Source · Select Committees · Foreign Affairs Committee
Recommendation 16
16
Paragraph: 29
We heard that banks operating in countries including Singapore and Thailand can be compelled by...
Conclusion
We heard that banks operating in countries including Singapore and Thailand can be compelled by UK regulators to enforce UK sanctions, as they conduct transactions in British pounds. This would cut off a key intermediary for the junta’s revenues, shutting down another line of income.
Paragraph Reference:
29
Government Response
Acknowledged
HM Government
Acknowledged
Each of our sanctions regimes provides that, in accordance with section 21 of the Sanctions and Anti-Money Laundering Act 2018, the prohibitions and requirements imposed by sanctions regulations apply to persons in the UK, and extra-territorially to UK persons, i.e. UK nationals and bodies incorporated or constituted under the law of any part of the UK. UK nationals and companies, wherever they are in the world, are prevented from dealing with funds or economic resources in relation to anyone who is subject to an asset freeze. This is known as a ‘UK Nexus’. Such a nexus might be created by such things as a UK company working overseas, transactions using clearing services in the UK, actions by a local subsidiary of a UK company (depending on their governance structures), action taking place overseas but directed from within the UK, or financial products or insurance bought on UK markets but held or used overseas. These examples are not exhaustive or definitive. Whether there is a UK nexus or not depends on the facts of each particular case. This is a longstanding approach to the extent of our sanctions, and one which is in keeping with that of many of our international partners, including the EU.