Guidance

Global anti-corruption sanctions: information note for non-government organisations

Published 26 April 2021

1. Introduction

The Global Anti-Corruption (GAC) sanctions regime was established on 26 April 2021 via The Global Anti-Corruption Sanctions Regulations 2021. The primary legislation underpinning the Regulations is the Sanctions and Anti-Money Laundering Act 2018.

The GAC sanctions regime allows the UK government to impose sanctions in response to serious corruption around the world. The regime is not intended to target individual countries, but individuals or organisations involved in serious corruption.

The measures which can be imposed under the GAC sanctions regime are travel bans and asset freezes.

This note provides further information about the GAC sanctions regime, including its purpose and scope, and the information required in considering designations. Its aim is to support understanding of the regime for those who may wish to submit information to the FCDO concerning specific designations.

The UK has a range of autonomous sanctions regimes, each with a different purpose and a different geographical or thematic scope. Anyone considering sending information to the FCDO concerning possible designations should consider which sanctions regime is most relevant.

2. Purpose and scope of the Global Anti-Corruption sanctions regime

The purpose of the GAC sanctions regime is to prevent and combat serious corruption. Under this regime, corruption means bribery or misappropriation of property.

Bribery as defined in the Regulations includes both giving a financial or other advantage to a foreign public official and a foreign public official receiving a financial or other advantage. A full definition of bribery is set out in the Regulations.

Misappropriation of property occurs where a foreign public official improperly diverts or allocates property entrusted to them in their official role. This may be intended to benefit them or a third person. Property can include anything of value, including contracts or licenses or concessions. The full definition is set out in the Regulations.

3. Who can be designated

The GAC sanctions regime can be used to designate persons who are “involved” in the activities mentioned above. An involved person could potentially be an individual, a corporation or an organisation. The Regulations set out that a person is an “involved person” if the person:

• is responsible for or engages in serious corruption that falls within the scope of the Global Anti-Corruption sanctions regime
• facilitates or provides support for such conduct
• profits financially or obtains any other benefit from such conduct
• conceals or disguises, or facilitates the concealment or disguise of, such conduct or any profit or proceeds from such conduct
• transfers or converts, or facilitates the transfer or conversion of, any profit or proceeds from such conduct
• is responsible for the investigation or prosecution of such conduct and intentionally or recklessly fails to fulfil that responsibility
• uses threats, intimidation or physical force to interfere in, or otherwise interferes in, any law enforcement or judicial process in connection with such conduct
• contravenes, or assists with the contravention of, certain provisions in the Regulations

Under the Regulations, a person is also an “involved person” if the person:

• is owned or controlled by a person who has been involved as above
• acts on behalf of or at the direction of such a person
• is a member of, or associated with, such a person

Decisions about designations will be taken on a case-by-case basis. The Government has published a policy note on factors that it is likely to take into account in considering whether someone should be designated under the sanctions regime.

4. Legal tests

The Regulations contain two tests that must be met before a person can be designated:

1. That there are “reasonable grounds to suspect” that the person is an “involved person” (i.e. connected to the activity in one of the ways set out above).

2. That designating that person would be appropriate with regards to the sanctions regime’s purposes and the likely significant effects on that person of designating them.

5. Information checklist

In considering designations, the following information is required:

5.1 What is the activity that justifies the application of sanctions?

Identification of activity that constitutes serious corruption under the Regulations.

5.2 Who is the person?

For example, name (including any aliases), title and other identifying information.

5.3 How, and to what extent, is the person involved in the activity?

In what way(s) is the person an “involved person” under the Regulations (as set out above)? For example, was the person directly responsible for, or engaged in, the serious corruption, or did they facilitate or support it, or conceal evidence of it?

Each of these elements must be sufficiently evidenced in order to demonstrate that there are “reasonable grounds to suspect” that the person is an “involved person”.

6. Contact

This information note is to provide background information on the Global Anti-Corruption sanctions regime.

If any person or organisation nevertheless wishes to submit information to the FCDO concerning possible designations under the GAC sanctions regime they may do so to Fcdo.correspondence@fcdo.gov.uk.

Please ensure that any information provided is accurate, necessary and proportionate. All reasonable steps should be taken to ensure that the information is verified or verifiable and from a trusted source, and only information relevant to the proposed designation should be provided.

Confidential information: Any information provided in the expectation that it will be treated as confidential must be marked clearly as such. However, please note that all information provided to the FCDO is subject to UK legislation. This means there may be circumstances where we nevertheless have to release information under, for example, data protection or freedom of information regimes or in the context of litigation. Therefore, please carefully consider what information is provided and any risks if that information were to be disclosed.

The FCDO will be unable to provide comments, updates or feedback on proposed designations, evidence or other information that has been submitted.