uksi/2019/438 — The South Sudan (Sanctions) (EU Exit) Regulations 2019

2019 No. 438 Exiting The European Union Sanctions The South Sudan (Sanctions) (EU Exit) Regulations 2019 Made 4th March 2019 Laid before Parliament 6th March 2019 Coming into force in accordance with regulation 1(2) The Secretary of State , in exercise of the powers conferred by sections 1(1)(a) and (c) and (3), 3(1)(a), (b)(ii), (d)(i) and (ii), 4, 5, 9(2)(a), 10(2)(a) and (c), (3) and (4), 11(2) to (9), 13, 15(2)(a) and (b), (3), (4)(b), (5) and (6), 16, 17(2) to (9), 19, 20, 21(1), 54(1) and (2)(a), 56(1) and 62(4) to (6) of, and paragraphs 2(b), 4(b), 5(a)(ii) and (b), 6(a)(ii) and (b), 10(b), 11(a)(ii), 13(b), (h), (k), (l), (m), (n) and (w), 14(a), (f) and (k), 17(a), 19(a), 20, 21 and 27 of Schedule 1 to, the Sanctions and Anti-Money Laundering Act 2018 , and having decided, upon consideration of the matters set out in section 2(2) and 56(1) of that Act, that it is appropriate to do so, makes the following Regulations: PART 1 General Citation and commencement 1 1 These Regulations may be cited as the South Sudan (Sanctions) (EU Exit) Regulations 2019. 2 These Regulations come into force in accordance with regulations made by the Secretary of State under section 56 of the Act. Interpretation 2 In these Regulations— “ the Act ” means the Sanctions and Anti-Money Laundering Act 2018; “ ARCSS ” means the Agreement on the Resolution of the Conflict in the Republic of South Sudan done at Addis Ababa on 17 August 2015 ; “ arrangement ” includes any agreement, understanding, scheme, transaction or series of transactions, whether or not legally enforceable (but see paragraph 12 of Schedule 1 for the meaning of that term in that Schedule); “ CEMA ” means the Customs and Excise Management Act 1979 ; “ the Commissioners ” means the Commissioners for Her Majesty's Revenue and Customs; “ the Committee ” means the Committee of the Security Council established in accordance with paragraph 16 of resolution 2206; “ conduct ” includes acts and omissions; “ director disqualification licence ” means a licence under regulation 33A; “ document ” includes information recorded in any form and, in relation to information recorded otherwise than in legible form, references to its production include producing a copy of the information in legible form; “ the EU South Sudan Regulation ” means Council Regulation (EU) No 2015/735 of 7 May 2015, concerning restrictive measures in respect of the situation in South Sudan, and repealing Regulation (EU) No 748/2014 , as it has effect in EU law; “ resolution 2206 ” means resolution 2206 (2015) adopted by the Security Council on 3 March 2015; “ resolution 2290 ” means resolution 2290 (2016) adopted by the Security Council on 31 May 2016; “ resolution 2428 ” means resolution 2428 (2018) adopted by the Security Council on 13 July 2018; “ R-ARCSS ” means the Revitalised Agreement on the Resolution of the Conflict in the Republic of South Sudan done at Addis Ababa on 12 September 2018 ; “ serious human rights violation or abuse ” means a serious violation or abuse of any of the human rights specified in regulation 4(2)(f); “ trade licence ” means a licence under regulation 34; “ Treasury licence ” means a licence under regulation 33(1); “ United Kingdom person ” has the same meaning as in section 21 of the Act. Application of prohibitions and requirements outside the United Kingdom 3 1 A United Kingdom person may contravene a relevant prohibition by conduct wholly or partly outside the United Kingdom. 2 Any person may contravene a relevant prohibition by conduct in the territorial sea. 3 In this regulation a “ relevant prohibition ” means any prohibition imposed by— a regulation 9(2) (confidential information), b Part 3 (Finance), c Part 5 (Trade), or d a condition of a Treasury licence or a trade licence. 4 A United Kingdom person may comply, or fail to comply, with a relevant requirement by conduct wholly or partly outside the United Kingdom. 5 Any person may comply, or fail to comply, with a relevant requirement by conduct in the territorial sea. 6 In this regulation, a “ relevant requirement ” means any requirement imposed— a by or under Part 7 (Information and records), or by reason of a request made under a power conferred by that Part, or b by a condition of a Treasury licence or a trade licence. 7 Nothing in this regulation is to be taken to prevent a relevant prohibition or a relevant requirement from applying to conduct (by any person) in the United Kingdom. Purposes 4 1 The regulations contained in this instrument that are made under section 1 of the Act have the following purposes— a compliance with the relevant UN obligations, and b the additional purposes mentioned in paragraph (2). 2 Those additional purposes are— a promoting the peace, stability and security of South Sudan, b encouraging the resolution of the political crisis and armed conflicts in South Sudan, including the implementation of the ARCSS and R-ARCSS, c promoting the effective delivery of the mandates of the regional or international monitoring and peace-support missions and mechanisms in South Sudan, including— i the Ceasefire Transitional Security Arrangements Monitoring and Verification Mechanism , ii the Revitalised Joint Monitoring and Evaluation Commission , and iii the United Nations Mission in South Sudan , d promoting respect for humanitarian assistance activities in South Sudan, e promoting compliance with the rules of international humanitarian law applicable to the armed conflicts in South Sudan, and f promoting respect for human rights in South Sudan, including, in particular, respect for— i the right to life of persons in South Sudan; ii the right of persons in South Sudan not to be held in slavery or required to perform forced or compulsory labour; iii the right of persons not to be subjected to torture or cruel, inhuman or degrading treatment or punishment in South Sudan, including in the context of— aa violence against persons on the basis of their ethnicity, bb rape and other forms of sexual and gender-based violence, or cc recruitment or use of children as soldiers; iv the right to liberty and security of persons in South Sudan, including freedom from arbitrary arrest, detention or enforced disappearance, v the right to a fair trial of persons charged with criminal offences in South Sudan; vi the rights of journalists, human rights defenders, civil society activists and other persons in South Sudan to freedom of expression and peaceful assembly; vii the enjoyment of rights and freedoms in South Sudan without discrimination, including on the basis of a person's sex, race, colour, language, religion, political or other opinion, national or social origin, association with a national minority, property, birth or other status, otherwise than by compliance with the relevant UN obligations. 3 In this regulation, “ the relevant UN obligations ” means— a the obligations that the United Kingdom has by virtue of paragraph 12 of resolution 2206 (asset-freeze) to take the measures required by that provision in respect of persons for the time being named for the purposes of that provision by the Security Council or the Committee; b the obligations that the United Kingdom has by virtue of paragraph 12 of resolution 2206 (asset-freeze) in respect of persons— i acting on behalf of or at the direction of, or ii owned or controlled by, the persons for the time being named by the Security Council or the Committee for the purposes of paragraph 12 of resolution 2206; c the obligations that the United Kingdom has by virtue of paragraph 4 of resolution 2428 (arms embargo). 4 In this regulation, any reference to the obligations that the United Kingdom has by virtue of paragraph 12 of resolution 2206 (asset-freeze) is to that provision read with— a paragraphs 6 to 8 of resolution 2206; b paragraphs 8 to 10 of resolution 2290; c paragraphs 13 to 17 of resolution 2428. PART 2 Designation of persons Power to designate persons 5 1 The Secretary of State may designate persons by name in accordance with regulation 5A (conditions for the designation of persons by name) for the purposes of any of the following— a regulations 12 to 16 (Finance); ... aa regulation 17A (Director disqualification sanctions); b regulation 18 (Immigration). 2 The Secretary of State may designate different persons for the purposes of different provisions mentioned in paragraph (1). Conditions for the designation of persons by name 5A 1 The Secretary of State may choose to designate a person under regulation 5 (power to designate persons) under— a the standard procedure, or b the urgent procedure. 2 Paragraph (3) applies where the Secretary of State chooses to designate a person under regulation 5 under the standard procedure. 3 The Secretary of State may not designate a person except where condition A is met. 4 Condition A is that the Secretary of State has reasonable grounds to suspect that that person is an involved person. 5 Paragraphs (6) to (8) apply where the Secretary of State chooses to designate a person under regulation 5 under the urgent procedure. 6 The Secretary of State may designate a person where condition A is not met, but conditions B and C are met. 7 The person ceases to be a designated person at the end of the period of 56 days beginning with the day following the day on which the person became a designated person unless, within that period, the Secretary of State certifies that— a condition A is met, or b conditions B and C continue to be met. 8 Where the Secretary of State makes a certification under paragraph (7)(b), the designation ceases to have effect at the end of the period of 56 days beginning with the day immediately following the period mentioned in paragraph (7), unless within that period the Secretary of State certifies that condition A is met. 9 Condition B is that relevant provision (whenever made) applies to, or in relation to, the person under the law of— a the United States of America; b the European Union; c Australia; d Canada. 10 Condition C is that the Secretary of State considers that it is in the public interest to make designations under the urgent procedure. 11 For the purposes of condition B, “relevant provision” is provision that the Secretary of State considers— a corresponds, or is similar, to the type of sanction or sanctions in these Regulations, or b is made for purposes corresponding, or similar, to any purpose of any type of sanction or sanctions in these Regulations. 12 In this regulation, “ involved person ” has the meaning given in regulation 6 (designation criteria: meaning of “involved person”). Designation criteria: meaning of “involved person” 6 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 For the purposes of regulation 5A (conditions for the designation of persons) an “ involved person ” means a person who— a is or has been involved in a relevant activity, b is owned or controlled directly or indirectly (within the meaning of regulation 7) by a person who is or has been so involved, c is acting on behalf of or at the direction of a person who is or has been so involved, or d is a member of, or associated with, a person who is or has been so involved. 3 In this regulation a “ relevant activity ” means— a the commission of a serious human rights violation or abuse in South Sudan; b the commission of a violation of international humanitarian law in South Sudan; c a breach of the ARCSS or R-ARCSS; d an attack against, or obstruction of the activities of, diplomatic personnel in South Sudan or the regional or international monitoring and peace-support missions and mechanisms mentioned in paragraphs (i) to (iii) of regulation 4(2)(c); e obstruction of the delivery or distribution of, or access to, humanitarian assistance in South Sudan; f the misappropriation of South Sudanese state funds, or taking action that may lead to such misappropriation; g the illicit exploitation of oil or any other natural resource in South Sudan; h any other action, policy or activity which threatens the peace, stability and security of South Sudan or undermines efforts to resolve the political crisis and armed conflicts in South Sudan. 4 Any reference in this regulation to being involved in a relevant activity includes being so involved in whatever way, and wherever, any actions constituting the involvement take place, and in particular includes— a being responsible for, engaging in, providing support for, or promoting, any such activity; b providing financial services, or making available funds or economic resources, that could contribute to any such activity; c being involved in the supply to South Sudan of military goods or military technology or of material related to such goods or technology, or in providing financial services relating to such supply; d being involved in the supply to South Sudan of goods or technology which could contribute to any such activity, or in providing financial services relating to such supply; e being involved in assisting the contravention or circumvention of any relevant provision. 5 In this regulation “ relevant provision ” means— a any provision of Part 3 (Finance) or Part 5 (Trade); b any provision of the law of a country other than the United Kingdom made for purposes corresponding to a purpose of any provision of Part 3 (Finance) or Part 5 (Trade); c any provision of resolution 2206 or 2428. 6 Nothing in any sub-paragraph of paragraph (3) or (4) is to be taken to limit the meaning of any of the other sub-paragraphs of those paragraphs. 7 In this regulation, “military goods” and “military technology” have the meanings given by Part 5. Meaning of “owned or controlled directly or indirectly” 7 1 A person who is not an individual (“C”) is “owned or controlled directly or indirectly” by another person (“P”) if either of the following two conditions is met (or both are met). 2 The first condition is that P— a holds directly or indirectly more than 50% of the shares in C, b holds directly or indirectly more than 50% of the voting rights in C, or c holds the right directly or indirectly to appoint or remove a majority of the board of directors of C. 3 Schedule 1 contains provision applying for the purpose of interpreting paragraph (2). 4 The second condition is that it is reasonable, having regard to all the circumstances, to expect that P would (if P chose to) be able, in most cases or in significant respects, by whatever means and ... whether directly or indirectly, to achieve the result that affairs of C are conducted in accordance with P's wishes. Notification and publicity where designation power used 8 1 Paragraph (2) applies where the Secretary of State— a has made a designation under regulation 5, or b has by virtue of section 22 of the Act varied or revoked a designation made under that regulation. 2 The Secretary of State— a must without delay take such steps as are reasonably practicable to inform the designated person of the designation, variation or revocation, and b must take steps to publicise the designation, variation or revocation. 3 The information given under paragraph (2)(a)— a where the Secretary of State designates a person under the standard procedure, must include a statement of reasons; b where the Secretary of State designates a person under the urgent procedure, must include a statement— i that the designation is made under the urgent procedure, ii identifying the relevant provision by reference to which the Secretary of State considers that condition B is met in relation to the person, and iii setting out why the Secretary of State considers that condition C is met. 3A Where the Secretary of State designates a person under the urgent procedure, the Secretary of State must, after the end of the period mentioned in paragraph (7) of regulation 5A (conditions for the designation of persons by name) or, if the Secretary of State has made a certification under paragraph (7)(b) of that regulation, the period mentioned in paragraph (8) of that regulation, but otherwise without delay— a in a case where the person ceases to be a designated person, take such steps as are reasonably practicable to inform the person that they have ceased to be a designated person, or b in any other case, take such steps as are reasonably practicable to give the person a statement of reasons. 4 In this regulation, a “ statement of reasons ” means a brief statement of the matters that the Secretary of State knows, or has reasonable grounds to suspect, in relation to the person— a in the case of a designation under the standard procedure, which have led the Secretary of State to make the designation, and b in the case of a designation under the urgent procedure, as a result of which the person does not cease to be a designated person at the end of the period mentioned in regulation 5A(7) or (8) (as the case may be). 5 Matters that would otherwise be required by paragraph (4) to be included in a statement of reasons may be excluded from it where the Secretary of State considers that they should be excluded— a in the interests of national security or international relations, b for reasons connected with the prevention or detection of serious crime in the United Kingdom or elsewhere, or c in the interests of justice. 6 The steps taken under paragraph (2)(b) must— a unless one or more of the restricted publicity conditions is met, be steps to publicise generally— i the designation, variation or revocation, and ii in the case of a designation, the statement of reasons; b if one or more of those conditions is met, be steps to inform only such persons as the Secretary of State considers appropriate of the designation, variation or revocation and (in the case of a designation) of the contents of the statement of reasons. 7 The “restricted publicity conditions” are as follows— a the designation is of a person believed by the Secretary of State to be an individual under the age of 18; b the Secretary of State considers that disclosure of the designation, variation or revocation should be restricted— i in the interests of national security or international relations, ii for reasons connected with the prevention or detection of serious crime in the United Kingdom or elsewhere, or iii in the interests of justice. 8 Paragraph (9) applies if— a when a designation is made, one or more of the restricted publicity conditions is met, but b at any time when the designation has effect, it becomes the case that none of the restricted publicity conditions is met. 9 The Secretary of State must— a take such steps as are reasonably practicable to inform the designated person that none of the restricted publicity conditions is now met, and b take steps to publicise generally the designation and the statement of reasons relating to it. Confidential information in certain cases where designation power used 9 1 Where the Secretary of State in accordance with regulation 8(6)(b) informs only certain persons of a designation, variation or revocation and (in the case of a designation) of the contents of the statement of reasons, the Secretary of State may specify that any of that information is to be treated as confidential. 2 A person (“P”) who— a is provided with information that is to be treated as confidential in accordance with paragraph (1), or b otherwise obtains such information, must not, subject to paragraph (3), disclose it if P knows, or has reasonable cause to suspect, that the information is to be treated as confidential. 3 The prohibition in paragraph (2) does not apply to any disclosure made by P with lawful authority. 4 For this purpose information is disclosed with lawful authority only if and to the extent that— a the disclosure is by, or is authorised by, the Secretary of State, b the disclosure is by or with the consent of the person who is or was the subject of the designation, c the disclosure is necessary to give effect to a requirement imposed under or by virtue of these Regulations or any other enactment, or d the disclosure is required, under rules of court, tribunal rules or a court or tribunal order, for the purposes of legal proceedings of any description. 5 This regulation does not prevent the disclosure of information that is already, or has previously been, available to the public from other sources. 6 A person who contravenes the prohibition in paragraph (2) commits an offence. 7 The High Court (in Scotland, the Court of Session) may, on the application of— a the person who is the subject of the information, or b the Secretary of State, grant an injunction (in Scotland, an interdict) to prevent a breach of the prohibition in paragraph (2). 8 In paragraph (4)(c), “ enactment ” has the meaning given by section 54(6) of the Act. Designation of persons named by or under UN Security Council Resolutions 10 1 Each person for the time being named for the purposes of paragraph 12 of resolution 2206 by the Security Council or the Committee is a designated person for the purposes of regulations 12 to 16 (asset-freeze etc) (whose purposes include compliance with the UN obligations mentioned in regulation 4(3)(a) ). 2 Nothing in this regulation affects the power under regulation 5 to designate persons (in addition to those designated by this regulation) for the purposes of regulations 12 to 16. PART 3 Finance Meaning of “designated person” in Part 3 11 1 In this Part a “ designated person ” means— a a person who is designated under regulation 5 for the purposes of regulations 12 to 16 (asset-freeze etc), or b a person who is a designated person for the purposes of those regulations by reason of regulation 10. Asset-freeze in relation to designated persons 12 1 A person (“P”) must not deal with funds or economic resources owned, held or controlled by a designated person if P knows, or has reasonable cause to suspect, that P is dealing with such funds or economic resources. 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). 3 A person who contravenes the prohibition in paragraph (1) commits an offence. 4 For the purposes of paragraph (1), a person “deals with” funds if the person— a uses, alters, moves, transfers or allows access to the funds, b deals with the funds in any other way that would result in any change in volume, amount, location, ownership, possession, character or destination, or c makes any other change, including portfolio management, that would enable use of the funds. 5 For the purposes of paragraph (1), a person “deals with” economic resources if the person— a exchanges the economic resources for funds, goods or services, or b uses the economic resources in exchange for funds, goods or services (whether by pledging them as security or otherwise). 6 The reference in paragraph (1) to funds or economic resources that are “owned, held or controlled” by a person includes, in particular, a reference to— a funds or economic resources in which the person has any legal or equitable interest, regardless of whether the interest is held jointly with any other person and regardless of whether any other person holds an interest in the funds or economic resources; b any tangible property (other than real property), or bearer security, that is comprised in funds or economic resources and is in the possession of the person. 7 For the purposes of paragraph (1), funds or economic resources are to be treated as owned, held or controlled by a designated person if they are owned, held or controlled by a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person. 8 For the avoidance of doubt, the reference in paragraph (1) to a designated person includes P if P is a designated person. Making funds available to designated person 13 1 A person (“P”) must not make funds available directly or indirectly to a designated person if P knows, or has reasonable cause to suspect, that P is making the funds so available. 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). 3 A person who contravenes the prohibition in paragraph (1) commits an offence. 4 The reference in paragraph (1) to making funds available indirectly to a designated person includes, in particular, a reference to making them available to a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person. Making funds available for benefit of designated person 14 1 A person (“P”) must not make funds available to any person for the benefit of a designated person if P knows, or has reasonable cause to suspect, that P is making the funds so available. 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). 3 A person who contravenes the prohibition in paragraph (1) commits an offence. 3A The reference in paragraph (1) to making funds available to any person for the benefit of a designated person includes making funds available for the benefit of a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person (and references to designated person in paragraph (4) are to be read accordingly). 4 For the purposes of this regulation— a funds are made available for the benefit of a designated person only if that person thereby obtains, or is able to obtain, a significant financial benefit, and b “ financial benefit ” includes the discharge (or partial discharge) of a financial obligation for which the designated person is wholly or partly responsible. Making economic resources available to designated person 15 1 A person (“P”) must not make economic resources available directly or indirectly to a designated person if P knows, or has reasonable cause to suspect— a that P is making the economic resources so available, and b that the designated person would be likely to exchange the economic resources for, or use them in exchange for, funds, goods or services. 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). 3 A person who contravenes the prohibition in paragraph (1) commits an offence. 4 The reference in paragraph (1) to making economic resources available indirectly to a designated person includes, in particular, a reference to making them available to a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person. Making economic resources available for benefit of designated person 16 1 A person (“P”) must not make economic resources available to any person for the benefit of a designated person if P knows, or has reasonable cause to suspect, that P is making the economic resources so available. 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). 3 A person who contravenes the prohibition in paragraph (1) commits an offence. 3A The reference in paragraph (1) to making economic resources available to any person for the benefit of a designated person includes making economic resources available for the benefit of a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person (and references to designated person in paragraph (4) are to be read accordingly). 4 For the purposes of paragraph (1)— a economic resources are made available for the benefit of a designated person only if that person thereby obtains, or is able to obtain, a significant financial benefit, and b “ financial benefit ” includes the discharge (or partial discharge) of a financial obligation for which the designated person is wholly or partly responsible. Circumventing etc prohibitions 17 1 A person must not intentionally participate in activities knowing that the object or effect of them is, whether directly or indirectly— a to circumvent any of the prohibitions in regulations 12 to 16, or b to enable or facilitate the contravention of any such prohibition. 2 A person who contravenes a prohibition in paragraph (1) commits an offence. PART 3A Director disqualification sanctions Director disqualification sanctions 17A A person who is designated under regulation 5 (power to designate persons) for the purposes of this regulation is a person subject to director disqualification sanctions for the purposes of— a section 11A of the Company Directors Disqualification Act 1986, and b Article 15A of the Company Directors Disqualification (Northern Ireland) Order 2002. PART 4 Immigration Immigration 18 A person who is designated under regulation 5 for the purposes of this regulation is an excluded person for the purposes of section 8B of the Immigration Act 1971 . PART 5 Trade CHAPTER 1 Interpretation Definition of “military goods” and “military technology” 19 In this Part— “ military goods ” means— any thing for the time being specified in Schedule 2 to the Export Control Order 2008 , other than any thing which is military technology, and any tangible storage medium on which military technology is recorded or from which it can be derived; “ military technology ” means any thing for the time being specified in Schedule 2 to the Export Control Order 2008 which is described as software or technology. Interpretation of other expressions used in this Part 20 1 Paragraphs 32 and 36 of Schedule 1 to the Act (trade sanctions) apply for the purpose of interpreting expressions in this Part. 2 In this Part, any reference to the United Kingdom includes a reference to the territorial sea. 3 In this Part— “ brokering service ” means any service to secure, or otherwise in relation to, an arrangement, including (but not limited to)— the selection or introduction of persons as parties or potential parties to the arrangement, the negotiation of the arrangement, the facilitation of anything that enables the arrangement to be entered into, and the provision of any assistance that in any way promotes or facilitates the arrangement; “ technical assistance ”, in relation to goods or technology, means— technical support relating to the repair, development, production, assembly, testing, use or maintenance of the goods or technology, or any other technical service relating to the goods or technology; “ transfer ” has the meaning given by paragraph 37 of Schedule 1 to the Act. 4 For the purposes of this Part, a person is to be regarded as “connected with” South Sudan if the person is— a an individual who is, or an association or combination of individuals who are, ordinarily resident in South Sudan, b an individual who is, or an association or combination of individuals who are, located in South Sudan, c a person, other than an individual, which is incorporated or constituted under the law of South Sudan, or d a person, other than an individual, which is domiciled in South Sudan. CHAPTER 2 Military goods and military technology Export of military goods 21 1 The export of military goods to, or for use in, South Sudan is prohibited. 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). Supply and delivery of military goods 22 1 A person must not directly or indirectly supply or deliver military goods from a third country to a place in South Sudan. 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). 3 A person who contravenes the prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with that offence to show that the person did not know and had no reasonable cause to suspect that the goods were destined (or ultimately destined) for South Sudan. 4 In this regulation, “ third country ” means a country that is not the United Kingdom, the Isle of Man or South Sudan. Making military goods and military technology available 23 1 A person must not— a directly or indirectly make military goods or military technology available to a person connected with South Sudan; b directly or indirectly make military goods or military technology available for use in South Sudan. 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). 3 A person who contravenes a prohibition in paragraph (1) commits an offence, but— a it is a defence for a person charged with the offence of contravening paragraph (1)(a) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with South Sudan; b it is a defence for a person charged with the offence of contravening paragraph (1)(b) to show that the person did not know and had no reasonable cause to suspect that the goods or technology were for use in South Sudan. Transfer of military technology 24 1 A person must not— a transfer military technology to a place in South Sudan; b transfer military technology to a person connected with South Sudan. 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). 3 A person who contravenes a prohibition in paragraph (1) commits an offence, but— a it is a defence for a person charged with the offence of contravening paragraph (1)(a) to show that the person did not know and had no reasonable cause to suspect that the transfer was to a place in South Sudan; b it is a defence for a person charged with the offence of contravening paragraph (1)(b) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with South Sudan. Technical assistance relating to military goods and military technology 25 1 A person must not directly or indirectly provide technical assistance relating to military goods or military technology— a to a person connected with South Sudan, or b for use in South Sudan. 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). 3 A person who contravenes a prohibition in paragraph (1) commits an offence, but— a it is a defence for a person charged with the offence of contravening paragraph (1)(a) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with South Sudan; b it is a defence for a person charged with the offence of contravening paragraph (1)(b) to show that the person did not know and had no reasonable cause to suspect that the goods or technology were for use in South Sudan. Financial services and funds relating to military goods and military technology 26 1 A person must not directly or indirectly provide, to a person connected with South Sudan, financial services in pursuance of or in connection with an arrangement whose object or effect is— a the export of military goods, b the direct or indirect supply or delivery of military goods, c directly or indirectly making military goods or military technology available to a person, d the transfer of military technology, or e the direct or indirect provision of technical assistance relating to military goods or military technology. 2 A person must not directly or indirectly make funds available to a person connected with South Sudan in pursuance of or in connection with an arrangement mentioned in paragraph (1). 3 A person must not directly or indirectly provide financial services or funds in pursuance of or in connection with an arrangement whose object or effect is— a the export of military goods to, or for use in, South Sudan, b the direct or indirect supply or delivery of military goods to a place in South Sudan, c directly or indirectly making military goods or military technology available— i to a person connected with South Sudan, or ii for use in South Sudan, d the transfer of military technology— i to a person connected with South Sudan, or ii to a place in South Sudan, or e the direct or indirect provision of technical assistance relating to military goods or military technology— i to a person connected with South Sudan, or ii for use in South Sudan. 4 Paragraphs (1) to (3) are subject to Part 6 (Exceptions and licences). 5 A person who contravenes a prohibition in any of paragraphs (1) to (3) commits an offence, but— a it is a defence for a person charged with an offence of contravening paragraph (1) or (2) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with South Sudan; b it is a defence for a person charged with an offence of contravening a prohibition in paragraph (3) to show that the person did not know and had no reasonable cause to suspect that the financial services or funds (as the case may be) were provided in pursuance of or in connection with an arrangement mentioned in that paragraph. Brokering services: non-UK activity relating to military goods and military technology 27 1 A person must not directly or indirectly provide brokering services in relation to an arrangement (“arrangement A”) whose object or effect is— a the direct or indirect supply or delivery of military goods from a third country to a place in South Sudan, b directly or indirectly making military goods available in a third country for direct or indirect supply or delivery— i to a person connected with South Sudan, or ii to a place in South Sudan, c directly or indirectly making military technology available in a third country for transfer— i to a person connected with South Sudan, or ii to a place in South Sudan, d the transfer of military technology from a place in a third country— i to a person connected with South Sudan, or ii to a place in South Sudan, e the direct or indirect provision, in a non-UK country, of technical assistance relating to military goods or military technology— i to a person connected with South Sudan, or ii for use in South Sudan, f the direct or indirect provision, in a non-UK country, of financial services— i to a person connected with South Sudan, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 26(1), or ii where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 26(3), g directly or indirectly making funds available, in a non-UK country, to a person connected with South Sudan, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 26(1), or h the direct or indirect provision of funds from a non-UK country, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 26(3). 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). 3 A person who contravenes a prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with that offence to show that the person did not know and had no reasonable cause to suspect that the brokering services were provided in relation to an arrangement mentioned in that paragraph. 4 In this regulation— “ non-UK country ” means a country that is not the United Kingdom; “ third country ” means— for the purposes of paragraph (1)(a) and (b), a country that is not the United Kingdom, the Isle of Man or South Sudan, and for the purposes of any other provision of paragraph (1), a country that is not the United Kingdom or South Sudan. CHAPTER 3 Enabling or facilitating the conduct of armed hostilities Enabling or facilitating the conduct of armed hostilities 28 1 A person must not directly or indirectly provide— a technical assistance, b armed personnel, c financial services or funds, or d brokering services provided in relation to an arrangement whose object or effect is to provide, in a non-UK country, anything mentioned in sub-paragraphs (a) to (c), where such provision enables or facilitates the conduct of armed hostilities in South Sudan. 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). 3 A person who contravenes the prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with that offence to show that the person did not know and had no reasonable cause to suspect that the provision as mentioned in paragraph (1) would enable or facilitate the conduct of armed hostilities in South Sudan. 4 In this regulation— “ non-UK country ” means a country that is not the United Kingdom; “ technical assistance ” means the provision of technical support or any other technical service. 5 Nothing in this regulation is to be taken to limit the meaning of any of the prohibitions contained in Chapter 2. CHAPTER 4 Further provision Circumventing etc prohibitions 29 1 A person must not intentionally participate in activities knowing that the object or effect of them is, whether directly or indirectly— a to circumvent any of the prohibitions in Chapter 2 or 3 of this Part, or b to enable or facilitate the contravention of any such prohibition. 2 A person who contravenes a prohibition in paragraph (1) commits an offence. Defences 30 1 Paragraph (2) applies where a person relies on a defence under Chapter 2 or 3 of this Part. 2 If evidence is adduced which is sufficient to raise an issue with respect to the defence, the court must assume that the defence is satisfied unless the prosecution proves beyond reasonable doubt that it is not. PART 6 Exceptions and licences Finance: exceptions from prohibitions 31 1 The prohibition in regulation 12 (asset-freeze in relation to designated persons) is not contravened by an independent person (“P”) transferring to another person a legal or equitable interest in funds or economic resources where, immediately before the transfer, the interest— a is held by P, and b is not held jointly with the designated person. 2 In paragraph (1) “ independent person ” means a person who— a is not the designated person, and b is not owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person. 3 The prohibitions in regulations 12 to 14 (asset-freeze in relation to, and making funds available to, or for the benefit of, designated persons) are not contravened by a relevant institution crediting a frozen account with interest or other earnings due on the account. 4 The prohibitions in regulations 13 and 14 (making funds available to, or for the benefit of, designated persons) are not contravened by a relevant institution crediting a frozen account where it receives funds transferred to that institution for crediting to that account. 5 The prohibitions in regulations 13 and 14 are not contravened by the transfer of funds to a relevant institution for crediting to an account held or controlled (directly or indirectly) by a designated person, where those funds are transferred in discharge (or partial discharge) of an obligation which arose before the date on which the person became a designated person. 6 The prohibitions in regulations 12 to 14 are not contravened in relation to a designated person (“P”) by a transfer of funds from account A to account B, where— a account A is with a relevant institution which carries on an excluded activity within the meaning of section 142D of the Financial Services and Markets Act 2000 , b account B is with a ring-fenced body within the meaning of section 142A of the Financial Services and Markets Act 2000 , and c accounts A and B are held or controlled (directly or indirectly) by P. 7 In this regulation— “ designated person ” has the same meaning as it has in Part 3 (Finance); “ frozen account ” means an account with a relevant institution which is held or controlled (directly or indirectly) by a designated person; “ relevant institution ” means a person that has permission under Part 4A of the Financial Services and Markets Act 2000 (permission to carry on regulated activity). 8 The definition of “relevant institution” in paragraph (7) is to be read with section 22 of the Financial Services and Markets Act 2000 , any relevant order under that section and Schedule 2 to that Act . 9 For the purposes of paragraphs (1)(b), (5) and (6) and the definition of “frozen account” in paragraph (7), references to a designated person are to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person. 10 When determining for the purposes of paragraph (5) when a person (“ C ”) who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person (“ D ”) became a designated person, C is to be treated as having become a designated person at the same time as D. Finance: exception from prohibitions for required payments 31ZZA 1 This regulation applies to required payments within the meaning of paragraph (2). 2 A required payment is a payment which— a a non-UN designated person is required to make under or by virtue of any enactment to— i the registrar of companies, ii the Commissioners, iii the Welsh Revenue Authority, iv Revenue Scotland, v the Financial Conduct Authority, vi the Secretary of State, vii the Welsh Ministers, viii the Department of Finance in Northern Ireland, or ix a local authority, and b is not an excluded payment. 3 The prohibitions in regulations 12 (asset-freeze in relation to designated persons) and 14 (making funds available for benefit of designated person) are not contravened by a person making a required payment. 4 Where a required payment is made by a person other than a non-UN designated person, the prohibition in regulation 12 is not contravened by the non-UN designated person making a reimbursement payment to that person. 5 The reference in paragraph (3) to a person making a required payment— a does not include a UN designated person, and b only includes a non-UN designated person where they are making a required payment on their own behalf. 6 The following payments are to be treated as payments which a non-UN designated person is required to make under or by virtue of an enactment for the purposes of this regulation, where made by a non-UN designated person on their own behalf or by a person, other than a designated person, on behalf of a non-UN designated person— a a payment to the Financial Conduct Authority of a levy imposed by the scheme manager of the Financial Services Compensation Scheme by virtue of section 213 of the Financial Services and Markets Act 2000 (the compensation scheme); b a payment to the Financial Conduct Authority which is collected by that Authority on behalf of the Financial Reporting Council Limited. 7 For the purposes of this regulation— a references to a non-UN designated person are to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the non-UN designated person, b the reference in paragraph (5) to a UN designated person is to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the UN designated person, and c the reference in paragraph (6) to a designated person is to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person. 8 In this regulation— “ BID levy ” means a levy that is imposed on those persons who are, in respect of particular business improvement district proposals, entitled to vote in accordance with section 39(3) of the Planning etc. (Scotland) Act 2006; “ business improvement district ” has the meaning given in section 33 of the Planning etc. (Scotland) Act 2006; “ designated person ” has the same meaning as it has in Part 3 (Finance); “ enactment ” has the meaning given in section 54(6) of the Act; “ excluded payment ” means, in relation to— the registrar of companies, a payment of fees for— the incorporation of a firm; the restoration of a firm to a register which is administered by the registrar; the Financial Conduct Authority, a payment of fees for— an application for permission from, authorisation by, registration with or recognition from the Financial Conduct Authority which relates to the carrying on of any activity falling within any function of the Financial Conduct Authority; an application for a variation of such permission, authorisation, registration or recognition; an application for listing or for eligibility for listing; an application for review or approval of a document relating to listing; an application for approval as a sponsor or primary information provider; an application for review or approval of— a document under rules made by the Financial Conduct Authority by virtue of Part 3 of the Public Offers and Admissions to Trading Regulations 2024; listing particulars under section 79 of the Financial Services and Markets Act 2000 or supplementary listing particulars under section 81 of that Act; the Secretary of State or the Welsh Ministers, a payment that a non-UN designated person is required to make under or by virtue of an enactment other than a payment under or by virtue of Part 3 of the Local Government Finance Act 1988; the Department of Finance in Northern Ireland, a payment that a non-UN designated person is required to make under or by virtue of an enactment other than a payment under or by virtue of Part 2 of the Rates (Northern Ireland) Order 1977; a local authority, a payment that a non-UN designated person is required to make under or by virtue of an enactment other than a payment under or by virtue of— Part 1 of the Local Government (Scotland) Act 1975; Part 3 of the Local Government Finance Act 1988; Parts 1 and 2 of the Local Government Finance Act 1992; Part 4 of the Local Government Act 2003; Part 9 of the Planning etc. (Scotland) Act 2006; the Business Rate Supplements Act 2009; the Business Improvement Districts Act (Northern Ireland) 2013; “ firm ” has the meaning given in section 1173(1) of the Companies Act 2006; “ listing ” means being included in the official list maintained by the Financial Conduct Authority in accordance with Part 6 of the Financial Services and Markets Act 2000; “ local authority ” means— in relation to England— a district council; a county council for any area for which there is no district council; a London borough council; the Common Council of the City of London in its capacity as a local authority; the Council of the Isles of Scilly; in relation to Wales, a county council or a county borough council; in relation to Scotland, a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 or a person appointed by such a council for the purposes of the administration, collection and recovery of a BID levy; in relation to Northern Ireland, a district council; “ non-UN designated person ” means a person— who is designated under regulation 5 for the purposes of regulations 12 to 16 (asset-freeze etc.), and whose designation, in the opinion of the Secretary of State, is not required by a provision mentioned in regulation 4(3); “ primary information provider ” has the meaning given in section 89P(2) of the Financial Services and Markets Act 2000; ... “ registrar of companies ” has the meaning given in section 1060 of the Companies Act 2006 (the registrar); “ reimbursement payment ” means a repayment from the non-UN designated person to the person who made a required payment which is of the same amount as that required payment; “ scheme manager ” has the meaning given in section 212 of the Financial Services and Markets Act 2000; “ sponsor ” has the meaning given in section 88(2) of the Financial Services and Markets Act 2000; “ UN designated person ” means— a person who is a designated person for the purposes of regulations 12 to 16 by reason of regulation 10 (designation of persons named by or under UN Security Council resolutions), or a person who is designated under regulation 5 (power to designate persons) for the purposes of regulations 12 to 16 and whose designation is (in the opinion of the Secretary of State) required by a provision mentioned in regulation 4(3). Finance: exceptions relating to payment of Treasury debt 31ZZB 1 The prohibitions in regulations 12 to 14 (asset-freeze in relation to, and making funds available to, or for the benefit of, designated persons) are not contravened by any act done by a person to transfer funds to— a a UN designated person (“ D ”) in order to satisfy an obligation owed ... to D in respect of Treasury debt where the conditions in paragraph (2) are met; or b a person (“ B ”) in respect of Treasury debt where the effect of the transfer is to make funds available to or for the benefit of D and the conditions in paragraph (3) are met. 2 The person (“ P ”) making the transfer of funds to D knows or has reasonable cause to suspect that the obligation referred to in paragraph (1) arose before the date on which D was designated and P takes reasonable steps to satisfy itself that the funds to be transferred to D are credited to a specified account. 3 The person (“ P ”) making the transfer of funds to B knows or has reasonable cause to suspect that the effect of such a transfer will be to enable the satisfaction of an obligation of any person to D in respect of Treasury debt and P takes reasonable steps to satisfy itself that such obligation arose before the date on which D was designated and the funds to be transferred to D are ultimately credited to a specified account. 4 The prohibitions in regulations 12 to 14 are not contravened by any act done by a person (where that person is not P in paragraph (2) or (3)) to enable a transfer of funds to any person in respect of Treasury debt—. a in order to satisfy an obligation owed by the Treasury to D, or b where the effect of the transfer will be to enable the satisfaction of an obligation of any person to D in respect of Treasury debt. 5 For the purposes of this regulation, references to a UN designated person, in so far as they relate to a designated person within the meaning of regulation 11, are to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the UN designated person. 6 In this regulation— “ corresponding non-UK country ” means a non-UK country whose laws contain relevant— prohibitions and exceptions corresponding to regulations 12 to 14 and regulation 31 (finance: exceptions from prohibitions); and grounds for licences to be issued that correspond to the purposes in Schedule 2 (Treasury licences: purposes); “ frozen account ” has the meaning given in regulation 31(7); “ non-UK country ” means a country that is not the United Kingdom; “ non-UK relevant institution ” means— a person, other than an individual, which would satisfy the threshold conditions for permission under Part 4A of the Financial Services and Markets Act 2000 if it had its registered office (or if it does not have one, its head office) in the United Kingdom, or an undertaking which by way of business— operates a currency exchange office, transmits money (or any representation of monetary value) by any means, or cashes cheques that are made payable to customers; “ recognised CSD ” has the meaning given in section 285(1)(e) of the Financial Services and Markets Act 2000; “ relevant money market instrument ” means an instrument of a kind normally dealt in on the money market, such as treasury bills, certificates of deposit and commercial papers, excluding instruments of payment; “ relevant transferable security ” means a security, negotiable on the capital market, of any of the following kinds, but excluding instruments of payment— shares in companies and other securities equivalent to shares in companies, partnerships or other entities, and depositary receipts in respect of shares; bonds or other forms of securitised debt, including depositary receipts in respect of such securities; any other securities giving the right to purchase or sell any security of a kind mentioned in paragraph (a) or (b); “ specified account ” means— a frozen account of a person; an account held by or for the benefit of a person with a recognised CSD; an account held by or for the benefit of a person with a non-UK relevant institution in a corresponding non-UK country; or an account held by or for the benefit of a person with a third country CSD in a corresponding non-UK country— where the person referred to in (a) to (d) above is also D in paragraph (2) or (3); “ third country CSD ” has the meaning given in section 285(1)(g) of the Financial Services and Markets Act 2000; “ Treasury debt ” means any relevant transferable security, relevant money market instrument, loan or credit entered into or issued by, or on behalf of the Treasury in respect of funds borrowed by or on behalf of the Treasury; “ UN designated person ” has the meaning given in regulation 31ZZA(8). Finance: humanitarian exception 31ZA 1 The prohibitions in regulations 12 to 16 (asset-freeze etc.) are not contravened by a person (“ P ”) carrying out a relevant activity which is necessary— a to ensure the timely delivery of humanitarian assistance, or b to support other activities that support basic human needs, where Conditions A and B are met. 2 Condition A is that the humanitarian assistance or other activities mentioned in paragraph (1) are carried out by— a the United Nations, including its— i programmes and funds, ii other entities and bodies, and iii specialised agencies and related organisations, b international organisations, c humanitarian organisations having observer status with the United Nations General Assembly and members of those humanitarian organisations, d bilaterally or multilaterally funded non-governmental organisations participating in the United Nations Humanitarian Response Plans, Refugee Response Plans, other United Nations appeals, or humanitarian clusters coordinated by the United Nations Office for the Coordination of Humanitarian Affairs, e any grantee, subsidiary, or implementing partner of any organisation falling within sub-paragraphs (a) to (d) while and to the extent that they are acting in those capacities, f any other persons authorised by the Committee for the purposes of resolution 2664. 3 Condition B is that P believes that carrying out the relevant activity is so necessary and there is no reasonable cause for P to suspect otherwise. 4 For the purposes of this regulation— “ relevant activity ” means any activity which would, in the absence of this regulation, contravene the prohibitions in regulations 12 to 16; “ resolution 2664 ” means resolution 2664 (2022) adopted by the Security Council on 9th December 2022. Exception for authorised conduct in a relevant country 31A 1 Where a person's conduct in a relevant country would, in the absence of this regulation, contravene a prohibition in any of regulations 12 to 16 (asset-freeze etc.) or Chapters 2 and 3 of Part 5 (Trade) (“the relevant prohibition”), the relevant prohibition is not contravened if the conduct is authorised by a licence or other authorisation which is issued— a under the law of the relevant country, and b for the purpose of disapplying a prohibition in that jurisdiction which corresponds to the relevant prohibition. 2 In this regulation— “ relevant country ” means— any of the Channel Islands, the Isle of Man, or any British overseas territory. 3 Nothing in this regulation affects the application of a prohibition in a case where it would be incompatible with a UN obligation for the prohibition not to apply. Exception for acts done for purposes of national security or prevention of serious crime 32 1 Where an act would, in the absence of this paragraph, be prohibited by the prohibition in regulation 9(2) (confidentiality) or any prohibition in Part 3 (Finance)