Final designations
Section 2 – Treasury’s power to make final designation
14.There are two designation powers in Part 1 of the Act. In addition to the power in this section to make a final designation for the purposes of Part 1 of the Act, there is a power in section 6 to make an interim designation. Interim designations are based on ‘reasonable suspicion’ rather than ‘reasonable belief’. Interim designations may last up to 30 days, while final designations expire one year after being made unless renewed. There is no requirement to make an interim designation prior to a final designation.
15.In relation to final designations, subsection (1) of section 2 provides that the Treasury may only make a designation if the requirements of paragraphs (a) and (b) are met. Under paragraph (a) the Treasury must reasonably believe that the person is or has been involved in terrorist activity (or is owned or controlled directly or indirectly by, or is acting on behalf or at the direction of, such a person). Under paragraph (b) the Treasury can only designate such a person if they consider that it is necessary for the purpose of protecting members of the public from terrorism that financial restrictions should be applied in relation to the person.
16.Subsections (2) and (3) define “involvement in terrorist activity”.
17.Subsection (4) defines “terrorism” for the purposes of section 2 of the Act by reference to the definition contained in section 1(1) to (4) of the Terrorism Act 2000.
Section 3 – Notification of final designation
18.Section 3 requires the Treasury to give notice of and publicise any final designations that they make. Subsection (1) requires the Treasury to give written notice of a person’s designation to that person and to take steps to publicise the designation.
19.Under subsection (2), the designation must be publicised generally, unless one of the exceptions in subsection (3) applies, in which case under subsection (4) the Treasury must inform only such persons as they consider appropriate. The conditions in subsection (3) are that the Treasury (a) believe that the designated person is under the age of 18 or (b) consider that disclosure of the designation should be restricted in the interests of national security, for reasons connected with the prevention or detection of serious crime, or in the interests of justice. For example (and this could apply also in relation to an interim designation under section 6 as section 7 has a similar provision for the restriction of notification of interim designations), the Treasury may consider restricting the publication of a person’s designation where they are concerned that a wide publication might have the consequence of revealing the nature or extent of a police or intelligence investigation.
20.Subsection (5) specifies that where the Treasury have publicised a person’s designation to only those persons they consider appropriate because one or more conditions in subsection (3) were met but such conditions subsequently cease to be met, the Treasury must give written notice of that fact to the designated person and take steps to publicise the designation generally.
Section 4 – Duration of final designation
21.Subsection (1) specifies that a final designation expires after one year unless renewed. Subsection (2) gives the Treasury the power to renew a final designation at any time before it expires provided that the requirements of section 2(1) continue to be met. Such renewed final designations also expire after one year following the date of renewal (subsection (3)) and a renewal of a final designation must be notified and publicised in accordance with the provisions of section 3 (subsection (4)). A final designation may be renewed more than once. Upon the expiry of a final designation, the Treasury must give written notice of the fact to the designated person and take reasonable steps to bring that fact to the attention of those informed of the designation (subsection (5)).
Section 5 – Variation or revocation of final designation
22.This section gives the Treasury the power to vary or revoke a final designation at any time (subsection (1)). Where they do so they must give written notice to the designated person and take reasonable steps to bring the variation or revocation to the attention of those informed of the designation (subsection (2)).
