UK’s First Domestic Terror Sanctions on Sikh Businessman

The UK government has invoked its new Domestic Counter-Terrorism Regime for the first time, targeting British Sikh businessman Gurpreet Singh Rehal and associated entities. The move aims to restrict suspected terror financing channels linked to pro-Khalistan groups and reinforce safeguards within the UK’s financial system.

Sanctions Imposed Under New Regime

Rehal has been subjected to an asset freeze and director disqualification. Authorities believe he has supported organisations allegedly involved in promoting, recruiting for and financing activities of Babbar Khalsa and Babbar Akali Lehar. The restrictions bar individuals and entities in the UK from dealing with any assets linked to him or providing related financial services.

UK Treasury’s Assessment and Rationale

The Treasury stated that intelligence indicates Rehal’s involvement in activities connected to militant operations, including facilitating financial services and procurement of equipment. These measures align with the government’s broader strategy to prevent abuse of the UK’s financial infrastructure. Officials emphasised that the action demonstrates a firm stance against groups involved in violence.

Coverage of Linked Organisations

The sanctions extend to organisations associated with Rehal, including Saving Punjab, Whitehawk Consultations Ltd and the unincorporated Loha Designs group. All are now restricted from accessing funds or conducting financial transactions without formal authorisation. Babbar Khalsa remains a proscribed terrorist organisation in the UK, while Babbar Akali Lehar is classified as an “involved person” under relevant regulations.

Exam Oriented Facts

• The action is the UK’s first use of its Domestic Counter-Terrorism Sanctions Regime.
• Sanctions include asset freezes, financial prohibitions and director disqualification.
• Babbar Khalsa is listed as a proscribed terrorist organisation in the UK.
• Breaching sanctions can lead to imprisonment of up to seven years or significant civil fines.

Legal Basis and Enforcement Provisions

The measures fall under the Counter-Terrorism (Sanctions) (EU Exit) Regulations 2019, which empower the Treasury to impose restrictions on individuals suspected of involvement in terrorism. Enforcement relies on coordination between financial regulators and law enforcement agencies to prevent terror financing and protect affected communities.