Appendix
1
S.I. 2010/748:
memorandum from the Foreign Office
Tunisia (Restrictive Measures) (Overseas Territories)
Order 2011 (SI 2011/748)
The Joint Committee on Statutory Instruments has
requested the Foreign and Commonwealth Office to submit a memorandum
on the following points:
'(1) What is the meaning of "monetary authority"
in the definition of "relevant institution" in article
2(1) and in article 12(2)(d) and where is this explained?
(2) Why is paragraph (2) of article 3 in that article
instead of in article 2?'
As regards the question at point (1) above, the term
"monetary authority" means the authority which controls
the money supply of a currency, has the right to set interest
rates and put in place other parameters relating to the control
and supply of money. Having consulted officials in the Treasury,
it is their understanding that the term is a commonly used term
which accordingly does not require specific definition. The term,
moreover, was not defined in previous examples of statutory instruments
to do with sanctions, such as The Burma (Restrictive Measures)
(Overseas Territories) Order 2009. In our view, it is unnecessary
to define the term and, with reference to article 12(2)(d), it
will be relatively easy to identify the particular monetary authority
of a specific country or territory. The European Central Bank,
for example, is the monetary authority for countries for whom
the Euro is their currency.
As regards the question at point (2) above, this
was an oversight due to the rapidity with which the Order had
to be prepared. We do not think this point changes the substance
of the Order or has any practical consequences for individuals
or entities but we agree that the better approach would have been
to insert paragraph (2) of Article 3 in Article 2. We will take
note of this point in drafting future sanctions orders and are
grateful to the Committee for pointing it out.
Foreign and Commonwealth Office
10 May 2011
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