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 for the purpose of preventing and combatting serious corruption.
The Regulations confer a power on the Secretary of State to designate persons who are, or have been, involved in serious corruption. Designated persons may be excluded from the United Kingdom and may be made subject to financial sanctions, including having their funds 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 to allow 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 Regulations. Schedule 2 sets out the purposes under which the Treasury will 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.
The Regulations also revoke the Misappropriation (Sanctions) (EU Exit) Regulations 2020.
A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen. Instead a de minimis assessment has been prepared as this instrument is likely to entail some costs for businesses, but the net impact is estimated to be below £5 million per year.