The Global Anti-Corruption Sanctions Regulations 2021

Made: 23rd April 2021

Laid before Parliament: at 11.00 a.m. on 26th April 2021

Coming into force: at noon on 26th April 2021

The Secretary of State , in exercise of the powers conferred by sections 1(1)(c) and (3)(b), 3(1)(a) and (d)(i), 4, 9(2)(a), 10(2)(a) and (c), (3) and (4), 11(2) to (9), 15(2)(a) and (b), (3), (4)(b), (5) and (6), 16, 17(2) to (5) and (8), 21(1), 54(1) and (2), and 62(4) and (5) of the Sanctions and Anti-Money Laundering Act 2018 , and having decided, upon consideration of the matters set out in section 2(2) 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 Global Anti-Corruption Sanctions Regulations 2021.

• (2) These Regulations come into force at noon on 26thApril 2021.

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);

• “conduct” includes acts and omissions;

• “director disqualification licence” means a licence under regulation 21A;

• “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;

• “Treasury licence” means a licence under regulation 21(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), or

• (c) a condition of a Treasury licence.

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

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

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

• (a) by or under Part 6 (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.

• (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 purposes of the regulations contained in this instrument are to prevent and combat serious corruption.

• (2) In paragraph (1), “corruption” means—

• (a) bribery; or

• (b) misappropriation of property.

• (3) In paragraph (2)—

• “bribery” occurs where—a person directly or indirectly offers, promises or gives a financial or other advantage to a foreign public official, and where—the person intends to induce that official or another foreign public official to perform improperly a public function, orthe person intends to reward that official or another foreign public official for improperly performing a public function, orthe person knows or believes that the acceptance of the advantage by that official would constitute improperly performing a public function; ora foreign public official directly or indirectly requests, agrees to receive or accepts a financial or other advantage, and where—that official intends, in consequence, that the official or another foreign public official should improperly perform a public function, orthe advantage is a reward for that official or another foreign public official improperly performing a public function, orthat official knows or believes that the request for, agreement to receive or acceptance of the advantage by the official would constitute improperly performing a public function; orin anticipation of or in consequence of requesting, agreeing to receive or accepting a financial or other advantage, a foreign public official, or another person at that official's request or with their assent or acquiescence, improperly performs a public function;

• “misappropriation of property” occurs where a foreign public official—has been entrusted with property, or has a role in the grant or allocation of property, by virtue of their position, andimproperly diverts, grants or allocates that property for the benefit of the official or for the benefit of another person.

• (4) For the purposes of paragraph (3)—

• (a) it does not matter whether the advantage is (or is to be) for the benefit of the foreign public official or another person;

• (b) references to a foreign public official performing a public function include—

• (i) any act or omission in connection with a public function;

• (ii) any omission to exercise the official's public functions; and

• (iii) any use of the official's position as a foreign public official even if it is not within the official's authority.

• (5) In this regulation—

• “foreign public official” means an individual who—holds an executive, legislative, administrative or judicial position of any kind in a relevant country,holds a position in a public agency or public enterprise or in any entity which provides a public service in or on behalf of a relevant country,otherwise carries out functions of a public nature in or on behalf of a relevant country, orcarries out functions in or on behalf of an international organisation;

• “property” includes funds, economic resources, a pecuniary advantage or other thing of value, and includes contracts to provide goods or services, any licence, permission or other authorisation, or any legal document or instrument evidencing or purporting to evidence interests in property;

• “public function” means—any function or activity of a public nature in or on behalf of a relevant country, including—provision of any public service in or on behalf of a relevant country, orany function or activity in or on behalf of a public agency or public enterprise of a relevant country, orany function or activity in or on behalf of an international organisation;

• “relevant country” means a country other than the United Kingdom, the Channel Islands, the Isle of Man or the British overseas territories.

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) regulations 11 to 15 (asset-freeze etc.);

• (aa) regulation 16A (director disqualification sanctions);

• (b) regulation 17 (immigration).

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

Designation criteria

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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 serious corruption,

• (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) For the purposes of this regulation a person is involved in serious corruption if—

• (a) the person is responsible for or engages in serious corruption;

• (b) the person facilitates or provides support for serious corruption;

• (c) the person profits financially or obtains any other benefit from serious corruption;

• (d) the person conceals or disguises, or facilitates the concealment or disguise of—

• (i) serious corruption, or

• (ii) any profit or proceeds from serious corruption;

• (e) the person transfers or converts, or facilitates the transfer or conversion of, any profit or proceeds from serious corruption;

• (f) the person is responsible for the investigation or prosecution of serious corruption and intentionally or recklessly fails to fulfil that responsibility, or

• (g) the person uses threats, intimidation or physical force to interfere in, or otherwise interferes in, any law enforcement or judicial process in connection with serious corruption;

• (h) the person contravenes, or assists with the contravention of, any provision of Part 3 of these Regulations.

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

• (5) Any reference in this regulation to being involved in serious corruption includes being so involved wherever any actions constituting the involvement take place.

• (6) In this regulation, “corruption” has the meaning given by regulation 4(2).

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) 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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• (1) Where the Secretary of State in accordance with regulation 8(6)(b) informs only certain persons of a designation, variation or revocation and (in the case of a designation) of the contents of the statement of reasons, the Secretary of State may specify that any of that information is to be treated as confidential.

• (2) A person (“P”) who—

• (a) is provided with information that is to be treated as confidential in accordance with paragraph (1), or

• (b) otherwise obtains such information,

must not, subject to paragraph (3), disclose it if P knows, or has reasonable cause to suspect, that the information is to be treated as confidential.

• (3) The prohibition in paragraph (2) does not apply to any disclosure made by P with lawful authority.

• (4) For this purpose information is disclosed with lawful authority only if and to the extent that—

• (a) the disclosure is by, or is authorised by, the Secretary of State,

• (b) the disclosure is by or with the consent of the person who is or was the subject of the designation,

• (c) the disclosure is necessary to give effect to a requirement imposed under or by virtue of these Regulations or any other enactment, or

• (d) the disclosure is required, under rules of court, tribunal rules or a court or tribunal order, for the purposes of legal proceedings of any description.

• (5) This regulation does not prevent the disclosure of information that is already, or has previously been, available to the public from other sources.

• (6) A person who contravenes the prohibition in paragraph (2) commits an offence.

• (7) The High Court (in Scotland, the Court of Session) may, on the application of—

• (a) the person who is the subject of the information, or

• (b) the Secretary of State,

grant an injunction (in Scotland, an interdict) to prevent a breach of the prohibition in paragraph (2).

• (8) In paragraph (4)(c), “enactment” has the meaning given by section 54(6) of the Act.

PART 3 — Finance

Meaning of “designated person” in Part 3

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In this Part a “designated person” means a person who is designated under regulation 5 (power to designate persons) for the purposes of regulations 11 to 15 (asset-freeze etc.).

Asset-freeze in relation to designated persons

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• (1) A person (“P”) must not deal with funds or economic resources owned, held or controlled by a designated person if P knows, or has reasonable cause to suspect, that P is dealing with such funds or economic resources.

• (2) Paragraph (1) is subject to Part 5 (Exceptions and licences).

• (3) A person who contravenes the prohibition in paragraph (1) commits an offence.

• (4) For the purposes of paragraph (1) a person “deals with” funds if the person—

• (a) uses, alters, moves, transfers or allows access to the funds,