I beg to move,
That the Sanctions (EU Exit) (Miscellaneous Amendments and Revocations) Regulations 2024 (SI, 2024, No. 643), dated 14 May, a copy of which was laid before this House on 15 May, be approved.
In recent years, the UK has transformed its use of sanctions. We have deployed sanctions in innovative and impactful ways, including in our response to Russia’s invasion of Ukraine. We have taken a rigorous approach, carefully targeted to deter and disrupt malign behaviour, and to demonstrate our defence of international norms. This statutory instrument covers several measures that will strengthen our sanctions regimes across the board and allow us to continue the work already being implemented across Government. I will run through each measure in turn.
First, in October 2023 the Government added a new type of sanction, the director disqualification sanctions, to the Sanctions and Anti-Money Laundering Act 2018. This instrument uses that power to amend the UK’s autonomous sanctions regimes, which will mean that the Government can apply it to individuals designated under these regimes. It will be an offence for a designated person subject to this new measure to act as a director of a company or to take part in the management, formation or promotion of a company. This will further prevent those sanctioned from deriving benefit from the UK economy. It is an important addition to the UK sanctions toolkit. This instrument provides Ministers with the flexibility to apply the new measure on a case-by-case basis. The Government will ensure that the measure is targeted and operates alongside the UK’s full suite of sanction powers.
This instrument also enables the Government to issue licences to persons to allow them to undertake activity that is otherwise prohibited. The Foreign, Commonwealth and Development Office has been working closely with the Department for Business and Trade, Companies House and the Insolvency Service on the implementation of this measure.
The SI will also clarify the sanctions enforcement remit of His Majesty’s Revenue and Customs. HMRC has well-established responsibilities for enforcing trade sanctions in its capacity as the UK customs authority. In recent years, however, the scope of trade sanctions has evolved beyond import and export prohibitions, to include matters that are outside HMRC’s customs remit such as sanctions on stand-alone services.
Last December, the Government announced the decision to establish the Office of Trade Sanctions Implementation, within the Department for Business and Trade, in order to enforce these new types of measures under the civil law. Once it starts operating, OTSI will also be able to refer serious offences to HMRC for criminal enforcement consideration. HMRC will continue to have both civil and criminal enforcement responsibility for sanctions within its customs remit. This legislation is needed to clarify the sanctions measures for which HMRC is solely responsible for enforcing and those which it will investigate on referral from OTSI or another civil enforcement organisation.