So, what can't you do with terrorists?

It's limited in scope, since these are individuals. You can't give them access to funds or “economic resources”, which is another way of saying assets that aren't monetary instruments.

HMT defines what actions are prohibited:

(a) in relation to funds—

(i) use, alter, move, allow access to or transfer,

(ii) deal with the funds in any other way that would result in any

change in volume, amount, location, ownership, possession, character or destination, or

(iii) make any other change that would enable use, including portfolio management;

(b) in relation to economic resources, exchange or use in exchange for funds, goods or services.

subject to any exceptions or licenses.

The Act differentiates from providing assets to a designated person, and providing assets that ultimately benefit a designated person. In the second case, the litmus test is whether or not the designated person is able to discharge a significant financial obligation that they have some responsibility for.

When the asset in question is non-monetary, HMT prohibits only the provision of assets that the designated person is likely to exchange for monetary instruments, goods or services.

The exceptions are simple: you can credit interest or other earnings (e.g. dividends) to a frozen account (i.e. an account that contains funds or monetary instruments belonging to or benefitting the designated person). Also allowed is the crediting of the account with payments contracted/agreed to before the account was frozen (Mr. Watchlist is not sure why assets gained during the designation period cannot be credited if the account is frozen).

On the outgoing side, the Act specifies that social security payments can be made to non-designated person from funds not belonging to a designated person (see above distinction between ownership and benefit) “whether or not the payment is made in respect of a designated person.”

HMT can grant general or specific licenses. The license specifies what things are authorized by it, whom it is granted to, any conditions and the relevant time period, if any. They can, of course, modify or revoke the license at any time.

When the license is granted, changed or revoked, Treasury must given written notice of specific licenses to those person(s) it applies to, or provide appropriate publicity of general licenses.

As you can imagine, providing materially false information or misleading, inaccurate or fraudulent documents is illegal (in British English – “person commits an offence”). Similarly, if you don't limit yourself to any conditions or timeframe of a license, that's illegal, too.

Lastly, any activities that that circumvent or facilitate circumvention of the prohibitions is illegal. The Act specifically notes that the offender “intentionally participates in activities knowing that the object of effect of them is (whether directly or indirectly)” getting around the sanctions – a bit of wiggle room on both ends.

Link:

UK Social Security overview (from US Social Security Administration)

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Interim designations, although they can't be renewed and can only last for 30 days, are much like final designations.

The notification requirements for interim designations, for both the initial notification and expiry of the designation, are the same as for final designations. Same thing goes for when notification is sent to the designated person and the designation is publicized.

Two things are special about interim designations. First, you can only do it one – for each set of evidence presented.

Secondly, HMT can convert the designation to a final one. Technically, the interim one expires when the final one is made. If this happens, the law actually says that HMT can combine the notification and publicity steps for the expiry of the interim designation and the establishment of the final designation.

Apparently, efficiency can get you in trouble if the law doesn't say you can be efficient

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Rather than bore you with all the details of a targeted program like a terror sanctions program, Mr. Watchlist thought it might be fun (if you call this fun) to highlight some of the more interesting sections of sanctions regulations – especially non-OFAC ones.Today, the UK act for sanctioning terrorists.

Her Majesty's Treasury can make 2 kinds of designations on its sanctions list – a final one that lasts for one year unless renewed, and an interim that can be made once for up to 30 days.

Final designations must be accompanied by written notice to the person being designated and must be publicized. However, if the person is under 18, or HMT believes that the designation should not be disclosed as a matter or national security, “reasons connected with the prevention or detection of serious crime” or in the “interests of justice,” then HMT has discretion as to whom will inform of the designation. If the conditions for not publicizing the designation cease to be valid (e.g. a minor turns 18), HMT must then provide the written notice to the designated individual and publicize it.

The one-year duration of a final designation starts with the date of the designation or renewal – not one year from the end of the current designation. The renewal is subject to the same notification & publicity requirements as the original designation.

If a final designation expires, HMT must notify the designated person in writing, and “take reasonable steps” to notify those informed of the designation (either the general public or those informed of a non-public designation).

HMT may modify or revoke a final designation at any point in time. If they do, they have the same notification requirements as for expiry of a final designation

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