The Yemen (Sanctions) (EU Exit) (No. 2) Regulations 2020

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations are made under the Sanctions and Anti-Money Laundering Act 2018 (c.13) (“the Sanctions Act”) to establish a sanctions regime in relation to Yemen for the purposes of compliance with the United Kingdom’s international obligations resulting from various United Nations Security Council Resolutions, including, in particular, Resolution 2140 (2014) and Resolution 2216 (2015) and for the purpose of promoting the peace, stability and security of Yemen. These Regulations replace the Yemen (Sanctions) (EU Exit) Regulations 2020 which omitted reference to section 4 of the Sanctions Act (immigration sanctions) in the preamble of that instrument. The policy is unchanged and S.I. 2020/733 is revoked by these Regulations.

Following the United Kingdom’s withdrawal from the European Union, the Regulations also replace the European Union sanctions regime in relation to Yemen which is currently implemented via an EU Council Decision and Regulation.

The Regulations provide that persons who are listed by the UN are designated for the purposes of these Regulations. The Regulations also confer a power on the Secretary of State to designate persons who are, or have been, involved in the commission of serious human rights violations or abuses in Yemen, obstructing the delivery or distribution of, or access to, humanitarian assistance in Yemen, and other acts which undermine the peace, stability and security of Yemen. Designated persons are subject to various sanctions measures set out in subsequent Parts of the Regulations.

Part 3 of the Regulations provides for designated persons to be made subject to financial sanctions, which include having their funds and/or economic resources frozen.

Part 4 of the Regulations provides that persons designated by the Secretary of State are “excluded persons” under section 8B of the Immigration Act 1971, meaning generally that they must be refused leave to enter the United Kingdom and leave to remain in the United Kingdom, and any leave that has been granted is invalid.

Part 5 of the Regulations imposes trade restrictions on military goods and military technology and associated services.

The Regulations provide for certain exceptions to this sanctions regime, in particular in relation to financial sanctions (for example to allow for frozen accounts to be credited with interest or other earnings) and also acts done for the purpose of national security or the prevention of serious crime. The Regulations also confer powers on the Secretary of State and the Treasury to issue licences in respect of activities that would otherwise be prohibited under the financial and trade sanctions. Schedule 2 to these Regulations sets out the purposes pursuant to which the Treasury may issue such licences.

The Regulations prescribe powers for the provision and sharing of information to enable the effective implementation and enforcement of the sanctions regime. The Regulations make it a criminal offence to contravene, or circumvent, any of the prohibitions in these Regulations and prescribe the mode of trial and penalties that apply to such offences. They also provide for the application of similar types of provision in the Customs and Excise Management Act 1979 to certain offences relating to trade.

The Regulations also confer powers on specified maritime enforcement officers to stop and search ships in international and foreign waters for the purpose of enforcing specified trade sanctions and to seize goods found on board ships which are being, or have been, dealt with in contravention, or deemed contravention, of those prohibitions.

The Yemen (Sanctions) (EU Exit) Regulations 2020 and Council Regulation (EU) No 1352/2014 of 18 December 2014 concerning restrictive measures in view of the situation in Yemen are revoked by these Regulations. The Yemen (European Union Financial Sanctions) Regulations 2014 and the Export Control (Yemen Sanctions) Regulations 2015 are also revoked. An amendment is also made by these Regulations to the Schedule to the United Nations and European Union Financial Sanctions (Linking) Regulations 2017.

An Impact Assessment has not been produced for these Regulations, as they are intended to ensure existing sanctions remain in place following the United Kingdom’s withdrawal from the European Union. These Regulations are intended to deliver substantially the same policy effects as the existing European Union sanctions. An Impact Assessment was, however, produced for the Sanctions and Anti-Money Laundering Act 2018 and can be found at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/653271/Sanctions_and_Anti-Money_Laundering_Bill_Impact_Assessment_18102017.pdf .