The ISIL (Da’esh) and Al-Qaida (United Nations Sanctions) (EU Exit) Regulations 2019

• (a) investigating the suspected carriage of relevant goods on the ship, or

• (b) preventing the continued carriage on the ship of goods suspected to be relevant goods.

• (4) In this Part, “the maritime enforcement powers” are the powers conferred by regulations 50 and 51.

• (5) This regulation is subject to regulation 52 (restrictions on exercise of maritime enforcement powers).

Maritime enforcement officers

49

• (1) The following persons are “maritime enforcement officers” for the purposes of this Part—

• (a) a commissioned officer of any of Her Majesty's ships;

• (b) a member of the Ministry of Defence Police (within the meaning of section 1 of the Ministry of Defence Police Act 1987 );

• (c) a constable—

• (i) who is a member of a police force in England and Wales,

• (ii) within the meaning of section 99 of the Police and Fire Reform (Scotland) Act 2012 , or

• (iii) who is a member of the Police Service of Northern Ireland or the Police Service of Northern Ireland Reserve;

• (d) a special constable—

• (i) appointed under section 27 of the Police Act 1996 ,

• (ii) appointed under section 9 of the Police and Fire Reform (Scotland) Act 2012, or

• (iii) in Northern Ireland, appointed by virtue of provision incorporating section 79 of the Harbours, Docks, and Piers Clauses Act 1847 ;

• (e) a constable who is a member of the British Transport Police Force;

• (f) a port constable, within the meaning of section 7 of the Marine Navigation Act 2013 , or a person appointed to act as a constable under provision made by virtue of section 16 of the Harbours Act 1964 ;

• (g) a designated customs official within the meaning of Part 1 of the Borders, Citizenship and Immigration Act 2009 (see section 14(6) of that Act) ;

• (h) a designated NCA officer who is authorised by the Director General of the National Crime Agency (whether generally or specifically) to exercise the powers of a maritime enforcement officer under this Part.

• (2) In this regulation, “a designated NCA officer” means a National Crime Agency officer who is either or both of the following—

• (a) an officer designated under section 10 of the Crime and Courts Act 2013 as having the powers and privileges of a constable;

• (b) an officer designated under that section as having the powers of a general customs official.

Power to stop, board, search etc

50

• (1) This regulation applies if a maritime enforcement officer has reasonable grounds to suspect that a relevant ship is carrying prohibited goods or relevant goods.

• (2) The officer may—

• (a) stop the ship;

• (b) board the ship;

• (c) for the purpose of exercising a power conferred by paragraph (3) or regulation 51 (seizure power), require the ship to be taken to, and remain in, a port or anchorage in the United Kingdom or any other country willing to receive it.

• (3) Where the officer boards a ship by virtue of this regulation, the officer may—

• (a) stop any person found on the ship and search that person for—

• (i) prohibited goods or relevant goods, or

• (ii) any thing that might be used to cause physical injury or damage to property or to endanger the safety of any ship;

• (b) search the ship, or any thing found on the ship (including cargo) for prohibited goods or relevant goods;

• (4) The officer may—

• (a) require a person found on a ship boarded by virtue of this regulation to provide information or produce documents;

• (b) inspect and copy such information or documents.

• (5) The officer may exercise a power conferred by paragraph (3)(a)(i) or (b) only to the extent reasonably required for the purpose of discovering prohibited goods or relevant goods.

• (6) The officer may exercise the power conferred by paragraph (3)(a)(ii) in relation to a person only where the officer has reasonable grounds to believe that the person might use a thing to cause physical injury or damage to property or to endanger the safety of any ship.

• (7) The officer may use reasonable force, if necessary, in the exercise of any power conferred by this regulation.

Seizure power

51

• (1) This regulation applies if a maritime enforcement officer is lawfully on a relevant ship (whether in exercise of the powers conferred by regulation 50 or otherwise).

• (2) The officer may seize any of the following which are found on the ship, in any thing found on the ship, or on any person found on the ship—

• (a) goods which the officer has reasonable grounds to suspect are prohibited goods or relevant goods, or

• (b) things within regulation 50(3)(a)(ii).

• (3) The officer may use reasonable force, if necessary, in the exercise of any power conferred by this regulation.

Restrictions on exercise of maritime enforcement powers

52

• (1) The authority of the Secretary of State is required before any maritime enforcement power is exercised in reliance on regulation 48 in relation to—

• (a) a British ship in foreign waters, or

• (b) a foreign ship in international waters.

• (2) In relation to a British ship in foreign waters other than the sea and other waters within the seaward limits of the territorial sea adjacent to any relevant British possession, the Secretary of State may give authority under paragraph (1) only if the State in whose waters the power would be exercised consents to the exercise of the power.

• (3) In relation to a foreign ship in international waters, the Secretary of State may give authority under paragraph (1) only if—

• (a) the home state has requested the assistance of the United Kingdom for a purpose mentioned in regulation 48(2) or (3),

• (b) the home state has authorised the United Kingdom to act for such a purpose, or

• (c) the United Nations Convention on the Law of the Sea 1982 or a UN Security Council Resolution otherwise permits the exercise of the power in relation to the ship.

Interpretation of Part 9

53

• (1) Subject to paragraph (2), any expression used in this Part and in section 19 or 20 of the Act has the same meaning in this Part as it has in section 19 or (as the case may be) section 20 of the Act.

• (2) For the purpose of interpreting any reference to “prohibited goods” or “relevant goods” in this Part, any reference in section 19 or 20 of the Act to a “relevant prohibition or requirement” is to be read as a reference to any prohibition specified in regulation 48(2)(a) to (d).

PART 10 — Supplementary and final provision

Notices

54

• (1) This regulation applies in relation to a notice required by regulation 29 (Treasury licences) to be given to a person.

• (2) The notice may be given to an individual—

• (a) by delivering it to the individual,

• (b) by sending it to the individual by post addressed to the individual at his or her usual or last-known place of residence or business, or

• (c) by leaving it for the individual at that place.

• (3) The notice may be given to a person other than an individual—

• (a) by sending it by post to the proper officer of the body at its principal office, or

• (b) by addressing it to the proper officer of the body and leaving it at that office.

• (4) The notice may be given to the person by other means, including by electronic means, with the person's consent.

• (5) In this regulation, the reference in paragraph (3) to a “principal office”—

• (a) in relation to a registered company, is to be read as a reference to the company's registered office;

• (b) in relation to a body incorporated or constituted under the law of a country other than the United Kingdom, includes a reference to the body's principal office in the United Kingdom (if any);

• (6) In this regulation—

• “proper officer”—in relation to a body other than a partnership, means the secretary or other executive officer charged with the conduct of the body's general affairs; andin relation to a partnership, means a partner or a person who has the control or management of the partnership business;

• “registered company” means a company registered under the enactments relating to companies for the time being in force in the United Kingdom.

Trade: overlapping offences

55

A person is not to be taken to commit an offence under the Export Control Order 2008 if the person would, in the absence of this regulation, commit an offence under both—

• (a) article 34 of that Order, and

• (b) any provision of Part 4 (trade).

Revocation of the ISIL (Da'esh) and Al-Qaida Council Regulation

56

Council Regulation (EC) No 881/2002 of 27 May 2002 imposing certain specific measures directed against certain persons and entities associated with the ISIL (Da'esh) and Al-Qaida organisations is revoked.

Amendment to the ISIL (Da'esh) and Al-Qaida (Asset-Freezing) Regulations 2011

57

• (1) The ISIL (Da'esh) and Al-Qaida (Asset-Freezing) Regulations 2011 are amended as follows.

• (2) In regulation 2 (interpretation)—

• (a) in paragraph (1)—

• (i) omit the words from “the 2002 Council Regulation” to “time to time;” the first time they appear;

• (ii) in the definition of “designated person”, omit “Annex I to the 2002 Council Regulation or”;

• (b) in paragraph (3), omit the words from “Where the 2002 Council Regulation applies” to “Where the 2016 Council Regulation applies,”.

• (3) In regulation 8 (credits to a frozen account)—

• (a) omit paragraph (1);

• (b) in paragraph (3) omit “1(b) or”.

Amendment to the Export Control (Al-Qaida and Taliban Sanctions) Regulations 2011

58

• (1) The Export Control (Al-Qaida and Taliban Sanctions) Regulations 2011 are amended as follows.

• (2) In regulation 3 (interpretation) omit the words from “the Al-Qaida Regulation” to “time to time;” the first time they appear.

• (3) Omit regulation 4.

• (4) In regulation 7(1) (penalties) omit “4 or”.

• (5) In regulation 9(2) and (3)(a) (review)—

• (a) omit “the Al-Qaida Regulation and”;

• (b) for “them” substitute “ it ”;

• (c) for “those regulations” substitute “ that Regulation ”.

Transitional provision: Treasury licences

59

• (1) Paragraphs (2) to (4) apply to a licence which—

• (a) was granted, or deemed to be granted, by the Treasury under regulation 9 of the 2011 Regulations in respect of a person named on the ISIL (Da'esh) and Al-Qaida Sanctions List, and

• (b) was in effect immediately before the relevant date, and

• (c) authorises conduct which would (on and after the relevant date, and in the absence of paragraphs (2) to (4)) be prohibited under Part 3 (finance),

and such a licence is referred to in this regulation as “an existing financial sanctions licence”.

• (2) An existing financial sanctions licence which authorises an act which would otherwise be prohibited has effect on and after the relevant date as if it had been issued by the Treasury under regulation 29(1) (Treasury licences).

• (3) Any reference in an existing financial sanctions licence to the 2011 Regulations or the 2010 Regulations is to be treated on and after the relevant date as a reference to these Regulations.

• (4) Any reference in an existing financial sanctions licence to a prohibition in—

• (a) the 2011 Regulations,

• (b) the 2010 Regulations, or

• (c) the EU ISIL (Da'esh) and Al-Qaida Regulation,

is to be treated on and after the relevant date as a reference to the corresponding prohibition in Part 3.

• (5) Paragraph (6) applies where—

• (a) an application for a licence, or for the variation of a licence, under the 2011 Regulations was made before the relevant date,

• (b) the application is for the authorisation of conduct which would (on or after the relevant date) be prohibited under Part 3, and

• (c) a decision to grant or refuse the application has not been made before that date.

• (6) The application is to be treated on or after the relevant date as an application for a licence, or for the variation of a licence (as the case may be), under regulation 29 (Treasury licences).

• (7) In this regulation—

• “the EU ISIL (Da'esh) and Al-Qaida Regulation” means Council Regulation (EC) No 881/2002 of 27 May 2002 (restrictive measures against ISIL (Da'esh) and Al-Qaida) as it has effect in EU law;

• “the 2010 Regulations” means the Al-Qaida and Taliban (Asset-Freezing) Regulations 2010 ;

• “the 2011 Regulations” means the ISIL (Da'esh) and Al-Qaida (Asset-Freezing) Regulations 2011;

• “the relevant date” means—where regulations under section 56 of the Act provide that Part 3 comes into force at a specified time on a day, that time on that day;otherwise, the date on which Part 3 comes into force.

Transitional provisions: prior obligations

60

• (1) Where—

• (a) a person was named on the ISIL (Da'esh) and Al-Qaida Sanctions List, and

• (b) the person is a designated person immediately before the relevant date,

any reference in regulation 27(5) (finance: exceptions from prohibitions) to the date on which a person became a designated person is a reference to the date on which the person was named on the ISIL (Da'esh) and Al-Qaida Sanctions List.

• (2) In this regulation—

• “designated person” has the same meaning as it has in Part 3 (Finance);

• “the relevant date” means—where regulations under section 56 of the Act provide that Part 3 comes into force at a specified time on a day, that time on that day;otherwise, the date on which Part 3 comes into force.

SCHEDULE 1 — Rules for interpretation of regulation 7(2)

Application of Schedule

1

• (1) The rules set out in the following paragraphs of this Schedule apply for the purpose of interpreting regulation 7(2).

• (2) They also apply for the purpose of interpreting this Schedule.

Joint interests

2

If two or more persons each hold a share or right jointly, each of them is treated as holding that share or right.

Joint arrangements

3

• (1) If shares or rights held by a person and shares or rights held by another person are the subject of a joint arrangement between those persons, each of them is treated as holding the combined shares or rights of both of them.

• (2) A “joint arrangement” is an arrangement between the holders of shares or rights that they will exercise all or substantially all the rights conferred by their respective shares or rights jointly in a way that is pre-determined by the arrangement.

• (3) In this paragraph, “arrangement” has the meaning given by paragraph 11.

Calculating shareholdings

4

• (1) In relation to a person who has a share capital, a reference to holding “more than 50% of the shares” in that person is to holding shares comprised in the issued share capital of that person of a nominal value exceeding (in aggregate) 50% of that share capital.

• (2) In relation to a person who does not have a share capital—

• (a) a reference to holding shares in that person is to holding a right or rights to share in the capital or, as the case may be, profits of that person;

• (b) a reference to holding “more than 50% of the shares” in that person is to holding a right or rights to share in more than 50% of the capital or, as the case may be, profits of that person.

Voting rights

5

• (1) A reference to the voting rights in a person is to the rights conferred on shareholders in respect of their shares (or, in the case of a person not having a share capital, on members) to vote at general meetings of the person on all or substantially all matters.

• (2) In relation to a person that does not have general meetings at which matters are decided by the exercise of voting rights—

• (a) a reference to holding voting rights in the person is to be read as a reference to holding rights in relation to the person that are equivalent to those of a person entitled to exercise voting rights in a company;

• (b) a reference to holding “more than 50% of the voting rights” in the person is to be read as a reference to holding the right under the constitution of the person to block changes to the overall policy of the person or to the terms of its constitution.

• (3) In applying regulation 7(2) and this Schedule, the voting rights in a person are to be reduced by any rights held by the person itself.

Rights to appoint or remove members of the board

6

A reference to the right to appoint or remove a majority of the board of directors of a person is to the right to appoint or remove directors holding a majority of the voting rights at meetings of the board on all or substantially all matters.

7

A reference to a board of directors, in the case of a person who does not have such a board, is to be read as a reference to the equivalent management body of that person.

Shares or rights held “indirectly”

8

• (1) A person holds a share “indirectly” if the person has a majority stake in another person and that other person—

• (a) holds the share in question, or

• (b) is part of a chain of persons—

• (i) each of whom (other than the last) has a majority stake in the person immediately below it in the chain, and

• (ii) the last of whom holds the share.

• (2) A person holds a right “indirectly” if the person has a majority stake in another person and that other person—

• (a) holds that right, or

• (b) is part of a chain of persons—

• (i) each of whom (other than the last) has a majority stake in the person immediately below it in the chain, and

• (ii) the last of whom holds that right.

• (3) For these purposes, a person (“A”) has a “majority stake” in another person (“B”) if—

• (a) A holds a majority of the voting rights in B,

• (b) A is a member of B and has the right to appoint or remove a majority of the board of directors of B,

• (c) A is a member of B and controls alone, pursuant to an agreement with other shareholders or members, a majority of the voting rights in B, or

• (d) A has the right to exercise, or actually exercises, dominant influence or control over B.

• (4) In the application of sub-paragraph (3)(b) to the right to appoint or remove a majority of the board of directors, a person (“A”) is to be treated as having the right to appoint a director if—

• (a) any person's appointment as director follows necessarily from that person's appointment as director of A, or

• (b) the directorship is held by A itself.

Shares held by nominees

9

A share held by a person as nominee for another is to be treated as held by the other (and not by the nominee).

Rights treated as held by person who controls their exercise

10

• (1) Where a person controls a right, the right is to be treated as held by that person (and not by the person who in fact holds the right, unless that person also controls it).

• (2) A person “controls” a right if, by virtue of any arrangement between that person and others, the right is exercisable only—

• (a) by that person,

• (b) in accordance with that person's directions or instructions, or

• (c) with that person's consent or concurrence.

11

“Arrangement” includes—

• (a) any scheme, agreement or understanding, whether or not it is legally enforceable, and

• (b) any convention, custom or practice of any kind.

Rights exercisable only in certain circumstances etc.

12

• (1) Rights that are exercisable only in certain circumstances are to be taken into account only—

• (a) when the circumstances have arisen, and for so long as they continue to obtain, or

• (b) when the circumstances are within the control of the person having the rights.

• (2) But rights that are exercisable by an administrator or by creditors while a person is subject to relevant insolvency proceedings are not to be taken into account while the person is subject to those proceedings.

• (3) “Relevant insolvency proceedings” means—

• (a) administration within the meaning of the Insolvency Act 1986 ,

• (b) administration within the meaning of the Insolvency (Northern Ireland) Order 1989 , or

• (c) proceedings under the insolvency law of another country or territory during which a person's assets and affairs are subject to the control or supervision of a third party or creditor.

• (4) Rights that are normally exercisable but are temporarily incapable of exercise are to continue to be taken into account.

Rights attached to shares held by way of security

13

Rights attached to shares held by way of security provided by a person are to be treated for the purposes of this Schedule as held by that person—

• (a) where apart from the right to exercise them for the purpose of preserving the value of the security, or of realising it, the rights are exercisable only in accordance with that person's instructions, and

• (b) where the shares are held in connection with the granting of loans as part of normal business activities and apart from the right to exercise them for the purpose of preserving the value of the security, or of realising it, the rights are exercisable only in that person's interests.

SCHEDULE 2 — Treasury licences: purposes

Interpretation

1

• (1) In this Schedule

• “designated person” has the same meaning as it has in Part 3 (Finance);

• “frozen funds or economic resources” means funds or economic resources frozen by virtue of regulation 8, and any reference to a person's frozen funds or economic resources is to funds or economic resources frozen as a consequence of the designation of that person for the purposes of that regulation.

• (2) For the purposes of this Schedule, references to a designated person are to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.

Basic needs

2

• (1) To enable the basic needs of a designated person, or (in the case of an individual) any dependent family member of such a person, to be met.

• (2) In the case of an individual in sub-paragraph (1) “basic needs” includes—

• (a) medical needs;

• (b) needs for—

• (i) food;

• (ii) payment of insurance premiums;

• (iii) payment of tax;

• (iv) rent or mortgage payments;

• (v) utility payments.

• (3) In the case of a person other than an individual in sub-paragraph (1) “basic needs” includes needs for—

• (a) payment of insurance premiums;

• (b) payment of reasonable fees for the provision of property management services;

• (c) payment of remuneration, allowances or pensions of employees;

• (d) payment of tax;

• (e) rent or mortgage payments;

• (f) utility payments.

• (4) In sub-paragraph (1)—

• “dependent” means financially dependent;

• “family member” includes—the wife or husband of the designated person;the civil partner of the designated person;any parent or other ascendant of the designated person;any child or other descendant of the designated person;any person who is a brother or sister of the designated person, or a child or other descendant of such a person.

Legal services

3

To enable the payment of—

• (a) reasonable professional fees for the provision of legal services, or

• (b) reasonable expenses associated with the provision of legal services.

Maintenance of frozen funds and economic resources

4

To enable the payment of—

• (a) reasonable fees, or

• (b) reasonable service charges,

arising from the routine holding or maintenance of funds or economic resources.

Extraordinary expenses

5

To enable an extraordinary expense of a designated person to be met.

Signed

Alan Duncan — Minister of State — 2019-03-05

Explanatory note

(This note is not part of the Regulations)

Footnotes

Editorial notes