1.The Committee have asked:
Explain the basis on which the Department is satisfied that these regulations do not impose requirements in excess of those imposed by EU law in this area.
2.Section 2(2)(a) of the European Communities Act 1972 empowers the Treasury to make regulations “for the purpose of implementing any [EU obligation] of the United Kingdom, or enabling any such obligation to be implemented….”
3.All relevant EU financial sanctions Regulations state “natural and legal persons, entities and bodies shall supply immediately any information which would facilitate compliance with this Regulation…… to the competent authority of the Member State….” (see Article 29 Council Regulation (EU) 36/2012).
4.All relevant EU Regulations also contain standard text regarding enforcement, which reads “Member States shall lay down the rules on penalties applicable to infringements of this Regulation and shall take all measures necessary to ensure that they are implemented. The penalties provided for shall be effective, proportionate and dissuasive” (see Article 33 Council Regulation (EU) 36/2012).
5.EU financial sanctions Regulations are, via section 2(1) of the 1972 Act, directly applicable in the UK.
6.The Treasury has created the AIP Regulations, in the exercise of their mandate to lay down rules on penalties applicable to infringements of the relevant EU Regulations, to extend the enforceability of the already existing reporting obligation imposed by the directly applicable EU financial sanctions Regulations.
7.The Department is therefore satisfied that these regulations do not impose requirements in excess of those imposed by EU law in this area.
27 November 2017
7 December 2017