Commentary on Sections and Schedules Part 1 – Terrorist Asset-Freezing Final designations Section 2 – Treasury’s power to make final designation
14.There are two designation powers in Part 1 of the Act. In addition to the power in this section to make a final designation for the purposes of Part 1 of the Act, there is a power in section 6 to make an interim designation. Interim designations are based on ‘reasonable suspicion’ rather than ‘reasonable belief’. Interim designations may last up to 30 days, while final designations expire one year after being made unless renewed. There is no requirement to make an interim designation prior to a final designation.
15.In relation to final designations, subsection (1) of section 2 provides that the Treasury may only make a designation if the requirements of paragraphs (a) and (b) are met. Under paragraph (a) the Treasury must reasonably believe that the person is or has been involved in terrorist activity (or is owned or controlled directly or indirectly by, or is acting on behalf or at the direction of, such a person). Under paragraph (b) the Treasury can only designate such a person if they consider that it is necessary for the purpose of protecting members of the public from terrorism that financial restrictions should be applied in relation to the person.
16.Subsections (2) and (3) define “involvement in terrorist activity”.
17.Subsection (4) defines “terrorism” for the purposes of section 2 of the Act by reference to the definition contained in section 1(1) to (4) of the Terrorism Act 2000.