The Compulsory Electronic Monitoring Licence Condition (Amendment) Order 2026

The explanatory note states that the instrument is intended to clarify the scope of the prohibition on the processing of payments in regulation 17A of the 2019 Regulations.

The document implies that the amendment ensures the prohibition on processing payments applies specifically to payments received by a relevant financial institution for or on behalf of a person, or for the benefit of a person, where that person is a designated person as defined by the regulations.

Proponents may argue that the regulation provides a more precise legal framework for financial institutions to comply with UK sanctions regimes following the United Kingdom's withdrawal from the European Union.

Legal scholars might question the clarity of the phrase "for the benefit of a person," as the regulations do not provide an exhaustive list of what constitutes a benefit, potentially leaving financial institutions to make subjective determinations.

Financial institutions may identify implementation difficulties regarding the monitoring of complex transaction chains to identify whether a non-designated intermediary is receiving funds that ultimately benefit a designated person.

Critics of the broader sanctions regime might argue that frequent amendments to statutory instruments create a complex regulatory environment that increases compliance costs for the banking sector.