UK to Crack Down on Hostile State Proxies with New Law Effective Next Month

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Key Takeaways

  • The UK government plans to enact a law next month that criminalises providing support to, or receiving funds from, state‑linked proxy groups deemed hostile, such as those allegedly backed by Iran, Russia, and China.
  • Offences will include expressing support for designated proxies or accepting money from them, punishable by up to 14 years imprisonment.
  • The legislation aims to close a legal gap that allowed foreign states to use organised‑crime gangs or low‑level offenders to conduct surveillance, sabotage, or other harmful activities on British soil.
  • Prime Minister Keir Starmer emphasized that the state will not tolerate hostile actors paying “petty criminals” to do their dirty work, citing a rise in antisemitic attacks and alleged Iranian‑backed plots.
  • MI5 reports a 35 % increase in state‑threat investigations last year, including 20 potentially lethal Iranian‑backed schemes.
  • While Britain has accused China, Russia, and Iran of using proxies, all three deny the allegations, calling them propaganda.
  • An Iraqi national recently denied involvement in a series of attacks on American and Israeli interests in Europe, including recent arson attacks on Jewish sites in the UK, during a U.S. court hearing; he is accused of directing attacks for an Iran‑aligned militia.
  • British lawmakers have urged the banning of Iran’s Islamic Revolutionary Guard Corps (IRGC), but it remains unclear whether the IRGC will be covered by the new law; officials expect only about ten designations in the first year after enactment.

Background and Announcement
On Tuesday, June 9, the British government announced that a new law targeting proxies acting for hostile states is expected to come into force next month. The move follows a series of antisemitic incidents in London and growing concerns that foreign powers are exploiting criminal networks to undermine UK security. The legislation forms part of a broader strategy to strengthen the country’s defences against covert influence operations that threaten lives and democratic institutions.

Purpose of the New Legislation
The primary aim of the forthcoming statute is to close a legislative loophole that has allowed foreign states to funnel money to organised‑crime groups or low‑level offenders to carry out surveillance, sabotage, intimidation, or other disruptive activities on behalf of those states. By criminalising both the provision of support to, and the receipt of funds from, designated proxy organisations, the government hopes to deter state‑backed malign activity and hold perpetrators accountable.

Details of the Proposed Measures
Under the new law, it will become illegal to express support for any organisation designated as a hostile state proxy, or to accept financial or material assistance from such groups. Violations could lead to custodial sentences of up to 14 years. The legislation will also empower authorities to seize assets linked to proxy operations and to prosecute individuals who facilitate or finance attacks, even if they are not directly employed by the foreign state in question.

Government Statements and Rationale
Prime Minister Keir Starmer stressed that the UK will not tolerate hostile actors using petty criminals as proxies to do their “dirty work.” He linked the law to a rise in antisemitic attacks and warned that any activity threatening lives or undermining democratic institutions must face consequences. Starmer’s remarks underscore the government’s framing of the measure as a necessary response to an evolving threat landscape that blends traditional espionage with criminal‑enterprise tactics.

Intelligence Assessments and Threat Landscape
Britain’s domestic intelligence service, MI5, reported a 35 % increase in state‑threat investigations over the past year, highlighting 20 potentially lethal plots believed to be backed by Iran. The agency’s warnings reflect a pattern in which hostile states employ deniable actors—often linked to organised crime—to conduct arson, vandalism, espionage, and other forms of coercion while preserving plausible deniability.

International Context: Accusations Against China, Russia, and Iran
The UK has publicly accused China, Russia, and Iran of using proxy networks to advance their strategic interests. All three nations reject these claims, characterising them as propaganda designed to justify Western hostility. Despite the denials, British officials cite concrete evidence—such as financial trails, communications intercepts, and convicted individuals—to support their assertions about state‑sponsored proxy activity.

Legal Proceedings and Example Case
The announcement coincided with a U.S. court appearance by an Iraqi national who denied involvement in multiple attacks against American and Israeli interests in Europe, including recent arson attacks on Jewish sites in Britain. Prosecutors allege he directed operatives to act in the name of Harakat Ashab al‑Yamin al‑Islamiya (HAYI), an Iran‑backed militia considered a terrorist organisation by the United States and linked to Iran’s Islamic Revolutionary Guard Corps (IRGC). The case illustrates the transnational reach of proxy operations and the challenges of attributing responsibility.

Political Reactions and Future Outlook
Many British lawmakers have called for the banning of Iran’s IRGC, though it remains uncertain whether the organisation will be included under the new proxy legislation. Officials indicated that only about ten or fewer designations are expected in the first year after the law takes effect. As the UK prepares to implement the measure, observers will watch closely to see how effectively it disrupts proxy networks, whether it withstands legal challenges, and whether it prompts similar legislative responses in other allied nations.

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