Sanctions and Anti-Money Laundering Act 2018

11 Designation of a person by name under a designation power U.K.

(1) This section applies to regulations under section 1 which authorise an appropriate Minister (“the Minister”) to designate persons by name.

[F1 (1A) The regulations must contain provision for the Minister to be able to choose whether to designate a person under—

(a) the standard procedure, or

(b) the urgent procedure.]

[F2 (2) The regulations must provide that under the standard procedure the Minister is prohibited from designating a person by name except where condition A is met.

(2A) Condition A is that the Minister has reasonable grounds to suspect that that person is an involved person (see subsection (3)).

(2B) The regulations must provide that under the urgent procedure—

(a) the Minister may designate a person by name where condition A is not met, but conditions B and C are met, and

(b) the designation ceases to have effect at the end of the period of 56 days beginning with the day following the designation unless, within that period, the Minister certifies that—

(i) condition A is met, or

(ii) conditions B and C continue to be met.

(2C) The regulations must provide that, under the urgent procedure, in a case where the Minister makes a certification under subsection (2B)(b)(ii), the designation ceases to have effect at the end of the period of 56 days beginning with the day immediately following the period mentioned in subsection (2B)(b), unless within that period the Minister certifies that condition A is met.

(2D) Condition B is that relevant provision (whenever made) applies to, or in relation to, the person under the law of—

(a) the United States of America;

(b) the European Union;

(c) Australia;

(d) Canada;

(e) any other country specified for the purposes of this paragraph in regulations made by an appropriate Minister.

(2E) Condition C is that the Minister considers that it is in the public interest to make designations under the urgent procedure.

(2F) For the purposes of condition B, relevant provision is provision that the Minister considers—

(a) corresponds, or is similar, to the type of sanction or sanctions in the regulations under section 1, or

(b) is made for purposes corresponding, or similar, to any purpose of any type of sanction or sanctions in the regulations under section 1.]

(3) The regulations must provide that “an involved person” means a person who—

(a) is or has been involved in an activity specified in the regulations,

(b) is owned or controlled directly or indirectly 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.

(4) An activity may not be specified in the regulations by virtue of subsection (3) unless the Minister considers that specifying the activity is appropriate having regard to the purpose of the regulations as stated under section 1(3).

(5) The regulations may, in the case of any activity specified in the regulations, make provision as to the meaning for the purposes of the regulations of a person's being involved in that activity.

(6) The regulations may make provision, for the purposes of the regulations, as to the meaning of a person's—

(a) being “owned or controlled directly or indirectly by” another person, and

(b) being “associated with” another person.

(7) The regulations must, in relation to any case where the Minister designates a person by name [F3 under the standard procedure], require the information given under the provision made under section 10(3) to include a statement of reasons.

[F4 (7A) The regulations must, in relation to any case where the Minister designates a person by name under the urgent procedure, require the information given under the provision made under section 10(3) to include a statement—

(a) that the designation is made under the urgent procedure,

(b) identifying the relevant provision by reference to which the Minister considers that condition B is met in relation to the person, and

(c) setting out why the Minister considers that condition C is met.

(7B) The regulations must also provide that, in relation to any case where the Minister designates a person by name under the urgent procedure, the Minister must, after the end of the period mentioned in subsection (2B)(b), or if the Minister has made a certification under subsection (2B)(b)(ii) the period mentioned in subsection (2C), but otherwise without delay—

(a) in a case where the designation ceases to have effect, take such steps as are reasonably practicable to inform the person that the designation has ceased to have effect, or

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

(8) In [F5 subsections (7) and (7A)] a “statement of reasons” means a brief statement of the matters that the Minister knows, or has reasonable grounds to suspect, in relation to that person [F6 —

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

(b) in the case of a designation under the urgent procedure, as a result of which the designation does not cease to have effect at the end of the period mentioned in subsection (2B)(b) or (2C) (as the case may be).]

(9) The regulations may authorise matters to be excluded from that statement where the Minister 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,

(but the regulations may not authorise the Minister to provide no statement of reasons).

Textual Amendments

F1 S. 11(1A) inserted (15.3.2022) by Economic Crime (Transparency and Enforcement) Act 2022 (c. 10), ss. 58(2), 69(3)

F2 S. 11(2)-(2F) substituted for s. 11(2) (15.3.2022) by Economic Crime (Transparency and Enforcement) Act 2022 (c. 10), ss. 58(3), 69(3)

F3 Words in s. 11(7) inserted (15.3.2022) by Economic Crime (Transparency and Enforcement) Act 2022 (c. 10), ss. 58(4), 69(3)

F4 S. 11(7A)(7B) inserted (15.3.2022) by Economic Crime (Transparency and Enforcement) Act 2022 (c. 10), ss. 58(5), 69(3)

F5 Words in s. 11(8) substituted (15.3.2022) by Economic Crime (Transparency and Enforcement) Act 2022 (c. 10), ss. 58(6)(a), 69(3)

F6 S. 11(8)(a)(b) substituted for words (15.3.2022) by Economic Crime (Transparency and Enforcement) Act 2022 (c. 10), ss. 58(6)(b), 69(3)

Modifications etc. (not altering text)

C1 Pt. 1: power to amend conferred (15.3.2022) by Economic Crime (Transparency and Enforcement) Act 2022 (c. 10), ss. 66(1)(a), 69(3)

Commencement Information

I1 S. 11 in force at 22.11.2018 by S.I. 2018/1213, reg. 2(a)