Overview

This bill allows the UK government to freeze the assets of individuals or entities involved in supplying arms to terrorist organizations within the UK. The purpose is to secure compensation for UK citizens harmed by the supply of these arms.

Description

The Asset Freezing (Compensation) Bill empowers the Treasury to freeze assets held in the UK belonging to those involved in supplying arms (including explosives) to terrorist organizations operating within the UK. This authority is triggered under two conditions: (a) if a UN Security Council resolution confirms the involvement; or (b) if the Treasury reasonably believes such involvement has occurred. The frozen assets will remain seized until a settlement is reached regarding compensation for affected UK citizens. The bill defines "terrorist organizations in the United Kingdom" and "United Kingdom citizen" according to existing legislation (Terrorist Asset-Freezing etc. Act 2010 and British Nationality Act 1981 respectively). Domestic asset freezing measures under the 2010 Act may be employed to enforce the asset freeze. The bill extends to the whole of the UK and comes into force immediately upon passage.

Government Spending

The bill does not directly allocate funds. Instead, it aims to recover compensation from the frozen assets of those deemed responsible for supplying arms to terrorist organizations. The impact on government spending is thus dependent on the value of the assets frozen and the cost of legal proceedings to recover compensation.

Groups Affected

• Individuals and entities involved in supplying arms to terrorist organizations in the UK: Their assets may be frozen, potentially resulting in significant financial losses.
• UK citizens harmed by the supply of arms to terrorist organizations: They may receive compensation from the frozen assets.
• The Treasury: Responsible for implementing the asset freeze and managing the compensation process.

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