Exiting the European Union (Sanctions)

Jim Cunningham Excerpts

Monday 29th April 2019 Commons Chamber

[Sir Alan Duncan]

Right hon. and hon. Members will be well aware of the importance of sanctions, which are a key element of our approach to our most important international priorities. They help to defend our national interests, support our foreign policy and protect our national security. They also demonstrate our support for the rules-based international order.

The UK has been a leading contributor to the development of multilateral sanctions in recent years. We have been particularly influential in guiding the EU’s approach, which is why, when we transpose the EU sanctions regimes to the UK, we intend to carry over its policy effect. I will say more about that in a moment.

We are committed to maintaining our sanctions capabilities and leadership role after we leave the EU. Colleagues will recall that the Sanctions and Anti-Money Laundering Act 2018 provides the UK with the legal powers to impose, update and lift sanctions after we leave the EU. This was the first major legislative step in creating an independent UK sanctions framework.

However, although the Act sets out the framework needed to impose our own independent sanctions, we need statutory instruments to set out the detail of each sanctions regime within that framework. Such statutory instruments set out the purposes of our sanctions regimes, the criteria under which the Secretary of State may designate individuals and entities and the types of restrictive measures imposed. They do not specify which individuals or entities will be sanctioned. The Government will publish the list of those we are sanctioning under UK legislation when the prohibitions come into force. We will seek to transfer EU designations in each case, but those decisions will be subject to the legal tests set out in the Act. Any EU listings that do not meet the tests will not be implemented.

[Mr Jim Cunningham (Coventry South) (Lab)]

Although we will become “independent”, in that sense of the word, in relation to sanctions, how does the Minister propose to co-operate with other countries? Is there a mechanism for the Government to do that, so that we can control chemical weapons?

[Sir Alan Duncan]

If we leave the EU with a deal, there will be a period of transition in which we will retain our sanctions under the existing EU system. If we leave with no deal, which is what we are addressing today, we will need to trigger our autonomous right to have sanctions. Therefore, we need these statutory instruments. I am sure that in the event that we are not part of the EU, our leadership on sanctions and the fact that the City of London is such an important financial centre for money laundering—[Laughter.] For anti-money laundering. It will mean that we retain our pre-eminent role in influencing sanctions, as we have in the past.

The House may recall that review and reporting requirements were incorporated in the 2018 Act. We have therefore published alongside these statutory instruments a report on the purposes of each sanctions regime, and on the penalties contained within each instrument. Those reports are available in the Vote Office, should Members have an interest in them, and the Government will review each sanctions regime on a regular basis. I wish to thank the Joint Committee on Statutory Instruments for its close and helpful scrutiny of so many statutory instruments relating to sanctions over recent months.

The four SIs under consideration are those that transfer into UK law the EU sanctions regimes on chemical weapons, Zimbabwe, Belarus and Syria. In each case, the instrument seeks to deliver substantially the same policy effects as the measures in the corresponding EU regime. Hon. Members will note that human rights are a significant focus of some of the sanctions regimes under consideration today. I know that many hon. Members are keen for the UK to develop our own stand-alone human rights sanctions regime under the 2018 Act and may therefore query why we are simply transferring existing EU sanctions regimes.