The Terrorism (United Nations Measures) Order 2009

EXPLANATORY NOTE

(This note is not part of the Order)

This Order, made under section 1 of the United Nations Act 1946 (c.45), gives effect in the United Kingdom to resolution 1373(2001) adopted by the Security Council of the United Nations on 28th September 2001 relating to terrorism and resolution 1452(2002) adopted on 20th December 2002 relating to humanitarian exemptions. It also provides for enforcement of Regulation (EC) 2580/2001 on specific measures directed at certain persons and entities with a view to combating terrorism (“the EC Regulation”).

The EC Regulation provides a mechanism for designating within the Community persons in respect of whom measures contained in the EC Regulation are to apply. The measures include the freezing of funds, financial assets and economic resources of such persons and ensuring that any funds, financial assets, economic resources and financial services are not made available to them.

Article 3 of this Order provides that “designated persons” are persons identified under the EC Regulation and those identified in a direction given by the Treasury under article 4.

Article 4 gives the Treasury power to give a direction to designate a person for the purposes of the Order if one of a number of specified conditions is fulfilled in respect of the person and the Treasury considers that the direction is necessary for purposes connected with protecting members of the public from a risk of terrorism. The conditions are that the Treasury have reasonable grounds to suspect that the person is (a) a person who commits, attempts to commit, participates in or facilitates the commission of acts of terrorism; (b) a person identified under the EC Regulation; (c) a person owned or controlled, directly or indirectly, by a designated person; or (d) a person acting on behalf of or at the direction of a designated person.

Article 5 states that a direction ceases to have effect twelve months after it was made, but gives the Treasury the power to renew a direction on one or more occasions.

Article 6 makes provision for the giving of notices to persons identified in Treasury directions, and for the publicising of directions generally.

Article 7 makes provision for the notification to a person identified in a Treasury direction of any variation, revocation or expiry of a direction, and for the general publication of such variation, revocation or expiry.

Article 8 gives the Treasury power to specify that information contained in a direction to which article 6(3) applies is to be treated as confidential. The article imposes a prohibition on disclosing such information except with lawful authority. The article makes it a criminal offence to contravene this prohibition and provides that the Court may grant an injunction to prevent a breach.

Article 10 prohibits any dealing with funds or economic resources of a restricted person. Article 11 prohibits making funds or financial services available to a restricted person. Article 12 prohibits making funds or financial services available for the benefit of a restricted person. Article 13 prohibits making economic resources available to a restricted person. Article 14 prohibits making economic resources available for the benefit of a restricted person. It is a criminal offence to contravene any of these prohibitions.

Article 15 provides for exceptions to these prohibitions to permit the crediting of frozen accounts with interest and payments due under obligations entered into before the account became frozen, and to permit an institution to credit a frozen account with funds

Article 16 makes it a criminal offence to circumvent the prohibitions or to facilitate the commission of an offence relating to a prohibition.

Article 17 provides a licensing procedure to enable, for humanitarian and other purposes, certain acts to be exempted from the prohibitions.

Article 18 sets out certain reporting requirements which relevant institutions have in relation to restricted persons. It is a criminal offence to fail to comply with these requirements.

Article 25 confirms that the provisions of this Order apply to the Crown but, in the event of a contravention, the Crown is not criminally liable.

Article 26 revokes the Terrorism (United Nations Measures) Order 2006, save that where a direction made under article 4 of that Order or given continued effect by article 20(2) of that Order is in effect immediately before the coming into force of this Order, the provisions of that 2006 Order or the Terrorism (United Nations Measures) Order 2001 (S.I. 2001/3365) continue to apply in respect of that direction until 31st August 2010 unless the direction is revoked sooner.

The Schedule makes provisions for information gathering and information disclosure.

A list of designated persons is available on the Internet at: www.hm-treasury.gov.uk/documents/fin_sanctions_index

An impact assessment of the effect that this instrument will have on the costs of business may be attained from the Asset Freezing Unit, HM Treasury, 1 Horse Guards Road, London SW1A 2HQ and is also available on HM Treasury’s website (www.hm-treasury.gov.uk) and is annexed to the Explanatory Memorandum which is available alongside the instrument on the OPSI website (www.opsi.gov.uk).