keep Rules for interpretation of regulation 7(2)
The Global Human Rights Sanctions Regulations 2020 establish a framework for designating and imposing asset freezes, director disqualification sanctions, and immigration restrictions on individuals involved in serious human rights violations (including torture, slavery, and extrajudicial killing) wherever committed. The regulations enable the Secretary of State to designate persons under standard or urgent procedures, require Treasury licences for activities involving frozen funds/economic resources, and include exceptions for certain required payments and legitimate business activities.
These targeted sanctions against individual human rights violators (torturers, human traffickers, perpetrators of extrajudicial killings) serve essential purposes that cannot be achieved through market mechanisms alone. Deletion would: (1) remove accountability mechanisms for serious human rights abusers operating globally; (2) eliminate the deterrent effect on future violators; (3) sever coordination with allied nations (US, EU, Australia, Canada) who have corresponding sanctions, creating enforcement gaps; (4) strip UK authorities of tools to restrict assets of those responsible for torture and modern slavery. Unlike broad economic regulations that distort market incentives, these are narrow, targeted measures focused on identifying and sanctioning specific bad actors. The compliance burden falls on financial institutions processing transactions involving designated persons, which is a proportionate cost relative to the objective of deterring torture, slavery, and extrajudicial execution.