Legalize / United Kingdom / Public General Act

Sanctions and Anti-Money Laundering Act 2018

Type Public General Act

Publication 2018-05-23

Last updated 2025-10-16

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(1) Subsection (2) applies to the court in any of the following proceedings—

(a) any proceedings on an application under section 38 in respect of a decision mentioned in section 38(1)(a), (b) or (c) (“a relevant application”);

(b) any proceedings on a claim arising from any matter to which a relevant application relates;

(i) a designation made under a designation power contained in regulations under section 1 is revoked without an application under section 38 being made,

(ii) a ship specification (within the meaning of section 38) is revoked without such an application being made, or

(iii) a corrective direction is given under section 34(3)(b) without such an application being made,

any proceedings on a relevant claim.

(2) If the court would, in the absence of this subsection, have power to award damages, the court may not award damages unless—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) the court is satisfied that the decision concerned was made in bad faith.

(2A) Damages permitted by subsection (2) must not exceed such amount as may be specified in, or calculated in accordance with, regulations made by an appropriate Minister for the purposes of this subsection.

(3) In subsection (1)(c)—

a “corrective direction” means a direction given in respect of a person and a list following the giving of a direction under section 34(3)(a) in respect of that person and list;

a “relevant claim” means a claim made by (as the case may be)—a person designated by the designation,a person affected by the ship specification, orthe person in respect of whom the direction under section 34(3)(a) was given,which arises from any matter relating to the designation, ship specification or direction.

(4) In subsection (2) “the decision concerned” means—

(a) in relation to proceedings within subsection (1)(a) or (b) where the relevant application was in respect of a decision mentioned in section 38(1)(a), the decision in respect of which the relevant application was made or the designation to which that decision related;

(b) in relation to any other proceedings within subsection (1)(a) or (b), the decision in respect of which the relevant application was made;

(c) in relation to proceedings within subsection (1)(c), the designation or ship specification or the decision to give the direction under section 34(3)(a).

(5) A decision mentioned in sub-paragraph (i), (ii) or (iii) of section 38(1)(d) may not be questioned by way of proceedings for judicial review (and nor may a decision to which section 38 applies).

Rules of court

40

(1) Sections 66 to 68 of the Counter-Terrorism Act 2008 (supplementary provisions relating to rules of court and special advocates) apply in relation to proceedings—

(a) on an application under section 38 (court review of decisions), or

(b) on a claim arising from any matter to which such an application relates,

as they apply in relation to financial restrictions proceedings within the meaning of section 65 of that Act, but with the following modification.

(2) That modification is that any reference in those sections to the Treasury is to be read, in relation to proceedings on an application under section 38 of this Act in respect of a decision of the Secretary of State or a claim arising from any matter to which such an application relates, as a reference to the Secretary of State.

(3) The first time after the passing of this Act that rules of court are made in exercise of the powers conferred by subsection (1) in relation to proceedings in England and Wales—

(a) on an application under section 38, or

(b) on a claim arising from any matter to which such an application relates,

those rules (together with any related rules of court) may be made by the Lord Chancellor instead of by the person who would otherwise make them.

(4) The first time after the passing of this Act that rules of court are made in exercise of the powers conferred by subsection (1) in relation to proceedings in Northern Ireland—

(a) on an application under section 38, or

(b) on a claim arising from any matter to which such an application relates,

those rules (together with any related rules of court) may be made by the Lord Chancellor instead of by the person who would otherwise make them.

(5) Before making rules of court under this section, the Lord Chancellor must consult—

(a) in relation to rules applicable to proceedings in England and Wales, the Lord Chief Justice of England and Wales;

(b) in relation to rules applicable to proceedings in Northern Ireland, the Lord Chief Justice of Northern Ireland.

(6) The Lord Chancellor is not required to undertake any other consultation before making the rules.

(7) The requirements of subsection (5)(a) and (b) may be satisfied by consultation that took place wholly or partly before the passing of this Act.

(8) Rules of court made by the Lord Chancellor under this section—

(a) must be laid before Parliament, and

(b) if not approved by a resolution of each House before the end of 28 days beginning with the day on which they were made, cease to have effect at the end of that period.

(9) In calculating a period of 28 days for the purposes of subsection (8), no account is to be taken of any time during which Parliament is dissolved or prorogued or during which both Houses are adjourned for more than 4 days.

(10) If rules cease to have effect in accordance with subsection (8)(b)—

(a) that does not affect anything done under the rules, and

(b) subsection (3) or (as the case may be) (4) applies as if the rules had not been made.

(11) The following provisions do not apply to rules of court made by the Lord Chancellor under this section—

(a) section 3(6) of the Civil Procedure Act 1997 (Parliamentary procedure for civil procedure rules);

(b) section 56(1), (2) and (4) of the Judicature (Northern Ireland) Act 1978 (statutory rules procedure).

(12) Section 4(1) of the Statutory Instruments Act 1946 (statutory instruments which are required to be laid before Parliament) applies to any such rules applicable to proceedings in Northern Ireland as it applies to a statutory instrument which is required to be laid before Parliament after being made.

(13) Until section 85 of the Courts Act 2003 (process for making civil procedure rules) comes into force, in subsection (11)(a) above “section 3(6)” is to be read as “section 3(2)”.

(14) In this section—

“related rules of court” means rules of court that—are contained in the same instrument as the rules mentioned in subsection (3) or (as the case may be) (4), andrelate specifically to the same kind of proceedings as those rules,

“rules of court” means rules for regulating the practice and procedure to be followed in the High Court or the Court of Appeal.

CHAPTER 5 — Miscellaneous

Procedure for dealing with goods etc seized from ships

41

(1) The Secretary of State may by regulations make provision about the procedure to be followed in connection with goods seized under a power conferred by regulations under section 1 by virtue of section 19 or 20.

(2) Regulations under this section relating to goods seized on suspicion of being prohibited goods or relevant goods may include provision—

(a) requiring prescribed persons to be notified of the seizure of the goods;

(b) requiring the Secretary of State to determine whether the seized goods were, at the time of their seizure, prohibited goods (where the goods were seized under a power conferred by virtue of section 19) or relevant goods (where the goods were seized under a power conferred by virtue of section 20);

(d) about the determination by a prescribed court of any such claim;

(e) about the publicity to be given to any such determination by a court;

(f) for and about the return of seized goods to prescribed persons before or after any such determination of a claim by a court;

(g) about the treatment of seized goods not so returned (including, in prescribed circumstances, their destruction or sale);

(h) for and about the payment of compensation by the Secretary of State following a determination by a court that the goods were not, at the time of their seizure, prohibited goods (where the goods were seized under a power conferred by virtue of section 19) or relevant goods (where the goods were seized under a power conferred by virtue of section 20).

(3) In this section—

“goods” has the same meaning as in sections 19 and 20 (see subsections (13) of those sections);

“prohibited goods” has the same meaning as in section 19 (see subsection (13) of that section);

“relevant goods” has the same meaning as in section 20 (see subsection (11) of that section).

Suspension of prohibitions and requirements

42

(1) An appropriate Minister may make regulations (“suspending regulations”) providing that—

(a) while the suspending regulations have effect, or

(b) for a specified period,

a specified prohibition or requirement of regulations under section 1 is not to have effect.

(2) In this section “specified” means specified in the suspending regulations.

(3) A period specified under subsection (1)(b) may be expressed in any way, including, for example, being expressed in a way such that—

(a) the period begins, or ends, when a specified condition is met, or

(b) the period begins when a specified condition is met and lasts for so long as the suspending regulations or a specified provision of those regulations has effect.

Guidance about regulations under section 1

43

(1) Where regulations are made under section 1, the appropriate Minister who made the regulations must issue guidance about any prohibitions and requirements imposed by the regulations.

(2) The guidance may include guidance about—

(a) best practice for complying with the prohibitions and requirements;

(b) the enforcement of the prohibitions and requirements;

Protection for acts done for purposes of compliance

44

(1) This section applies to an act done in the reasonable belief that the act is in compliance with—

(a) regulations under section 1, or

(b) directions given by virtue of section 6 or 7.

(2) A person is not liable to any civil proceedings to which that person would, in the absence of this section, have been liable in respect of the act.

(3) In this section “act” includes an omission.

Revocation and amendment of regulations under section 1

45

(1) Section 1 includes a power, by further regulations under that section (“new regulations”)—

(a) to revoke any regulations under that section, or

(b) to amend any regulations under that section where the condition in subsection (2) below is met.

(2) The condition referred to in subsection (1)(b) is that the appropriate Minister making the new regulations—

(a) considers that the regulations being amended will, as amended, be sanctions regulations within the meaning given by section 1(5) that are appropriate for the purpose stated in them under section 1(3). ...

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) The requirements of section 1(1) and (3)... ... do not apply in relation to regulations made by virtue of this section.

(7) In relation to section 1, this section has effect in place of section 14 of the Interpretation Act 1978 (implied power to revoke and amend).

Report where regulations for a purpose within section 1(2) are amended

46

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Power to amend Part 1 so as to authorise additional sanctions

47

(1) An appropriate Minister may by regulations amend this Part so as to authorise regulations under section 1 to impose prohibitions or requirements of kinds—

(a) which are not for the time being authorised by Chapter 1 (ignoring section 8), but

(b) which are kinds of prohibition or requirement that the United Kingdom—

(i) has any UN obligation or other international obligation to impose, or

(ii) has at any time had any UN obligation or other international obligation to impose.

(2) Without prejudice to the generality of subsection (1) or section 54(2), regulations under this section—

(a) may amend the definition of “sanctions regulations” in section 1(5), and

(b) where they make any such amendment, may amend this Part in connection with that amendment.

(3) For the avoidance of doubt, regulations under this section may not add to or amend the purposes mentioned in section 1(1) or amend section 1(2).

Power to make provision relating to certain appeals

48

(1) In this section an “immigration designation” means a designation of a person (whether by name or by description) which—

(a) is made under a designation power contained in regulations under section 1, and

(b) designates the person for the purposes of any provision of the regulations that provides for designated persons to be excluded persons for the purposes of section 8B of the Immigration Act 1971.

(2) In this section an “immigration claim” means any representation made by a person to an appropriate Minister which—

(a) is made in connection with an immigration designation of that person, and

(b) is within subsection (3).

(3) A representation is within this subsection if it is a representation by a person—

(a) that removal from the United Kingdom of that person would—

(i) breach the United Kingdom's obligations under the Human Rights Convention (“human rights obligations”), or

(ii) breach the United Kingdom's obligations under the Refugee Convention (“Refugee Convention obligations”),

(b) that requiring that person to leave the United Kingdom would breach human rights obligations or breach Refugee Convention obligations, or

(c) that refusal of entry of that person into the United Kingdom would breach human rights obligations or breach Refugee Convention obligations.

(4) The Secretary of State may by regulations make provision—

(a) about the effect of an immigration claim, or a prescribed description of immigration claim, for the purposes of prescribed provisions of the Immigration Acts;

(b) for a decision of a prescribed description made by an appropriate Minister under this Part, or such a decision so far as relating to prescribed matters, to be treated as a decision from which a person may appeal under section 82(1) of the Nationality, Immigration and Asylum Act 2002 (“the 2002 Act”);

(d) preventing the court in proceedings on an application under section 38 above from considering prescribed issues where—

(i) an immigration claim has been made and the circumstances are such as may be prescribed, or

(ii) a representation within subsection (3) is made in the proceedings and the circumstances are such as may be prescribed;

(e) in relation to any case where under regulations under section 1 above a person is an excluded person for the purposes of section 8B of the Immigration Act 1971, disapplying any of subsections (1), (2) and (3) of that section until the end of a prescribed period or until the occurrence of a prescribed event.

(5) In this section “the Human Rights Convention” and “the Refugee Convention” have the same meaning as in section 8B of the Immigration Act 1971.

PART 2 — Anti-money laundering

Money laundering and terrorist financing etc

49

(1) An appropriate Minister may by regulations make provision for one or more of the following purposes—

(a) enabling or facilitating the detection or investigation of money laundering, or preventing money laundering;

(b) enabling or facilitating the detection or investigation of terrorist financing, or preventing terrorist financing;

(c) the implementation of Standards published by the Financial Action Task Force from time to time relating to combating threats to the integrity of the international financial system.

(2) Schedule 2 makes further provision about regulations under this section.

(3) In this Part—

“money laundering” has the meaning given by section 340(11) of the Proceeds of Crime Act 2002;

“terrorist financing” means an act which constitutes an offence under—section 15 (fund-raising), 16 (use and possession), 17 (funding arrangements), 18 (money laundering) or 63 (terrorist finance: jurisdiction) of the Terrorism Act 2000,paragraph 7(2) or (3) of Schedule 3 (freezing orders: offences) to the Anti-terrorism, Crime and Security Act 2001, any of regulations 8 to 13 of the ISIL (Da'esh) and Al-Qaida (United Nations Sanctions) (EU Exit) Regulations 2019 (S.I. 2019/466), any of regulations 11 to 16 of the Counter-Terrorism (International Sanctions) (EU Exit) Regulations 2019 (S.I. 2019/573), or any of regulations 11 to 16 of the Counter-Terrorism (Sanctions) (EU Exit) Regulations 2019 (S.I. 2019/577). ...

Reports on progress towards register of beneficial owners of overseas entities

50

(1) The Secretary of State must, after the end of each reporting period, publish a report explaining the progress that has been made during that period towards putting in place a register of beneficial owners of overseas entities.

(2) For the purposes of this section, the following are reporting periods—

(a) the period of 12 months beginning with the day on which this Act is passed;

(b) the period of 12 months beginning with the day after the end of the period mentioned in paragraph (a);

(3) The first and second reports under this section must include—

(a) a statement setting out the steps that are to be taken in the next reporting period towards putting the register in place, and

(b) an assessment of when the register will be put in place.

(4) The third report under this section must include a statement setting out what further steps, if any, are to be taken towards putting the register in place.

(5) Where a report is published under this section the Secretary of State must lay a copy of it before Parliament.

(6) For the purposes of this section “a register of beneficial owners of overseas entities” means a public register—

(a) which contains information about overseas entities and persons with significant control over them, and

(b) which in the opinion of the Secretary of State will assist in the prevention of money laundering.

Public registers of beneficial ownership of companies registered in British Overseas Territories

51

(1) For the purposes of the detection, investigation or prevention of money laundering, the Secretary of State must provide all reasonable assistance to the governments of the British Overseas Territories to enable each of those governments to establish a publicly accessible register of the beneficial ownership of companies registered in each government's jurisdiction.

(2) The Secretary of State must, no later than 31 December 2020, prepare a draft Order in Council requiring the government of any British Overseas Territory that has not introduced a publicly accessible register of the beneficial ownership of companies within its jurisdiction to do so.

(3) The draft Order in Council under subsection (2) must set out the form that the register must take.

(4) If an Order in Council contains requirements of a kind mentioned in subsection (2)—

(a) it must be laid before Parliament after being made, and

(b) if not approved by a resolution of each House of Parliament before the end of 28 days beginning with the day on which it is made, it ceases to have effect at the end of that period (but without that affecting the power to make a new Order under this section).

(5) In calculating a period of 28 days for the purposes of subsection (4), no account is to be taken of any time during which Parliament is dissolved or prorogued or during which both Houses are adjourned for more than four days.

(6) For the purposes of this section, “British Overseas Territories” means a territory listed in Schedule 6 of the British Nationality Act 1981.

(7) For the purposes of this section, “a publicly accessible register of the beneficial ownership of companies” means a register which, in the opinion of the Secretary of State, provides information broadly equivalent to that available in accordance with the provisions of Part 21A of the Companies Act 2006.

PART 3 — General

Supplementary

Crown application

52

(1) Regulations under section 1 or 49 may make provision binding the Crown.

(2) The regulations may not provide for the Crown to be criminally liable.

(3) Nothing in this Act affects Her Majesty in Her private capacity (within the meaning of the Crown Proceedings Act 1947).

Saving for prerogative powers

53

(1) Nothing in this Act affects any power to exclude a person from the United Kingdom by virtue of the prerogative of the Crown.

(2) Nothing in this Act affects any power exercisable in relation to ships by virtue of the prerogative of the Crown.

Regulations: general

54

(1) Regulations under this Act may—

(a) make different provision for different purposes;

(b) confer functions on a prescribed person;

(2) Regulations under this Act may make supplemental, incidental, consequential, transitional or saving provision, including—

(a) in the case of regulations under section 1 or 49, provision amending, repealing or revoking enactments (whenever passed or made), and

(b) in the case of regulations under section 1 which repeal or revoke an enactment, provision for persons designated by or under that enactment to be treated as persons designated under the regulations.

(3) Regulations under section 1 may amend the definition of “terrorist financing” in section 49(3) so as to remove any reference to a provision of regulations that is revoked by regulations under section 1.

(4) Regulations under section 1 may amend the definition of “terrorist financing” in section 49(3) so as to add a reference to a provision of regulations under section 1 that contains an offence, but only if—

(a) each purpose of the regulations containing the offence, as stated under section 1(3), is compliance with a UN obligation or other international obligation, or

(b) paragraph (a) does not apply but the report under section 2 in respect of the regulations containing the offence indicates that, in the opinion of the appropriate Minister making those regulations, the carrying out of a purpose stated in those regulations under section 1(3) would further the prevention of terrorism in the United Kingdom or elsewhere.

(5) Any power under this Act to make regulations is exercisable by statutory instrument.

(6) In this section “enactment” includes—

(a) an enactment contained in any Order in Council, order, rules, regulations or other instrument made under an Act,

(b) an enactment contained in, or in an instrument made under, an Act of the Scottish Parliament,

(d) an enactment contained in, or in an instrument made under, Northern Ireland legislation, and

(e) any assimilated direct legislation.

(7) In subsection (2)(b) the reference to persons “designated” by or under a repealed or revoked enactment includes, where the enactment is assimilated direct legislation, persons listed in or under that enactment.

(8) This section does not apply to regulations under—

(a) section 56 (regulations under section 1: transitory provision), or

(b) section 64 (commencement).

Parliamentary procedure for regulations

55

(1) Subsection (3) applies to a statutory instrument which—

(a) contains non-UN regulations under section 1 (see subsection (7)),

(b) does not contain any UN regulations under that section, and

(2) Subsection (3) also applies to a statutory instrument made during the period of 6 months beginning with the day on which the Economic Crime and Corporate Transparency Act 2023 is passed if the instrument contains only regulations under section 49 which make new provision about high-risk countries (see subsection (9)).

(3) A statutory instrument to which this subsection applies—

(a) must be laid before Parliament after being made, and

(b) if not approved by a resolution of each House of Parliament before the end of 28 days beginning with the day on which it is made, ceases to have effect at the end of that period (but without that affecting anything done under the regulations or the power to make new regulations).

(4) In calculating a period of 28 days for the purposes of subsection (3), no account is to be taken of any time during which Parliament is dissolved or prorogued or during which both Houses are adjourned for more than 4 days.

(5) A statutory instrument containing (whether alone or with other provision)—

(a) regulations under section 1 that repeal, revoke or amend any provision of primary legislation,

(aa) section 39(2A),

(b) regulations under section 47,

(d) regulations under section 49,

may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.

This subsection does not apply to a statutory instrument to which subsection (3) applies by virtue of subsection (2).

(6) A statutory instrument containing regulations under this Act which is not—

(a) a statutory instrument to which subsection (3) applies,

(b) a statutory instrument mentioned in subsection (5)(a) to (d),

(d) a statutory instrument containing only regulations under section 64,

is subject to annulment in pursuance of a resolution of either House of Parliament.

(7) In subsection (1) “UN regulations” means regulations under section 1 that—

(a) are regulations the stated purpose of which, or one of the stated purposes of which, is compliance with a UN obligation, or

(b) amend regulations under section 1 the stated purpose of which, or one of the stated purposes of which, is compliance with a UN obligation,

and “non-UN regulations” means any regulations under section 1 which are not UN regulations.

(8) For the purposes of subsection (7), a purpose is a “stated purpose” of regulations under section 1 if it is stated under section 1(3) in the regulations.

(9) For the purposes of subsection (2), regulations under section 49 “make new provision about high-risk countries” if they only make provision prescribing high-risk countries by virtue of paragraph 4(2) of Schedule 2

(a) the Money Laundering Regulations 2017 (S.I. 2017/692), or

(b) regulations under section 49.

(10) In this section “primary legislation” means—

(a) an Act of Parliament,

(b) an Act of the Scottish Parliament,

(d) Northern Ireland legislation.

Regulations under section 1: transitory provision

56

(1) If the appropriate Minister making a statutory instrument containing (whether alone or with other provision) any regulations under section 1 considers it is appropriate to do so in consequence of, or otherwise in connection with, the withdrawal of the United Kingdom from the EU, the instrument may provide that it comes into force, or that any provision of regulations contained in the instrument comes into force, on such day as that Minister may by regulations under this section appoint.

(2) Any power of an appropriate Minister to appoint a day under this section includes—

(a) a power to appoint different days for different purposes, and

(b) a power to appoint a time on a day if that Minister considers it appropriate to do so (including a time that has effect by reference to the coming into force of any other enactment).

(3) Any power under this section to make regulations is exercisable by statutory instrument.

(4) Subsection (5) applies in the case of a statutory instrument—

(a) which contains provision by virtue of subsection (1) of this section, and

(b) to which section 55(3) applies by virtue of subsection (1) of that section.

(5) Where this subsection applies—

(a) the reference in section 55(3)(b) to the day on which the statutory instrument is made is to be read as a reference to the first day on which any provision of the regulations contained in the instrument comes into force for any purpose in accordance with regulations under this section, and

(b) any reference in section 55(3) or (4) to 28 days is to be read as a reference to 60 days.

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

Duties to lay certain reports before Parliament: further provision

57

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) If paragraph 21(2) of Schedule 2 (duty to lay report) is not complied with, the appropriate Minister who should have complied with that provision must publish a written statement explaining why that Minister failed to comply with it.

(4) Subsection (5) applies where paragraph 21(2) of Schedule 2 applies and—

(a) a statutory instrument containing the regulations concerned, or

(b) a draft of such an instrument,

is laid before the House of Commons and House of Lords on different days.

(5) Where this subsection applies, paragraph 21(2) of Schedule 2 is to be read as requiring the laying of a copy of the report to which that provision relates—

(a) before the House of Commons at the time the instrument or draft mentioned in subsection (4) is laid before the House of Commons, and

(b) before the House of Lords at the time that instrument or draft is laid before the House of Lords.

Retained EU rights

58

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Consequential amendments and repeals

59

(1) Part 1 of the Terrorist Asset-Freezing etc Act 2010 is repealed, except for—

(a) paragraphs 1 to 5 of Schedule 1 to that Act (amendments of rules of court), and

(b) section 45(1) of that Act so far as it introduces that Schedule.

(2) Neither paragraphs 1 to 5 of Schedule 1 to that Act, nor the exception of those paragraphs from the repeal made by subsection (1), affects any power to amend or revoke any provision of—

(a) the Rules of the Court of Judicature (Northern Ireland) 1980 (S.R. 1980/346), or

(b) the Civil Procedure Rules 1998 (S.I. 1998/3132)).

(3) Subsection (1) does not affect the power in section 54 of the Terrorist Asset-Freezing etc Act 2010 to make provision by Order in Council extending to any of the Channel Islands, the Isle of Man or any British overseas territory.

(4) Part 1 of Schedule 3 contains amendments consequential on Parts 1 and 2 of this Act.

(5) Part 2 of Schedule 3 contains repeals and other provision consequential on subsection (1).

Definitions

Meaning of “funds”, “economic resources” and “freeze”

60

(1) In this Act “funds” means financial assets and benefits of every kind, including (but not limited to)—

(a) cash, cheques, claims on money, drafts, money orders and other payment instruments;

(b) deposits, balances on accounts, debts and debt obligations;

(c) publicly and privately traded securities and debt instruments, including stocks and shares, certificates representing securities, bonds, notes, warrants, debentures and derivative products;

(d) interest, dividends and other income on or value accruing from or generated by assets;

(e) credit, rights of set-off, guarantees, performance bonds and other financial commitments;

(f) letters of credit, bills of lading and bills of sale;

(g) documents providing evidence of an interest in funds or financial resources;

(h) any other instrument of export financing.

(2) In this Act “economic resources” means assets of every kind, whether tangible or intangible, movable or immovable, which are not funds but can be used to obtain funds, goods or services.

(3) In this Act references to “freezing” funds are to preventing funds from being dealt with; and for the purposes of this subsection funds are “dealt with” if—

(a) they are used, altered, moved, or transferred or access is allowed to them,

(b) they are dealt with in any other way that would result in any change in volume, amount, location, ownership, possession, character or destination, or

(4) In this Act references to “freezing” economic resources are to preventing economic resources from being dealt with; and for the purposes of this subsection economic resources are “dealt with” if—

(a) they are exchanged for funds, goods or services, or

(b) they are used in exchange for funds, goods or services (whether by being pledged as security or otherwise).

Meaning of “financial services” and “financial products”

61

(1) In this Act “financial services” means any service of a financial nature, including (but not limited to)—

(a) insurance-related services consisting of—

(i) direct life assurance;

(ii) direct insurance other than life assurance;

(iii) reinsurance and retrocession;

(iv) insurance intermediation, such as brokerage and agency;

(v) services auxiliary to insurance, such as consultancy, actuarial, risk assessment and claim settlement services;

(b) banking and other financial services consisting of—

(i) accepting deposits and other repayable funds;

(ii) lending (including consumer credit, mortgage credit, factoring and financing of commercial transactions);

(iii) financial leasing;

(iv) payment and money transmission services (including credit, charge and debit cards, travellers' cheques and bankers' drafts);

(v) providing guarantees or commitments;

(vi) financial trading (as defined in subsection (2));

(vii) participating in issues of any kind of securities (including underwriting and placement as an agent, whether publicly or privately) and providing services related to such issues;

(viii) money brokering;

(ix) asset management, such as cash or portfolio management, all forms of collective investment management, pension fund management, custodial, depository and trust services;

(x) settlement and clearing services for financial assets (including securities, derivative products and other negotiable instruments);

(xi) providing or transferring financial information, and financial data processing or related software (but only by suppliers of other financial services);

(xii) providing advisory and other auxiliary financial services in respect of any activity listed in sub-paragraphs (i) to (xi) (including credit reference and analysis, investment and portfolio research and advice, advice on acquisitions and on corporate restructuring and strategy).

(2) In subsection (1)(b)(vi), “financial trading” means trading for own account or for account of customers, whether on an investment exchange, in an over-the- counter market or otherwise, in financial products.

(3) In this Act “financial products” means—

(a) money market instruments (including cheques, bills and certificates of deposit);

(b) foreign exchange;

(d) exchange rate and interest rate instruments (including products such as swaps and forward rate agreements);

(e) transferable securities;

(f) other negotiable instruments and financial assets (including bullion).

Interpretation

62

(1) In this Act—

“appropriate Minister” is to be read in accordance with section 1(9);

“country” includes any territory, region or other place;

“designation power” has the meaning given by section 10(1);

“economic resources” has the meaning given by section 60(2);

“financial products” has the meaning given by section 61(3);

“financial services” has the meaning given by section 61(1);

“freeze”, in relation to funds or economic resources, has the meaning given by section 60(3) and (4);

“funds” has the meaning given by section 60(1);

“international obligation” has the meaning given by section 1(8);

“person” has the meaning given by section 9(5);

“prescribed”, in any provision relating to regulations, means prescribed by the regulations;

“the Security Council” means the Security Council of the United Nations;

“the territorial sea” (without more) means the territorial sea adjacent to the United Kingdom;

“terrorism” has the same meaning as in the Terrorism Act 2000 (see section 1(1) to (4) of that Act);

“UN obligation” has the meaning given by section 1(8);

“UN Security Council Resolution” has the meaning given by section 1(8).

(2) Any reference in this Act to a person named “for the purposes of” a UN Security Council Resolution so far as it provides for the taking of particular measures includes any person who, by virtue of—

(a) being named for any purposes by the Security Council or a subsidiary organ of the Security Council, and

(b) the terms of the resolution,

is a person in relation to whom the resolution provides for the measures to be taken.

(3) Any reference in this Act to ships designated “for purposes of” a UN Security Council Resolution which provides for the taking of measures in relation to ships includes any ship which, by virtue of—

(a) being designated for any purposes by the Security Council or a subsidiary organ of the Security Council, and

(b) the terms of the resolution,

is a ship in relation to which the resolution provides for the measures to be taken.

(4) Regulations under section 1 may make provision as to the meaning of any reference in the regulations to funds, economic resources or technology (or a particular description of funds, economic resources or technology) being—

(a) owned by a person,

(b) held by a person,

(d) made available to or for the benefit of a person.

(5) Regulations under section 1 may make provision as to the meaning of any reference in the regulations to a person “owning” or “controlling” another person.

(6) Regulations under section 1 may make provision as to the connection that is required between—

(a) a person, or a person of a prescribed description, and

(b) a country,

in order for the person to be regarded as “connected with” that country for the purposes of any provision of the regulations.

Final provisions

Extent

63

(1) Subject to the following provisions of this section, this Act extends to England and Wales, Scotland and Northern Ireland.

(2) Any amendment or repeal made by Schedule 3 of any provision of —

(a) the Senior Courts Act 1981,

(b) the Crime and Courts Act 2013, or

does not extend to Scotland or Northern Ireland.

(3) Her Majesty may by Order in Council provide for any of the provisions of Part 1, section 51 and this Part, or any regulations under Part 1 (whether made before or after the making of the Order in Council), to extend with or without modifications to—

(a) any of the Channel Islands;

(b) the Isle of Man;

(4) The power conferred by subsection (3), so far as relating to regulations, includes power to provide for the regulations as amended from time to time to extend as mentioned in that subsection.

(5) Her Majesty may by Order in Council provide for the repeal in section 59(1) (repeal of provisions of the Terrorist Asset-Freezing etc Act 2010) to extend to—

(a) any of the Channel Islands;

(b) the Isle of Man;

(6) The power under section 36 of the Immigration Act 1971 may be exercised so as to extend to any of the Channel Islands or the Isle of Man any amendment made by this Act of any part of that Act (with or without modifications).

(7) The power under section 272(6) of the Investigatory Powers Act 2016 may be exercised so as to extend to the Isle of Man or any of the British overseas territories any amendment made by this Act of any part of that Act (with or without modifications).

Commencement

64

(1) The following provisions come into force on the day on which this Act is passed—

(a) section 32;

(b) section 50;

(d) sections 60 to 63;

(e) this section;

(f) section 65.

(2) The remaining provisions of this Act come into force on such day as the Secretary of State may by regulations appoint.

(3) Different days may be appointed for different purposes.

(4) The Secretary of State may by regulations make transitional or saving provision in connection with the coming into force of any provision of this Act.

(5) Any power under this section to make regulations is exercisable by statutory instrument.

Short title

65

This Act may be cited as the Sanctions and Anti-Money Laundering Act 2018.

SCHEDULE 1

PART 1 — Trade sanctions

1

The purposes referred to in section 5(1) are the purposes set out in paragraphs 2 to 16.

2

Preventing the export of goods of a prescribed description—

(a) to, or for the benefit of—

(i) designated persons (see section 9),

(ii) persons connected with a prescribed country, or

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

(b) to, for the benefit of, or for use in, a prescribed country.

3

Preventing the import of all goods, or of goods of a prescribed description—

(a) which are consigned from a prescribed country,

(b) which originate in 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) 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, or

(e) for the benefit of a prescribed country.

4

Preventing the movement outside the United Kingdom of goods of a prescribed description—

(a) 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,

(b) to, or for the benefit of, a prescribed country,

(d) which originate in a prescribed country, or

(e) in specified ships (see section 14).

5

Preventing a transfer of technology of a prescribed description—

(a) 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,

(b) to a place (see paragraph 36) in a prescribed country,

(c) to, or for the benefit of, persons outside the United Kingdom, where the transfer is from a designated person, a person connected with a prescribed country or a place in a prescribed country,

(d) to a place outside the United Kingdom, where the transfer is from a designated person, a person connected with a prescribed country or a place in a prescribed country,

(e) to persons (other than designated persons) in the United Kingdom, where the person effecting, or responsible for, the transfer has reason to believe that the technology may be used in a prescribed country, or

(f) to a place in the United Kingdom, where the person effecting, or responsible for, the transfer has reason to believe that the technology may be used in a prescribed country.

6

Preventing goods or technology of a prescribed description from being made available—

(a) 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,

(b) for the benefit of, or for use in, a prescribed country, or

7

Preventing the acquisition of goods or technology of a prescribed description—

(a) from, or for the benefit of—

(i) designated persons,

(ii) persons connected with a prescribed country,

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

(iv) persons on board specified ships, or

(b) in, or which originate in, a prescribed country.

8

Preventing land, or land of a prescribed description, from being made available to, or for the benefit of—

(a) designated persons,

(b) persons connected with a prescribed country, or

9

Preventing the acquisition of land, or land of a prescribed description—

(a) from, 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, or

(b) in a prescribed country.

10

Preventing—

(a) activities of a prescribed description relating (directly or indirectly) to military activities from being carried on 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, or

(b) activities of a prescribed description from being carried on, where the activities relate (directly or indirectly) to military activities carried on, or proposed to be carried on, in a prescribed country.

11

Preventing all services, or services of a prescribed description, from being provided—

(a) 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, or

(b) in the United Kingdom by a prescribed description of persons connected with a prescribed country.

12

Preventing all services, or services of a prescribed description, from being procured—

(a) from, 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, or

(b) for provision in a prescribed country.

13

Preventing services, or services of a prescribed description, from being provided or procured, where the services relate to—

(a) the export of goods of a prescribed description to, or for the benefit of, persons as mentioned in paragraph 2(a),

(b) the export of goods of a prescribed description to, for the benefit of, or for use in, a prescribed country,

(c) the import of goods, or goods of a prescribed description, which are consigned from, or originate in, a prescribed country,

(d) the import of goods, or goods of a prescribed description, which are consigned from or imported, manufactured, produced or owned by persons as mentioned in paragraph 3(c),

(e) the import of goods, or goods of a prescribed description, for the benefit of persons as mentioned in paragraph 3(d),

(f) the import of goods, or goods of a prescribed description, for the benefit of a prescribed country,

(g) the movement of goods of a prescribed description to, or for the benefit of, persons as mentioned in paragraph 4(a),

(h) the movement of goods of a prescribed description to, or for the benefit of, a prescribed country,

(i) the movement of goods of a prescribed description from a prescribed country, or which originate in a prescribed country,

(j) the movement of goods of a prescribed description in specified ships,

(k) the transfer of technology of a prescribed description to, or for the benefit of, persons as mentioned in sub-paragraph (a), (c) or (e) of paragraph 5,

(l) the transfer of technology of a prescribed description to a place as mentioned in sub-paragraph (b), (d) or (f) of paragraph 5,

(m) the making available of goods or technology of a prescribed description to, or for the benefit of, persons as mentioned in paragraph 6(a),

(n) the making available of goods or technology of a prescribed description for the benefit of, or for use in, a prescribed country,

(o) the making available of goods or technology of a prescribed description for use in connection with specified ships,

(p) the acquisition of goods or technology of a prescribed description from, or for the benefit of, persons as mentioned in paragraph 7(a),

(q) the acquisition of goods or technology of a prescribed description in, or which originate in, a prescribed country,

(r) the making available of land, or land of a prescribed description, to, or for the benefit of, persons as mentioned in paragraph 8,

(s) the acquisition of land, or land of a prescribed description, from, or for the benefit of, persons as mentioned in paragraph 9(a),

(t) the acquisition of land, or land of a prescribed description, in a prescribed country,

(u) the carrying on of activities of a prescribed description as mentioned in sub-paragraph (a) of paragraph 10 for the benefit of persons as mentioned in that sub-paragraph,

(v) the carrying on of activities of a prescribed description as mentioned in paragraph 10(b), or

(w) the provision or procurement of other services, or services of a prescribed description, which relate to a matter mentioned in any of sub-paragraphs (a) to (v).

14

Preventing services, or services of a prescribed description, from being provided or procured, where the services relate to—

(a) the provision of other services, or services of a prescribed description, to, or for the benefit of, persons as mentioned in paragraph 11(a),

(b) the provision of other services, or services of a prescribed description, in the United Kingdom by a prescribed description of persons connected with a prescribed country,

(c) the procurement of other services, or services of a prescribed description, from, or for the benefit of, persons as mentioned in paragraph 12(a),

(d) the procurement of other services, or services of a prescribed description, for provision in a prescribed country,

(e) projects, industries, sectors or infrastructure of a prescribed description in a prescribed country,

(f) activities of a prescribed description carried on, or proposed to be carried on, in a prescribed country,

(g) trade with a prescribed country,

(h) aircraft registered in a prescribed country,

(i) ships registered in a prescribed country,

(j) specified ships, or

(k) the provision or procurement of other services, or services of a prescribed description, which relate to a matter mentioned in any of sub-paragraphs (e) to (j).

15

So far as a UN Security Council Resolution provides for the taking of measures in relation to ships designated for purposes of that resolution, and so far as the purposes set out in this paragraph are relevant to that resolution, preventing—

(a) the movement outside the United Kingdom of goods of a prescribed description in such ships,

(b) goods or technology of a prescribed description from being made available for use in connection with such ships,

(d) the provision or procurement of services which relate to such ships.

16

Preventing—

(a) the export, import, movement, making available or acquisition of objects of cultural interest, or objects of cultural interest of a prescribed description, which have been removed from a prescribed country, or

(b) services of a prescribed description from being provided or procured, where the services relate to objects of cultural interest, or objects of cultural interest of a prescribed description, which have been removed from a prescribed country.

PART 2 — Further provision

Further provision

17

Regulations which include provision for a purpose mentioned in Part 1 may describe goods wholly or partly by reference to—

(a) the uses to which the goods, or any information recorded on or derived from them, may be put,

(b) the types of users of the goods, or of any such information,

(d) the place where the goods originate.

18

Regulations which include provision for a purpose mentioned in paragraph 2 or 3 may describe goods wholly or partly by reference to their being of an amount, quantity or value in excess of a prescribed amount, quantity or value.

19

Regulations which include provision for a purpose mentioned in Part 1 may describe technology wholly or partly by reference to—

(a) the uses to which the technology may be put,

(b) the industries, sectors, infrastructure or projects to which the technology may relate, or

20

Regulations which include provision for a purpose mentioned in Part 1 may describe services wholly or partly by reference to—

(a) the uses to which the services may be put,

(b) the industries, sectors, infrastructure or projects to which the services may relate,

(d) any activities carried on, or proposed to be carried on, to which the services may relate (including the export, import, movement, transfer, making available, acquisition, development, manufacture, production, maintenance or use of goods, technology or land), or

(e) any other services to which the services in question may relate.

21

Regulations which include provision for a purpose mentioned in Part 1 may include provision having the effect that references to specified provisions of orders made under the Export Control Act 2002 are to operate as references to specified provisions of such orders as amended from time to time.

22

Regulations which include provision for a purpose mentioned in Part 1 may include provision having the effect that references to a specified Annex of Council Regulation (EC) No 428/2009 of 5 May 2009 (setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items) are to operate as references to that Annex as amended from time to time.

23

Regulations which include provision for a purpose mentioned in Part 1 may include provision having the effect that references to a technical list of goods or technology (including a list by reference to which any UN obligation operates) are to operate as references to that list as revised or re-issued from time to time.

24

Regulations which include provision for a purpose mentioned in paragraph 2 may include provision in relation to the removal from the United Kingdom of vehicles, ships and aircraft (as an export of goods), whether or not they are moving under their own power or carrying goods or passengers.

25

Regulations which include provision for a purpose mentioned in paragraph 3 may include provision in relation to the taking into the United Kingdom of vehicles, ships and aircraft (as an import of goods), whether or not they are moving under their own power or carrying goods or passengers.

26

(1) This paragraph applies where regulations include provision for a purpose mentioned in paragraph 15 in relation to ships designated by the Security Council or a subsidiary organ of the Security Council for purposes of a UN Security Council Resolution.

(2) The provision may describe the ships 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.

Enforcement

27

(1) This paragraph applies in relation to any provision of CEMA which specifies a maximum period of imprisonment with which an offence is punishable on conviction on indictment.

(2) Regulations under this paragraph may modify any such provision in the case of an offence committed in connection with a prohibition or requirement—

(a) imposed for a purpose mentioned in Part 1, and

(b) specified in the regulations.

(3) The modification may not have the effect that such an offence is punishable with imprisonment for a period exceeding 10 years.

28

(1) For the purpose of the enforcement of any relevant prohibition or requirement, regulations under this paragraph may modify any provision of CEMA which—

(a) determines whether any thing is liable to forfeiture under CEMA by virtue of a contravention of the prohibition or requirement,

(b) provides for the treatment of any thing which is so liable by virtue of such a contravention, or

(2) In sub-paragraph (1) a “relevant prohibition or requirement” means a prohibition or requirement—

(a) imposed for a purpose mentioned in Part 1, and

(b) specified in the regulations under this paragraph.

Restriction

29

Regulations may not contain prohibitions for a purpose mentioned in Part 1 which have the effect of prohibiting any of the following activities—

(a) the communication of information in the ordinary course of scientific research,

(b) the making of information generally available to the public, or

unless the interference by the regulations in the freedom to carry on the activity in question is necessary (and no more than is necessary).

30

The question whether any such interference is necessary is to be determined by the appropriate Minister making the regulations—

(a) by reference to the circumstances prevailing at the time the regulations are made, and

(b) having considered the purpose of the regulations as stated under section 1(3) and the need to respect the freedom to carry on that activity.

Interpretation

31

In this Schedule, any reference to goods, technology, land or services being moved, made available, acquired, provided or procured is to their being moved, made available, acquired, provided or procured (as the case may be) directly or indirectly.

32

For the purposes of this Schedule—

(a) “export” means export from the United Kingdom,

(b) goods removed to the Isle of Man from the United Kingdom are not to be regarded as exported, and

(c) goods transported out of the United Kingdom by aircraft or ship as stores within the meaning of CEMA (see section 1(1) and (4) of that Act) are to be regarded as exported.

33

For the purposes of this Schedule—

(a) “import” means import into the United Kingdom, but

(b) goods removed to the United Kingdom from the Isle of Man are not to be regarded as imported.

34

Paragraph 33(b) does not apply to goods imported into the Isle of Man in contravention of any prohibition or requirement and which are of a description the import of which into the United Kingdom is subject to a corresponding prohibition or requirement imposed by regulations for a purpose mentioned in paragraph 3.

35

For the purposes of this Schedule—

(a) goods, technology or land are “acquired” by a person if the person buys, leases, hires, borrows or accepts as a gift the goods, technology or land (as the case may be), and “acquisition” is to be construed accordingly, and

(b) a reference to goods which “originate” in a country includes a reference to goods which are manufactured or produced in that country.

36

In paragraph 5 “place” includes—

(a) any vehicle, ship or aircraft,

(b) any installation (including a floating installation or one resting on the seabed or its subsoil or on other land covered with water or its subsoil), or

37

In this Schedule—

“aircraft” includes unmanned aircraft and aircraft capable of spaceflight activities;

“CEMA” means the Customs and Excise Management Act 1979;

“objects of cultural interest” includes objects of historical or scientific interest;

“regulations” means regulations under section 1;

“ship” includes every description of vessel (including a hovercraft) used in navigation;

“specified ship” has the meaning given by section 14;

“technology” means information (including information comprised in software) that is capable of use in connection with—the development, production or use of any goods or software, orthe development of, or the carrying out of, an industrial or commercial activity or an activity of any other kind whatsoever;

“transfer”, in relation to any technology, means a transfer by any means (or combination of means), including oral communication and the transfer of goods on which the technology is recorded or from which it can be derived, other than the export of such goods.

38

Nothing in section 3 prevents any reference to services in this Schedule from including financial services.

SCHEDULE 2

Regulations under section 49

1

Without prejudice to the generality of section 49, regulations under that section may do any thing mentioned in paragraphs 2 to 17.

2

(1) Require—

(a) the Secretary of State or the Treasury, or both of them acting jointly,

(b) supervisory authorities (within the meaning given by paragraph 24), and

(c) such persons carrying on relevant business (within the meaning given by that paragraph) as are prescribed for the purposes of this paragraph,

to identify and assess risks relating to money laundering, terrorist financing or other threats to the integrity of the international financial system.

(2) Make provision about factors to be taken into account in the assessment of such risks.

3

Require any person carrying on relevant business who is of a description prescribed for the purposes of this paragraph (“a relevant person”) to have policies, controls and procedures which—

(a) are policies, controls and procedures for mitigating and managing risks relating to money laundering, terrorist financing or other threats to the integrity of the international financial system,

(b) are of prescribed kinds, and

4

(1) Require relevant persons to take prescribed measures in relation to their customers in prescribed circumstances.

(2) Provide for the imposition of requirements relating to enhanced customer due diligence measures by reference to prescribed high-risk countries.

(3) Provision made by virtue of sub-paragraph (2) may in particular refer to a list of countries published by the Financial Action Task Force as it has effect from time to time.

5

Make provision for and in connection with—

(a) the provision of information by prescribed persons, and

(b) the disclosure of information, including provision about—

(i) the purposes for which information held in connection with anything done under the regulations may be used, and

(ii) the persons to whom any such information may be disclosed.

6

Make provision for and in connection with the creation, production and retention of—

(a) registers, and

(b) records,

including registers of people with significant control and registers and records relating to the beneficial ownership of prescribed entities, trusts or other arrangements.

7

(1) Confer supervisory functions on the Financial Conduct Authority, the Commissioners for Her Majesty's Revenue and Customs and such other bodies as may be prescribed (“supervisory authorities”) in relation to relevant persons, including powers or duties to—

(a) collect information,

(b) give directions,

(d) approve individuals in their capacity as relevant persons or as owner of, or in positions of control over or responsibility in, relevant persons that are not individuals, and

(e) cooperate with other supervisory authorities or other prescribed persons.

(2) Make provision about the exercise of functions conferred on supervisory authorities under sub-paragraph (1).

8

(1) Confer supervisory functions on a prescribed body (an “oversight body”) in relation to bodies prescribed as, or seeking to be prescribed as, supervisory authorities, including powers or duties to—

(a) collect information,

(b) give directions,

(d) give recommendations as to whether bodies should be, or should cease to be, prescribed as supervisory authorities.

(2) Make provision about the exercise of functions conferred on an oversight body under sub-paragraph (1).

9

Make provision for and in connection with the registration of relevant persons by supervisory authorities, including—

(a) provision which prohibits a person from carrying on a business of a prescribed description unless registered, and

(b) provision about the suspension or cancellation of a person's registration.

10

Make provision enabling supervisory authorities to enter into arrangements with other bodies for the purposes of the enforcement of the regulations.

11

(1) Confer investigatory powers on—

(a) supervisory authorities, and

(b) prescribed enforcement partners within the meaning given by paragraph 24.

(2) Make provision about the exercise of investigatory powers.

(3) Make provision enabling investigatory powers to be exercised by a supervisory authority in relation to persons supervised by another supervisory authority.

(4) In this paragraph “investigatory powers” includes powers of entry, search, inspection, seizure of documents or information and retention of documents or information.

12

(1) Authorise supervisory authorities to impose charges on persons supervised by them in respect of expenses incurred for the purposes of the regulations.

(2) Make provision in connection with any charges for which provision is made under sub-paragraph (1), including provision for charges to meet expenses incurred by enforcement partners for the purposes of the regulations.

(3) Where provision is made by virtue of paragraph 11(3), authorise supervisory authorities to impose charges on other supervisory authorities in respect of expenses incurred in relation to the exercise of powers in accordance with such provision.

(4) Authorise an oversight body to impose charges on supervisory authorities or persons seeking to be prescribed as supervisory authorities in respect of the exercise by the oversight body of functions conferred on it by the regulations.

(5) Make provision in connection with any charges for which provision is made under sub-paragraph (3) or (4).

13

(1) Authorise the Financial Conduct Authority and the Commissioners for Her Majesty's Revenue and Customs to impose civil monetary penalties in relation to the contravention of prescribed requirements.

(2) Authorise supervisory authorities to impose civil penalties (other than monetary penalties) in relation to the contravention of prescribed requirements, including—

(a) the publication of statements of censure,

(b) the suspension or revocation of, or restrictions on, any permission or authorisation granted by a supervisory authority,

(d) restrictions on the holding of management responsibilities.

(3) Authorise an oversight body to—

(a) impose civil monetary penalties, and

(b) publish statements of censure,

in relation to the contravention of prescribed requirements by supervisory authorities.

(4) Make provision in connection with any civil penalties for which provision is made under sub-paragraph (1), (2) or (3), including provision for publishing details of persons who have incurred penalties.

14

Make provision for and in connection with the grant of injunctions (or, in Scotland, interdicts) and other orders by prescribed courts in relation to the contravention of prescribed requirements.

15

Make provision—

(a) creating criminal offences for the purposes of the enforcement of requirements imposed by or under regulations under section 49, and

(b) dealing with matters relating to any offences created for such purposes by regulations under section 49,

but see paragraphs 18 and 19.

16

Make provision for and in connection with reviews of, and appeals against, decisions of—

(a) prescribed supervisory authorities, and

(b) an oversight body.

17

Make provision exempting prescribed persons from prescribed requirements, generally or in prescribed circumstances.

Criminal offences: restrictions and relationship with civil penalties

18

Regulations under section 49 may not provide for an offence created by such regulations to be punishable with imprisonment for a period exceeding—

(a) in the case of conviction on indictment, 2 years;

(b) in the case of summary conviction, 3 months.

19

Regulations under section 49 may provide for the creation of a criminal offence only if the regulations also provide for either or both of the following in relation to the offence—

(a) a mental element necessary for its commission;

(b) a defence to it (for example, a defence grounded on a person's knowledge or belief, or a defence that a person took all reasonable steps and exercised all due diligence).

20

Regulations under section 49 which confer a power to impose a civil monetary penalty must provide that a person is not liable to such a penalty in respect of acts or omissions for which the person has been convicted of a criminal offence created by such regulations.

Criminal offences: report in respect of offences in regulations

21

(1) In this paragraph “relevant regulations” means regulations under section 49 which create any offence for the purposes of the enforcement of any requirements imposed by or under regulations under section 49.

(2) The appropriate Minister making any relevant regulations (“the Minister”) must at the required time lay before Parliament a report which—

(a) specifies the offences created by the regulations, indicating the requirements to which those offences relate,

(b) states that the Minister considers that there are good reasons for those requirements to be enforceable by criminal proceedings and explains why the Minister is of that opinion, and

(i) states the maximum terms of imprisonment that apply to those offences,

(ii) states that the Minister considers that there are good reasons for those maximum terms, and

(iii) explains why the Minister is of that opinion.

(3) Sub-paragraph (4) applies where an offence created by the regulations relates to particular requirements and the Minister considers that a good reason—

(a) for those requirements to be enforceable by criminal proceedings, or

(b) for a particular maximum term of imprisonment to apply to that offence,

is consistency with another enactment relating to the enforcement of similar requirements.

(4) The report must identify that other enactment.

(5) In sub-paragraph (3) “another enactment” means any provision of or made under an Act, other than a provision of the regulations to which the report relates.

(6) In sub-paragraph (2) “the required time” means the same time as the draft of the statutory instrument containing the regulations is laid before Parliament.

(7) This paragraph applies to regulations which amend other regulations under section 49 so as to create an offence as it applies to regulations which otherwise create an offence.

Extra-territorial application

22

(1) Regulations under section 49 may impose requirements in relation to conduct outside the United Kingdom by a United Kingdom person.

(2) In sub-paragraph (1) “United Kingdom person” means—

(a) a United Kingdom national,

(b) a body incorporated or constituted under the law of any part of the United Kingdom, ...

(c) a body within paragraph (3) or (4) of regulation 9 of the Money Laundering Regulations 2017 (bodies to be regarded for the purposes of those Regulations as carrying on business in the United Kingdom), as that regulation has effect immediately before it is saved by section 2 of the European Union (Withdrawal) Act 2018 , or

(d) a person—

(i) who does not fall within any of paragraphs (a) to (c), and

(ii) who is a trustee with links to the United Kingdom (see paragraph 22A).

(3) For this purpose a United Kingdom national is an individual who is—

(a) a British citizen, a British overseas territories citizen, a British National (Overseas) or a British Overseas citizen,

(b) a person who under the British Nationality Act 1981 is a British subject, or

(4) In this paragraph “conduct” includes acts and omissions.

Money Laundering Regulations 2017

23

(1) Without prejudice to anything in section 49, paragraphs 1 to 22 or section 54(2), regulations under section 49 may—

(a) subject to any modifications the appropriate Minister making those regulations considers appropriate, make provision corresponding or similar to any provision of relevant money laundering Regulations as those Regulations have effect immediately after being saved by section 2 or 3 of the European Union (Withdrawal) Act 2018;

(b) amend or revoke any relevant money laundering Regulations.

(2) In sub-paragraph (1) “relevant money laundering Regulations” means—

(a) the Money Laundering Regulations 2017;

(b) Regulation (EU) 2015/847 of the European Parliament and of the Council of 20 May 2015 on information accompanying transfers of funds;

(c) any provision made under Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing by virtue of Article 290 or 291(2) of the Treaty on the Functioning of the European Union.

(2A) In paragraph 4 (measures in relation to customers of relevant persons), the reference in sub-paragraph (2) to requirements includes requirements imposed by or under the Money Laundering Regulations 2017.

(3) In paragraph 15 (offences), any reference to regulations under section 49 includes the Money Laundering Regulations 2017.

(4) In paragraph 21 (report in respect of offences)—

(a) the reference in sub-paragraph (1) to requirements imposed by or under regulations under section 49 includes requirements imposed by or under the Money Laundering Regulations 2017, and

(b) the reference in sub-paragraph (7) to other regulations under section 49 includes the Money Laundering Regulations 2017.

Interpretation

24

In this Schedule—

“enforcement partners” means bodies with which supervisory authorities enter into arrangements for the purposes of the enforcement of regulations under section 49;

“money laundering” has the meaning given by section 49;

“Money Laundering Regulations 2017” means the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (S.I. 2017/692);

“oversight body” means a body on which functions are conferred under paragraph 8(1);

“relevant business” means business of a kind which entails risks relating to money laundering, terrorist financing or other threats to the integrity of the financial system;

“relevant person” means a person on whom requirements are imposed under paragraph 3;

“requirements” includes prohibitions;

“supervisory authority” means the Financial Conduct Authority, the Commissioners for Her Majesty's Revenue and Customs or any other body on which functions are conferred under paragraph 7(1);

“terrorist financing” has the meaning given by section 49.

SCHEDULE 3

PART 1 — Amendments consequential on Parts 1 and 2

Immigration Act 1971 (c. 77)

1

(1) Section 8B of the Immigration Act 1971 (persons excluded from the United Kingdom under international obligations) is amended as follows.

(2) In the heading for “international obligations” substitute “ certain instruments ”.

(3) For subsection (4) substitute—

(4) “Excluded person” means— (a) a person named by or under, or of a description specified in, an instrument falling within subsection (5), or (b) a person who under regulations under section 1 of the Sanctions and Anti-Money Laundering Act 2018 is an excluded person for the purposes of this section (see section 4 of that Act).

(4) In subsection (5A)(b), for the words from the beginning to “that subsection” substitute “ the person is within subsection (4)(a) and not within subsection (4)(b) and has been exempted from the application of subsection (1), (2) or (3), as the case may be, ”.

(5) After subsection (5A) insert—

(5B) In relation to any person within subsection (4)(b), subsections (1) to (3) are subject to any exception created under, or direction given by virtue of, section 15(4) of the Sanctions and Anti-Money Laundering Act 2018 (power to create exceptions etc).

Senior Courts Act 1981 (c. 54)

2

In paragraph 2 of Schedule 1 to the Senior Courts Act 1981 (business allocated to the Queen's Bench Division), after sub-paragraph (be) insert—

(bf) all proceedings— (i) on an application under section 38 of the Sanctions and Anti-Money Laundering Act 2018 (court review of decisions), or (ii) on a claim arising from any matter to which such an application relates;”.

Regulation of Investigatory Powers Act 2000 (c. 23)

3

(1) Section 18 of the Regulation of Investigatory Powers Act 2000 (exceptions to matters excluded from legal proceedings) is amended as follows.

(2) In subsection (1), after paragraph (de) insert—

(df) any proceedings— (i) on an application under section 38 of the Sanctions and Anti-Money Laundering Act 2018 (court review of decisions), or (ii) on a claim arising from any matter to which such an application relates, or any proceedings arising out of such proceedings;

(3) In subsection (2), after paragraph (zd) insert—

(ze) in the case of proceedings falling within paragraph (df), to— (i) a person, other than the Secretary of State or the Treasury (as the case may be), who is or was a party to the proceedings, or (ii) any person who for the purposes of the proceedings (but otherwise than by virtue of appointment as a special advocate) represents a person falling within sub-paragraph (i);

Serious Organised Crime and Police Act 2005 (c. 15)

4

In section 61(1) of the Serious Organised Crime and Police Act 2005 (offences to which investigatory powers etc apply), after paragraph (i) insert—

(j) any offence under regulations under section 1 of the Sanctions and Anti-Money Laundering Act 2018 (sanctions regulations) which is specified by those regulations by virtue of section 17(8) of that Act.

Serious Crime Act 2007 (c. 27)

5

(1) Schedule 1 to the Serious Crime Act 2007 (offences in relation to which a serious crime prevention order may be made) is amended as follows.

(2) In paragraph 13B after sub-paragraph (5) insert—

(5A) An offence under regulations made under section 1 of the Sanctions and Anti-Money Laundering Act 2018.

(3) In paragraph 16MA after sub-paragraph (5) insert—

(5A) An offence under regulations made under section 1 of the Sanctions and Anti-Money Laundering Act 2018.

(4) In paragraph 29A after sub-paragraph (5) insert—

(5A) An offence under regulations made under section 1 of the Sanctions and Anti-Money Laundering Act 2018.

(5) In the italic headings before each of paragraphs 13B, 16MA and 29A, omit “Financial”.

Crime and Courts Act 2013 (c. 22)

6

(1) Part 2 of Schedule 17 to the Crime and Courts Act 2013 (offences in relation to which a deferred prosecution agreement may be entered into) is amended as follows.

(2) In paragraph 26A, after sub-paragraph (5) insert—

(5A) An offence under regulations made under section 1 of the Sanctions and Anti-Money Laundering Act 2018 (sanctions regulations).

(3) After paragraph 27 insert—

(27A) An offence under regulations made under section 49 of the Sanctions and Anti-Money Laundering Act 2018 (money laundering and terrorist financing etc).

Investigatory Powers Act 2016 (c. 25)

7

In Schedule 3 to the Investigatory Powers Act 2016 (exceptions to section 56), after paragraph 9 insert—

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