The UK Sanctions Framework

The UK's legal framework for sanctions is primarily governed by the Sanctions and Anti-Money Laundering Act 2018 (the Sanctions Act). This act gives ministers the authority to establish new sanctions regimes, either to fulfil international obligations from sources like the UN Security Council or to create a UK-led sanctions regime.

Imposing Sanctions

The process for imposing sanctions involves two key powers: establishing the sanctions regimes themselves and designating specific individuals or entities to be sanctioned. The procedures in Parliament for a sanctions regime depend on whether it's an autonomous UK regime or one implementing a UN Security Council resolution.

• Non-UN Sanctions Regulations are typically subject to the “made affirmative procedure,” meaning they take effect immediately but must be approved by both Houses of Parliament within 28 days.
• Regulations implementing UN Security Council resolutions are subject to the “made negative procedure.” This means they also take effect immediately but can be revoked if either House of Parliament passes a motion against them within 40 sitting days.

In a significant change, the Economic Crime (Transparency and Enforcement) Act 2022 introduced a new “urgent procedure” for designating individuals or entities. This allows for the swift designation of a person who has already been sanctioned by the US, the EU, Australia, or Canada, without the immediate need for suspicion that they are an “involved person”. This urgent designation can last for 56 days and can be extended once. The 2022 Act also removed several requirements for imposing sanctions, such as the need for ministers to prove there were “good reasons” for the sanctions or to consider the imposition of sanctions a “reasonable course of action”.

Types of Sanctions

The Sanctions Act allows the UK to impose a range of sanctions. Those covered in this briefing include:

• Financial sanctions, including freezing assets and imposing restrictions on financial services. The Office of Financial Sanctions Implementation (OFSI) within HM Treasury is responsible for implementing and enforcing these sanctions.
• Trade sanctions, that can restrict the export, import, or movement of specific goods, technology, and services. The Department for Business and Trade (DBT) implements trade sanctions, while the Office of Trade Sanctions Implementation (OTSI) handles civil enforcement and HMRC handles criminal enforcement.
• Immigration sanctions, commonly known as travel bans, prevent designated individuals from entering the UK. The Home Office is responsible for these sanctions.
• Transport sanctions, that can restrict ships and aircraft, including their detention or controlling their movement. The Department for Transport (DfT) is responsible for implementing and enforcing these measures.

Exceptions and Challenges

Sanctions regimes can contain exceptions that apply automatically, or they can be granted through a license from the relevant government department. Exceptions are often included for issues such as humanitarian aid.

Individuals can request that a minister review or revoke their designation. If the minister maintains the sanctions, the individual can then challenge the decision in court.

The Economic Crime (Transparency and Enforcement) Act 2022 made it more difficult for sanctioned individuals to claim damages in court. The Sanctions Act now only allows for damages in cases of “bad faith” and not for negligence. The Sanctions (Damages Cap) Regulations 2022 set a cap for damages at £10,000, with an exception for cases where a higher amount is needed to prevent a human rights breach.