asked Her Majesty's Government:

When the regulatory impact assessment for the Terrorism (United Nations Measures) Order 2006 (SI 2006/2657) was signed by a Minister from HM Treasury; and [HL221]

What is their estimate of the costs for businesses of compliance with the Terrorism (United Nations Measures) Order 2006 (SI 2006/2657), and the assumptions on which their costs estimates are based; and [HL222]

Whether they will quantify the amount by which the benefits of the Terrorism (United Nations Measures) Order 2006 (SI 2006/2657) exceed its costs, which forms the basis of the Minister's declaration in the regulatory impact assessment. [HL223]

The Economic Secretary to the Treasury signed the regulatory impact assessment for the Terrorism (United Nations Measures) Order 2006 on 3 October 2006.

Alongside other counter-terrorist tools, financial sanctions play an important role in helping to prevent and disrupt terrorist attacks and member states are obliged by United Nations Security Council resolutions and directly applicable EC regulations to freeze the assets of suspected terrorists and al-Qaeda associates without delay. Businesses are already under an obligation to comply with these requirements. It is on this basis that Treasury Ministers have judged that the benefits of the Terrorism (United Nations Measures) Order 2006 outweigh the costs.

The regulatory impact assessment sets out that the impact of the Terrorism (United Nations Measures) Order 2006 on compliance costs is minimal because financial institutions already have to check whether they hold funds in the name of designated persons. None the less, the Government are mindful that compliance costs do arise from financial sanctions and they seek to reduce these as far as possible by ensuring that financial sanctions are well targeted and based on good identifying information. The Treasury will shortly be publishing data on the administration costs associated with financial sanctions in the UK.