The Yemen (Sanctions) (EU Exit) (No. 2) Regulations 2020

Made: 12th November 2020

Laid before Parliament: 16th November 2020

Coming into force in accordance with regulation 1(2)

The Secretary of State , in exercise of the powers conferred by sections 1(1)(a), (c) and (3), 3(1)(a), (b)(i), (d)(i), 4, 5, 9(2), 10(2) to (4), 11, 13, 15(2)(a) and (b), (3), (4)(b), (5) and (6), 16, 17, 19, 20, 21(1), 54(1), (2), 56(1) and 62(4) and (5) of, and paragraphs 2(a)(i), 4(a)(i), 5(a)(i), 6(a)(i), 10(a)(i), 11(a)(i), 13(a), (g), (k), (m) and (w), 14(a), 17(a), 20, 21 and 27 of Schedule 1 to, the Sanctions and Anti-Money Laundering Act 2018 , and having decided, upon consideration of the matters set out in section 2(2) and 56(1) of that Act, that it is appropriate to do so, makes the following Regulations:

PART 1 — General

Citation and commencement

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• (1) These Regulations may be cited as the Yemen (Sanctions) (EU Exit) (No. 2) Regulations 2020.

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

Interpretation

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In these Regulations—

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

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

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

• “the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs;

• “the Committee” means the Committee of the Security Council established in accordance with paragraph 19 of resolution 2140;

• “conduct” includes acts and omissions;

• “director disqualification licence” means a licence under regulation 33A;

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

• “the EU Yemen Regulation” means Council Regulation (EU) No 1352/2014 of 18 December 2014, concerning restrictive measures in view of the situation in Yemen , as it has effect in EU law;

• “final report of the comprehensive National Dialogue Conference” means the final Outcomes Document of the comprehensive National Dialogue Conference held between 18 March 2013 and 25 January 2014 ;

• “Gulf Cooperation Council Initiative” means the Agreement on achieving a political settlement of the crisis in Yemen reached following the initiative proposed by the Gulf Cooperation Council on 21 April 2011 ;

• “humanitarian assistance activity” includes the work of international and non-governmental organisations carrying out relief activities in Yemen for the benefit of the civilian population there;

• “Implementation Mechanism Agreement” means the Agreement on the implementation mechanism for the transition process in Yemen in accordance with the initiative of the Gulf Cooperation Council, signed in Riyadh on 23 November 2011 ;

• “resolution 2140” means resolution 2140 (2014) adopted by the Security Council on 26 February 2014;

• “resolution 2216” means resolution 2216 (2015) adopted by the Security Council on 14 April 2015;

• “resolution 2511” means resolution 2511 (2020) adopted by the Security Council on 25 February 2020;

• “trade licence” means a licence under regulation 34;

• “Treasury licence” means a licence under regulation 33(1);

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

Application of prohibitions and requirements outside the United Kingdom

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

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

• (3) In this regulation, a “relevant prohibition” means any prohibition imposed by—

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

• (b) Part 3 (Finance),

• (c) Part 5 (Trade), or

• (d) a condition of a Treasury licence or a trade licence.

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

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

• (6) In this regulation, a “relevant requirement” means any requirement imposed—

• (a) by or under Part 7 (Information and records), or by reason of a request made under a power conferred by that Part, or

• (b) by a condition of a Treasury licence or a trade licence.

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

Purposes

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• (1) The regulations contained in this instrument that are made under section 1 of the Act have the following purposes—

• (a) compliance with the relevant UN obligations, and

• (b) the additional purposes mentioned in paragraph (2).

• (2) Those additional purposes are—

• (a) promoting the peace, stability and security of Yemen,

• (b) promoting the political transition and peaceful resolution of armed conflicts in Yemen, including, in particular—

• (i) the completion of the political transition as outlined in the Gulf Cooperation Council Initiative and the Implementation Mechanism Agreement, and

• (ii) the implementation of the final report of the comprehensive National Dialogue Conference,

• (c) promoting respect for humanitarian assistance activities in Yemen,

• (d) promoting compliance with the rules of international humanitarian law applicable to the armed conflicts in Yemen, and

• (e) promoting respect for human rights in Yemen, including, in particular, respect for—

• (i) the right to life of persons in Yemen;

• (ii) the right of persons in Yemen not to be held in slavery or required to perform forced or compulsory labour;

• (iii) the right of persons not to be subjected to cruel, inhuman or degrading treatment or punishment in Yemen;

• (iv) the right to liberty and security of persons in Yemen, including freedom from arbitrary arrest, unlawful detention or enforced disappearance;

• (v) the right to a fair trial of persons charged with criminal offences in Yemen;

• (vi) the enjoyment of rights and freedoms in Yemen without discrimination, including on the basis of a person's sex, race, colour, language, religion, political or other opinion, national or social origin, association with a national minority, property, birth or other status,

otherwise than by compliance with the relevant UN obligations.

• (3) In this regulation, “the relevant UN obligations” means—

• (a) the obligation that the United Kingdom has by virtue of paragraph 11 of resolution 2140 (asset-freeze etc.) to take the measures required by that provision in respect of persons for the time being named for the purposes of that provision by the Security Council or the Committee;

• (b) the obligations that the United Kingdom has by virtue of paragraph 11 of resolution 2140 (asset-freeze etc.) in respect of persons—

• (i) acting on behalf of or at the direction of, or

• (ii) owned or controlled by,

the persons for the time being named by the Security Council or the Committee for the purposes of paragraph 11 of resolution 2140;

• (c) the obligations that the United Kingdom has by virtue of paragraph 14 of resolution 2216 (arms embargo etc.) to take the measures required by that provision in respect of—

• (i) persons for the time being named by the Security Council or the Committee for the purposes of paragraph 14 of resolution 2216;

• (ii) persons acting in Yemen on behalf of or at the direction of a person mentioned in paragraph (i).

• (4) In paragraphs (3)(a) to (c), any reference to persons named by the Security Council or Committee for the purposes of a provision mentioned therein includes persons so named by virtue of—

• (a) paragraphs 17 and 18 of resolution 2140;

• (b) paragraph 19 of resolution 2216;

• (c) paragraph 6 of resolution 2511.

PART 2 — Designation of persons

Power to designate persons

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• (1) The Secretary of State may designate persons by name in accordance with regulation 5A (conditions for the designation of persons by name) for the purposes of any of the following—

• (a) regulation 12 to 16 (asset-freeze etc.);

• (aa) regulation 17A (director disqualification sanctions);

• (b) regulation 18 (immigration);

• (c) regulations 20 to 27 (arms embargo etc.).

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

Criteria for designating a person

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

• (2) For the purposes of regulation 5A (conditions for the designation of persons by name), an “involved person” means a person who—

• (a) is or has been involved in a relevant activity,

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

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

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

• (3) In this regulation, a “relevant activity” means—

• (a) the commission of a serious human rights violation or abuse, or violation of international humanitarian law applicable to the armed conflicts in Yemen including, in particular, in relation to—

• (i) rape and other forms of sexual and gender-based violence;

• (ii) recruitment or use of children in armed conflicts;

• (iii) any of the rights referred to in regulation 4(2)(e);

• (b) obstruction of the delivery or distribution of, or access to, humanitarian assistance in Yemen;

• (c) obstruction of or undermining the successful completion of the political transition as outlined in the Gulf Cooperation Council Initiative and Implementation Mechanism Agreement;

• (d) impeding the implementation of the final report of the comprehensive National Dialogue Conference, including in particular, through acts of violence, or attacks on essential infrastructure in Yemen;

• (e) any other acts which threaten the peace, security or stability of Yemen.

• (4) Any reference in this regulation to being involved in a relevant activity includes being so involved in whatever way, and wherever, any actions constituting the involvement take place, and in particular includes—

• (a) being responsible for, engaging in, providing support for, or promoting any such activity;

• (b) providing financial services, or making available funds or economic resources, that could contribute to any such activity;

• (c) being involved in the supply of military goods or military technology to a designated person or in providing financial services or other assistance relating to such supply;

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

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

• (a) any provision of Part 3 (Finance) or Part 5 (Trade);

• (b) any provision of the law of a country other than the United Kingdom made for purposes corresponding to a purpose of any provision of Part 3 (Finance) or Part 5 (Trade);

• (c) any provision of the resolutions mentioned in regulations 4(3).

• (6) Nothing in any sub-paragraph of paragraph (3) or (4) is to be taken to limit the meaning of any of the other sub-paragraphs of those paragraphs.

• (7) In this regulation, “military goods” and “military technology” have the meanings given by Part 5.

Meaning of “owned or controlled directly or indirectly”

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

• (2) The first condition is that P—

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

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

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

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

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

Notification and publicity where designation power used

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

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

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

• (2) The Secretary of State—

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

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

• (3) The information given under paragraph (2)(a)—

• (a) where the Secretary of State designates a person under the standard procedure, must include a statement of reasons;

• (b) where the Secretary of State designates a person under the urgent procedure, must include a statement—

• (i) that the designation is made under the urgent procedure,

• (ii) identifying the relevant provision by reference to which the Secretary of State considers that condition B is met in relation to the person, and

• (iii) setting out why the Secretary of State considers that condition C is met.

• (3A) Where the Secretary of State designates a person under the urgent procedure, the Secretary of State must, after the end of the period mentioned in paragraph (7) of regulation 5A (conditions for the designation of persons by name) or, if the Secretary of State has made a certification under paragraph (7)(b) of that regulation, the period mentioned in paragraph (8) of that regulation, but otherwise without delay—

• (a) in a case where the person ceases to be a designated person, take such steps as are reasonably practicable to inform the person that they have ceased to be a designated person, or

• (b) in any other case, take such steps as are reasonably practicable to give the person a statement of reasons.

• (4) In this regulation, a “statement of reasons” means a brief statement of the matters that the Secretary of State knows, or has reasonable grounds to suspect, in relation to the person—

• (a) in the case of a designation under the standard procedure, which have led the Secretary of State to make the designation, and

• (b) in the case of a designation under the urgent procedure, as a result of which the person does not cease to be a designated person at the end of the period mentioned in regulation 5A(7) or (8) (as the case may be).

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

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

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

• (c) in the interests of justice.

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

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

• (i) the designation, variation or revocation, and

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

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

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

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

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

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

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

• (iii) in the interests of justice.

• (8) Paragraph (9) applies if—

• (a) when a designation is made one or more of the restricted publicity conditions is met, but

• (b) at any time when the designation has effect, it becomes the case that none of the restricted publicity conditions is met.

• (9) The Secretary of State must—

• (a) take such steps as are reasonably practicable to inform the designated person that none of the restricted publicity conditions is now met, and

• (b) take steps to publicise generally the designation and the statement of reasons relating to it.

Confidential information in certain cases where designation power used

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