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 intelligence, while also amending existing legislation on terrorist financing.

Description

Asset Freezing:

The bill grants the Treasury powers to make both "final" and "interim" designations of individuals or entities suspected of terrorist involvement. Final designations last for one year and are renewable, while interim designations last for 30 days unless a final designation is made. Designations trigger a freeze on assets (funds and economic resources) and prohibit making funds or financial services available to or for the benefit of the designated person. Exceptions are made for interest payments, existing contractual obligations, and social security benefits.

Information Gathering:

The bill requires relevant institutions (e.g., banks) to report suspicious activity to the Treasury. The Treasury also gains powers to request information and documents from designated persons and others, subject to legal safeguards and judicial review.

Legal Challenges:

The bill allows designated persons to appeal designations to the High Court (or Court of Session in Scotland), and provides for judicial review of other Treasury decisions.

Offenses and Penalties:

The bill creates various offenses related to non-compliance, including circumventing the asset freeze, providing false information, and obstructing investigations. Penalties range from fines to up to seven years' imprisonment.

Terrorist Financing:

The bill amends the Counter-Terrorism Act 2008 to clarify the definition of credit and financial institutions, extend restrictions to subsidiaries, create offenses for circumventing requirements, and adjust the enforcement powers.

Government Spending

The bill does not include specific figures on government spending, however it will incur costs associated with the implementation of the new framework, including staffing, legal, and administrative expenses. Further costs may result from independent reviews and potential legal challenges.

Groups Affected

• Suspected terrorists and their associates: Face asset freezes and potential criminal prosecution.
• Financial institutions: Assume new reporting and compliance obligations, potentially leading to increased operational costs.
• Law enforcement agencies: Gain access to greater information, assisting in investigations.
• Courts: Will handle appeals and judicial reviews arising from the bill’s provisions.
• The Treasury: Takes on increased responsibilities for designation, licensing, information gathering and reporting.

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