The UK’s position on post-Brexit sanctions is unclear,
fragmented, incoherent and risks national security, says a new
report from the Foreign Affairs Committee.
As a key tool for national security, the centrality of sanctions
to the UK’s foreign policy, national security and the rules-based
international system cannot be overstated. Since most UK economic
and financial sanctions are agreed and implemented by the EU,
Brexit will bring about a seismic shift in how the Government
approaches this essential policy area.
However, three years after the Referendum, MPs were deeply
concerned that little high-level thought appears to have gone
into considering the future of UK sanctions policy. Written and
oral evidence to the Committee revealed an unclear, muddled
position on key issues such as UK’s power to adopt and implement
Magnitsky sanctions while still an EU member and during any
potential post-Brexit implementation period. Nor was it evident
that the FCO had given any strategic thought to where the UK may
want to continue aligning with the EU and other allies, and where
the UK might want to diverge by setting sanctions of its own.
The report also makes clear that Government departments are not
joined up enough in their approach to sanctions. This is
particularly disheartening following the Committee’s
2018 Moscow’s Gold report, and the importance
of London to the international financial system. Rather than
saying that financial crime is ‘not quite’ the Foreign Office’s
‘patch,’ the FCO should step up to its responsibility to crack
down on the laundering of dirty money and keep the UK and its
allies safe.
The Committee believes the time is right for a major review of
the Government’s approach to sanctions at every stage: overall
strategic goals, policy planning and formation, implementation
and enforcement. Government must set out a clear-eyed
position on sanctions or risk sending all the wrong signals.
Chair of the Committee, MP said:
“As we prepare to leave the EU, the UK must have the best tools
at our disposal. A robust, effective and coherent sanctions
policy is essential.
“We hoped to find that the FCO was well-prepared in this area,
with a strong sense of its goals and strategic priorities. Given
how serious this issue is, we really wanted to find evidence of
strong partnerships across Government departments. We are deeply
concerned that the evidence tells a different story. The UK has
been a champion of the rules-based international system, leading
the way, but the Government’s lack of clarity risks our
reputation and our national security.
“The UK cannot afford the risk that its sanctions policy is
dictated by others. We must be ready to take responsibility for
designing, implementing and enforcing our own sanctions. We urge
the Government to act on the recommendations we’ve set out in the
report and seize the opportunity to become a global leader in
sanctions policy.”
In particular, the Report:
- Calls on the National
Security Council (NSC)to begin an urgent review of UK sanctions
policy with internal and external stakeholders, to report to
Parliament by end of 2019.
- Urges Government to
appoint a Senior Responsible Officer for sanctions policy across
Government departments, who will be personally accountable to the
NSC.
- Calls on the FCO to
publish set out its position on Magnitsky sanctions before the
end of June 2019.
- Supports the Treasury
Select Committee’s recent call on Government to complete and
publish a review of the Office of Financial Sanctions
Implementation before the end of 2019.
