The Haiti (Sanctions) Regulations 2022

Made: 5th December 2022

Laid before Parliament

Coming into force: 28th December 2022

The Secretary of State[^f00001], in exercise of the powers conferred by sections 1(1)(a) and (3)(a), 3(1)(a), (b)(i), (d)(i), 5, 9(2)(b), 13, 15(2)(a) and (b), (3) and (6), 16, 17, 19, 20, 21(1), 54(1) and (2) 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), 20, 21 and 27 of Schedule 1 to, the Sanctions and Anti-Money Laundering Act 2018[^f00002] makes the following Regulations:

PART 1 — General

Citation and commencement

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• (1) These Regulations may be cited as the Haiti (Sanctions) Regulations 2022.

• (2) These Regulations come into force on 28th December 2022.

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[^f00003];

• “the Commissioners” means the Commissioners for His Majesty’s Revenue and Customs;

• “the Committee” means the Committee of the Security Council established in accordance with paragraph 19 of resolution 2653;

• “conduct” includes acts and omissions;

• “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;

• “resolution 2653” means resolution 2653 (2022) adopted by the Security Council on 21st October 2022;

• “resolution 2699” means resolution 2699 (2023) adopted by the Security Council on 2nd October 2023;

• “resolution 2700” means resolution 2700 (2023) adopted by the Security Council on 19th October 2023;

• “resolution 2752” means resolution 2752 (2024) adopted by the Security Council on 18th October 2024;

• “trade licence” means a licence under regulation 29A;

• “Treasury licence” means a licence under regulation 29(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) Part 3 (Finance),

• (b) Part 4 (Trade), or

• (c) 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 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 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 purpose of the regulations contained in this instrument that are made under section 1 of the Act is compliance with the relevant UN obligations.

• (2) In this regulation, “the relevant UN obligations” means the obligations that the United Kingdom has by virtue of—

• (a) paragraph 6 of resolution 2653 (asset-freeze etc.), and

• (b) paragraph 2 of resolution 2752 (arms embargo etc.),

to take the measures required by those provisions in respect of persons[^f00004] for the time being named by the Security Council or the Committee for the purposes of those paragraphs.

• (3) A reference to the obligations that the United Kingdom has by virtue of paragraph 6 of resolution 2653 is to that provision as read with—

• (a) paragraph 15 of resolution 2653,

• (b) paragraph 3 of resolution 2700 and

• (c) paragraph 1 of resolution 2752.

PART 2 — Designations

Designation of persons named under UN Security Council Resolutions

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• (1) Each person for the time being named by the Security Council or the Committee for the purposes of paragraph 6 of resolution 2653 is a designated person for the purposes of regulations 8 to 12 (asset-freeze etc.) (whose purpose is compliance with the UN obligations mentioned in regulation 4(2)(a) (purposes))[^f00005].

• (2) Each person for the time being named by the Committee for the purposes of paragraph 11 of resolution 2653 is a designated person for the purposes of regulations 15 to 22 (trade) (whose purpose is compliance with the UN obligations mentioned in regulation 4(2)(b)).

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 for the purposes of regulations 8 to 12 (asset-freeze etc.) by reason of regulation 5 (designation of persons named under UN Security Council Resolutions).

Meaning of “owned or controlled directly or indirectly” in Part 3

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• (1) In this Part, 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.

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,

• (b) deals with the funds in any other way that would result in any change in volume, amount, location, ownership, possession, character or destination, or

• (c) makes any other change, including portfolio management, that would enable use of the funds.

• (5) For the purposes of paragraph (1), a person “deals with” economic resources if the person—

• (a) exchanges the economic resources for funds, goods or services, or

• (b) uses the economic resources in exchange for funds, goods or services (whether by pledging them as security or otherwise).

• (6) The reference in paragraph (1) to funds or economic resources that are “owned, held or controlled” by a person includes, in particular, a reference to—

• (a) funds or economic resources in which the person has any legal or equitable interest, regardless of whether the interest is held jointly with any other person and regardless of whether any other person holds an interest in the funds or economic resources;

• (b) any tangible property (other than real property), or bearer security, that is comprised in funds or economic resources and is in the possession of the person.

• (7) For the purposes of paragraph (1), funds or economic resources are to be treated as owned, held or controlled by a designated person if they are owned, held or controlled by a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.

• (8) For the avoidance of doubt, the reference in paragraph (1) to a designated person includes P if P is a designated person.

Making funds available to designated persons

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• (1) A person (“P”) must not make funds available directly or indirectly to a designated person if P knows, or has reasonable cause to suspect, that P is making the funds so available.

• (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) The reference in paragraph (1) to making funds available indirectly to a designated person includes, in particular, a reference to making them available to a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.

Making funds available for benefit of designated persons

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• (1) A person (“P”) must not make funds available to any person for the benefit of a designated person if P knows, or has reasonable cause to suspect, that P is making the funds so available.

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

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

• (3A) The reference in paragraph (1) to making funds available to any person for the benefit of a designated person includes making funds available for the benefit of a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person (and references to designated person in paragraph (4) are to be read accordingly).

• (4) For the purposes of this regulation—

• (a) funds are made available for the benefit of a designated person only if that person thereby obtains, or is able to obtain, a significant financial benefit, and

• (b) “financial benefit” includes the discharge (or partial discharge) of a financial obligation for which the designated person is wholly or partly responsible.

Making economic resources available to designated persons

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• (1) A person (“P”) must not make economic resources available directly or indirectly to a designated person if P knows, or has reasonable cause to suspect—

• (a) that P is making the economic resources so available, and

• (b) that the designated person would be likely to exchange the economic resources for, or use them in exchange for, funds, goods or services.

• (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) The reference in paragraph (1) to making economic resources available indirectly to a designated person includes, in particular, a reference to making them available to a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.

Making economic resources available for benefit of designated persons

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• (1) A person (“P”) must not make economic resources available to any person for the benefit of a designated person if P knows, or has reasonable cause to suspect, that P is making the economic resources so available.

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

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

• (3A) The reference in paragraph (1) to making economic resources available to any person for the benefit of a designated person includes making economic resources available for the benefit of a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person (and references to designated person in paragraph (4) are to be read accordingly).

• (4) For the purposes of paragraph (1)—

• (a) economic resources are made available for the benefit of a designated person only if that person thereby obtains, or is able to obtain, a significant financial benefit, and

• (b) “financial benefit” includes the discharge (or partial discharge) of a financial obligation for which the designated person is wholly or partly responsible.

Circumventing etc. prohibitions

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• (1) A person must not intentionally participate in activities knowing that the object or effect of them is, whether directly or indirectly—

• (a) to circumvent any of the prohibitions in regulations 8 to 12 (asset-freeze etc.), or

• (b) to enable or facilitate the contravention of any such prohibition.

• (2) A person who contravenes a prohibition in paragraph (1) commits an offence.

PART 4 — Trade

Interpretation of expressions used in this Part

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• (1) Paragraphs 32 and 36 of Schedule 1 to the Act (trade sanctions) apply for the purpose of interpreting expressions in this Part.

• (2) In this Part, any reference to the United Kingdom includes a reference to the territorial sea.

• (3) In this Part—

• “brokering service” means any service to secure, or otherwise in relation to, an arrangement, including (but not limited to)—the selection or introduction of persons as parties or potential parties to the arrangement,the negotiation of the arrangement,the facilitation of anything that enables the arrangement to be entered into, andthe provision of any assistance that in any way promotes or facilitates the arrangement;

• “military goods” means—any thing for the time being specified in Schedule 2 to the Export Control Order 2008, other than any thing which is military technology, andany tangible storage medium on which military technology is recorded or from which it can be derived;

• “military technology” means any thing for the time being specified in Schedule 2 to the Export Control Order 2008 which is described as software or technology;

• “technical assistance” , in relation to goods or technology, except in regulation 22 (enabling or facilitating the conduct of armed hostilities), means—technical support relating to the repair, development, production, assembly, testing, use or maintenance of the goods or technology, orany other technical service relating to the goods or technology;

• “transfer” has the meaning given by paragraph 37 of Schedule 1 to the Act.

• (4) For the purposes of this Part, a person is to be regarded as “connected with” Haiti if the person is—

• (a) an individual who is, or an association or combination of individuals who are, ordinarily resident in Haiti,

• (b) an individual who is, or an association or combination of individuals who are, located in Haiti,

• (c) a person, other than an individual, which is incorporated or constituted under the law of Haiti, or

• (d) a person, other than an individual, which is domiciled in Haiti.

Export of military goods

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• (1) The export of military goods to, or for use in, Haiti is prohibited.

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

Supply and delivery of military goods

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• (1) A person must not directly or indirectly supply or deliver military goods from a third country to a place in Haiti.

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

• (3) A person who contravenes the prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with that offence (“P”) to show that P did not know and had no reasonable cause to suspect that the goods were destined (or ultimately destined) for Haiti.

• (4) In this regulation, “third country” means a country that is not the United Kingdom or the Isle of Man.

Making military goods and military technology available

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• (1) A person must not ...—

• (a) directly or indirectly make military goods or military technology available to a person connected with Haiti;

• (b) directly or indirectly make military goods or military technology available for use in Haiti.

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

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

• (a) it is a defence for a person charged with the offence of contravening paragraph (1)(a) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Haiti;

• (b) it is a defence for a person charged with the offence of contravening paragraph (1)(b) to show that the person did not know and had no reasonable cause to suspect that the goods or technology were for use in Haiti.

Transfer of military technology

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• (1) A person must not—

• (a) transfer military technology to a place in Haiti;

• (b) transfer military technology to a person connected with Haiti.

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

• (3) A person who contravenes a prohibition in paragraph (1) commits an offence, but—

• (a) it is a defence for a person charged with the offence of contravening paragraph (1)(a) to show that the person did not know and had no reasonable cause to suspect that the transfer was to a place in Haiti;

• (b) it is a defence for a person charged with the offence of contravening paragraph (1)(b) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Haiti.