You can use the search function to find a range of UK Finance material, from consultation responses to thought leadership to blogs, or to find content on a range of topics from Capital Markets & Wholesale to Payments & Innovation.
On Human Rights Day (10 December) the EU is likely to adopt and publish its new Global Human Rights (GHR) Sanctions Regime.
In recent years ?Magnitsky?-style sanctions regimes have been developed across the globe, starting with the US. More recently, the UK passed the Global Human Rights Regulations in July, setting up the first autonomous UK sanctions regime and targeting serious human rights abusers.
Although the proposal for a Council Decision is not public, various position papers - as well as documents leaked to the press, allow us to define the likely scope and content of the new sanctions
Its main goal will be to deter human rights abuses by ?changing the calculus? of abusers who think they can get away with their crimes. For this purpose, the sanctions will contain an array of traditional financial sanctions (asset freezes) and travel bans against individuals and entities.
Sanctions will be imposed for ?serious human rights violations and abuses?. These are predicted to be identified on the basis of 12 criteria:
The regime will not cover corruption - as with UK GHR sanctions, the name ?Magnitsky? has not directly been used.
The individual designations are not yet known but could align with the recent UK listings, covering events such as the killings of Russian lawyer Magnitsky and Saudi journalist Jamal Khoshaggi.
Although the EU has targeted perpetrators of human rights abuses in the past, it has done so on a case-by-case and country-specific basis. According to Josep Borrell, the EU High Representative for Foreign Affairs and Security Policy:
?We need a global regime to gain more flexibility to go after the perpetrators regardless of where they are and dispense us from having to set up a specific legal framework each time for each specific case.?
This reflects the wider shift to thematic sanctions since 2016 (e.g. for terrorism, chemical weapons, cyber-attacks) with the view to cover perpetrators in any geographical location in the world.
It is worth noting that the GHR regime will not replace the existing country regimes where human rights abuses are targeted. For instance, the current Belarus programme, which sanctions the government following the highly disputed August election, will not be integrated to the human rights sanctions framework.
The question of human rights sanctions has revived the debate on qualified majority voting (QMV) in the Council on issues of foreign policy[1]. If this regime intends to ?go swiftly after the perpetrators? of abuses, as Mr Borrell hopes, it will require greater flexibility than the procedure currently allows. Proposals to adopt qualified majority have already been put forward by Borrell for implementing the EU's Action Plan to support democracy and human rights, but these have remained unanswered.
The same position was strongly endorsed by Ursula von der Leyen, president of the EU Commission, in her State of the Union speech which urged member states to move to qualified majority ?at least for human rights and sanctions implementation?. Most recently, and only days after this speech, Cyprus? refusal to approve sanctions against Belarus led Borrell to admit the credibility of the EU was at stake over the issue of sanctions adoption.
There is still uncertainty around whether the current proposal includes QMV or maintains the consensus rule[2]. However, although this position seems to be shared by some member states, at this time, ironically it is unlikely to reach the unanimity it needs to be adopted.
From a UK perspective, the new regime is likely to prove a challenge. As the UK is still subject to EU law until the end of the transition period, including on sanctions, the new regulation will need to be implemented during an already exceptionally busy parliamentary timetable due to the upcoming end of the transition period as well as Covid-19-related extraordinary legislation.
The UK government has not committed to issuing a new autonomous regulation in that period, which will likely lead to the new EU-derived regulation having to be retained after 31 December 2020.
[1] Under EU treaties, qualified majority voting in the Council would require the agreement of 15 out of 27 member states (55%), and that the proposal is supported by countries representing at least 65% of the total EU population. See here - https://eur-lex.europa.eu/summary/glossary/qualified_majority.html#:~:text=A%20qualified%20majority%20(QM)%20is,Functioning%20of%20the%20European%20Union.
[2] Earlier leaked proposals maintained consensus voting, however the European Parliament reports that the latest proposal for a Council Decision includes a proposal for qualified majority. https://www.europarl.europa.eu/legislative-train/theme-a-stronger-europe-in-the-world/file-a-european-magnitsky-act
Managing Sanctions Risk - Training
UK Finance are pleased to announce we?ve partnered with the International Compliance Association (ICA) to offer qualifications to help economic crime and sanctions professionals develop their knowledge and best practice.
Courses include:
Certificates:
Specialist Certificates:
Advanced Certificates:
Diplomas:
Agathe Duchiron, Manager, Strategic Policy, UK Finance
22.04.24
19.04.24
17.04.24
By downloading this document, you understand and agree that any sharing, distribution or republishing of the content, without prior written authorisation from the author or content managers at UK Finance, shall be constituted as a breach of the UK Finance website terms of use.