The Sanctions (EU Exit) (Miscellaneous Amendments) (No.3) Regulations 2020

Statutory Instruments

2020 No. 950

Exiting The European Union

Sanctions

The Sanctions (EU Exit) (Miscellaneous Amendments) (No.3) Regulations 2020

Made

3rd September 2020

Laid before Parliament

8th September 2020

Coming into force in accordance with regulation 1(2)

The Secretary of State M1 , in exercise of the powers conferred by sections 1 and 45 of the Sanctions and Anti-Money Laundering Act 2018 M2 , considers that the requirements of section 45(2) of the Act are satisfied and, having decided upon consideration of the matters set out in section 56(1) of the Act that it is appropriate to do so, makes the following Regulations:

Marginal Citations

M1 The power to make regulations under Part 1 of the Sanctions and Anti-Money Laundering Act 2018 (c.13) is conferred on an appropriate Minister. Section 1(9)(a) of the Act defines an “appropriate Minister” as including the Secretary of State.

M2 2018 c.13.

Citation and commencement U.K.

1.—(1) These Regulations may be cited as the Sanctions (EU Exit) (Miscellaneous Amendments) (No.3) Regulations 2020.

(2) These Regulations come into force in accordance with regulations made by the Secretary of State under section 56 of the Sanctions and Anti-Money Laundering Act 2018.

Commencement Information

I1 Reg. 1 not in force at made date, see reg. 1(2)

I2 Reg. 1 in force at 31.12.2020 immediately after IP completion day by S.I. 2020/1514, reg. 17

Amendment of the Democratic People's Republic of Korea (Sanctions) (EU Exit) Regulations 2019 U.K.

2.—(1) The Democratic People's Republic of Korea (Sanctions) (EU Exit) Regulations 2019 M3 are amended as follows.

(2) In regulation 26—

(a) in paragraph (2) for “1(a) to (f)” substitute “ 1(a), (b) or (d) to (f) ”;

(b) in paragraph (4)—

(i) after “acquire” insert “ , maintain ”;

(ii) in sub-paragraph (a) for “1(a) to (f)” substitute “ 1(a), (b) or (d) to (f) ”;

(iii) in sub-paragraph (b), after “person” insert “ , other than an individual, which is ”.

(3) After regulation 86 insert—

Exception for authorised conduct in a relevant country

86A.— (1) Where a person's conduct in a relevant country would, in the absence of this regulation, contravene a relevant prohibition or relevant requirement, the relevant prohibition or relevant requirement is not contravened if the conduct is authorised by a licence, direction or other authorisation which is issued—

(a) under the law of the relevant country, and

(b) for the purpose of—

(i) disapplying a prohibition in that jurisdiction which corresponds to the relevant prohibition, or

(ii) providing that a requirement in that jurisdiction which corresponds to the relevant requirement has effect subject to any exceptions specified in the licence, direction or other authorisation.

(2) In this regulation—

“the financial services provisions” means regulations 18, 20 to 22, and 24 to 30, excluding regulation 26(7);

“relevant country” means—

(a)

any of the Channel Islands,

(b)

the Isle of Man, or

(c)

any British overseas territory;

“relevant prohibition” means a prohibition in—

(a)

any of regulations 13 to 17 (asset-freeze etc.),

(b)

the financial services provisions,

(c)

Chapters 1, 2 and 3 of Part 6 (Trade),

(d)

regulation 65(1) (movement of aircraft),

(e)

regulation 69 (ownership etc. of DPRK ships),

(f)

regulation 70 (dealing with UN-designated ships subject to asset-freeze),

(g)

regulation 74 (DPRK ships: transfers of goods), or

(h)

regulation 76 (registration etc. of ships in the DPRK);

“relevant requirement” means a requirement in—

(a)

regulation 19 (severance of existing financial relationships),

(b)

regulation 23 (closure of representative offices), or

(c)

regulation 26(7) (closure of joint venture or co-operative entities).

(3) Nothing in this regulation affects the application of a prohibition or requirement in a case where it would be incompatible with a UN obligation for the prohibition or requirement not to apply.”

Commencement Information

I3 Reg. 2 not in force at made date, see reg. 1(2)

I4 Reg. 2 in force at 31.12.2020 immediately after IP completion day by S.I. 2020/1514, reg. 17

Marginal Citations

M3 S.I. 2019/411, amended by S.I. 2019/843 and S.I. 2020/591.

Amendment of the Democratic Republic of the Congo (Sanctions) (EU Exit) Regulations 2019 U.K.

3.—(1) The Democratic Republic of the Congo (Sanctions) (EU Exit) Regulations 2019 M4 are amended as follows.

(2) After regulation 31 insert—

Exception for authorised conduct in a relevant country

31A.— (1) Where a person's conduct in a relevant country would, in the absence of this regulation, contravene a prohibition in any of regulations 12 to 16 (asset-freeze etc.) or Chapters 2 and 3 of Part 5 (Trade) (“the relevant prohibition”), the relevant prohibition is not contravened if the conduct is authorised by a licence or other authorisation which is issued—

(a) under the law of the relevant country, and

(b) for the purpose of disapplying a prohibition in that jurisdiction which corresponds to the relevant prohibition.

(2) In this regulation—

“relevant country” means—

(a)

any of the Channel Islands,

(b)

the Isle of Man, or

(c)

any British overseas territory.

(3) Nothing in this regulation affects the application of a prohibition in a case where it would be incompatible with a UN obligation for the prohibition not to apply.”

Commencement Information

I5 Reg. 3 not in force at made date, see reg. 1(2)

I6 Reg. 3 in force at 31.12.2020 immediately after IP completion day by S.I. 2020/1514, reg. 17

Marginal Citations

M4 S.I. 2019/433, amended by S.I. 2020/591.

Amendment of the South Sudan (Sanctions) (EU Exit) Regulations 2019 U.K.

4.—(1) The South Sudan (Sanctions) (EU Exit) Regulations 2019 M5 are amended as follows.

(2) After regulation 31 insert—

Exception for authorised conduct in a relevant country

31A.— (1) Where a person's conduct in a relevant country would, in the absence of this regulation, contravene a prohibition in any of regulations 12 to 16 (asset-freeze etc.) or Chapters 2 and 3 of Part 5 (Trade) (“the relevant prohibition”), the relevant prohibition is not contravened if the conduct is authorised by a licence or other authorisation which is issued—

(a) under the law of the relevant country, and

(b) for the purpose of disapplying a prohibition in that jurisdiction which corresponds to the relevant prohibition.

(2) In this regulation—

“relevant country” means—

(a)

any of the Channel Islands,

(b)

the Isle of Man, or

(c)

any British overseas territory.

(3) Nothing in this regulation affects the application of a prohibition in a case where it would be incompatible with a UN obligation for the prohibition not to apply.”

(3) In regulation 33 (Treasury licences) —

(a) in paragraph (2), before “Schedule 2” insert “ Part 2 or 3 of ”;

(b) in paragraph (3), after “Part 2” insert “ or 2A ”.

(4) In Schedule 2 (Treasury licence: purposes)—

(a) after paragraph 6 (pre-existing judicial decisions etc.) insert—

“PART 2A U.K. Purposes relating only to UN designated persons

Prior obligations

6A.   To enable, by the use of a designated person's frozen funds or economic resources, the satisfaction of an obligation of that person arising under a contract, provided that—

(a) the obligation arose before the date on which the person became a designated person, and

(b) no payments are made to another designated person, whether directly or indirectly.”

(b) immediately before paragraph 7 insert— “ PART 3 Purposes relating only to non-UN designated persons ”

(c) omit the heading to Part 3 (Purposes relating only to non-UN designated persons).

Commencement Information

I7 Reg. 4 not in force at made date, see reg. 1(2)

I8 Reg. 4 in force at 31.12.2020 immediately after IP completion day by S.I. 2020/1514, reg. 17

Marginal Citations

M5 S.I. 2019/438, amended by S.I. 2020/591.

Amendment of the Iran (Sanctions) (Nuclear) (EU Exit) Regulations 2019 U.K.

5.—(1) The Iran (Sanctions) (Nuclear) (EU Exit) Regulations 2019 M6 are amended as follows.

(2) After regulation 37 insert—

Exception for authorised conduct in a relevant country

37A.— (1) Where a person's conduct in a relevant country would, in the absence of this regulation, contravene a prohibition in any of regulations 12 to 17 (asset-freeze etc.) or Chapters 1 to 3 of Part 5 (Trade) (“the relevant prohibition”), the relevant prohibition is not contravened if the conduct is authorised by a licence or other authorisation which is issued—

(a) under the law of the relevant country, and

(b) for the purpose of disapplying a prohibition in that jurisdiction which corresponds to the relevant prohibition.

(2) In this regulation—

“relevant country” means—

(a)

any of the Channel Islands,

(b)

the Isle of Man, or

(c)

any British overseas territory.

(3) Nothing in this regulation affects the application of a prohibition in a case where it would be incompatible with a UN obligation for the prohibition not to apply.”

Commencement Information

I9 Reg. 5 not in force at made date, see reg. 1(2)

I10 Reg. 5 in force at 31.12.2020 immediately after IP completion day by S.I. 2020/1514, reg. 17

Marginal Citations

M6 S.I. 2019/461, amended by S.I. 2019/843 and S.I. 2020/591.

Amendment of the ISIL (Da'esh) and Al-Qaida (United Nations Sanctions) (EU Exit) Regulations 2019 U.K.

6.—(1) The ISIL (Da'esh) and Al-Qaida (United Nations Sanctions) (EU Exit) Regulations 2019 M7 are amended as follows.

(2) After regulation 27 insert—

Exception for authorised conduct in a relevant country

27A.— (1) Where a person's conduct in a relevant country would, in the absence of this regulation, contravene a prohibition in any of regulations 8 to 12 or 25 (asset-freeze etc.) (“the relevant prohibition”), the relevant prohibition is not contravened if the conduct is authorised by a licence or other authorisation which is issued—

(a) under the law of the relevant country, and

(b) for the purpose of disapplying a prohibition in that jurisdiction which corresponds to the relevant prohibition.

(2) In this regulation—

“relevant country” means—

(a)

any of the Channel Islands,

(b)

the Isle of Man, or

(c)

any British overseas territory.

(3) Nothing in this regulation affects the application of a prohibition in a case where it would be incompatible with a UN obligation for the prohibition not to apply.”

(3) For paragraph (2) of regulation 36 substitute—

“(2) For the purposes of paragraph (1), a “relevant activity” means an activity which would constitute a contravention of any prohibition in Part 4 (Trade) except the prohibition in regulation 15 (export of military goods).”

Commencement Information

I11 Reg. 6 not in force at made date, see reg. 1(2)

I12 Reg. 6 in force at 31.12.2020 immediately after IP completion day by S.I. 2020/1514, reg. 17

Marginal Citations

M7 S.I. 2019/466, amended by S.I. 2019/843 and S.I. 2020/591.

Amendment of the Counter-Terrorism (International Sanctions) (EU Exit) Regulations 2019 U.K.

7.—(1) The Counter-Terrorism (International Sanctions) (EU Exit) Regulations 2019 M8 are amended as follows.

(2) After regulation 29 insert—

Exception for authorised conduct in a relevant country

29A.— (1) Where a person's conduct in a relevant country would, in the absence of this regulation, contravene a prohibition in any of regulations 11 to 15 (asset-freeze etc.) (“the relevant prohibition”), the relevant prohibition is not contravened if the conduct is authorised by a licence or other authorisation which is issued—

(a) under the law of the relevant country, and

(b) for the purpose of disapplying a prohibition in that jurisdiction which corresponds to the relevant prohibition.

(2) In this regulation—

“relevant country” means—

(a)

any of the Channel Islands,

(b)

the Isle of Man, or

(c)

any British overseas territory.

(3) Nothing in this regulation affects the application of a prohibition in a case where it would be incompatible with a UN obligation for the prohibition not to apply.”

Commencement Information

I13 Reg. 7 not in force at made date, see reg. 1(2)

I14 Reg. 7 in force at 31.12.2020 immediately after IP completion day by S.I. 2020/1514, reg. 17

Marginal Citations

M8 S.I. 2019/573, amended by S.I. 2019/843 and S.I. 2020/591.

Amendment of the Counter-Terrorism (Sanctions) (EU Exit) Regulations 2019 U.K.

8.—(1) The Counter-Terrorism (Sanctions) (EU Exit) Regulations 2019 M9 are amended as follows.

(2) After regulation 17 insert—

Finance: exception for authorised conduct in a relevant country

17A.— (1) Where a person's conduct in a relevant country would, in the absence of this regulation, contravene a prohibition in any of regulations 11 to 15 (asset-freeze etc.) (“the relevant prohibition”), the relevant prohibition is not contravened if the conduct is authorised by a licence or other authorisation which is issued—

(a) under the law of the relevant country, and

(b) for the purpose of disapplying a prohibition in that jurisdiction which corresponds to the relevant prohibition.

(2) In this regulation—

“relevant country” means—

(a)

any of the Channel Islands,

(b)

the Isle of Man, or

(c)

any British overseas territory.

(3) Nothing in this regulation affects the application of a prohibition in a case where it would be incompatible with a UN obligation for the prohibition or requirement not to apply.”

Commencement Information

I15 Reg. 8 not in force at made date, see reg. 1(2)

I16 Reg. 8 in force at 31.12.2020 immediately after IP completion day by S.I. 2020/1514, reg. 17

Marginal Citations

M9 S.I. 2019/577, amended by S.I. 2020/591.

Amendment of the Lebanon (Sanctions) (EU Exit) Regulations 2020 U.K.

9.—(1) The Lebanon (Sanctions) (EU Exit) Regulations 2020 M10 are amended as follows.

(2) In Part 3, before regulation 16 insert—

Finance: exception for authorised conduct in a relevant country

15A.— (1) Where a person's conduct in a relevant country would, in the absence of this regulation, contravene a prohibition in Chapter 2 of Part 2 (Trade) (“the relevant prohibition”), the relevant prohibition is not contravened if the conduct is authorised by a licence or other authorisation which is issued—

(a) under the law of the relevant country, and

(b) for the purpose of disapplying a prohibition in that jurisdiction which corresponds to the relevant prohibition.

(2) In this regulation—

“relevant country” means—

(a)

any of the Channel Islands,

(b)

the Isle of Man, or

(c)

any British overseas territory.

(3) Nothing in this regulation affects the application of a prohibition in a case where it would be incompatible with a UN obligation for the prohibition not to apply.”

Commencement Information

I17 Reg. 9 not in force at made date, see reg. 1(2)

I18 Reg. 9 in force at 31.12.2020 immediately after IP completion day by S.I. 2020/1514, reg. 17

Marginal Citations

M10 S.I. 2020/612.

Amendment of the Central African Republic (Sanctions) (EU Exit) Regulations 2020 U.K.

10.—(1) The Central African Republic (Sanctions) (EU Exit) Regulations 2020 M11 are amended as follows.

(2) After regulation 31 insert—

Exception for authorised conduct in a relevant country

31A.— (1) Where a person's conduct in a relevant country would, in the absence of this regulation, contravene a prohibition in any of regulations 12 to 16 (asset-freeze etc.) or Chapters 2 and 3 of Part 5 (Trade) (“the relevant prohibition”), the relevant prohibition is not contravened if the conduct is authorised by a licence or other authorisation which is issued—

(a) under the law of the relevant country, and

(b) for the purpose of disapplying a prohibition in that jurisdiction which corresponds to the relevant prohibition.

(2) In this regulation—

“relevant country” means—

(a)

any of the Channel Islands,

(b)

the Isle of Man, or

(c)

any British overseas territory.

(3) Nothing in this regulation affects the application of a prohibition in a case where it would be incompatible with a UN obligation for the prohibition not to apply.”

(3) In regulation 33 (Treasury licences) —

(a) in paragraph (2), before “Schedule 2” insert “ Part 2 or 3 of ”;

(b) in paragraph (3), after “Part 2” insert “ or 2A ”.

(4) In Schedule 2 (Treasury licence: purposes)—

(a) after paragraph 6 (pre-existing judicial decisions etc.) insert—

“PART 2A U.K. Purposes relating only to UN designated persons

Prior obligations

6A.   To enable, by the use of a designated person's frozen funds or economic resources, the satisfaction of an obligation of that person arising under a contract, provided that—

(a) the obligation arose before the date on which the person became a designated person, and

(b) no payments are made to another designated person, whether directly or indirectly.”

(b) immediately before paragraph 7 insert— “ PART 3 Purposes relating only to non-UN designated persons ”

(c) omit the heading to Part 3 (Purposes relating only to non-UN designated persons).

Commencement Information

I19 Reg. 10 not in force at made date, see reg. 1(2)

I20 Reg. 10 in force at 31.12.2020 immediately after IP completion day by S.I. 2020/1514, reg. 17

Marginal Citations

M11 S.I. 2020/616.

Amendment of the Lebanon (Sanctions) (Assassination of Rafiq Hariri and others) (EU Exit) Regulations 2020 U.K.

11.—(1) The Lebanon (Sanctions) (Assassination of Rafiq Hariri and others) (EU Exit) Regulations 2020 M12 are amended as follows.

(2) After regulation 14 insert—

Finance: exception for authorised conduct in a relevant country

14A.— (1) Where a person's conduct in a relevant country would, in the absence of this regulation, contravene a prohibition in any of regulations 8 to 12 (asset-freeze etc.) (“the relevant prohibition”), the relevant prohibition is not contravened if the conduct is authorised by a licence or other authorisation which is issued—

(a) under the law of the relevant country, and

(b) for the purpose of disapplying a prohibition in that jurisdiction which corresponds to the relevant prohibition.

(2) In this regulation—

“relevant country” means—

(a)

any of the Channel Islands,

(b)

the Isle of Man, or

(c)

any British overseas territory.

(3) Nothing in this regulation affects the application of a prohibition in a case where it would be incompatible with a UN obligation for the prohibition or requirement not to apply.”

Commencement Information

I21 Reg. 11 not in force at made date, see reg. 1(2)

I22 Reg. 11 in force at 31.12.2020 immediately after IP completion day by S.I. 2020/1514, reg. 17

Marginal Citations

M12 S.I. 2020/617.

Amendment of the Somalia (Sanctions) (EU Exit) Regulations 2020 U.K.

12.—(1) The Somalia (Sanctions) (EU Exit) Regulations 2020 M13 are amended as follows.

(2) In regulation 24(3)(b), for “the person” where those words first appear substitute “ P ”.

Commencement Information

I23 Reg. 12 not in force at made date, see reg. 1(2)

I24 Reg. 12 in force at 31.12.2020 immediately after IP completion day by S.I. 2020/1514, reg. 17

Marginal Citations

M13 S.I. 2020/642.

Ahmad

Minister of State

Foreign, Commonwealth and Development Office

Explanatory Note

(This note is not part of the Regulations)

These Regulations are made under the Sanctions and Anti-Money Laundering Act 2018 (c.13) (“the Sanctions Act”).

The Regulations make corrections and amendments to a number of sanctions regulations which have been made under section 1 of the Sanctions Act, namely the Democratic People's Republic of Korea (Sanctions) (EU Exit) Regulations 2019 (S.I. 2019/411), the Democratic Republic of the Congo (Sanctions) (EU Exit) Regulations 2019 (S.I. 2019/433), the South Sudan (Sanctions) (EU Exit) Regulations 2019 (S.I. 2019/438), the Iran (Sanctions) (Nuclear) (EU Exit) Regulations 2019 (S.I. 2019/461), the ISIL (Da'esh) and Al-Qaida (United Nations Sanctions) (EU Exit) Regulations 2019 (S.I. 2019/466), the Counter-Terrorism (International Sanctions) (EU Exit) Regulations 2019 (S.I. 2019/573), the Counter-Terrorism (Sanctions) (EU Exit) Regulations 2019 (S.I. 2019/577), the Lebanon (Sanctions) (EU Exit) Regulations 2020 (S.I. 2020/612), the Central African Republic (Sanctions) (EU Exit) Regulations (S.I. 2020/616), the Lebanon (Sanctions) (Assassination of Rafiq Hariri and others) (EU Exit) Regulations 2020 (S.I. 2020/617) and the Somalia (Sanctions) (EU Exit) Regulations 2020 (S.I. 2020/642).

The main amendments made by this instrument are to introduce a new exception into these regimes to provide that a prohibition or requirement is not contravened if conduct is authorised by a licence or other authorisation issued under the law as it applies in a British Overseas Territory or Crown Dependency.

An impact assessment has not been produced for these Regulations, as the instrument is intended to ensure existing sanctions remain in place following the United Kingdom's withdrawal from the European Union. An impact assessment was, however, produced for the Sanctions Act and can be found at:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/653271/Sanctions_and_Anti-Money_Laundering_Bill_Impact_Assessment_18102017.pdf.