Ray Todd Panama 6 July 2020 THE NEW

Ray Todd Panama 6 July 2020 THE NEW UK HUMAN RIGHTS SANCTIONS REGIME

THE GLOBAL HUMAN RIGHTS SANCTIONS REGULATIONS 2020 The following slides are intended to provide a thumbnail description of the new UK sanctions regime What they are The legislation involved Why they have been introduced Their intention and purpose Who has been designated and would could be The effects, requirements, offences and penalties How they are administered and where to get further information

WHAT ARE THEY? The new sanctions regime is intended to target individuals involved in abuses of universal human rights, in particular the right to life the right not to be subjected to torture or cruel, inhuman or degrading treatment or punishment and the right to be free from slavery, not to be held in servitude or required to perform forced or compulsory labour The UK thus joins the US and Canada (and some Baltic States) in introducing such sanctions Such sanctions are often referred to as “Magnitsky sanctions”, referring to Sergei Magnitsky, who died in a Moscow prison from an untreated illness in 2009 after accusing Russian officials of a $230 million tax fraud The UK sanctions impose a visa ban and asset freezes on the individuals

THE LEGISLATION Sanctions and Anti-Money Laundering Act 2018 The 2020 Regulations are made under this Act, section 1(2)(f) specifically allowing for sanctions to be imposed to – provide accountability for or be a deterrent to gross violations of human rights, or otherwise promote — (i) compliance with international human rights law, or (ii) respect for human rights. The Global Human Rights Sanctions Regulations 2020 SI 2020 No 680, which came into force at 1 pm on 6 July 2020

WHY THEY HAVE BEEN INTRODUCED (NOW)? The UK passed the necessary Act of Parliament in 2018, but said it would wait until it had officially left the EU in 2020 The argument is that until the UK left the EU, it was generally bound to follow the EU lead, and hence adopted UN and EU sanctions – neither of which have sanctions specifically targeting those involved in alleged human rights abuses. However, come Baltic States have similar “Magnitsky” sanctions The Foreign Secretary has said that work was already under way to use the law to target corruption, a criteria that is included in the equivalent US and Canadian legislation It has been pointed out that it took the UK 8 years to act in the Magnitsky case, Magnitsky having been working for a British firm when he was murdered

THEIR INTENTION AND PURPOSE The basic intention is to deter and to provide accountability for abuses carried out by individuals They are intended to also promote compliance with • international human rights law; • promote respect for human rights; and • promote respect for democracy, the rule of law and good governance, Human rights forming an integral part of the rules-based international system and deterring human rights violations and abuses can help create fairer and more just societies and weaken a driver for terrorism They is also intended to develop the UK’s role as a “global moral anchor”, demonstrating a continued commitment to the promotion and protection of human rights worldwide They will complement other elements of UK foreign policy They will also permit action to be taken against serious human rights violations or abuses carried out in the UK by non-UK persons (such as the Skripal Novichok poisoners)

WHO HAS BEEN DESIGNATED AND WHO COULD BE? The first list of 49 individuals was issued by HM Treasury on 6 July The list includes 25 Russian nationals involved in the death of the Sergei Magnitsky, 20 Saudi nationals involved in the murder of Jamal Khashoggi, 2 high-ranking generals implicated in the systemic killing of Rhingyas in Myanmar, and 2 organisations using forced labour in North Korea The sanctions also explicitly extend to non-State actors, as the FCO argues that these are often prominent perpetrators of human rights abuses, including with respect to modern slavery, conflictrelated sexual violence and attacks on human rights defenders and journalists The Regulations also have the effect of targeting serious human rights violations or abuses carried out in the UK by non-UK persons. In fact they provide that there is nothing in them which is to be taken to prevent a relevant prohibition or a relevant requirement from applying to conduct (by any person) in the UK

THE EFFECTS OF BEING DESIGNATED There are 2 principal kinds of prohibition, relating to financial sanctions immigration sanctions These involve – an asset freeze ensuring a designated person’s funds and economic resources are not dealt with, and ensuring that funds and economic resources are not made available to or for the benefit of a designated person, directly or indirectly (as is the case with other types of financial sanctions) a travel ban (i. e. he must be refused entry into, or leave to remain in, the UK) as an “excluded person” These restrictions can only be imposed upon specified persons who meet the criteria set out in the 2020 Regulations, namely that the Secretary of State considers there are reasonable grounds to suspect that the person is, or has been, involved in the activities set out in the Regulations and that the designation of that person is appropriate, having regard to the purposes set out in the Regulations and the likely significant effects of the designation on that person As with other sanctions, exceptions (e. g. basic needs, legal expenses) and licences (e. g. for humanitarian purposes) are provided for

REQUIREMENTS UNDER THE REGULATIONS The chief requirements under the sanctions regime would affect financial institutions (including money transmission services, cheque cashers etc), those providing legal, audit or accountancy services, or tax advice or trust or company services, and dealers in precious metals or gems, or an estate agent or casino licensee. They must check whether they maintain any accounts or hold any funds or economic resources for the persons listed freeze such accounts, and other funds or economic resources and any funds which are owned or controlled by persons refrain from dealing with the funds or assets or making them available report any findings to OFSI, and any other relevant information But note that asset-freezing provisions apply equally to all UK nationals anywhere in the world as well as to all persons and firms in the UK, so that a UK national outside the UK would commit an offence if he/she were to act in a way that was contrary to the Regulations. The travel ban provisions obviously only should concern Immigration, Border Force and police at the borders

OFFENCES AND PENALTIES Making funds or other resources available to a designated person Involvement in attempts to circumvent the financial sanctions Providing false information, including to obtain a licence or fails to comply with a licence Disclosing designation information where this has been restricted (for national security or interests of justice reasons, or the person is under 18) Failure to provide HM Treasury with notice of funds etc, or of attempts to circumvent the controls The Regulations cater for offences by bodies corporate, unincorporated associations and partnerships The penalties range from 6 or 12 months to 2 or 7 years custody and/or a fine

WHO ADMINISTERS THE SANCTIONS The Office of Financial Sanctions Implementation (OFSI) in HM Treasury is the authority responsible for implementing the UK’s financial sanctions on behalf of HM Treasury OFSI works with other parts of government, supervisory bodies and regulators to consider all cases reported to it, sharing relevant information accordingly The Secretary of State for Foreign and Commonwealth Affairs (the Foreign Secretary) is responsible for designating persons for listing under the sanctions Investigations of potential criminal offences would normally be undertaken by the National Crime Agency, as appropriate However, investigation into compliance with the sanctions could also form part of the work of other government agencies or supervisory bodies The Home Office is responsible, including through Border Force, for administration of the travel ban

ADDENDUM - THE ISLE OF MAN AND BRITISH OVERSEAS TERRITORIES The Global Human Rights Sanctions (Isle of Man) Order 2020 had the effect of extending the Regulations to the Isle of Man from 22 July 2020, with suitable and necessary amendments. The Global Human Rights Sanctions (Overseas Territories) Order 2020 does the same for Anguilla, the British Antarctic Territory, the British Indian Ocean Territory, the Cayman Islands, the Falkland Islands, Montserrat, Pitcairn, Henderson, Ducie and Oeno Islands, St Helena, Ascension and Tristan da Cunha, South Georgia and the South Sandwich Islands, the Sovereign Base Areas of Akrotiri and Dhekelia in the Island of Cyprus, the Turks and Caicos Islands and the British Virgin Islands (BVI).

FURTHER INFORMATION AND CONTACTS UK financial sanctions, general guidance https: //assets. publishing. service. gov. uk/gover nment/uploads/system/uploads/attachment_ data/file/897735/UK_Financial_Sanctions__General_guidance__July_2020_. pdf Office of Financial Sanctions Implementation HM Treasury 1 Horse Guards Road London SW 1 A 2 HQ ofsi@hmtreasury. gov. uk

Ray Todd raysulby@hotmail. com https: //raytodd. blog/