The ISIL (Da'esh) and Al-Qaida (United Nations Sanctions) (EU Exit) Regulations 2019
2019 No. 466
Exiting The European Union
Sanctions
The ISIL (Da’esh) and Al-Qaida (United Nations Sanctions) (EU Exit) Regulations 2019
Made 5th March 2019
Laid before Parliament 6th 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)(a) and (3)(a), 3(1)(a), (b)(i), (d)(i), 5, 8, 9(2)(b), 13, 15(2)(a) and (b), (3) and (6), 16, 17(2) to (9), 19, 20, 21(1), 54(1) and (2)(a), 56 and 62(4) and (5) of, and paragraphs 2(a)(i), 4(a)(i), 5(a)(i), 6(a)(i), 10(a)(i), 11(a)(i), 13(a), (g), (k), (m) and (w), 14(a), 20, 21, and 27 of Schedule 1 to, the Sanctions and Anti-Money Laundering Act 20182, and having decided, upon consideration of the matters set out in section 56(1) of that Act, that it is appropriate to do so, makes the following Regulations:
PART 1
General
Citation and commencement
1.—(1) These Regulations may be cited as the ISIL (Da’esh) and Al-Qaida (United Nations Sanctions) (EU Exit) Regulations 2019.
(2) These Regulations come into force in accordance with regulations made under section 56 of the Act.
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 11 of Schedule 1 for the meaning of that term in that Schedule);
“CEMA” means the Customs and Excise Management Act 19793;
“the Commissioners” means the Commissioners for Her Majesty’s Revenue and Customs;
“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 1267/1989/2253 ISIL (Da’esh) and Al-Qaida Sanctions Committee” means the Committee of the Security Council established by paragraph 6 of resolution 12674;
“the ISIL (Da’esh) and Al-Qaida Sanctions List” means the list created pursuant to resolutions 1267, 1333 and 2253 and maintained by the 1267/1989/2253 ISIL (Da’esh) and Al-Qaida Sanctions Committee;
“resolution 1267” means resolution 1267 (1999) adopted by the Security Council on 15 October 1999;
“resolution 1333” means resolution 1333 (2000) adopted by the Security Council on 19 December 2000;
“resolution 2253” means resolution 2253 (2015) adopted by the Security Council on 17 December 2015;
“resolution 2368” means resolution 2368 (2017) adopted by the Security Council on 20 July 2017;
“Treasury licence” means a licence under regulation 29;
“United Kingdom person” has the same meaning as in section 21 of the Act.
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) In paragraphs (1) and (2) a “relevant prohibition” means any prohibition imposed by—
(a)
(a) Part 3 (finance),
(b)
(b) Part 4 (trade), 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) In this regulation a “relevant requirement” means any requirement imposed—
(a)
(a) by or under Part 7 (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.
Purposes
4.—(1) The purpose of the regulations contained in this instrument that are made under section 1 of the Act is compliance with the relevant UN obligations.
(2) In this regulation, “the relevant UN obligations” means the obligations that the United Kingdom has by virtue of—
(a)
(a) paragraph 1(a) of resolution 2368 (asset-freeze etc) and
(b)
(b) paragraph 1(c) of resolution 2368 (arms embargo etc)
to take the measures required by those provisions in respect of persons for the time being named on the ISIL (Da’esh) and Al-Qaida Sanctions List; and
(c)
(c) paragraph 76 of resolution 2368 (unfreezing of assets: Usama bin Laden).
PART 2
Designations
Designation of persons named by the Security Council
5. Each person for the time being named on the ISIL (Da’esh) and Al-Qaida Sanctions List by the Security Council or by the 1267/1989/2253 ISIL (Da’esh) and Al-Qaida Sanctions Committee is a designated person for the purposes of regulations 8 to 12 (asset-freeze etc) and 15 to 22 (trade etc) (whose purpose is compliance with the UN obligations mentioned in regulation 4)5.
PART 3
Finance
Meaning of “designated person” in Part 3
6. In this Part a “designated person” means a person who is designated for the purposes of regulations 8 to 12 by reason of regulation 5.
Meaning of “owned or controlled directly or indirectly” in Part 3
7.—(1) In this Part 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.
Asset-freeze in relation to designated persons
8.—(1) A person (“P”) must not deal with funds or economic resources owned, held or controlled by a designated person if P knows, or has reasonable cause to suspect, that P is dealing with such funds or economic resources.
(2) Paragraph (1) is subject to Part 6 (exceptions and licences).
(3) A person who contravenes the prohibition in paragraph (1) commits an offence.
(4) For the purposes of paragraph (1), a person “deals with” funds if the person—
(a)
(a) uses, alters, moves, transfers or allows access to the funds,
(b)
(b) deals with the funds in any other way that would result in any change in volume, amount, location, ownership, possession, character or destination, or
(c)
(c) makes any other change, including portfolio management, that would enable use of the funds.
(5) For the purposes of paragraph (1), a person “deals with” economic resources if the person—
(a)
(a) exchanges the economic resources for funds, goods or services, or
(b)
(b) uses the economic resources in exchange for funds, goods or services (whether by pledging them as security or otherwise).
(6) The reference in paragraph (1) to funds or economic resources that are “owned, held or controlled” by a person includes, in particular, a reference to—
(a)
(a) funds or economic resources in which the person has any legal or equitable interest, regardless of whether the interest is held jointly with any other person and regardless of whether any other person holds an interest in the funds or economic resources;
(b)
(b) any tangible property (other than real property), or bearer security, that is comprised in funds or economic resources and is in the possession of the person.
(7) For the purposes of paragraph (1), funds or economic resources are to be treated as owned, held or controlled by a designated person if they are owned, held or controlled by a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.
(8) For the avoidance of doubt, the reference in paragraph (1) to a designated person includes P if P is a designated person.
Making funds available to designated persons
9.—(1) A person (“P”) must not make funds available directly or indirectly to a designated person if P knows, or has reasonable cause to suspect, that P is making the funds so available.
(2) Paragraph (1) is subject to Part 6 (exceptions and licences).
(3) A person who contravenes the prohibition in paragraph (1) commits an offence.
(4) The reference in paragraph (1) to making funds available indirectly to a designated person includes, in particular, a reference to making them available to a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.
Making funds available for the benefit of designated persons
10.—(1) A person (“P”) must not make funds available to any person for the benefit of a designated person if P knows, or has reasonable cause to suspect, that P is making the funds so available.
(2) Paragraph (1) is subject to Part 6 (exceptions and licences).
(3) A person who contravenes the prohibition in paragraph (1) commits an offence.
(4) For the purposes of this regulation—
(a)
(a) funds are made available for the benefit of a designated person only if that person thereby obtains, or is able...
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