Statutory guidance

Counter-Terrorism sanctions: guidance

Updated 21 October 2024

As required by section 43 of the Sanctions and Anti-Money Laundering Act 2018 (‘the Sanctions Act’), the Treasury Minister has provided this guidance to assist in the implementation of, and compliance with, the Counter-Terrorism (Sanctions) (EU Exit) Regulations 2019 (the ‘Regulations’), as amended from time to time.

The following instruments have made amendments to this instrument. If a consolidated version is not yet available on legislation.gov.uk, these instruments should be read alongside the original instrument:

• The Sanctions (EU Exit) (Miscellaneous Amendments) (No.3) Regulations 2020

• The Sanctions (EU Exit) (Miscellaneous Amendments) Regulations 2024 

• The Mali (Sanctions) (EU Exit) (Amendment) and Sanctions (Miscellaneous Amendments) Regulations 2024

As required by the Sanctions Act, this document contains guidance on the prohibitions and requirements imposed by the Regulations. It additionally provides guidance on best practice for complying with the prohibitions and requirements; the enforcement of them; and circumstances where they do not apply.

This document is intended to be read alongside more detailed sanctions guidance published by HM Treasury, through the Office of Financial Sanctions Implementation (OFSI). This document contains links to those key sources of sanctions guidance, which will be regularly maintained and updated on GOV.UK. It is designed to give an overview of the prohibitions and requirements in the Regulations and, where appropriate, direct readers to further detailed guidance. This document is current on the date of publication.

1. Prohibitions and requirements imposed by the Counter-Terrorism (Sanctions) Regulations 2019

The Regulations impose financial, director disqualification and immigration sanctions for the purpose of giving effect to the United Kingdom’s obligations under United Nations Security Council Resolution 1373 (‘UNSCR 1373’); and the additional statutory purposes set out in the Regulations.

In order to achieve the stated purposes, the Regulations impose a number of prohibitions and requirements. In order to enforce these, the Regulations establish penalties and offences, which are set out in detail in the corresponding report under section 18 of the Sanctions Act in relation to criminal offences.

The prohibitions and requirements imposed by the Regulations apply within the territory of the United Kingdom (UK) (including Northern Ireland) and in relation to the conduct of all UK persons wherever they are in the world. UK persons includes British nationals, as well as all bodies incorporated or constituted under the law of any part of the UK. Accordingly, the prohibitions and requirements imposed by the Regulations apply to all companies established in any part of the UK, and they also apply to branches of UK companies operating overseas.

It is prohibited to intentionally participate in any activities if you know that the object or effect of them is directly or indirectly to circumvent any of the prohibitions imposed by the Regulations or to enable or facilitate the contravention of those prohibitions.

If you are unclear about any aspect of the Regulations, in particular about whether action you are considering taking could contravene the Regulations, you are advised to seek independent legal advice.

Prohibitions and requirements for the financial, director disqualification and immigration sanctions contained in the Regulations are set out below.

1.1 Designation of persons

The Regulations provide that the Treasury may designate persons for the purposes of financial and/or director disqualification and/or immigration sanctions sanctions if they are, or have been, involved in terrorist activity (as defined in regulation 6).

The UK Sanctions List lists the people designated under the Regulations, and details of the sanctions in respect of which they have been designated.

1.2 Financial sanctions

Asset freeze and making available provisions

The Regulations impose financial sanctions through a targeted asset freeze on designated persons and prohibitions on making funds or economic resources available. This involves the freezing of funds and economic resources (non-monetary assets, such as property or vehicles) of designated persons and ensuring that funds and economic resources are not made available to or for the benefit of designated persons or entities, either directly or indirectly.

More information on financial sanctions can be found in the OFSI guidance.

OFSI is the authority responsible for implementing the UK’s financial sanctions on behalf of HM Treasury. OFSI helps to ensure that financial sanctions are properly understood, implemented and enforced in the UK. Further information on how OFSI implements financial sanctions can be found on the OFSI pages of GOV.UK.

1.3 Director disqualification sanctions

Where a person is designated under regulation 5 for the purpose of director disqualification sanctions under regulation 16A, this means that they are subject to the provisions of section 11A of the Company Directors Disqualification Act 1986 (CDDA) and Article 15A of the Company Directors Disqualification (Northern Ireland) Order 2002 (CDD(NI)O).

The effect of this is to make it an offence for persons designated for this purpose to act as a director of a UK company or directly or indirectly take part in or be concerned in the promotion, formation or management of a company, unless a licence has been issued by virtue of the powers in regulation 19A.

Companies House and the Department for the Economy (Northern Ireland) are responsible for recording information about director disqualification sanctions in their respective Disqualified Director Registers. Companies House is responsible for annotating the Companies Register and preventing registration of a disqualified director’s appointments. The Insolvency Service will assess and grant or refuse licence applications on behalf of the Secretary of State. The Insolvency Service also has the power to bring prosecutions for breaches of the legislation, and, where appropriate, to refer cases to other law enforcement agencies for potential prosecution.

1.4 Information and record keeping

Part 5 of the Regulations places obligations on relevant firms (the definition of which is set out in the Regulations) to report information to HM Treasury about known or suspected designated persons or about persons who may have committed an offence under the Regulations.

It also grants powers to HM Treasury to request information from, amongst others, a designated person, including powers to request the production of documents. It also establishes offences for failing to comply with these requests (including for providing false information).

If you have obligations or responsibilities under Part 5 of the Regulations, it is important that you familiarise yourself with them. If you are unclear of your obligations or responsibilities, you are advised to seek independent legal advice.

1.5 Immigration sanctions

The effect of the Regulations is to impose a travel ban on persons who are designated by the Treasury for the purposes of being made subject to immigration sanctions under the Sanctions Act. Such persons are excluded persons for the purposes of section 8B of the Immigration Act 1971.

Designated individuals will be refused leave to enter or remain in the UK. Any applications they make for a visa to travel to the UK, including for transit purposes, will be refused. Any foreign national who is subject to a travel ban under the Regulations, and who is currently in the UK, will have their permission to stay in the UK cancelled and steps will be taken to remove them from the UK.

If you are the subject of an immigration sanction and try to travel to the UK, carriers are required to deny you boarding. Further information on how the Home Office deals with those who are subject to a travel ban  can be found on the Home Office pages of GOV.UK.

2. How will these sanctions measures be enforced?

The Regulations make it a criminal offence to enable or facilitate a contravention of, or to circumvent, any of the prohibitions in the Regulations. They also prescribe the mode of trial and penalties that apply to such offences.

In addition to the below, further details on offences and penalties can be found in the corresponding report under section 18 of the Sanctions Act.

2.1 Financial sanctions

Breaches of financial sanctions are a serious criminal offence. Any breach of the main financial prohibitions in the Regulations is an offence that is triable either way and carries a maximum sentence on indictment of 7 years’ imprisonment or a fine (or both).

Offences under regulations 21(6) or 25 (information offences in connection with financial sanctions under the Regulations) are summary offences only and carry a maximum sentence of 6 months’ imprisonment or a fine (which in Scotland or Northern Ireland may not exceed level 5 on the standard scale) or both.

OFSI is responsible for monitoring compliance with financial sanctions and for assessing suspected breaches. It also has the power to impose monetary penalties for breaches of financial sanctions and to refer cases to law enforcement agencies for investigation and potential prosecution.

OFSI works with other parts of government, supervisory bodies and regulators to consider all cases reported to it, sharing relevant information accordingly.

If you find out that a person or organisation you are dealing with is subject to the financial sanctions detailed in the Regulations, you must immediately:

• stop dealing with them
• freeze any assets you are holding for them
• inform OFSI as soon as possible by either emailing ofsi@hmtreasury.gov.uk or by calling their general enquiries line: +44 (0)20 7270 5454

More detailed information on OFSI’s approach to compliance and enforcement can be found in Chapter 7 of OFSI’s guidance.

2.2 Director disqualification sanctions

Breach of director disqualification sanctions is an offence under CDDA and CDD(NI)O. The Insolvency Service is responsible for monitoring compliance with director disqualification sanctions and for assessing suspected breaches of the main prohibitions and licensing prohibitions. It also has the power to bring prosecutions for breaches under section 11A CDDA and refer cases to other law enforcement agencies for potential prosecution.  

Under section 13 of CDDA (and in Northern Ireland, under Article 18 of CDD(NI)O), a person guilty of acting in contravention of the new section 11A (in Northern Ireland, Article 15A of CDD(NI)O) will be liable (a) on conviction on indictment, to imprisonment for not more than 2 years or a fine, or both; and (b) on summary conviction, to imprisonment for not more than 6 months or a fine not exceeding the statutory maximum, or both.

3. Are there circumstances when I can get an authorisation or licence for a sanctioned activity?

Licensing and exception provisions are contained in Part 4 of the Regulations.

3.1 Exceptions

The Regulations set out exceptions to some of the sanctions prohibitions which apply within certain defined circumstances. An exception applies automatically, and does not require you to obtain a licence issued in accordance with the Regulations.

The Regulations establish exceptions relating to financial sanctions including for the crediting of a frozen account by a relevant institution (any such interest or other earnings will be frozen in accordance with the relevant legislation underpinning the asset freeze). An exception also exists from the prohibition on making funds available to a designated person, when funds are transferred to a frozen account in discharge (or partial discharge) of an obligation which arose before the recipient became a designated person.

Regulation 17A establishes an exception to regulations 11 to 15 which provides that prohibitions are not contravened if conduct is authorised by a licence which is issued under the law of the Channel Islands, Isle of Man or any British Overseas Territory for the purpose of disapplying a prohibition in that jurisdiction which corresponds to the relevant prohibition.

The Regulations also include an exception in relation to any prohibition or requirement imposed by the Regulations for actions which a responsible officer has determined to be in the interests of national security, or the prevention or detection of serious crime in the UK or elsewhere.

If you are unsure whether an exception applies in your circumstances, you are advised to seek independent legal advice.

3.2 Licensing for financial sanctions

Where a person is designated for the purposes of the financial sanctions (asset freeze and making available provisions) contained in the Regulations, the designated person or a representative (on their behalf) may apply for a licence from OFSI to use their funds or economic resources (including non-monetary assets, such as property or vehicles). Regulation 19 provides that the prohibitions in regulations 11 to 15 (asset-freeze etc) do not apply to anything done under the authority of a licence issued by the Treasury under paragraph 1 of that regulation.

Further information on exceptions and licensing grounds can be found in OFSI’s guidance.

Information on licence applications and the relevant form can be found on OFSI’s GOV.UK licensing webpage.

3.3 Licensing for director disqualification sanctions

The designated person, or their authorised representative, can make an application for a licence to the Insolvency Service. Should the Insolvency Service decide to grant a licence then the licence will specify the act/s it authorises. A licence may be subject to conditions. The Insolvency Service may vary or revoke a licence   which authorises acts by a particular person, and any such changes will be communicated to that person or their authorised representative.

You should not assume that a licence will be granted therefore you should not act as a director of a company or directly or indirectly take part in or be concerned in the promotion, formation or management of a company, unless and until your licence has been granted.

3.4 Immigration sanctions

If you are subject to immigration sanctions the Home Office may direct, on a case by case basis, that the sanction does not apply in particular circumstances, such as for travel to, or through, the UK for a UN sponsored meeting. You can check how to apply for a UK visa, and find further information about travelling to the UK on GOV.UK.

4. Further information

To receive an email alerting you to any changes to the consolidated list of financial sanctions targets, you can subscribe to OFSI’s e-alert.