C18C8C2C6C17C10C11C5C16C4C7C14C12C3C13C9C19C15C20C21Part 8Financial sanctions

Annotations:
Modifications etc. (not altering text)

Interpretation

I1I9C1143Interpretation

1

This section sets out definitions that apply for the purposes of this Part.

2

“EU financial sanctions Regulation” means an EU Regulation adopted under Article 215 of the Treaty on the Functioning of the European Union to the extent that the Regulation—

a

imposes prohibitions or obligations for one or more of the following purposes—

i

freezing funds or economic resources;

ii

preventing funds or economic resources being made available;

iii

prohibiting or restricting access to financial markets or financial services;

b

makes provision to supplement prohibitions or obligations of the kind mentioned in paragraph (a).

3

“UN financial sanctions Resolution” means a resolution adopted by the Security Council of the United Nations to the extent that the resolution provides under article 41 of the Charter of the United Nations for States to take measures that—

a

impose prohibitions or obligations for one or more of the following purposes—

i

freezing funds or economic resources;

ii

preventing funds or economic resources being made available;

iii

prohibiting or restricting access to financial markets or financial services;

b

make provision to supplement prohibitions or obligations of the kind mentioned in paragraph (a).

4

“Financial sanctions legislation” means—

a

an EU financial sanctions Regulation;

b

an instrument made under section 2(2) of the European Communities Act 1972 for the purpose of implementing, or otherwise in relation to, EU obligations created or arising by or under an EU financial sanctions Regulation;

c

a provision of an Act or of subordinate legislation (within the meaning of the Interpretation Act 1978) where the purpose of the provision is to implement a UN financial sanctions Resolution;

d

a freezing order under section 4 of the Anti-terrorism, Crime and Security Act 2001;

e

a direction under Schedule 7 to the Counter-Terrorism Act 2008 to the extent that it contains a requirement of a kind mentioned in paragraph 13 of that Schedule (limiting or ceasing business), paragraph 17 of that Schedule and Part 5 of that Schedule so far as it relates to the enforcement of a requirement of a kind mentioned in paragraph 13 of that Schedule.

F2f

a provision of regulations made under section 1 of the Sanctions and Anti-Money Laundering Act 2018 that—

F10i

contains a prohibition or requirement imposed for a purpose mentioned in section 3(1) or (2) of that Act;

F9ii

makes supplemental provision (within the meaning of section 1(6) of that Act) in connection with any prohibition or requirement mentioned in sub-paragraph (i).

F14A

But “financial sanctions legislation” does not include any provision of regulations made under section 1 of the Sanctions and Anti-Money Laundering Act 2018 which is specified in the regulations as a provision to be regarded as not being financial sanctions legislation for the purposes of this Part.

5

The reference in subsection (2) to Article 215 of the Treaty on the Functioning of the European Union includes a reference to any of Articles 60, 301 and 308 of the Treaty establishing the European Community (as it had effect before 1 December 2009).

Enhanced maximum penalties

F3144Powers to create offences under section 2(2) ECA 1972: maximum term of imprisonment

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

I2I10145Other offences: maximum term of imprisonment

1

Schedule 3 to the Anti-terrorism, Crime and Security Act 2001 (freezing orders) is amended in accordance with subsections (2) and (3).

2

In paragraph 7 (offences), for sub-paragraph (6)(a) and (b) substitute—

a

on summary conviction—

i

in England and Wales, to imprisonment for a term not exceeding 12 months (or, in relation to offences committed before section 154(1) of the Criminal Justice Act 2003 comes into force, 6 months) or to a fine, or to both;

ii

in Scotland, to imprisonment for a term not exceeding 12 months, or to a fine not exceeding the statutory maximum, or to both;

iii

in Northern Ireland, to imprisonment for a term not exceeding 6 months, or to a fine not exceeding the statutory maximum, or to both;

b

on conviction on indictment, to imprisonment for a term not exceeding 7 years or to a fine, or to both.

3

In that paragraph, in sub-paragraph (7), for the words from “on summary conviction” to the end of the sub-paragraph substitute

—

a

on summary conviction—

i

in England and Wales, to imprisonment for a term not exceeding 12 months (or, in relation to offences committed before section 154(1) of the Criminal Justice Act 2003 comes into force, 6 months) or to a fine, or to both;

ii

in Scotland, to imprisonment for a term not exceeding 12 months, or to a fine not exceeding the statutory maximum, or to both;

iii

in Northern Ireland, to imprisonment for a term not exceeding 6 months, or to a fine not exceeding the statutory maximum, or to both;

b

on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine, or to both.

4

Schedule 7 to the Counter-Terrorism Act 2008 (terrorist financing and money laundering) is amended in accordance with subsections (5) to (9).

5

In paragraph 30 (offence of failure to comply with requirement imposed by direction), after sub-paragraph (4) insert—

4A

In a case where a person is guilty of an offence under this paragraph by failing to comply with a requirement of a kind mentioned in paragraph 13, the person is liable—

a

on summary conviction—

i

in England and Wales, to imprisonment for a term not exceeding 12 months (or, in relation to offences committed before section 154(1) of the Criminal Justice Act 2003 comes into force, 6 months) or to a fine, or to both;

ii

in Scotland, to imprisonment for a term not exceeding 12 months, or to a fine not exceeding the statutory maximum, or to both;

iii

in Northern Ireland, to imprisonment for a term not exceeding 6 months, or to a fine not exceeding the statutory maximum, or to both;

b

on conviction on indictment, to imprisonment for a term not exceeding 7 years or to a fine, or to both.

6

In sub-paragraph (5) of that paragraph, at the beginning insert “ In any other case, ”.

7

In paragraph 30A (offence of relevant person circumventing requirements), after sub-paragraph (1) insert—

1A

In a case where a person is guilty of an offence under this paragraph in relation to a requirement of a kind mentioned in paragraph 13, the person is liable—

a

on summary conviction—

i

in England and Wales, to imprisonment for a term not exceeding 12 months (or, in relation to offences committed before section 154(1) of the Criminal Justice Act 2003 comes into force, 6 months) or to a fine, or to both;

ii

in Scotland, to imprisonment for a term not exceeding 12 months, or to a fine not exceeding the statutory maximum, or to both;

iii

in Northern Ireland, to imprisonment for a term not exceeding 6 months, or to a fine not exceeding the statutory maximum, or to both;

b

on conviction on indictment, to imprisonment for a term not exceeding 7 years or to a fine, or to both.

8

In sub-paragraph (2) of that paragraph, at the beginning insert “ In any other case, ”.

9

In paragraph 31 (offences in connection with licences), in sub-paragraph (2), for the words from “on conviction on indictment” to the end of the sub-paragraph substitute

—

a

on summary conviction—

i

in England and Wales, to imprisonment for a term not exceeding 12 months (or, in relation to offences committed before section 154(1) of the Criminal Justice Act 2003 comes into force, 6 months) or to a fine, or to both;

ii

in Scotland, to imprisonment for a term not exceeding 12 months, or to a fine not exceeding the statutory maximum, or to both;

iii

in Northern Ireland, to imprisonment for a term not exceeding 6 months, or to a fine not exceeding the statutory maximum, or to both;

b

on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine, or to both.

10

The amendments made by this section do not affect the penalty for an offence if any act or other event proof of which is required for conviction of the offence takes place before this section comes into force.

Annotations:
Commencement Information
I2

S. 145 in force for specified purposes at Royal Assent, see s. 183

I10

S. 145 in force at 1.4.2017 in so far as not already in force by S.I. 2017/482, reg. 2

Civil sanctions

I3I11146Power to impose monetary penalties

1

The Treasury may impose a monetary penalty on a person if it is satisfied, on the balance of probabilities, that—

a

the person has breached a prohibition, or failed to comply with an obligation, that is imposed by or under financial sanctions legislation, F6...

F6b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F51A

In determining for the purposes of subsection (1) whether a person has breached a prohibition, or failed to comply with an obligation, imposed by or under financial sanctions legislation, any requirement imposed by or under that legislation for the person to have known, suspected or believed any matter is to be ignored.

2

The amount of the penalty is to be such amount as the Treasury may determine but it may not exceed the permitted maximum.

3

In a case where the breach or failure relates to particular funds or economic resources and it is possible to estimate the value of the funds or economic resources, the permitted maximum is the greater of—

a

£1,000,000, and

b

50% of the estimated value of the funds or resources.

4

In any other case, the permitted maximum is £1,000,000.

5

In subsection (3), “funds” and “economic resources” have the same meanings as they have in the financial sanctions legislation that contains the prohibition or obligation in respect of which the monetary penalty is imposed.

6

The Treasury must keep the amount for the time being specified in subsection (3)(a) or (4) under review.

7

The Treasury may by regulations made by statutory instrument amend subsection (3)(a) or (4) so as to substitute another amount for the amount for the time being specified in it.

8

Regulations under subsection (7) may include transitional provision.

9

Before making regulations under subsection (7), the Treasury must consult such persons as it considers appropriate.

10

A statutory instrument containing regulations under subsection (7) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

11

Any monetary penalty payable under this section is recoverable by the Treasury as a civil debt.

12

Any monetary penalty received by the Treasury by virtue of this section must be paid into the Consolidated Fund.

13

This section does not authorise the imposition of a monetary penalty on the Crown.

I4I12147Monetary penalties: procedural rights

1

Before imposing a monetary penalty on a person under section 146, the Treasury must inform the person of its intention to do so.

2

The Treasury must also—

a

explain the grounds for imposing the penalty,

b

specify the amount of the penalty,

c

explain that the person is entitled to make representations, and

d

specify the period within which any such representations must be made.

3

If (having considered any representations), the Treasury decides to impose the penalty, the Treasury must—

a

inform the person of its decision,

b

explain that the person is entitled to seek a review by a Minister of the Crown, and

c

specify the period within which the person must inform the Treasury that the person wishes to seek such a review.

4

If the person seeks a review, the Minister may—

a

uphold the decision to impose the penalty and its amount,

b

uphold the decision to impose the penalty but substitute a different amount, or

c

cancel the decision to impose the penalty.

F75

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6

If on a review under subsection (4) the Minister decides to uphold the Treasury's decision to impose the penalty and its amount, or to uphold the Treasury's decision to impose the penalty but to substitute a different amount, the person may appeal (on any ground) to the Upper Tribunal.

7

On an appeal under subsection (6), the Upper Tribunal may quash the Minister's decision and if it does so may—

a

quash the Treasury's decision to impose the penalty;

b

uphold that decision but substitute a different amount for the amount determined by the Treasury (or, in a case where the Minister substituted a different amount, by the Minister).

8

In this section, “Minister of the Crown” means the holder of an office in Her Majesty's Government in the United Kingdom.

I5I13148Monetary penalties: bodies corporate and unincorporated associations

1

If a monetary penalty is payable under section 146 by a body, the Treasury may also impose a monetary penalty on an officer of the body if it is satisfied, on the balance of probabilities, that the breach or failure in respect of which the monetary penalty is payable by the body—

a

took place with the consent or connivance of the officer, or

b

was attributable to any neglect on the part of the officer.

2

In subsection (1)—

  • “body” means a body corporate, a partnership or an unincorporated body other than a partnership;

  • “officer of a body” means—

    1. a

      in relation to a body corporate, a director, manager, secretary or other similar officer of the body or a person purporting to act in any such capacity;

    2. b

      in relation to a partnership, a partner or a person purporting to act as a partner;

    3. c

      in relation to an unincorporated body other than a partnership, a person who is concerned in the management or control of the body or purports to act in the capacity of a person so concerned.

3

Sections 146(2) to (5), (11) and (12) and 147 apply in relation to a monetary penalty that may be imposed under subsection (1) as they apply in relation to a monetary penalty that may be imposed under section 146(1).

Annotations:
Commencement Information
I5

S. 148 in force for specified purposes at Royal Assent, see s. 183

I13

S. 148 in force at 1.4.2017 in so far as not already in force by S.I. 2017/482, reg. 2

I6I14149Monetary penalties: supplementary

1

The Treasury must issue guidance as to—

a

the circumstances in which it may consider it appropriate to impose a monetary penalty under section 146 or 148, and

b

how it will determine the amount of the penalty.

2

The Treasury must, at such intervals as it considers appropriate, publish reports about the imposition of monetary penalties under section 146 or 148.

F83

The Treasury may also publish reports at such intervals as it considers appropriate in cases where—

a

a monetary penalty has not been imposed under section 146 or 148, but

b

the Treasury is satisfied, on the balance of probabilities, that a person has breached a prohibition, or failed to comply with an obligation, that is imposed by or under financial sanctions legislation.

Other provisions about enforcement

I7I15150Deferred prosecution agreements

In Part 2 of Schedule 17 to the Crime and Courts Act 2013 (which lists the offences in relation to which a deferred prosecution agreement may be entered into), after paragraph 26 insert—

26A

1

An offence under an instrument made under section 2(2) of the European Communities Act 1972 for the purpose of implementing, or otherwise in relation to, EU obligations created or arising by or under an EU financial sanctions Regulation.

2

An offence under an Act or under subordinate legislation where the offence was created for the purpose of implementing a UN financial sanctions Resolution.

3

An offence under paragraph 7 of Schedule 3 to the Anti-terrorism, Crime and Security Act 2001 (freezing orders).

4

An offence under paragraph 30 or 30A of Schedule 7 to the Counter-Terrorism Act 2008 where the offence relates to a requirement of the kind mentioned in paragraph 13 of that Schedule.

5

An offence under paragraph 31 of Schedule 7 to the Counter-Terrorism Act 2008.

6

In this paragraph—

  • “EU financial sanctions Regulation” and “UN financial sanctions Resolution” have the same meanings as in Part 8 of the Policing and Crime Act 2017 (see section 143 of that Act);

  • “subordinate legislation” has the same meaning as in the Interpretation Act 1978.

Annotations:
Commencement Information
I7

S. 150 in force for specified purposes at Royal Assent, see s. 183

I15

S. 150 in force at 1.4.2017 in so far as not already in force by S.I. 2017/482, reg. 2

I8I16151Serious crime prevention orders

1

Schedule 1 to the Serious Crime Act 2007 (which lists the offences in respect of which serious crime prevention orders may be made) is amended as follows.

2

In Part 1 (England and Wales), after paragraph 13A insert—

13BFinancial sanctions legislation

1

An offence under an instrument made under section 2(2) of the European Communities Act 1972 for the purpose of implementing, or otherwise in relation to, EU obligations created or arising by or under an EU financial sanctions Regulation.

2

An offence under an Act or under subordinate legislation where the offence was created for the purpose of implementing a UN financial sanctions Resolution.

3

An offence under paragraph 7 of Schedule 3 to the Anti-terrorism, Crime and Security Act 2001 (freezing orders).

4

An offence under paragraph 30 or 30A of Schedule 7 to the Counter-Terrorism Act 2008 where the offence relates to a requirement of the kind mentioned in paragraph 13 of that Schedule.

5

An offence under paragraph 31 of Schedule 7 to the Counter-Terrorism Act 2008.

6

In this paragraph—

  • “EU financial sanctions Regulation” and “UN financial sanctions Resolution” have the same meanings as in Part 8 of the Policing and Crime Act 2017 (see section 143 of that Act);

  • “subordinate legislation” has the same meaning as in the Interpretation Act 1978.

3

In Part 1A (Scotland), after paragraph 16M —

16MAFinancial sanctions legislation

1

An offence under an instrument made under section 2(2) of the European Communities Act 1972 for the purpose of implementing, or otherwise in relation to, EU obligations created or arising by or under an EU financial sanctions Regulation.

2

An offence under an Act or under subordinate legislation where the offence was created for the purpose of implementing a UN financial sanctions Resolution.

3

An offence under paragraph 7 of Schedule 3 to the Anti-terrorism, Crime and Security Act 2001 (freezing orders).

4

An offence under paragraph 30 or 30A of Schedule 7 to the Counter-Terrorism Act 2008 where the offence relates to a requirement of the kind mentioned in paragraph 13 of that Schedule.

5

An offence under paragraph 31 of Schedule 7 to the Counter-Terrorism Act 2008.

6

In this paragraph—

  • “EU financial sanctions Regulation” and “UN financial sanctions Resolution” have the same meanings as in Part 8 of the Policing and Crime Act 2017 (see section 143 of that Act);

  • “subordinate legislation” has the same meaning as in the Interpretation Act 1978.

4

In Part 2 (Northern Ireland), after paragraph 29 insert—

29AFinancial sanctions legislation

1

An offence under an instrument made under section 2(2) of the European Communities Act 1972 for the purpose of implementing, or otherwise in relation to, EU obligations created or arising by or under an EU financial sanctions Regulation.

2

An offence under an Act or under subordinate legislation where the offence was created for the purpose of implementing a UN financial sanctions Resolution.

3

An offence under paragraph 7 of Schedule 3 to the Anti-terrorism, Crime and Security Act 2001 (freezing orders).

4

An offence under paragraph 30 or 30A of Schedule 7 to the Counter-Terrorism Act 2008 where the offence relates to a requirement of the kind mentioned in paragraph 13 of that Schedule.

5

An offence under paragraph 31 of Schedule 7 to the Counter-Terrorism Act 2008.

6

In this paragraph—

  • “EU financial sanctions Regulation” and “UN financial sanctions Resolution” have the same meanings as in Part 8 of the Policing and Crime Act 2017 (see section 143 of that Act);

  • “subordinate legislation” has the same meaning as in the Interpretation Act 1978.

Annotations:
Commencement Information
I8

S. 151 in force for specified purposes at Royal Assent, see s. 183

I16

S. 151 in force at 1.4.2017 in so far as not already in force by S.I. 2017/482, reg. 2

Avoidance of delay: temporary regulations

F4152Implementation of UN financial sanctions Resolutions: temporary regulations

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4153Content of regulations under section 152

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Avoidance of delay: temporary listing

F4154Linking of UN financial sanctions Resolutions with EU financial sanctions Regulations

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4155Implementation of UN financial sanctions Resolutions: temporary listing

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Power to extend to Bailiwick of Guernsey etc

F4156Extension to the Bailiwick of Guernsey, Isle of Man and BOTs

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .