The Somalia (Sanctions) (EU Exit) 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) to establish a sanctions regime in relation to Somalia for the purpose of giving effect to the United Kingdom's international obligations under United Nations Security Council Resolutions, including, in particular, resolution 733 adopted by the Security Council on 23 January 1992, resolution 1844 adopted by the Security Council on 20 November 2008, resolution 2036 adopted by the Security Council on 22 February 2012, and resolution 2498 adopted by the Security Council on 15 November 2019. The Regulations also have the purpose of promoting the peace, stability and security of Somalia and related purposes.

Following the United Kingdom's withdrawal from the European Union, the Regulations will replace the European Union sanctions regime in relation to Somalia which is currently implemented through and under an EU Council Decision and two Council Regulations.

Part 2 of the Regulations provides that persons who are listed by the UN are designated persons for the purposes of these Regulations. It also confers a power on the Secretary of State to designate persons who are, or have been, involved in the commission of activities connected to terrorism, breaches of international humanitarian law or the commission of serious human rights violations or abuses in Somalia, and other acts that threaten the peace, security or stability of Somalia, or that obstruct or undermine the Federal Government of Somalia. 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, including having their funds and/or economic resources frozen.

Persons designated by the UN 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 4 of the Regulations provides that persons designated by the Secretary of State are also to be “excluded persons” for these purposes.

Part 5 of the Regulations imposes trade restrictions in relation to Somalia in respect of military goods and military technology, charcoal, and improvised explosive devices (IED) components. It also imposes trade restrictions in relation to designated persons in respect of military goods and technology. The Regulations also impose restrictions on certain activities which enable or facilitate the conduct of armed hostilities in Somalia.

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, or to allow a person to make funds or economic resources available where necessary in connection with certain humanitarian assistance activities) 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 some of the trade sanctions. Schedule 3 to the Regulations sets out the purposes for 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 the Regulations and set out the penalties that apply to such offences. The Regulations prescribe the mode of trial and penalties that apply to offences under the Regulations. 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.

Council Regulation (EU) No 356/2010 of 26 April 2010 (imposing certain restrictive measures against certain natural or legal persons, entities or bodies, in view of the situation in Somalia) and Council Regulation (EU) No 147/2003 of 27 January 2003 (concerning restrictive measures in respect of Somalia) are revoked by these Regulations. The Somalia (Asset-Freezing) Regulations 2010, the Export Control (Somalia) Order 2011 and the Somalia (United Nations Sanctions) Order 2002 are also revoked by these Regulations. 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.