Legalize / United Kingdom / Public General Act

Sanctions and Anti-Money Laundering Act 2018

Type Public General Act

Publication 2018-05-23

State In force

Department Statute Law Database

Source legislation.gov.uk

Reform history JSON API

PART 1 — Sanctions regulations

CHAPTER 1 — Power to make sanctions regulations

Power to make sanctions regulations

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(1) An appropriate Minister may make sanctions regulations where that Minister considers that it is appropriate to make the regulations—

(a) for the purposes of compliance with a UN obligation,

(b) for the purposes of compliance with any other international obligation, or

(2) A purpose is within this subsection if the appropriate Minister making the regulations considers that carrying out that purpose would—

(a) further the prevention of terrorism, in the United Kingdom or elsewhere,

(b) be in the interests of national security,

(d) further a foreign policy objective of the government of the United Kingdom,

(e) promote the resolution of armed conflicts or the protection of civilians in conflict zones,

(f) provide accountability for or be a deterrent to gross violations of human rights, or otherwise promote—

(i) compliance with international human rights law, or

(ii) respect for human rights,

(g) promote compliance with international humanitarian law,

(h) contribute to multilateral efforts to prevent the spread and use of weapons and materials of mass destruction, or

(i) promote respect for democracy, the rule of law and good governance.

(3) Regulations under this section must state the purpose (or purposes) of the regulations, and any purpose stated must be—

(a) compliance with a UN obligation, or other international obligation, specified in the regulations, or

(b) a particular purpose that is within subsection (2).

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) In this section “sanctions regulations” means regulations which do one or more of the following—

(a) impose financial sanctions (see section 3);

(aa) impose director disqualification sanctions (see section 3A);

(b) impose immigration sanctions (see section 4);

(d) impose aircraft sanctions (see section 6);

(e) impose shipping sanctions (see section 7);

(f) impose sanctions within section 8 (other sanctions for purposes of UN obligations);

(g) make supplemental provision in connection with any provision of the regulations or other regulations made under this section.

(6) In this section “supplemental provision” includes any provision authorised by any other provision of this Act to be made by regulations under this section (see in particular sections 9 to 17, 19 to 21 and 54).

(7) In this Act any reference to a gross violation of human rights is to conduct which—

(a) constitutes, or

(b) is connected with,

the commission of a gross human rights abuse or violation; and whether conduct constitutes or is connected with the commission of such an abuse or violation is to be determined in accordance with section 241A of the Proceeds of Crime Act 2002.

(8) In this Act—

“UN obligation” means an obligation that the United Kingdom has by virtue of a UN Security Council Resolution;

“UN Security Council Resolution” means a resolution adopted by the Security Council of the United Nations;

“international obligation” means an obligation of the United Kingdom created or arising by or under any international agreement.

(9) For the purposes of any provision of this Act which refers to an “appropriate Minister”, the following are appropriate Ministers—

(a) the Secretary of State;

(b) the Treasury.

(10) None of paragraphs (a) to (i) of subsection (2) is to be taken to limit the meaning of any other of those paragraphs.

Additional requirements for regulations for a purpose within section 1(2)

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Types of sanction

Financial sanctions

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(1) For the purposes of section 1(5)(a) regulations “impose financial sanctions” if they impose prohibitions or requirements for one or more of the following purposes—

(a) freezing funds or economic resources owned, held or controlled by designated persons (see section 9);

(b) preventing financial services from being provided to, or for the benefit of—

(i) designated persons,

(ii) persons connected with a prescribed country, or

(iii) a prescribed description of persons connected with a prescribed country;

(i) designated persons,

(ii) persons connected with a prescribed country, or

(iii) a prescribed description of persons connected with a prescribed country;

(d) preventing funds or economic resources from being made available to, or for the benefit of—

(i) designated persons,

(ii) persons connected with a prescribed country, or

(iii) a prescribed description of persons connected with a prescribed country;

(e) preventing funds or economic resources from being received from—

(i) designated persons,

(ii) persons connected with a prescribed country, or

(iii) a prescribed description of persons connected with a prescribed country;

(f) preventing financial services from being provided, where the services relate to financial products, or financial products of a prescribed description, issued by designated persons;

(g) preventing persons from owning, controlling or having a prescribed interest in persons (other than individuals) which are—

(i) designated persons,

(ii) connected with a prescribed country, or

(iii) of a prescribed description and connected with a prescribed country.

(2) For the purposes of section 1(5)(a) regulations also “impose financial sanctions” if they impose prohibitions or requirements for the purpose of preventing persons from entering into, or continuing to be a party to, arrangements for commercial purposes, or for prescribed commercial purposes, with—

(a) designated persons,

(b) persons connected with a prescribed country, or

(3) In subsection (1) any reference to funds, economic resources or financial services being made available, received, procured or provided is to their being made available, received, procured or provided (as the case may be) directly or indirectly.

(4) In subsection (2) “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).

(5) Sections 60 and 61 contain definitions for the purposes of this Act of—

“economic resources”,

“financial products”,

“financial services”,

“freeze”, and

“funds”.

(6) Section 62 makes provision about the meaning of —

(a) funds or economic resources being “owned, held or controlled” or “made available” (see subsection (4) of that section),

(b) a person “owning” or “controlling” another person (see subsection (5) of that section), and

Immigration sanctions

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(1) For the purposes of section 1(5)(b) regulations “impose immigration sanctions” if they provide for designated persons (see section 9) to be excluded persons for the purposes of section 8B of the Immigration Act 1971.

(2) As to the effect of such provision, see section 8B of the Immigration Act 1971 (as amended by paragraph 1 of Schedule 3 to this Act).

Trade sanctions

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(1) For the purposes of section 1(5)(c) regulations “impose trade sanctions” if they impose prohibitions or requirements for one or more of the purposes mentioned in Part 1 of Schedule 1.

(2) Part 2 of that Schedule makes further provision in connection with regulations which impose trade sanctions.

Aircraft sanctions

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(1) For the purposes of section 1(5)(d) regulations “impose aircraft sanctions” if they impose prohibitions or requirements for one or more of the following purposes—

(a) detaining disqualified aircraft (see subsection (6)) within the United Kingdom, or controlling the movement of disqualified aircraft within the United Kingdom and the airspace over the United Kingdom;

(b) ensuring that disqualified aircraft—

(i) do not overfly the United Kingdom, or

(ii) leave the airspace over the United Kingdom;

(d) preventing aircraft from being registered in a prescribed country;

(e) preventing the registration of—

(i) aircraft in which a designated person (see section 9) holds a prescribed interest (or designated persons, taken together, hold a prescribed interest), or

(ii) aircraft chartered by demise to designated persons.

(2) For the purposes of section 1(5)(d) regulations also “impose aircraft sanctions” if they authorise directions within subsection (3), (4) or (5).

(3) Directions are within this subsection if they are given for a purpose mentioned in subsection (1)(a) or (b) and either—

(a) they are given by the Secretary of State to—

(i) the CAA,

(ii) a person who holds a licence under Chapter 1 of Part 1 of the Transport Act 2000 (air traffic services), or

(iii) an airport operator, or

(b) they are given to the operator or pilot in command of a disqualified aircraft by—

(i) the Secretary of State, or

(ii) a person mentioned in paragraph (a)(i), (ii) or (iii).

(4) Directions are within this subsection if they are given by the Secretary of State to the CAA for the purpose of terminating the registration of any aircraft mentioned in subsection (1)(e).

(5) Directions are within this subsection if they are given by the Secretary of State to the operator or pilot in command of a British-controlled aircraft for the purpose of preventing the aircraft from—

(a) overflying a prescribed country, or

(b) landing in a prescribed country.

(6) In this section “disqualified aircraft” means aircraft—

(a) owned, chartered or operated by—

(i) designated persons,

(ii) persons connected with a prescribed country, or

(iii) a prescribed description of persons connected with a prescribed country,

(b) registered in a prescribed country, or

(7) Provision authorising directions by virtue of subsection (2) may include provision—

(a) as to the effect of any such directions so far as they are inconsistent with requirements or permissions under any other enactment;

(b) requiring a person not to disclose any such directions if the Secretary of State notifies the person to that effect.

(8) For the purposes of this section any reference to the United Kingdom includes a reference to the territorial sea.

(9) In this section “aircraft”—

(a) subject to paragraph (b), includes—

(i) unmanned aircraft, and

(ii) aircraft capable of spaceflight activities;

(b) does not include the naval, military or air-force aircraft of any country.

(10) In this section—

“airport” means the aggregate of the land, buildings and works comprised in an aerodrome within the meaning of the Civil Aviation Act 1982 (see section 105(1) of that Act);

“airport operator”, in relation to an airport, means the person by whom the airport is managed;

“British-controlled aircraft” has the same meaning as in section 92 of the Civil Aviation Act 1982;

“the CAA” means the Civil Aviation Authority;

“enactment” includes an enactment mentioned in any of paragraphs (a) to (d) of section 54(6);

“operator”, in relation to an aircraft, means the person having the management of the aircraft, and cognate expressions are to be construed accordingly;

“pilot in command”, in relation to an aircraft, means the pilot designated by the operator as being in command and charged with the safe conduct of its flight, without being under the direction of any other pilot in the aircraft;

“registration” means registration in the register of aircraft kept by the CAA.

Shipping sanctions

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(1) For the purposes of section 1(5)(e) regulations “impose shipping sanctions” if they impose prohibitions or requirements for one or more of the following purposes—

(a) detaining within the United Kingdom, or controlling the movement within the United Kingdom of—

(i) disqualified ships (see subsection (8)), or

(ii) specified ships (see section 14);

(b) ensuring that disqualified ships or specified ships—

(i) do not enter the United Kingdom, or

(ii) leave the United Kingdom;

(i) ships registered in a prescribed country,

(ii) ships flying the flag of a prescribed country, or

(iii) specified ships;

(d) preventing ships from—

(i) being registered in a prescribed country, or

(ii) flying the flag of a prescribed country;

(e) preventing the registration of—

(i) ships in which a designated person (see section 9) holds a prescribed interest (or designated persons, taken together, hold a prescribed interest),

(ii) ships in which persons connected with a prescribed country hold a prescribed interest, or

(iii) specified ships.

(2) For the purposes of section 1(5)(e) regulations also “impose shipping sanctions” if they authorise directions within subsection (3), (4) or (5).

(3) Directions are within this subsection if they are given for a purpose mentioned in subsection (1)(a) or (b) and either—

(a) they are given to a harbour authority by the Secretary of State, or

(b) they are given to the master or pilot of a disqualified ship or a specified ship by—

(i) the Secretary of State, or

(ii) a harbour authority.

(4) Directions are within this subsection if they are given by the Secretary of State to the Registrar for the purpose of terminating the registration of any ship mentioned in subsection (1)(e).

(5) Directions are within this subsection if they are given by the Secretary of State to the master or pilot of a British ship (see subsections (12) and (13)) for the purpose of preventing the ship from travelling to—

(a) the sea or other waters within the seaward limits of the territorial sea adjacent to a prescribed country, or a particular place in that sea or those waters, or

(b) harbours in a prescribed country.

(6) For the purposes of section 1(5)(e) regulations also “impose shipping sanctions” if, for the purpose of the implementation of so much of a UN Security Council Resolution as provides for the taking of measures in relation to ships designated for purposes of that resolution, they make provision—

(a) relating to such ships and corresponding to provision that may be made by virtue of subsection (1)(a), (b), (c) or (e),

(b) authorising directions corresponding to directions within subsection (3) to be given in relation to, or to the master or pilot of, such a ship, or

(7) Provision made by virtue of subsection (6) may describe the ships to which it relates by reference to the instrument in which the ships are designated, including by reference to that instrument as varied or supplemented from time to time.

(8) In this section “disqualified ships” means ships—

(a) owned, controlled, chartered, operated or crewed by—

(i) designated persons,

(ii) persons connected with a prescribed country, or

(iii) a prescribed description of persons connected with a prescribed country,

(b) registered in a prescribed country,

(d) originating from a prescribed country.

(9) Provision authorising directions by virtue of this section may include provision as to the effect of any such directions so far as they are inconsistent with requirements under any other enactment.

(10) Provision made by virtue of this section may include provision as to the meaning of any reference in the provision to a ship being “crewed” by persons.

(11) In subsection (1) any reference to the United Kingdom includes a reference to the territorial sea.

(12) In this section “British ship” means a ship which—

(a) is registered under Part 2 of the Merchant Shipping Act 1995,

(b) is a Government ship within the meaning of that Act,

(d) is not registered under the law of a country outside the United Kingdom but is wholly owned by persons each of whom has a United Kingdom connection, or

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