in Scotland, the Court of Session) may, on the application of—

(a)   

the person who is the subject of the information, or

30

(b)   

the Treasury,

   

grant an injunction (in Scotland, an interdict) to prevent a breach of the

prohibition in subsection (2).

Chapter 2

Prohibitions in relation to designated persons

35

Prohibitions

11      

Freezing of funds and economic resources

(1)   

A person (“P”) must not deal with funds or economic resources owned, held or

controlled by a designated person if P knows, or has reasonable cause to

suspect, that P is dealing with such funds or economic resources.

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Terrorist Asset-Freezing etc. Bill [HL]
Part 1 — Terrorist Asset-Freezing
Chapter 2 — Prohibitions in relation to designated persons

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(2)   

In subsection (1) “deal with” means—

(a)   

in relation to funds—

(i)   

use, alter, move, allow access to or transfer,

(ii)   

deal with the funds in any other way that would result in any

change in volume, amount, location, ownership, possession,

5

character or destination, or

(iii)   

make any other change that would enable use, including

portfolio management;

(b)   

in relation to economic resources, exchange or use in exchange for

funds, goods or services.

10

(3)   

Subsection (1) is subject to sections 16 and 17 (exceptions and licences).

(4)   

A person who contravenes the prohibition in subsection (1) commits an

offence.

12      

Making funds or financial services available to designated person

(1)   

A person (“P”) must not make funds or financial services available (directly or

15

indirectly) to a designated person if P knows, or has reasonable cause to

suspect, that P is making the funds or financial services so available.

(2)   

Subsection (1) is subject to sections 16 and 17 (exceptions and licences).

(3)   

A person who contravenes the prohibition in subsection (1) commits an

offence.

20

13      

Making funds or financial services available for benefit of designated person

(1)   

A person (“P”) must not make funds or financial services available to any

person for the benefit of a designated person if P knows, or has reasonable

cause to suspect, that P is making the funds or financial services so available.

(2)   

For the purposes of this section—

25

(a)   

funds are made available for the benefit of a designated person only if

that person thereby obtains, or is able to obtain, a significant financial

benefit, and

(b)   

“financial benefit” includes the discharge of a financial obligation for

which the designated person is wholly or partly responsible.

30

(3)   

Subsection (1) is subject to sections 16 and 17 (exceptions and licences).

(4)   

A person who contravenes the prohibition in subsection (1) commits an

offence.

14      

Making economic resources available to designated person

(1)   

A person (“P”) must not make economic resources available (directly or

35

indirectly) to a designated person if P knows, or has reasonable cause to

suspect—

(a)   

that P is making the economic resources so available, and

(b)   

that the designated person would be likely to exchange the economic

resources, or use them in exchange, for funds, goods or services.

40

(2)   

Subsection (1) is subject to section 17 (licences).

 
 

Terrorist Asset-Freezing etc. Bill [HL]
Part 1 — Terrorist Asset-Freezing
Chapter 2 — Prohibitions in relation to designated persons

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(3)   

A person who contravenes the prohibition in subsection (1) commits an

offence.

15      

Making economic resources available for benefit of designated person

(1)   

A person (“P”) must not make economic resources available to any person for

the benefit of a designated person if P knows, or has reasonable cause to

5

suspect, that P is making the economic resources so available.

(2)   

For the purposes of this section—

(a)   

economic resources are made available for the benefit of a designated

person only if that person thereby obtains, or is able to obtain, a

significant financial benefit, and

10

(b)   

“financial benefit” includes the discharge of a financial obligation for

which the designated person is wholly or partly responsible.

(3)   

Subsection (1) is subject to section 17 (licences).

(4)   

A person who contravenes the prohibition in subsection (1) commits an

offence.

15

Exceptions and licences

16      

Exceptions

(1)   

The prohibitions in sections 11 to 13 are not contravened by a relevant

institution crediting a frozen account with—

(a)   

interest or other earnings due on the account, or

20

(b)   

payments due under contracts, agreements or obligations that were

concluded or arose before the account became a frozen account.

(2)   

The prohibitions in sections 12 and 13 on making funds available do not

prevent a relevant institution from crediting a frozen account where it receives

funds transferred to the account.

25

(3)   

The prohibition in section 13 is not contravened by the making of a payment

which—

(a)   

is a benefit under or by virtue of an enactment relating to social security

(irrespective of the name or nature of the benefit), and

(b)   

is made to a person who is not a designated person,

30

   

whether or not the payment is made in respect of a designated person.

(4)   

A relevant institution must inform the Treasury without delay if it credits a

frozen account in accordance with subsection (1)(b) or (2).

(5)   

In this section “frozen account” means an account with a relevant institution

which is held or controlled (directly or indirectly) by a designated person.

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17      

Licences

(1)   

The prohibitions in sections 11 to 15 do not apply to anything done under the

authority of a licence granted by the Treasury.

(2)   

Where relevant such a licence also constitutes authorisation under Article 6 of

Council Regulation (EC) No 2580/2001 of 27 December 2001 on specific

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