The Financial Sanctions Unit (official webpage) of the Bank of England administers financial sanctions in the United Kingdom on behalf of HM Treasury. It has been in operation since at least 1993 when it began applying sanctions against the Government of Libya.^[1]. More recently, since Libya has become an ally of the United Kingdom, sanctions have been applied against those who allegedly fought against the Government of Libya at the time (see #Incidents which have involved the Financial Sanctions Unit). To meet Wikipedias quality standards, this article or section may require cleanup. ... The new eastern entrance to HM Treasury HM Treasury, in full Her Majestys Treasury, informally The Treasury, is the United Kingdom government department responsible for developing and executing the UK Governments financial and economic policy. ...

Financial sanctions have established under a multitude of regimes, from UN Security Council Committee Established Pursuant to Resolution 1267 (1999) Concerning Al-Qaida and the Taliban and Associated Individuals and Entities, to EC Commission Regulations, to UK Government orders enforcing trade restrictions against activities in particular countries. Often these authorities overlap so that the same candidates for sanctions are listed from different sources. The effects are similar in nature to control orders in that they can be applied without the authority of a court, and are designed to limit the freedom of the target while not technically infringing his Human Rights. A control order is an order made by the Home Secretary of the United Kingdom to restrict an individuals liberty for the purpose of protecting members of the public from a risk of terrorism. Its definition and power were provided by Parliament in the Prevention of Terrorism Act 2005. ... Human rights are rights which some hold to be inalienable and belonging to all humans. ...

The stated purposes of the sanctions are:

• To encourage a change in the behaviour of a target country or regime.
• To apply pressure on a target country or regime to comply with set objectives.
• As an enforcement tool when international peace and security has been threatened and diplomatic efforts have failed.
• To prevent and suppress the financing of terrorists and terrorist acts.^[2]

The main instrument for administering the financial sanctions is the maintenance and publication of a Consolidated list of financial sanctions targets which can be used by banks and other financial institutions to scan their customer databases and discover financial assets controlled by those who are the targets of the sanctions in order have them frozen.^[3]

The Charity Commission also has powers to freeze the bank accounts of organizations that are registered charities that it suspects are connected with terrorism.^[4] The Charity Commission is the non-ministerial government department that regulates registered charities (and hence to some extent most churches) in England and Wales. ...

Legality

The Al-Qaida and the Taliban and Associated Individuals regime was brought into force through a Statutory Instrument based on the UN Act 1946, rather than by a specific Act of Parliament. Section 8 of the (Statutory Instrument) Order says that: Statutory Instruments (SIs) are parts of United Kingdom law separate from Acts of Parliament which do not require full Parliamentary approval before becoming law. ... In Westminster System parliaments, an Act of Parliament is a part of the law passed by the Parliament. ...

Any person who, except under the authority of a licence granted by the Treasury under this article, makes any funds available to or for the benefit of a listed person or any person acting on behalf of a listed person is guilty of an offence.^[5]

where "funds" are defined as:

financial assets, economic benefits and economic resources of any kind, including (but not limited to) gold coin, gold bullion, cash, cheques, claims on money, drafts, money orders and other payment instruments; deposits with financial institutions or other entities, balances on accounts, debts and debt obligations; securities and debt instruments (including stocks and shares, certificates representing securities, bonds, notes, warrants, debentures, debenture stock and derivatives contracts); interest, dividends or other income on or value accruing from or generated by assets; credit, rights of set-off, guarantees, performance bonds or other financial commitments, letters of credit, bills of lading, bills of sale; documents evidencing an interest in funds or financial resources, and any other instrument of financing.^[6]

Listing under the UN regime is administered by a committee of the UN Security council which meets in closed session, doesn't need exhibit any evidence for its allegations in public, and doesn't allow any right of appeal to another body.^[7]

Several of the targetted people have brought their case before the Court of First Instance on the basis that the measures infringe fundamental principles of Community law (such as European Convention on Human Rights which ensures the right of fair trial, and no punishment without law).^[8]. On 12 July 2006, Faraj Hassan and Chafik Ayadi, both UK residents who had been listed under the regime since 2002, had their cases dismissed with the statement that: The Court of First Instance, created in 1989, is a court of the European Union. ... The Convention for the Protection of Human Rights and Fundamental Freedoms, also known as the European Convention on Human Rights (ECHR), was adopted under the auspices of the Council of Europe[1] in 1950 to protect human rights and fundamental freedoms. ... July 12 is the 193rd day (194th in leap years) of the year in the Gregorian Calendar, with 172 days remaining. ... 2006 (MMVI) is a common year starting on Sunday of the Gregorian calendar. ...

...the Court... recognise[s] that freezing of funds constitutes a particularly drastic measure, but adds that that measure does not prevent the individuals concerned from leading a satisfactory personal, family and social life, given the circumstances. In particular, they are not forbidden to carry on a trade or business activity, it being however understood that the receipt of income from that activity is regulated.^[9]

On 22 September 2006 the wives of three suspects on the list lost their case against the draconian restrictions on their receipt of benefit payments, even though none of them are accused of links to terrorism.^[10] This was applauded by the Chancellor of the Exchequer in a major speech two weeks later, in which he also announced that there would new laws to allow financial sanctions to applied without a UN or an EU mandate, and solely on the basis of secret intelligence.^[11] September 22 is the 265th day of the year in the Gregorian calendar (266th in leap years). ... 2006 (MMVI) is a common year starting on Sunday of the Gregorian calendar. ... The Chancellor of the Exchequer is the title held by the British cabinet minister responsible for all financial matters. ...

Incidents which have involved the Financial Sanctions Unit

• Libyan Islamic Fighting Group - Sanctions applied on 7 February 2006 against five Libyans residing in the UK on the basis of incidents that occurred in the 1990s.^[12][13]

• 2006 transatlantic aircraft plot - All 19 suspects became targets of financial sanctions at the time of their arrest, thus revealing their identities.^[14] The Chancellor of the Exchequer called it "the most expeditious and most comprehensive asset freeze the Treasury has undertaken."^[11]

The Libyan Islamic Fighting Group (LIFG) is the most powerful radical faction waging holy war against Colonel Moammar al-Qadhafi. ... February 7 is the 38th day of the year in the Gregorian Calendar. ... 2006 (MMVI) is a common year starting on Sunday of the Gregorian calendar. ... According to British and American authorities, the 2006 transatlantic aircraft plot was a terrorist plot to detonate liquid explosives carried on board several airliners travelling from the United Kingdom to the United States. ...

References

1. ^ Bank of England Notice - Libya (pdf). Bank of England (1 December 1993). Retrieved on 2006-10-12.
2. ^ Sanctions and the role of the Financial Sanctions Unit. Bank of England. Retrieved on 2006-10-12.
3. ^ Financial Sanctions Frequently Asked Questions. Bank of England. Retrieved on 2006-10-12.
4. ^ Government News Network (24 August 2006). Charity accounts frozen as Regulator investigates terrorist allegations - Charity Commission opens formal inquiry into Crescent Relief. Press release. Retrieved on 2006-10-12.
5. ^ Statutory Instrument 2002 No. 111 (section 8) The Al-Qa'ida and Taliban (United Nations Measures) Order 2002
6. ^ Statutory Instrument 2002 No. 111 (section 2) The Al-Qa'ida and Taliban (United Nations Measures) Order 2002
7. ^ Guidelines of the Committee for the Conduct of its Work (pdf). UN (7 November 2002). Retrieved on 2006-10-12.
8. ^ Action brought on 5 May 2006 — Al-Faqih v Council (Case T-135/06) (2006/C 165/58) (pdf). EU (5 May 2006). Retrieved on 2006-10-12.
9. ^ Court of First Instance (12 July 2006). The Court of First Instance clarifies the rights of individuals whose funds have been frozen in connection with the fight against international terrorism. Press release. Retrieved on 2006-10-12.
10. ^ Jenkin, Eveline. "Terror suspects' wives lose benefits legal bid", The Times, 22 September 2006. Retrieved on 2006-10-12.
11. ^ ^a b HM Treasury (10 October 2006). speech entitled "Meeting the terrorist challenge". Press release. Retrieved on 2006-10-12.
12. ^ US Treasury (8 February 2006). Treasury Designates UK-Based Individuals, Entities Financing Al Qaida-Affiliated LIFG. Press release. Retrieved on 2006-10-12.
13. ^ Julian Todd (4 September 2006). The UN as evidenced on the streets of Liverpool. Freesteel blog. Retrieved on 2006-10-12.
14. ^ Bank of England (11 August 2006). Financial Sanctions: Terrorist Financing. Press release. Retrieved on 2006-10-12.