Legal authority
Counter-Terrorism Act 2008 Schedule 7 (UK)
Schedule 7 to the Counter-Terrorism Act 2008 authorises United Kingdom Treasury directions imposing specified financial restrictions in response to money-laundering, terrorist-financing or proliferation-financing risks. It is not the unrelated port and border examination power in Schedule 7 to the Terrorism Act 2000.
Operation
A direction may require enhanced due diligence, ongoing monitoring, systematic reporting, transaction limits or cessation of business with a named country, government, person or class. The statutory trigger, target class and selected requirement must be identified. A Treasury order expires after one year unless replaced, and the regime includes licensing and parliamentary controls.
The mechanism resembles the targeted financial access logic of USA PATRIOT Act Section 311 (2001), but the authorities and procedures differ. It can contribute to Financial exclusion by directing regulated institutions rather than directly adjudicating misconduct by the foreign target.
Bank Mellat
The Financial Restrictions (Iran) Order 2009 directed United Kingdom financial institutions to cease business with Bank Mellat and specified Iranian shipping interests. The Supreme Court later quashed the Bank Mellat direction on legality and proportionality grounds, as covered in Bank Mellat v HM Treasury (UK Supreme Court, 2013). The order's use belongs to the historical international pressure campaign against Iran.
As at 30 July 2026, the revised schedule remains in force. That does not establish frequent current use. Each claimed direction requires its own order, duration, licence position and review history.
Proportionality, reasons and procedural fairness remain relevant to review. A direction's statutory availability does not establish that its application to a particular bank or transaction is lawful.
Sources
Recommended citation
Cite this entry
Tennant, James J., ed. 'Counter-Terrorism Act 2008 Schedule 7 (UK).' The Encyclopedia of Economic Statecraft, version 2.0, last reviewed 30 July 2026. https://jamesjtennant.com/entries/counter-terrorism-act-2008-schedule-7-uk/.
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