UK says new law will crack down on hostile states' proxies from next month - Headlines news and analysis from Global Banking & Finance Review
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UK says new law will crack down on hostile states' proxies from next month

Published by Global Banking & Finance Review

Posted on June 9, 2026

3 min read

· Last updated: June 9, 2026

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UK Introduces Law to Tackle Hostile State Proxies Amid Rising Threats

Britain's Legislative Response to State-Linked Threats

Background and Purpose of the New Law

LONDON, June 9 (Reuters) - Britain said on Tuesday that a law to crack down on proxies acting for states deemed to be hostile such as Iran was expected to come into force next month, as it steps up powers to counter what it says is a growing threat posed by such groups.

The new powers, promised in the wake of a spate of antisemitic attacks in London, seek to close a gap in legislation to target state-linked organisations paying organised crime groups or low-level felons to carry out surveillance, sabotage, or other activities on their behalf.

Recent Incidents and Investigations

In recent months there have been numerous arson attacks on Jewish sites, with police saying they were investigating possible Iranian links, while there have been convictions for people accused of spying or acting on behalf of Russian and Chinese organisations.

Government and Intelligence Agency Statements

"Where foreign states are found to be engaging in activity that threatens lives or undermines our democratic institutions, we must ensure that such actions have consequences," Prime Minister Keir Starmer said in a statement. "We will not tolerate hostile actors paying petty criminals to do their dirty work."

Britain's domestic intelligence agency MI5 has warned of state-threat investigations increasing by 35% last year, including 20 potentially lethal Iranian-backed plots.

Britain has accused China and Russia, as well as Iran, of using proxies. All three dismiss the claims as propaganda.

Details and Implications of the Legislation

The legislation would make it illegal to express support for designated proxies or to take money from them, providing for jail terms of up to 14 years.

International and Legal Context

Last week, an Iraqi national denied involvement in multiple attacks against American and Israeli interests in Europe, including some of the recent attacks in Britain, during a U.S. court appearance.

He is accused of directing people to carry out attacks in the name of Harakat Ashab al-Yamin al-Islamiya (HAYI), a component of an Iran-backed militia which ​the U.S. considers a terrorist organization directed by Iran's Islamic ⁠Revolutionary Guard Corps (IRGC).

Many British lawmakers have called for the banning of the IRGC but there was no indication of whether it would be included under the new legislation, with about 10 or fewer designations expected in the first year after it has become law.

(Reporting by Michael Holden; Editing by Aidan Lewis)

Key Takeaways

  • New law criminalizes backing designated proxy groups acting for hostile foreign states; maximum penalty: 14 years in prison
  • MI5 reported a 35% increase in ‘state threat activity’ investigations over the past year, including 20 potentially lethal Iran-linked plots
  • The legislation fills a legal void by targeting low-level operatives paid by hostile states for sabotage, surveillance or antisemitic attacks

Frequently Asked Questions

What is the new UK law targeting hostile state proxies about?
The new UK law aims to crack down on proxies acting for hostile states such as Iran, making it illegal to support or take money from designated proxies, with potential jail terms of up to 14 years.
Why is the UK introducing this legislation now?
The law is being introduced following a rise in antisemitic attacks and concerns about organised crime groups or low-level felons being paid by hostile state actors to carry out surveillance, sabotage, or attacks.
Which countries are named as using proxies in the new UK law?
The UK has accused China, Russia, and Iran of using proxies to undermine British security and institutions.
What actions will be illegal under the new UK hostile state proxies law?
It will be illegal to express support for designated proxies or accept money from such groups, with consequences including up to 14 years in prison.
Is the IRGC included in the UK's new list of designated hostile proxies?
Although many lawmakers want the IRGC banned, the article states there is no confirmation whether the group will be designated under the new law, with only a small number of designations expected initially.

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