2 S.I.
2011/1129 and S.I. 2011/1244: Reported for requiring elucidation
Iran (Asset-Freezing) Regulations 2011 (S.I. 2011/1129
and Syria (Asset-Freezing) Regulations 2011 (S.I. 2011/1244)
2.1 The
Committee draws the special attention of both Houses to these
Regulations on the ground that they require elucidation in one
respect.
2.2 These Regulations contain provision (at
regulation 8(3)) imposing a duty on financial institutions in
certain circumstances to inform the Treasury if they credit a
frozen account. The Regulations do not include any sanction for
a failure to comply with that duty. In the 16th report
of Session 2010-11 the Committee identified a need for elucidation
of identical provisions in S.I. 2010/2937 and S.I. 2010/2956 (beyond
that provided by the Treasury in their memorandum to the Committee
in relation to those instruments) as to the mechanisms by which
such duties were enforced. In a memorandum
printed at Appendix 2, the Treasury now provides that further
elucidation by reference to the role of the Financial Services
Authority under the Financial Services and Markets Act 2000 as
a supervisor and the enforcement mechanisms available to it; while
the memorandum does not precisely identify the Act provisions,
the Committee notes that extensive powers are contained in Part
5. The Committee accordingly reports
regulation 8(3) as requiring the elucidation provided in the Department's
memorandum as amplified above.
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