The ISIL (Da'esh) and Al-Qaida (United Nations Sanctions) (EU Exit) Regulations 2019 (S.I. 2019/466)

Summary

This is a UK Statutory Instrument (S.I. 2019/466) implementing the United Nations sanctions regime against ISIL (Da'esh) and Al-Qaida following the UK's withdrawal from the EU. It designates persons named on the UN ISIL/Al-Qaida Sanctions List and imposes financial and trade sanctions on them, replacing the EU Council Decision and Regulation that previously gave effect to the UN regime. The BVI Financial Services Commission has circulated it as a sanctions alert for regulated entities and persons who may deal with designated persons or their assets.

• Asset freeze: Prohibits dealing with funds or economic resources owned, held or controlled by a designated person, or making funds or economic resources available (directly or indirectly, or for their benefit) if the person knows or has reasonable cause to suspect the funds relate to a designated person.
• Trade sanctions: Prohibits export, supply, delivery, making available, or transfer of military goods and military technology, and related technical assistance, brokering, or financial services, to or for the benefit of a designated person.
• Circumvention offence: Makes it an offence to intentionally participate in activities designed to circumvent, enable or facilitate contravention of the finance or trade prohibitions.
• Reporting and information duties: Imposes reporting obligations on 'relevant firms' and grants powers to request information and production of documents to enforce the finance provisions.
• Exceptions and licensing: Allows certain exceptions (e.g. crediting frozen accounts with interest) and empowers the Treasury to grant licences permitting otherwise prohibited acts for specified purposes.
• Enforcement: Creates criminal offences and penalties for contravention, sets out enforcement jurisdiction, and confers maritime enforcement powers (stop, search, seizure) to enforce trade sanctions.

The Regulations also revoke the prior EU Council Regulation on ISIL/Al-Qaida sanctions and amend two related 2011 UK Regulations so they no longer apply to persons designated under this instrument. There is also a separate asset-freeze provision concerning Usama bin Laden, which may be unfrozen on application to the Treasury.

Key obligations

• Persons must not deal with funds or economic resources owned, held or controlled by a designated person if they know or have reasonable cause to suspect this.
• Persons must not make funds available, directly or indirectly, to a designated person or for their benefit.
• Persons must not make economic resources available, directly or indirectly, to a designated person or for their benefit.
• Persons must not export, supply, deliver, or otherwise make available military goods or military technology to or for the benefit of a designated person, or provide related technical assistance, brokering, or financial services.
• Persons must not intentionally participate in activities to circumvent, enable or facilitate contravention of the finance or trade prohibitions.
• Relevant firms are subject to reporting obligations and must comply with requests for information and production of documents under Part 7.
• Any exception to the prohibitions must fall within the stated exceptions or be authorised by a Treasury licence.

Applies to

United Kingdom persons, relevant firms (financial institutions), persons dealing with funds or economic resources of designated persons, exporters and suppliers of military goods and technology, designated persons under the UN ISIL/Al-Qaida Sanctions List

Related documents

• This document amends The Al-Qaida (Asset-Freezing) Regulations 2011 (S.I. 2011/2742)