Definition of “UK Person” under UK Sanctions Legislation includes British National Overseas Citizens

It is an established principle that UK sanctions will apply to UK persons. However, the drafting of UK sanctions legislation means that individuals abroad may also come within the definition of UK persons.

Section 21(1) of the Sanctions and Anti-Money Laundering Act 2018 (“SAMLA”) states that UK sanctions will apply to:

•  conduct in the UK or in the territorial sea by any person and
•  conduct elsewhere, but only if the conduct is by a UK person.

Section 21(2) of SAMLA defines a UK person as a UK national, which is then defined by section 21(3) of SAMLA as an individual who is: 

• a British citizen, a British Overseas Territories citizen, a British National (Overseas) or a British Overseas citizen,
• a person who under the British Nationality Act 1981 is a British subject, or
• a British protected person within the meaning of that Act.

Therefore, British National Overseas (“BNO”) passport holders will certainly fall within the definition of UK person and therefore will be required to comply with UK sanctions laws. However, the UK Government, during a webinar on UK sanctions relating to Russia, went even further and confirmed that if an individual no longer holds a BNO passport but ha registered for BNO status will still be required to comply with UK sanctions laws. Therefore, individuals who have simply registered for BNO status will fall within the definition of UK person and will be required to comply with UK sanctions laws.

This development and confirmation from UK Government will have a significant impact particularly on residents in Hong Kong who have registered for BNO status.  We understand that following the introduction of the national security legislation by the Chinese Government in 2020 there was a significant uptake in the number of Hong Kong residents registering for BNO status. At follows that such individuals will be required to comply with UK sanctions laws, despite not holding a BNO passport and residing outside of the UK.

Next Steps

If you would like to understand what impact this may have for your business and your employees, please get in touch with a member of our team.

Authored by Aline Doussin, Simi Malhi.