Al-Qaida (Asset-Freezing) Regulations 2011

I am very grateful that, notwithstanding the earlier start time of this business, my Box team was able to get here in good time. The first questions were important ones about the penalties in the regime. I believe that prison sentences of up to two years are dissuasive. We are picking up the penalties from the previous regime and they have, therefore, been considered in the past. On the specific question about level 5, the answer is that it is a £5,000 penalty. The noble Lord, Lord Myners, then asked about Regulation 8(3) and why there is no criminal penalty on financial institutions. Regulation 8(3) is that which requires financial institutions to tell the Treasury when they credit funds to a frozen account. Indeed, there is no criminal penalty attached to failure to comply with that requirement. Any breaches of that requirement are, I would suggest, properly dealt with as part of the FSA’s supervision of financial institutions for compliance with sanctions legislation, which is required under the Financial Services and Markets Act 2000, which provides a range of powers. Although the noble Lord is right to ask me the question, consideration has been taken of the link through to sanctions that are available under the FISMA regime. The noble Lord then asked about publicity. If I understood his question correctly, general licences are all advertised on the Treasury website and so they are available to anyone who is interested. Those parties who are in any way involved in this or the other asset-freezing regimes are well aware, and have been for a number of years, of the channels through which the Treasury publicises licenses and all other aspects of the regime. That continues, and the feedback that we receive suggests that the publicity mechanisms are effective. There was a question about the number of licences that have been issued. The total number of licences that have been issued this year under both the Terrorist Asset-Freezing etc. Act and the al-Qaeda regime is 41. I do not have the exact split between the two regimes to hand but something of the order of a dozen were in respect of al-Qaeda designated individuals. If the noble Lord would like the exact number I would be happy to give it to him—he is shaking his head—but it is about a dozen out of 40. Lastly, if an individual meets the normal legal aid tests then legal aid is available. These regulations have no particular impact on the availability of legal aid. It is perhaps also worth noting that legal aid is available from the European Court for challenges in respect of EU listings. Again, I believe there is no gap in the regulations. I hope that that deals with the questions asked by the noble Lord, Lord Myners. The noble and learned Lord, Lord Davidson of Glen Clova, asked an important question about people getting on the list—and, I would suggest, being able to get themselves off it. Of course, in these and similar situations, getting people on the list will be a matter of some urgency. It is important that there is appropriate evidence and the UK is very concerned to see appropriate evidence produced in all the asset-freezing regimes, whether at a UN, EU or domestic level. I see cases under these regimes when they come forward and I know how seriously that is taken. The almost more important question is about the mechanisms for challenge and for getting people delisted if appropriate. What is significant about the new regime under Resolution 1989 is that we were able to get in place, as I described in my opening speech, a series of much better protections in terms of the review processes, the way that the ombudsman role is beefed up, and so on. I feel much happier that, just as in the legislation for our domestic regime last year we were able to put in additional and important protections, so in a different regime the UN has moved in that direction. It was something that the UK pushed hard for. I hope that I have answered the questions that have been brought up. In conclusion, these regulations provide a framework to implement the Security Council regulation effectively and properly. It is critical to enabling the UK to play its part in both preventing terrorist financing and in meeting those international obligations. Therefore, I commend these regulations to the Committee. Motion agreed.