Overview

This bill aims to strengthen the UK's ability to freeze the assets of individuals and entities suspected of involvement in terrorist activities. It introduces a new framework for designating such persons, imposing financial restrictions, and gathering information related to their assets and activities, while also amending existing legislation on terrorist financing and money laundering.

Description

The bill comprises three parts. Part 1 focuses on terrorist asset-freezing. It grants the Treasury powers to make both interim (lasting 30 days) and final (lasting one year, renewable) designations of individuals or entities suspected of involvement in terrorism. These designations trigger prohibitions on dealing with their funds and economic resources. Exceptions and licenses are provided for. The Treasury is given extensive information-gathering powers, including the right to request information and documents. Designated persons have the right to appeal designations to the High Court (or Court of Session in Scotland). Independent review of the Part’s operation is mandated.

Part 2 amends Schedule 7 of the Counter-Terrorism Act 2008, concerning terrorist financing and money laundering. It clarifies the definition of "credit institution" and "financial institution", extending to cover certain non-EEA entities and their branches. It also introduces new offences relating to the circumvention of requirements imposed by directions under Schedule 7, and adjusts regulations concerning Northern Ireland credit unions.

Part 3 contains final provisions, covering the bill's extent, commencement, and short title. It also includes provisions for extending the bill's provisions to the Channel Islands, the Isle of Man, and British Overseas Territories.

Government Spending

The bill doesn't explicitly state the cost of its implementation. However, there will be costs associated with the Treasury's expanded powers, including staffing, legal fees, and the conduct of independent reviews. The exact figures are not provided in the bill text.

Groups Affected

• The Treasury: Given significantly expanded powers and responsibilities.
• Designated persons: Subject to asset freezes and other restrictions, with the right to appeal.
• Relevant institutions (banks, financial institutions etc.): Have reporting obligations and face penalties for non-compliance.
• Law enforcement agencies: Receive information from the Treasury to assist investigations.
• Individuals and entities involved in financial transactions with designated persons: May face penalties for non-compliance.
• Courts: Will handle appeals and reviews of Treasury decisions.

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