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 the Republic of Mali (“Mali”) for the purposes of compliance with the United Kingdom's United Nations obligations and promoting the peace, stability and security of Mali and related purposes. Following the United Kingdom's withdrawal from the European Union, these Regulations also replace the European Union sanctions measures in relation to Mali which are currently implemented via an EU Council Decision and Regulation.

The Regulations confer a power on the Secretary of State to designate persons who, for example, are or have been involved in activities which threaten the peace, stability and security of Mali or undermine efforts to implement the Agreement on Peace and Reconciliation in Mali. Designated persons may be excluded from the United Kingdom and may be made subject to financial sanctions, including having their funds and/or economic resources frozen.

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

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. The Regulations prescribe powers for the provision and sharing of information to enable the effective implementation and enforcement of the sanctions regime.

Council Regulation (EU) 2017/1770 of 28 September 2017 concerning restrictive measures in view of the situation in Mali is revoked by these Regulations. The Republic of Mali (European Union Financial Sanctions) Regulations 2017 (S.I. 2017/972) are revoked and certain provisions of the United Nations and European Union Financial Sanctions (Linking) Regulations 2017 (S.I. 2017/478) are amended by these Regulations.

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.