The Chemical Weapons (Sanctions) (EU Exit) Regulations 2019

2019 No. 618

Exiting The European Union

Sanctions

The Chemical Weapons (Sanctions) (EU Exit) Regulations 2019

Made 20th March 2019

Laid before Parliament 22th March 2019

Coming into force in accordance with regulation 1(2)

The Secretary of State1, in exercise of the powers conferred by sections 1(1)(c) and (3)(b), 3(1)(a) and (d)(i), 4, 9(2)(a), 10(2)(a) and (c), (3) and (4), 11(2) to (9), 15(2)(a) and (b), (3), (4)(b), (5) and (6), 16, 17(2) to (9), 21(1), 54(1) and (2)(a), 56 and 62(4) and (5) of the Sanctions and Anti-Money Laundering Act 20182, and having decided, upon consideration of the matters set out in section 2(2) and 56(1) of that Act, that it is appropriate to do so, makes the following Regulations:

1 General

PART 1

General

S-1 Citation and commencement

Citation and commencement

1.—(1) These Regulations may be cited as the Chemical Weapons (Sanctions) (EU Exit) Regulations 2019.

(2) These Regulations come into force in accordance with regulations made under section 56 of the Act.

S-2 Interpretation

Interpretation

2. In these Regulations—

“the Act” means the Sanctions and Anti-Money Laundering Act 2018;

“arrangement” includes any agreement, understanding, scheme, transaction or series of transactions, whether or not legally enforceable (but see paragraph 12 of Schedule 1 for the meaning of that term in that Schedule);

“chemical weapons” means chemical weapons as defined in Article II of the Chemical Weapons Convention;

“the Chemical Weapons Convention” means the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction, signed at Paris on 13 January 19933;

“conduct” includes acts and omissions;

“document” includes information recorded in any form and, in relation to information recorded otherwise than in legible form, references to its production include producing a copy of the information in legible form;

“the EU Chemical Weapons Regulation” means Council Regulation (EU) No 2018/1542 of 15 October 2018, concerning restrictive measures against the proliferation and use of chemical weapons4, as it has effect in EU law immediately before exit day;

“prohibited activity related to chemical weapons” means any of the following—

(a) developing, producing, acquiring, possessing, transporting, stockpiling, or retaining chemical weapons,

(b) directly or indirectly transferring chemical weapons to any person,

(c) using chemical weapons, or

(d) engaging in preparations for the use of chemical weapons;

“Treasury licence” means a licence under regulation 20(1);

“United Kingdom person” has the same meaning as in section 21 of the Act.

S-3 Application of prohibitions and requirements outside the United Kingdom

Application of prohibitions and requirements outside the United Kingdom

3.—(1) A United Kingdom person may contravene a relevant prohibition by conduct wholly or partly outside the United Kingdom.

(2) Any person may contravene a relevant prohibition by conduct in the territorial sea.

(3) For the purposes of this regulation, a “relevant prohibition” means any prohibition imposed by—

(a)

(a) regulation 9(2) (confidential information),

(b)

(b) Part 3 (Finance), or

(c)

(c) a condition of a Treasury licence.

(4) A United Kingdom person may comply, or fail to comply, with a relevant requirement by conduct wholly or partly outside the United Kingdom.

(5) Any person may comply, or fail to comply, with a relevant requirement by conduct in the territorial sea.

(6) For the purposes of this regulation, a “relevant requirement” means any requirement imposed—

(a)

(a) by or under Part 6 (Information and records), or by reason of a request made under a power conferred by that Part, or

(b)

(b) by a condition of a Treasury licence.

(7) Nothing in this regulation is to be taken to prevent a relevant prohibition or a relevant requirement from applying to conduct (by any person) in the United Kingdom.

S-4 Purpose

Purpose

4. The purpose of the regulations contained in this instrument that are made under section 1 of the Act is to deter the proliferation and use of chemical weapons, including encouraging the effective implementation of the Chemical Weapons Convention.

2 Designation of persons

PART 2

Designation of persons

S-5 Power to designate persons

Power to designate persons

5.—(1) The Secretary of State may designate persons, by name, for the purposes of any of the following—

(a)

(a) regulations 11 to 15 (Finance);

(b)

(b) regulation 17 (Immigration).

(2) The Secretary of State may designate different persons for the purposes of the provisions mentioned in each of the sub-paragraphs of paragraph (1).

S-6 Designation criteria

Designation criteria

6.—(1) The Secretary of State may not designate a person under regulation 5 unless the Secretary of State—

(a)

(a) has reasonable grounds to suspect that that person is an involved person, and

(b)

(b) considers that the designation of that person is appropriate, having regard to—

(i) the purpose stated in regulation 4, and

(ii) the likely significant effects of the designation on that person (as they appear to the Secretary of State to be on the basis of the information that the Secretary of State has).

(2) In this regulation an “involved person” means a person who—

(a)

(a) is or has been involved in a prohibited activity related to chemical weapons,

(b)

(b) is owned or controlled directly or indirectly (within the meaning of regulation 7) by a person who is or has been so involved,

(c)

(c) is acting on behalf of or at the direction of a person who is or has been so involved, or

(d)

(d) is a member of, or associated with, a person who is or has been so involved.

(3) Any reference in this regulation to being involved in a prohibited activity related to chemical weapons includes being so involved in whatever way and wherever any actions constituting the involvement take place, and in particular includes—

(a)

(a) being responsible for, engaging in, providing support for, or promoting, a prohibited activity related to chemical weapons;

(b)

(b) providing financial services, or making available funds or economic resources, that could contribute to a prohibited activity related to chemical weapons;

(c)

(c) being involved in assisting the contravention or circumvention of any relevant provision.

(4) In this regulation, “relevant provision” means—

(a)

(a) any provision of Part 3 (Finance);

(b)

(b) any provision of the law of a country other than the United Kingdom made for purposes corresponding to a purpose of any provision of Part 3 (Finance).

(5) Nothing in any sub-paragraph of paragraph (3) is to be taken to limit the meaning of any of the other sub-paragraphs of that paragraph.

S-7 Meaning of “owned or controlled directly or indirectly”

Meaning of “owned or controlled directly or indirectly”

7.—(1) A person who is not an individual (“C”) is “owned or controlled directly or indirectly” by another person (“P”) if either of the following two conditions is met (or both are met).

(2) The first condition is that P—

(a)

(a) holds directly or indirectly more than 50% of the shares in C,

(b)

(b) holds directly or indirectly more than 50% of the voting rights in C, or

(c)

(c) holds the right directly or indirectly to appoint or remove a majority of the board of directors of C.

(3) Schedule 1 contains provision applying for the purpose of interpreting paragraph (2).

(4) The second condition is that it is reasonable, having regard to all the circumstances, to expect that P would (if P chose to) be able, in most cases or in significant respects, by whatever means and, whether directly or indirectly, to achieve the result that affairs of C are conducted in accordance with P’s wishes.

S-8 Notification and publicity where designation power used

Notification and publicity where designation power used

8.—(1) Paragraph (2) applies where the Secretary of State—

(a)

(a) has made a designation under regulation 5, or

(b)

(b) has by virtue of section 22 of the Act varied or revoked a designation made under that regulation.

(2) The Secretary of State—

(a)

(a) must without delay take such steps as are reasonably practicable to inform the designated person of the designation, variation or revocation, and

(b)

(b) must take steps to publicise the designation, variation or revocation.

(3) The information given under paragraph (2)(a) where a designation is made must include a statement of reasons.

(4) In this regulation a “statement of reasons”, in relation to a designation, means a brief statement of the matters that the Secretary of State knows, or has reasonable grounds to suspect, in relation to the designated person which have led the Secretary of State to make the designation.

(5) Matters that would otherwise be required by paragraph (4) to be included in a statement of reasons may be excluded from it where the Secretary of State considers that they should be excluded—

(a)

(a) in the interests of national security or international relations,

(b)

(b) for reasons connected with the prevention or detection of serious crime in the United Kingdom or elsewhere, or

(c)

(c) in the interests of justice.

(6) The steps taken under paragraph (2)(b) must—

(a)

(a) unless one or more of the restricted publicity conditions is met, be steps to publicise generally—

(i) the designation, variation or revocation, and

(ii) in the case of a designation, the statement of reasons;

(b)

(b) if one or more of those conditions is met, be steps to inform only such persons as the Secretary of State considers appropriate of the designation, variation or revocation and (in the case of a designation) of the contents of the statement of reasons.

(7) The “restricted publicity conditions” are as follows—

(a)

(a) the designation is of a person believed by the Secretary of State to be an individual under the age of 18;

(b)

(b) the Secretary of State considers that disclosure of the designation, variation or revocation should be restricted—

(i) in the...

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