Sanctions (EU Exit) (Consequential Provisions) (Amendment) Regulations 2020 — House of Lords, 2020-10-29
Topic: International Affairs
Tariq Ahmad (Conservative, Centre-right): My Lords, before I introduce this SI debate, I want to express on behalf of my right honourable friend the Foreign Secretary his response to the horrific events in France today. He issued the following statement: "The United Kingdom stands with France today in sorrow, shock and solidarity at the horrifying events in Nice. Our thoughts are with the victims and their families, and we offer every support to the French people in pursuing those responsible for this appalling attack." I am sure those sentiments resonate with everyone in your Lordships’ House I turn to the instrument before us. It was laid on 16 September under the powers provided by the Sanctions and Anti-Money Laundering Act 2018. It will aid the investigation and prevention of terrorist financing; prevent designated persons acting as charity trustees and managing or operating sensitive financial enterprises; and enable the effective implementation of legal, operational and regulatory measures for combating terrorist financing We have also laid alongside this draft instrument a Section 46 report. The report is required when new regulations are made under Section 45 of the sanctions Act to amend sanctions regulations made for a discretionary purpose under Section 1 of the sanctions Act. The report details why I consider that the relevant conditions, set out in Section 45 for the use of this power to make amending regulations, are met The purpose of the instrument is to add new provisions to three existing 2019 regulations relating to counterterrorism sanctions. These new provisions in the 2019 regulations will in turn make amendments to several other pieces of primary and secondary legislation to replace and update references to counterterrorism sanctions legislation. That needs to be done to ensure that the new counterterrorism sanctions framework established by the 2019 sanctions regulations delivers substantially the same policy effects as the existing sanctions regimes after the end of the transition period. The three regulations amended by this instrument, collectively known as the 2019 regulations, are the ISIL (Da’esh) and Al-Qaida (United Nations Sanctions) (EU Exit) Regulations 2019, made on 5 March 2019; the Counter-Terrorism (International Sanctions) (EU Exit) Regulations 2019, made on 14 March 2019; and the Counter-Terrorism (Sanctions) (EU Exit) Regulations 2019, also made on 14 March 2019. The provisions of primary legislation that will ultimately be amended by the 2019 regulations as a result of the amendments made by this instrument are Section 49(3) of the sanctions Act and Section 178 of the Charities Act 2011 I shall provide further details: Section 49 of the sanctions Act confers a power on the appropriate Minister to make regulations for the purpose of enabling or facilitating the detection, investigation, or prevention of terrorist financing. This will, for example, enable the Government to amend or update the existing Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, which currently include measures to tackle terrorist financing Section 49(3) defines "terrorist financing" by references to other pieces of legislation. The amendments made by this instrument will remove references to offences under regulations being revoked by the 2019 regulations and add references to new offences under the 2019 regulations. That will ensure that the definition of "terrorist financing" is up to date and can be used in reference to current legislation. It also means that Her Majesty’s Government can use the power in Section 49 of the sanctions Act to facilitate the prevention, detection or investigation of terrorist financing, following the revocation of a number of the current offences by the 2019 regulations Appallingly, there are occasions when charities are abused for the purpose of financing terror. To reduce the risk of such abuse occurring, Section 178 of the Charities Act 2011 disqualifies individuals who present a known risk from serving as a charity trustee or a charity senior manager—that is, the chief executive, finance director or their equivalent. The amendments made by this instrument will remove references to persons designated under regulations being revoked and add references to persons designated under any of the 2019 regulations I am sure many noble Lords will agree that this is a technical update to ensure that legislation on charities and financial services can continue to deliver the same policy effects after the end of the transition period. It will prevent those designated under these sanctions regulations being able to act as charity trustees or charity senior managers The amendments to the Electronic Money Regulations 2011 and Payment Services Regulations 2017 prevent the registration of a small electronic money institution or a small payment institution where any of the individuals responsible for the management or operation of the business have been convicted of an offence under the Counter-Terrorism (Sanctions) (EU Exit) Regulations 2019. This prevents persons convicted of terrorist financing offences managing or operating these sensitive enterprises. The consequential amendment to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 provides that the definition of "terrorist financing" used in those regulations refers to the new offences in the Counter-Terrorism (Sanctions) (EU Exit) Regulations 2019. This amendment will ensure that the Government are able to continue to promote the effective implementation of legal, operational and regulatory measures for combating terrorist financing once the 2019 regulations are in force. The instrument represents the first use of the powers under Section 54(3) and (4) of the sanctions Act to amend the definition of "terrorist financing" in Section 49(3) of the sanctions Act. It will not come into force until a later date or dates to be appointed separately This instrument thus forms a necessary part of the programme of work being undertaken by the Foreign, Commonwealth & Development Office in conjunction with other Whitehall departments to construct an effective and robust UK sanctions framework under the Sanctions and Anti-Money Laundering Act 2018. The counterterrorism sanctions framework includes financial, trade and immigration sanctions. It is a key element of the UK’s counterterrorist financing strategy and remains a major disruptive and preventive tool in the global fight against terrorism. We will continue to work closely with our Five Eyes and other international partners to help combat threats to the international financial system and the charity sector The United Kingdom, let me assure noble Lords, is working closely with the Financial Action Task Force, the G20, G7 and EU partners to disrupt terrorist financing. There is a particular focus on: reducing domestic terrorist fundraising; the movement of terrorist finance across borders; and the fundraising and movement of terrorist finance overseas. International counterterrorism sanctions regimes are an essential, practical weapon in disrupting terrorism. They also demonstrate international resolve The UK has a strong reputation for tackling terrorism, supported by our robust legislative framework. We will of course continue to strengthen our approach to countering terrorism by ensuring we have the correct range of disruptive tools and capabilities at our disposal, including our sanctions and counterterrorist financing frameworks. This instrument will ensure that these remain functional and effective. I beg to move.