Updated: Updated to include licensing policy information
Following the terrorist attacks of 11 September 2001, the UN Security Council adopted Resolution 1373 (2001). It denounced terrorism and required member states to deny all forms of financial support for those who participate in terrorist acts; to deny the provision of safe haven, support for terrorists; and to share with other governments information about any groups practising or planning terrorist acts.
The EU adopted Council Regulation (EU) No 2580/2001 to give effect to Resolution 1373 (2001) in the EU. It imposes specific financial sanctions against certain listed targets with a view to combating terrorism. Such targets are included in the UK’s consolidated list under the Terrorist Financing regime.
Part 1 of the Terrorist Asset-Freezing etc. Act 2010 (‘the 2010 Act’) gives effect to Resolution 1373 (2001) in the UK. The 2010 Act provides HM Treasury with powers to freeze the funds and economic resources of those suspected or believed to be involved in terrorist activities and restricts the making available of funds, financial services and economic resources to, or for the benefit of such persons. The 2010 Act also provides for enforcement of Regulation (EU) No 2580/2001.
Licensing policy
The Treasury policy on licensing for terrorism cases was last set in the Written Ministerial Statement (“WMS”) of 5 February 2010. This WMS was made at the time of the introduction of emergency legislation, the Terrorist Asset Freezing (Temporary Provisions) Bill and court proceedings in the case of M, MM and A v HMT. Subsequent to this emergency legislation, the Terrorist Asset Freezing etc Act 2010 was enacted and this has now been in operation for three years.
The Treasury has conducted a review of its licensing policy and procedures and, as part of that review, has considered whether any amendment or clarification is needed to the policy statement made in the WMS of February 2010. The position set out in the WMS of 5 February 2010 continues to reflect the Treasury’s approach to licensing in terrorism cases, in particular:
5 Feb 2010: Column 33WS
“Licence conditions are a key feature of the licensing regime, as they apply safeguards to ensure that funds or economic resources can be made available to designated persons in a way that protects against terrorist finance risks. In this way, appropriate conditions facilitate the granting of licences that it might otherwise not be possible to grant.
The conditions we apply to licences reflect two broad objectives:
- to ensure that designated persons do not have access to large amounts of cash, which can be more easily diverted to terrorist activity; and
- to ensure that there is a reasonable audit trail to address terrorist finance risks and that the Treasury can monitor compliance with the terms of the licence and identify if any breaches have occurred that could give rise to national security concerns.
The exact licence conditions are set on a case-by-case basis depending on the circumstances of the designated person and the terrorist finance risks involved. In order that controls are set in a way that is proportionate and risk-based, the Treasury takes advice from the police and Security Service about the terrorist finance risks involved in each case and the appropriate licence conditions to address them. Consistent with the objective of proportionality, the Treasury’s intention is to impose only those controls that are necessary to protect against terrorist finance risks.”
In summary, reporting is a condition of licences and that applies equally to the setting of reporting conditions.
Current EU regulations
12.12.2012 Council Implementing Regulation (EC) No 1169/2012 Repealed Regulation 542/2012. Updated the list of persons to whom Article 2(3) of regulation 2580/2001 applies.
27.12.2001 Council Regulation (EC) No 2580/2001 Implemented the measures in UNSCR 1373 (2001) in the EU against certain persons and entities with a view to combating terrorism. Article 2(3) foresees a list of targeted terrorist persons, groups and entities. The list should include persons, groups and entities linked or related to third countries as well as those who otherwise are the focus of the Common Foreign and Security Policy aspects of Council Common Position 2001/931/CFSP. The list would be adopted and amended by the Council.
27.12.2001 Council Common Position 2001/931/CFSP Supported the implementation of the measures in UNSCR 1373 (2001). Reiterated that the provision or collection of funds to be used for terrorist acts should be criminalised, and that consequently, these financial assets or economic resources should be frozen. Established a list of persons, groups and entities involved in acts of terrorism in order to facilitate the co-ordinated action of the Community and the Member States. The list does not cover those persons listed separately in connection with the Al-Qa’ida network and the Taliban in UNSCR 1267 (1999) and 1333 (2000).