uksi/2019/573 — The Counter-Terrorism (International Sanctions) (EU Exit) Regulations 2019

2019 No. 573 Exiting The European Union Sanctions The Counter-Terrorism (International Sanctions) (EU Exit) Regulations 2019 Made 14th March 2019 Laid before Parliament 15th 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)(i) and (d)(i), 4, 5, 9(2)(a), 10(2)(a) and (c), (3) and (4), 11(2) to (9), 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) and (5) of, and paragraphs 2(a)(i), 4(a)(i), 5(a)(i), 6(a)(i), 10(a)(i), 11(a)(i), 13(a), (g), (k), (m), (w), 14(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 Counter-Terrorism (International 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; “ arrangement ” includes any agreement, understanding, scheme, transaction or series of transactions, whether or not legally enforceable (but see paragraph 12 of the Schedule to these Regulations for 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; “ conduct ” includes acts and omissions; “ director disqualification licence ” means a licence under regulation 31A; “ 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 autonomous ISIL (Da'esh) and Al-Qaida) Regulation” means Council Regulation (EU) 2016/1686 of 20 September 2016 imposing additional restrictive measures directed against ISIL (Da'esh) and Al-Qaeda and natural and legal persons, entities or bodies associated with them, as it has effect in EU law; “ resolution 1373 ” means resolution 1373 (2001) adopted by the Security Council on 28 September 2001; “ Treasury licence ” means a licence under regulation 31(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. 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. 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 purpose of furthering the prevention of terrorism in the United Kingdom or elsewhere, otherwise than by compliance with the relevant UN obligations. 2 In this regulation, “ the relevant UN obligations ” means the obligations the United Kingdom has by virtue of paragraphs 1 and 2 of resolution 1373. 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 11 to 15 (asset freeze etc.); aa regulation 16A (director disqualification sanctions). b regulation 17 (immigration); c regulations 19 to 26 (trade). 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 whether 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 by name) an “ involved person ” means a person who— a is or has been involved in terrorist 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 Any reference in this regulation to being involved in terrorist 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, or providing support for, the commission, preparation or instigation of acts of terrorism, b providing financial services, or making available funds or economic resources, for the purposes of terrorism, c facilitating, promoting or encouraging terrorism, d providing or receiving training for the purposes of terrorism, e travelling or attempting to travel from or into the relevant territory for the purposes of terrorism, f carrying out recruitment activities for a person who is involved in terrorism, g being involved in the sale, supply or transfer of arms or material related to arms to a person who is involved in terrorism, h engaging in trade of whatever description with a person who is involved in terrorism; i being responsible for, engaging in, being complicit in, providing support for, or promoting, the abduction, enslavement, forced marriage or rape of, or sexual violence against, persons outside the relevant territory on behalf of, or in the name of, a person who is involved in terrorism; j supporting or assisting any person who is known or believed by the person concerned to be involved in any activity as mentioned in paragraphs (a) to (i); or k being involved in assisting the contravention or circumvention of any relevant provision. 4 In this regulation “ recruitment activities ” means— a soliciting another person to— i become a member of a person, other than an individual, involved in terrorism, or ii participate in any act by, in conjunction with, in the name of, on behalf of or in support of a person involved in terrorism; b soliciting or otherwise procuring funds for the purpose of financing the travel of a person solicited as mentioned in sub-paragraph (a); c organising, providing support for or otherwise facilitating the travel of a person solicited as mentioned in sub-paragraph (a). 5 In this regulation— being “associated with” a person includes pledging allegiance in whatever way to that person; “promoting or encouraging” terrorism includes a reference to a person who promotes or encourages terrorism within the meaning of section 3 of the Terrorism Act 2000 ; “ relevant provision ” means— any provision of Part 3 (finance) or Part 5 (trade); 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 or Part 5; “ relevant territory ” means the United Kingdom and the territory of the Member States of the European Union. 6 Nothing in any sub-paragraph of paragraph (3) is to be taken to limit the meaning of any of the other sub-paragraphs of that paragraph. 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 The Schedule to these Regulations 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 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. PART 3 Finance Meaning of “designated person” in Part 3 10 In this Part a “ designated person ” means a person who is designated under regulation 5 for the purposes of regulations 11 to 15 (asset freeze etc.). Asset-freeze in relation to designated persons 11 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 or financial services available to designated persons 12 1 A person (“P”) must not make funds or financial services available directly or indirectly to a designated person if P knows, or has reasonable cause to suspect, that P is making the funds or financial services 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 or financial services 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 or financial services available for the benefit of designated persons 13 1 A person (“P”) must not make funds or financial services 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 or financial services 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 or financial services available to any person for the benefit of a designated person includes making funds or financial services 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 persons 14 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 the benefit of designated persons 15 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 16 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 11 to 15, 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 16A 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 17 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 Definitions (Trade) 18 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 an arrangement, the facilitation of anything that enables an arrangement to be entered into, and the provision of any assistance that in any way promotes or facilitates an arrangement; “ designated person ” means a person who is designated under regulation 5 for the purposes of regulations 19 to 26; “ 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; except in regulation 26, “ 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. Export of military goods 19 1 The export of military goods to, or for the benefit of, a designated person is prohibited. 2 Paragraph (1) is subject to Part 6 (exceptions and licences). Supply and delivery of military goods 20 1 A person must not directly or indirectly supply or deliver military goods from a third country to, or for the benefit of, a designated person. 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 (“P”) to show that P did not know and had no reasonable cause to suspect that the person to whom, or for whose benefit, the goods were supplied or delivered was a designated person. 4 In this regulation “ third country ” means a country that is not the United Kingdom or the Isle of Man. Making military goods and military technology available 21 1 A person must not directly or indirectly make military goods or military technology available to, or for the benefit of, a designated person. 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 (“P”) to show that P did not know and had no reasonable cause to suspect that the person to whom, or for whose benefit, the goods or technology were made available was a designated person. Transfer of military technology 22 1 A person must not transfer military technology to, or for the benefit of, a designated person. 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 (“P”) to show that P did not know and had no reasonable cause to suspect that the person to whom, or for whose benefit, the technology was transferred was a designated person. Technical assistance relating to military goods and military technology 23 1 A person must not directly or indirectly provide technical assistance relating to military goods or military technology to, or for the benefit of, a designated person. 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 (“P”) to show that P did not know and had no reasonable cause to suspect that the person to whom, or for whose benefit, the technical assistance was provided was a designated person. Financial services and funds relating to military goods and military technology 24 1 A person must not directly or indirectly provide financial services to, or for the benefit of, a designated person 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, or for the benefit of, a designated person 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 the benefit of, a designated person; b the direct or indirect supply or delivery of military goods to, or for the benefit of, a designated person; c directly or indirectly making military goods or military technology available to, or for the benefit of, a designated person; d the transfer of military technology to, or for the benefit of, a designated person; or e the direct or indirect provision of technical assistance relating to military goods or military technology to, or for the benefit of, a designated person. 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 the offence of contravening paragraph (1) (“P”) to show that P did not know and had no reasonable cause to suspect that the person to whom, or for whose benefit, the financial services were provided was a designated person; b it is a defence for a person charged with the offence of contravening paragraph (2) (“P”) to show that P did not know and had no reasonable cause to suspect that the person to whom, or for whose benefit, the funds were made available was a designated person; c it is a defence for a person charged with the offence of contravening 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 25 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 non-UK country to, of for the benefit of, a designated person; b directly or indirectly making military goods available in a non-UK country for direct or indirect supply or delivery to, or for the benefit of, a designated person; c directly or indirectly making military technology available in a non-UK country for transfer to, or for the benefit of, a designated person; d the transfer of military technology from a place in a non-UK country to, or for the benefit of, a designated person; e the direct or indirect provision, in a non-UK country, of technical assistance relating to military goods or military technology to, or for the benefit of, a designated person; f the direct or indirect provision, in a non-UK country, of financial services— i to, or for the benefit of, a designated person where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 24(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 24(3); g directly or indirectly making funds available in a non-UK country to, or for the benefit of, a designated person where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 24(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 24(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— for the purposes of paragraph (1)(a) and (b), a country that is not the United Kingdom or the Isle of Man; for the purposes of any other provision of paragraph (1), a country that is not the United Kingdom. Enabling or facilitating conduct of armed hostilities 26 1 A person must not directly or indirectly provide to, or for the benefit of, a designated person— a technical assistance, b financial services or funds, or c brokering services in relation to an arrangement whose object or effect is to provide, in a non-UK country, technical assistance, financial services or funds, where such provision enables or facilitates the conduct of armed hostilities. 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 (“P”) to show that— a P did not know and had no reasonable cause to suspect that the person to whom, or for whose benefit, the technical assistance, financial services or funds or brokering services were provided was a designated person; or b P 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. 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 regulations 23 to 25. Circumventing etc. prohibitions 27 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 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 28 1 Paragraph (2) applies where a person relies on a defence in 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 29 1 The prohibition in regulation 11 (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 11 to 13 (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 12 and 13 (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 12 and 13 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 11 to 13 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 The prohibition in regulation 13 is not contravened by the making of a payment which— a is a benefit under or by virtue of an enactment relating to social security (irrespective of the name or nature of the benefit), and b is made to a person who is not a designated person, whether or not the payment is made in respect of a designated person. 8 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). 9 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 . 10 For the purposes of paragraphs (1)(b), (5) and (6) and the definition of “frozen account” in paragraph (8), 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. 11 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 29ZA 1 This regulation applies to required payments within the meaning of paragraph (2). 2 A required payment is a payment which— a a 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 11 (asset-freeze in relation to designated persons) and 13 (making funds or financial services available for the benefit of designated persons) are not contravened by a person making a required payment. 4 Where a required payment is made by a person other than a designated person, the prohibition in regulation 11 is not contravened by the designated person making a reimbursement payment to that person. 5 The reference in paragraph (3) to a person making a required payment includes a designated person, but only where they are making a required payment on their own behalf. 6 The following payments are to be treated as payments which a designated person is required to make under or by virtue of an enactment for the purposes of this regulation, where made by a designated person on their own behalf or by a person, other than a designated person, on behalf of a 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, 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. 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 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 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 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; “ 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 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. Exception for authorised conduct in a relevant country 29A 1 Where a person's conduct in a relevant country would, in the absence of this regulation, contravene a prohibition in any of regulations 11 to 15 (asset-freeze etc.) (“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 30 1 Where an act would, in the absence of this paragraph, be prohibited by the prohibition in regulation 9(2) (confidentiality) any prohibition in Part 3 (finance) or 5 (trade), that prohibition does not apply to the act if the act is one which a responsible officer has determined would be in the interests of— a national security, or b the prevention or detection of serious crime in the United Kingdom or elsewhere. 2 Where, in the absence of this paragraph, a thing would be required to be done under or by virtue of a provision of Part 7 (information and records) or Part 9 (maritime enforcement), that requirement does not apply if a responsible officer has determined that not doing the thing in question would be in the interests of— a national security, or b the prevention or detection of serious crime in the United Kingdom or elsewhere. 3 In this regulation “ responsible officer ” means a person in the service of the Crown or holding office under the Crown, acting in the course of that person's duty. 4 Nothing in this regulation affects the application of a prohibition or requirement in a case where it would be incompatible with a UN obligation for the prohibition or requirement not to apply. Treasury licences 31 1 The prohibitions in regulations 11 to 15 (asset-freeze etc.) do not apply to anything done under the authority of a licence issued by the Treasury under this paragraph. 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Director disqualification licences 31A The Secretary of State may issue a licence in relation to any person who is designated under regulation 5 for the purposes of regulation 16A (director disqualification sanctions) providing that the prohibitions in— a section 11A(1) of the Company Directors Disqualification Act 1986, and b Article 15A(1) of the Company Directors Disqualification (Northern Ireland) Order 2002, do not apply to anything done under the authority of that licence. Licences: general provisions 31B 1 This regulation applies in relation to Treasury licences and director disqualification licences. 2 A licence must specify the acts authorised by it. 3 A licence may be general or may authorise acts by a particular person or persons of a particular description. 4 A licence may— a contain conditions; b be of indefinite duration or a defined duration. 5 A person who issues a licence may vary, revoke or suspend it at any time. 6 A person who , on the application of a person (“ P ”), issues a licence which authorises acts by a particular person , or varies, revokes or suspends that licence, must give written notice to P of the issue, variation, revocation or suspension of the licence. 7 A person who issues, varies, revokes or suspends a general licence or a licence which authorises acts by persons of a particular description must take such steps as that person considers appropriate to publicise the issue, variation, revocation or suspension of the licence. Finance: licensing offences 32 1 A person (“P”) commits an offence if P knowingly or recklessly— a provides information that is false in a material respect, or b provides or produces a document that is not what it purports to be, for the purpose of obtaining a Treasury licence (whether for P or anyone else). 2 A person who purports to act under the authority of a Treasury licence but who fails to comply with any condition of the licence commits an offence. Director disqualification: licensing offences 32A 1 A person (“ P ”) commits an offence if P knowingly or recklessly— a provides information that is false in a material respect, or b provides or produces a document that is not what it purports to be, for the purpose of obtaining a director disqualification licence (whether for P or anyone else). 2 A person who purports to act under the authority of a director disqualification licence but who fails to comply with any condition of the licence commits an offence. 3 A licence in respect of which an offence under paragraph (1) has been committed is to be treated as void from the time at which it was issued. Section 8B(1) to (3) of Immigration Act 1971: directions 33 1 The Secretary of State may direct that, in relation to any person within regulation 17 whose name is specified, or who is of a specified description, section 8B(1) and (2) of the Immigration Act 1971, or section 8B(3) of that Act, have effect subject to specified exceptions. 2 A direction may contain conditions. 3 A direction must be of a defined duration (and that duration may be expressed in any way, including, for example, being expressed in a way such that the direction ceases to have effect on, or within a specified period after, the occurrence of a specified event). 4 The Secretary of State may vary, revoke or suspend a direction under this regulation at any time. 5 On the issue, variation, revocation or suspension of a direction, the Secretary of State may take such steps as the Secretary of State considers appropriate to publicise the issue, variation, revocation or suspension of the direction. 6 In this regulation “ specified ” means specified in a direction. PART 7 Information and records Finance: reporting obligations 34 1 A relevant firm must inform the Treasury as soon as practicable if— a it knows, or has reasonable cause to suspect, that a person— i is a designated person, or ii has breached a prohibition or failed to comply with an obligation under any provision of Part 3 (finance) or regulation 32 (finance: licensing offences), and b the information or other matter on which the knowledge or cause for suspicion is based came to it in the course of carrying on its business. 2 Where a relevant firm informs the Treasury under paragraph (1), it must state— a the information or other matter on which the knowledge or suspicion is based, and b any information it holds about the person by which the person can be identified. 3 Paragraph (4) applies if— a a relevant firm informs the Treasury under paragraph (1) that it knows, or has reasonable cause to suspect, that a person is a designated person, and b that person is a customer of the relevant firm. 4 The relevant firm must also state the nature and amount or quantity of any funds or economic resources held by it for the customer at the time when it first had the knowledge or suspicion. 4A Where a person (“ P ”) knows, or has reasonable cause to suspect, that P holds funds or economic resources owned, held or controlled by a designated person, P must by no later than 30th November in each calendar year provide a report to the Treasury as to the nature and amount or quantity of those funds or economic resources held by P as of 30th September in that calendar year. 4B Where a report has been provided further to paragraph (4A) but as of 30th September in the following calendar year P no longer holds funds or economic resources owned, held or controlled by the designated person, P must by no later than 30th November in that calendar year report this to the Treasury. 4C For the purposes of paragraphs (4A) and (4B), 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. 5 A relevant institution must inform the Treasury without delay if that institution— a credits a frozen account in accordance with regulation 29(4) (finance: exceptions from prohibitions), or b transfers funds from a frozen account in accordance with regulation 29(6) . 6 A person who fails to comply with a requirement in paragraph (1), (2) or (4) commits an offence. 6A A person commits an offence if that person, without reasonable excuse, fails to comply with a requirement in paragraph (4A) or (4B). 7 In this regulation— “ designated person ” has the same meaning as it has in Part 3 (finance); “ frozen account ” has the same meaning as it has in regulation 29; “ relevant firm ” is to be read in accordance with regulation 35; “ relevant institution ” has the same meaning as it has in regulation 29. Finance: reporting obligations for required payments 34A 1 A designated person must inform the Treasury without delay if they make a required payment. 2 A person who makes a required payment on behalf of a designated person must inform the Treasury without delay that they have made the required payment. 3 A person must inform the Treasury without delay if they receive a reimbursement payment. 4 For the purposes of this regulation, 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. 5 In this regulation— “ designated person ” has the meaning given in regulation 29ZA(8) (finance: exception from prohibitions for required payments); “ reimbursement payment ” has the meaning given in regulation 29ZA(8); “ required payment ” has the meaning given in regulation 29ZA(2). “Relevant firm” 35 1 The following are relevant firms for the purposes of regulation 34— a a person that has permission under Part 4A of the Financial Services and Markets Act 2000 (permission to carry on regulated activity); b an undertaking that by way of business— i operates a currency exchange office, ii transmits money (or any representation of monetary value) by any means, or iii cashes cheques that are made payable to customers; c a firm or sole practitioner that is— i a statutory auditor within the meaning of Part 42 of the Companies Act 2006 (statutory auditors) , or ii a local auditor within the meaning of section 4(1) of the Local Audit and Accountability Act 2014 (general requirements for audit) ; d a firm or sole practitioner that provides to other persons, by way of business— i accountancy services, ii legal or notarial services, iii advice about tax affairs, or iv trust or company services within the meaning of paragraph (2); e a firm or sole practitioner that carries out, or whose employees carry out, estate agency work; f the holder of a casino operating licence within the meaning given by section 65(2)(a) of the Gambling Act 2005 (nature of a licence) ; g a person engaged in the business of making, supplying, selling (including selling by auction) or exchanging— i articles made from gold, silver, platinum or palladium, or ii precious stones or pearls; h a cryptoasset exchange provider; i a custodian wallet provider; j a high value dealer; k an art market participant; l an insolvency practitioner; m a firm or sole practitioner (“ P ”) that carries out, or whose employees carry out, letting agency work. 2 In paragraph (1) “ trust or company services ” means any of the following services— a forming companies or other legal persons; b acting, or arranging for another person to act— i as a director or secretary of a company, ii as a partner of a partnership, or iii in a similar capacity in relation to other legal persons; c providing a registered office, business address, correspondence or administrative address or other related services for a company, partnership or any other legal person or arrangement; d acting, or arranging for another person to act, as— i a trustee of an express trust or similar legal arrangement, or ii a nominee shareholder for a person. 3 In paragraph (1)— “ estate agency work ” is to be read in accordance with section 1 of the Estate Agents Act 1979 , but as if references in that section to disposing of or acquiring an interest in land included (despite anything in section 2 of that Act) references to disposing of or acquiring an estate or interest in land outside the United Kingdom where that estate or interest is capable of being owned or held as a separate interest; “ firm ” means any entity that, whether or not a legal person, is not an individual, and includes a body corporate and a partnership or other unincorporated body. 3A In paragraph (1), a “ cryptoasset exchange provider ” means a firm or sole practitioner that by way of business provides one or more of the following services, including where the firm or sole practitioner does so as creator or issuer of any of the cryptoassets involved— a exchanging, or arranging or making arrangem