The Trade, Aircraft and Shipping Sanctions (Civil Enforcement) Regulations 2024

Part 2 U.K. Enforcement

Power to impose monetary penalties U.K.

5.—(1) Subject to paragraphs (2) to (4), the Secretary of State may impose a monetary penalty on a person if the Secretary of State is satisfied, on the balance of probabilities, that the person has breached a prohibition, or failed to comply with an obligation, imposed by or under sanctions regulations.

(2) The Secretary of State may not impose a monetary penalty under paragraph (1) for a breach of a prohibition, or a failure to comply with an obligation, in trade sanctions regulations where paragraph (3) applies in respect of any suspected offence relating to that breach or failure to comply.

(3) This paragraph applies where the suspected offence is capable of being investigated under the trade sanctions regulations concerned, by the Commissioners without—

(a) any referral to the Commissioners, or

(b) any decision by the Commissioners to treat the suspected offence as having been referred to them.

(4) A penalty may be imposed under paragraph (1)—

(a) in the case of a United Kingdom person, in relation to conduct—

(i) in the United Kingdom or the territorial sea, or

(ii) wholly or partly outside the United Kingdom;

(b) in the case of any other person, in relation to conduct in the United Kingdom or the territorial sea.

(5) Any monetary penalty payable under paragraph (1) is recoverable by the Secretary of State as a civil debt.

(6) Any monetary penalty received by the Secretary of State under paragraph (1) must be paid into the Consolidated Fund.

Commencement Information

I1 Reg. 5 in force at 10.10.2024, see reg. 1(2)

Trade sanctions: monetary penalties, supplementary U.K.

6.  For the purposes of regulation 5(1) (power to impose monetary penalties), any defence that the person did not know and had no reasonable cause to suspect that an offence had been committed under trade sanctions regulations is to be ignored.

Commencement Information

I2 Reg. 6 in force at 10.10.2024, see reg. 1(2)

Aircraft and shipping sanctions: monetary penalties, supplementary U.K.

7.—(1) Paragraph (2) applies for the purposes of regulation 5(1) in determining whether a person has breached a prohibition, or failed to comply with an obligation, imposed by or under aircraft sanctions regulations or shipping sanctions regulations.

(2) Any requirement imposed by or under those regulations for the person to have known, suspected or believed any matter, or to have acted without reasonable excuse, is to be ignored.

Commencement Information

I3 Reg. 7 in force at 10.10.2024, see reg. 1(2)

Liability of officers of bodies corporate etc. U.K.

8.—(1) Paragraph (2) applies where a body corporate has breached a prohibition, or failed to comply with an obligation, imposed by or under sanctions regulations.

(2) Where the breach or failure referred to in paragraph (1)—

(a) is committed with the consent or connivance of any director, manager, secretary or other similar officer of the body corporate, or any person who was purporting to act in such capacity, or

(b) is attributable to any neglect on the part of any such person,

the Secretary of State may impose a monetary penalty on that person as well as on the body corporate.

(3) In relation to a body corporate whose affairs are managed by its members, in paragraph (2)(a) “director” means a member of the body corporate.

(4) Paragraph (2) also applies in relation to a body that is not a body corporate, with the substitution for the reference to a director of the body of a reference—

(a) in the case of a partnership, to a partner;

(b) in the case of an unincorporated body other than a partnership—

(i) where the body’s affairs are managed by its members, to a member of the body;

(ii) in any other case, to a member of the governing body.

Commencement Information

I4 Reg. 8 in force at 10.10.2024, see reg. 1(2)

Trade sanctions: calculation of penalty U.K.

9.—(1) The amount of the penalty under regulation 5(1) for breach of a prohibition or failure to comply with an obligation imposed by or under trade sanctions regulations is to be such amount as the Secretary of State may determine, but it may not exceed the permitted maximum.

(2) Where it is possible to estimate the value of the breach of the prohibition or failure to comply with the obligation specified in regulation 5(1), the permitted maximum is the greater of—

(a) £1,000,000, and

(b) 50% of the estimated value of the breach or failure to comply.

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

Commencement Information

I5 Reg. 9 in force at 10.10.2024, see reg. 1(2)

Aircraft and shipping sanctions: calculation of penalty U.K.

10.—(1) The amount of the penalty under regulation 5(1) for breach of a prohibition or failure to comply with an obligation imposed by or under aircraft sanctions regulations or shipping sanctions regulations is to be such amount as the Secretary of State may determine, but it may not exceed the permitted maximum.

(2) Where it is possible to estimate the value of the aircraft or ship used in connection with the breach of the prohibition or failure to comply with the obligation specified in regulation 5(1), the permitted maximum is the greater of—

(a) £1,000,000, and

(b) 50% of the estimated value of the aircraft or ship (as the case may be).

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

(4) For the purpose of paragraph (2), “estimated value” means the estimated value of the aircraft or ship at the time of the breach or failure to comply, as the case may be.

Commencement Information

I6 Reg. 10 in force at 10.10.2024, see reg. 1(2)

Monetary penalties: procedural rights U.K.

11.—(1) Before imposing a monetary penalty on a person under regulation 5(1), the Secretary of State must inform the person of the Secretary of State’s intention to do so.

(2) The Secretary of State 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 the Secretary of State decides to impose the penalty (having considered any representations), the Secretary of State must—

(a) inform the person of the decision,

(b) explain that the person is entitled to seek a review by the Secretary of State, and

(c) specify the period within which the person must inform the Secretary of State that the person wishes to seek such a review.

(4) If the person seeks a review, the Secretary of State 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.

(5) If on a review under paragraph (4) the Secretary of State decides to uphold the decision to impose the penalty and its amount, or to uphold the decision to impose the penalty but to substitute a different amount, the person may appeal (on any ground) to the Upper Tribunal.

(6) On an appeal under paragraph (5), the Upper Tribunal may—

(a) quash the Secretary of State’s decision to impose the penalty;

(b) uphold that decision but substitute a different amount for the amount determined by the Secretary of State.

Commencement Information

I7 Reg. 11 in force at 10.10.2024, see reg. 1(2)

Monetary penalties: procedural rights, supplementary U.K.

12.—(1) A person is not liable for a monetary penalty under regulation 5(1) in respect of conduct amounting to an offence if—

(a) proceedings have been brought against the person for that offence in respect of that conduct and the proceedings are ongoing, or

(b) the person has been convicted of that offence in respect of that conduct.

(2) No proceedings may be brought against a person in respect of conduct amounting to an offence if the person has been given a monetary penalty under regulation 5(1) in respect of that conduct.

Commencement Information

I8 Reg. 12 in force at 10.10.2024, see reg. 1(2)

Monetary penalties: reports U.K.

13.—(1) The Secretary of State may, at such intervals as the Secretary of State considers appropriate, publish reports about the imposition of monetary penalties under regulation 5.

(2) Subject to paragraph (3), the Secretary of State may publish reports at such intervals as the Secretary of State considers appropriate in cases where—

(a) a monetary penalty has not been imposed under regulation 5(1), but

(b) the Secretary of State is satisfied, on the balance of probabilities, that a person has breached a prohibition, or failed to comply with an obligation, imposed by or under sanctions regulations.

(3) Paragraph (2) does not apply where regulation 5(2) and (3) (exception to power to impose monetary penalties) applies.

Commencement Information

I9 Reg. 13 in force at 10.10.2024, see reg. 1(2)