1.The Committee asks:
What sanction is applicable to a contravention of regulation 8(3) and where is this made clear?
2.There is no criminal sanction in relation to this obligation in the relevant S.I. However, there is the availability of a sanction in the Policing and Crime Act 2017, section 146. That section enables the Treasury to impose a monetary penalty in cases where it is satisfied that, on the balance of probability, a person has breached a requirement or prohibition of any ‘financial sanctions legislation’. This statutory instrument falls within the meaning of that term in section 143(4)(b).
3.Regulation 8 is an exception to the prohibition on dealing with frozen funds, breach of which would otherwise be a serious criminal offence. This obligation on relevant institutions to report to the Treasury when it has credited a frozen account helps the Treasury to monitor compliance by institutions with financial sanctions, and the amount of funds that are frozen in the UK. Obligations to report transactions are viewed as an important part of the overall framework of sanctions and monitoring in this field.
20 November 2018
Published: 30 November 2018