EXPLANATORY NOTE
(This note is not part of the Order)
This Order extends to the Isle of Man with modifications the Republic of Belarus (Sanctions) (EU Exit) Regulations 2019 (S.I. 2019/600) (“the Belarus Regulations”) as amended from time to time.
Section 63(3)(b) of the Sanctions and Anti-Money Laundering Act 2018 (c. 13) (“the Sanctions Act”) provides that Her Majesty may by Order in Council provide for any provision of Part 1 of that Act, or any regulations under Part 1 of that Act, to extend with or without modifications to the Isle of Man. Section 63(4) provides that this includes the power to extend any regulations as amended from time to time.
The Belarus Regulations were made under Part 1 of the Sanctions Act to establish a sanctions regime in relation to Belarus for the purposes of encouraging the Government of Belarus: to respect democratic principles and institutions, the separation of powers and the rule of law; to refrain from the repression of civil society in Belarus; to properly investigate and institute criminal proceedings against those responsible for the disappearance of four persons named in the Belarus Regulations; and to comply with international human rights law and to respect human rights.
The Belarus Regulations, as modified and extended to the Isle of Man by this Order (“the modified Regulations”), provide that a person designated by the Secretary of State for being, or having been, involved in certain activities, is a designated person for the purposes of the modified Regulations. Designated persons may be excluded from the Isle of Man and may be made subject to financial sanctions, including having their funds or economic resources frozen, as well as prohibitions on technical assistance relating to aircraft.
The modified Regulations impose trade restrictions on certain goods and technology, namely military goods and technology and on specified goods and technology which may be used to repress the civilian population of Belarus (as specified in Schedule 2). They also impose further trade restrictions in respect of interception and monitoring goods and technology (as specified in Schedule 2A) and interception and monitoring services, dual-use goods and technology, goods for the tobacco industry, petroleum products and potash (as defined in Schedule 2B). They also impose further financial restrictions on dealing with certain financial instruments, providing loans and credit and providing insurance and reinsurance services. Restrictions are also imposed in relation to the provision of technical assistance relating to aircraft.
The modified Regulations provide for certain exceptions to this sanctions regime (for example to allow for frozen accounts to be credited with interest or other earnings and to allow acts done for the purpose of national security or the prevention of serious crime). The Treasury of the Isle of Man may issue a licence in respect of activities that would otherwise be prohibited under the modified Regulations. The modified Regulations also require the Treasury to publish an up-to-date list of designated persons.
The modified Regulations prescribe powers for the provision and sharing of information to enable the effective implementation and enforcement of the sanctions regime. The modified Regulations make it a criminal offence to contravene, or circumvent, any of the prohibitions in the modified Regulations and prescribe the penalties that apply to such offences.
The modified Regulations also confer powers on specified maritime enforcement officers to stop and search ships in international and foreign waters for the purpose of enforcing specified trade sanctions and to seize goods found on board ships which are being, or have been, dealt with in contravention, or deemed contravention, of those prohibitions.
This Order also extends to the Isle of Man for the purposes of the modified Regulations specific provisions of Part 1 of the Sanctions Act, namely provisions relating to guidance about prohibitions and requirements, protection for acts done for purposes of compliance and saving for prerogative powers.
An impact assessment has not been prepared for this instrument because the territorial extent of the instrument and the modified Regulations is the Isle of Man; no, or no significant, impact is foreseen on the private, voluntary or public sector in the United Kingdom.