uksi/2022/1281 — The Haiti (Sanctions) Regulations 2022

2022 No. 1281 Sanctions The Haiti (Sanctions) Regulations 2022 Made 5th December 2022 Laid before Parliament 7 th December 2022 Coming into force 28th December 2022 The Secretary of State , in exercise of the powers conferred by sections 1(1)(a) and (3)(a), 3(1)(a), (b)(i), (d)(i), 5, 9(2)(b), 13, 15(2)(a) and (b), (3) and (6), 16, 17, 19, 20, 21(1), 54(1) and (2) 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), and (w), 14(a), 20, 21 and 27 of Schedule 1 to, the Sanctions and Anti-Money Laundering Act 2018 makes the following Regulations: PART 1 General Citation and commencement 1 1 These Regulations may be cited as the Haiti (Sanctions) Regulations 2022. 2 These Regulations come into force on 28th December 2022. 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 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 His Majesty’s Revenue and Customs; “ the Committee ” means the Committee of the Security Council established in accordance with paragraph 19 of resolution 2653; “ conduct ” includes acts and omissions; “ 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; “ resolution 2653 ” means resolution 2653 (2022) adopted by the Security Council on 21st October 2022; “ resolution 2699 ” means resolution 2699 (2023) adopted by the Security Council on 2nd October 2023; “ resolution 2700 ” means resolution 2700 (2023) adopted by the Security Council on 19th October 2023; “ resolution 2752 ” means resolution 2752 (2024) adopted by the Security Council on 18th October 2024; “ trade licence ” means a licence under regulation 29A; “ Treasury licence ” means a licence under regulation 29(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 Part 3 (Finance), b Part 4 (Trade), or c 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 6 (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 purpose of the regulations contained in this instrument that are made under section 1 of the Act is compliance with the relevant UN obligations. 2 In this regulation, “ the relevant UN obligations ” means the obligations that the United Kingdom has by virtue of— a paragraph 6 of resolution 2653 (asset-freeze etc.), and b paragraph 2 of resolution 2752 (arms embargo etc.), to take the measures required by those provisions in respect of persons for the time being named by the Security Council or the Committee for the purposes of those paragraphs. 3 A reference to the obligations that the United Kingdom has by virtue of paragraph 6 of resolution 2653 is to that provision as read with— a paragraph 15 of resolution 2653, b paragraph 3 of resolution 2700 and c paragraph 1 of resolution 2752. PART 2 Designations Designation of persons named under UN Security Council Resolutions 5 1 Each person for the time being named by the Security Council or the Committee for the purposes of paragraph 6 of resolution 2653 is a designated person for the purposes of regulations 8 to 12 (asset-freeze etc.) (whose purpose is compliance with the UN obligations mentioned in regulation 4(2)(a) (purposes)) . 2 Each person for the time being named by the Committee for the purposes of paragraph 11 of resolution 2653 is a designated person for the purposes of regulations 15 to 22 (trade) (whose purpose is compliance with the UN obligations mentioned in regulation 4(2)(b)). Part 3 Finance Meaning of “designated person” in Part 3 6 In this Part, a “ designated person ” means a person who is designated for the purposes of regulations 8 to 12 (asset-freeze etc.) by reason of regulation 5 (designation of persons named under UN Security Council Resolutions). Meaning of “owned or controlled directly or indirectly” in Part 3 7 1 In this Part, 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. Asset-freeze in relation to designated persons 8 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 5 (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 persons 9 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 5 (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 persons 10 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 5 (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 persons 11 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 5 (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 persons 12 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 5 (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 13 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 8 to 12 (asset-freeze etc.), 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 4 Trade Interpretation of expressions used in this Part 14 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; “ 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; “ technical assistance ” , in relation to goods or technology, except in regulation 22 (enabling or facilitating the conduct of armed hostilities), 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” Haiti if the person is— a an individual who is, or an association or combination of individuals who are, ordinarily resident in Haiti, b an individual who is, or an association or combination of individuals who are, located in Haiti, c a person, other than an individual, which is incorporated or constituted under the law of Haiti, or d a person, other than an individual, which is domiciled in Haiti. Export of military goods 15 1 The export of military goods to, or for use in, Haiti is prohibited. 2 Paragraph (1) is subject to Part 5 (Exceptions and licences). Supply and delivery of military goods 16 1 A person must not directly or indirectly supply or deliver military goods from a third country to a place in Haiti . 2 Paragraph (1) is subject to Part 5 (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 P did not know and had no reasonable cause to suspect that the goods were destined (or ultimately destined) for Haiti . 4 In this regulation, “ third country ” means a country that is not the United Kingdom or the Isle of Man. Military goods and military technology available 17 1 A person must not ... — a directly or indirectly make military goods or military technology available to a person connected with Haiti; b directly or indirectly make military goods or military technology available for use in Haiti. 2 Paragraph (1) is subject to Part 5 (Exceptions and licences). 3 A person who contravenes the prohibition in paragraph (1) commits an offence, but ... 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 Haiti; 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 Haiti. Transfer of military technology 18 1 A person must not— a transfer military technology to a place in Haiti; b transfer military technology to a person connected with Haiti. 2 Paragraph (1) is subject to Part 5 (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 Haiti; 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 Haiti. Technical assistance relating to military goods and military technology 19 1 A person must not directly or indirectly provide technical assistance relating to military goods or military technology— a to a person connected with Haiti, or b for use in Haiti. 2 Paragraph (1) is subject to Part 5 (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 Haiti; 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 Haiti. Financial services and funds relating to military goods and military technology 20 1 A person must not directly or indirectly provide, to a person connected with Haiti, 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 Haiti 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, Haiti, b the direct or indirect supply or delivery of military goods to a place in Haiti, c directly or indirectly making military goods or military technology available— i to a person connected with Haiti, or ii for use in Haiti, d the transfer of military technology— i to a person connected with Haiti, or ii to a place in Haiti, or e the direct or indirect provision of technical assistance relating to military goods or military technology— i to a person connected with Haiti, or ii for use in Haiti. 4 Paragraphs (1) to (3) are subject to Part 5 (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 Haiti; 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 21 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 of military goods from a third country to a place in Haiti, 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 Haiti, or ii to a place in Haiti, c directly or indirectly making military technology available in a third country for transfer— i to a person connected with Haiti, or ii to a place in Haiti, d the transfer of military technology from a place in a third country— i to a person connected with Haiti, or ii to a place in Haiti, 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 Haiti, or ii for use in Haiti, f the direct or indirect provision, in a non-UK country, of financial services— i to a person connected with Haiti, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 20(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 20(3), g directly or indirectly making funds available, in a non-UK country, to a person connected with Haiti, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 20(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 20(3). 2 Paragraph (1) is subject to Part 5 (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 Haiti, and for the purposes of any other provision in paragraph (1), a country that is not the United Kingdom or Haiti. Enabling or facilitating the conduct of armed hostilities 22 1 A person must not directly or indirectly provide— 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, anything mentioned in sub-paragraphs (a) to (c), where such provision enables or facilitates the conduct of armed hostilities in Haiti. 2 Paragraph (1) is subject to Part 5 (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 Haiti. 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 Part 4. Circumventing etc. prohibitions 23 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 24 1 Paragraph (2) applies where a person relies on a defence under 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 5 Exceptions and licences Finance: exceptions from prohibitions 25 1 The prohibition in regulation 8 (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 8 to 10 (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 9 and 10 (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 9 and 10 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 8 to 10 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 activities). 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: exceptions relating to payment of Treasury debt 25A 1 The prohibitions in regulations 8 to 10 (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 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 8 to 10 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 designated person, in so far as they relate to a designated person within the meaning of regulation 6, 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. 6 In this regulation— “ corresponding non-UK country ” means a non-UK country whose laws contain relevant— prohibitions and exceptions corresponding to regulations 8 to 10 and regulation 25 (finance: exceptions from prohibitions); and grounds for licences to be issued that correspond to the purposes in Schedule 2 (Treasury licences: purposes); “ designated person ” has the same meaning as it has in Part 3 (Finance); “ frozen account ” has the meaning given in regulation 25(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. Finance: humanitarian exception 26 1 The prohibitions in regulations 8 to 12 (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 8 to 12; “ resolution 2664 ” means resolution 2664 (2022) adopted by the Security Council on 9th December 2022. Exception for authorised conduct in a relevant country 27 1 Where a person’s conduct in a relevant country would, in the absence of this regulation, contravene a prohibition in any of regulations 8 to 12 (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— a any of the Channel Islands; b the Isle of Man; c 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 28 1 Where an act would, in the absence of this paragraph, be prohibited by any prohibition in Part 3 (Finance) or Part 4 (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 6 (Information and records) or Part 8 (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 29 1 The prohibitions in regulations 8 to 12 (asset-freeze etc.) do not apply to anything done under the authority of a licence issued by the Treasury under this paragraph. 2 The Treasury may issue a licence which authorises acts in relation to a designated person only where the Treasury consider that it is appropriate to issue the licence for a purpose set out in Schedule 2. 3 A licence under paragraph (1)— a must specify the acts authorised by it; b may be general or may authorise acts by a particular person or persons of a particular description; c may— i contain conditions; ii be of indefinite duration or a defined duration. 4 Where the Treasury issue a licence under paragraph (1), the Treasury may vary, revoke or suspend it at any time. 5 Where the Treasury , on the application of a person (“ P ”), issue a licence under paragraph (1) which authorises acts by a particular person, or vary, revoke or suspend that licence, the Treasury must give written notice to P of the issue, variation, revocation or suspension of the licence. 6 Where the Treasury issue, vary, revoke or suspend a general licence or a licence which authorises acts by persons of a particular description under paragraph (1), the Treasury must take such steps as the Treasury consider appropriate to publicise the issue, variation, revocation or suspension of the licence. 7 In this regulation, “ designated person ” has the same meaning as it has in Part 3 (Finance). Trade licences 29A 1 The prohibitions in Part 4 (Trade) do not apply to anything done under the authority of a licence issued by the Secretary of State under this regulation. 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 issues, varies, revokes or suspends a licence which authorises acts by a particular person must give written notice to that person 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 30 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. Trade: licensing offences 30A 1 A person (“ P ”) commits an offence is 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 trade licence (whether for P or anyone else). 2 A person who purports to act under the authority of a trade 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. PART 6 Information and records Finance: reporting obligations 31 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 30 (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 25(4) (finance: exceptions from prohibitions), or b transfers funds from a frozen account in accordance with regulation 25(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 25; “ relevant firm ” is to be read in accordance with regulation 32 (“relevant firm”); “ relevant institution ” has the same meaning as it has in regulation 25. “Relevant firm” 32 1 The following are relevant firms for the purposes of regulation 31 (finance: reporting obligations)— a a person that has permission under Part 4A of the Financial Services and Markets Act 2000 (Permission to carry on regulated activities); 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 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. 4 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 arrangements with a view to the exchange of, cryptoassets for money or money for cryptoassets, b exchanging, or arranging or making arrangements with a view to the exchange of, one cryptoasset for another, or c operating a machine which utilises automated processes to exchange cryptoassets for money or money for cryptoassets. 5 In paragraph (1), a “ custodian wallet provider ” means a firm or sole practitioner that by way of business provides services to safeguard, or to safeguard and administer— a cryptoassets on behalf of its customers, or b private cryptographic keys on behalf of its customers in order to hold, store and transfer cryptoassets. 6 For the purposes of this regulation— a “ cryptoasset ” means a cryptographically secured digital representation of value or contractual rights that uses a form of distributed ledger technology and can be transferred, stored or traded electronically; b “ money ” means— i money in sterling, ii money in any other currency, or iii money in any other medium of exchange, but does not include a cryptoasset; and c in sub-paragraphs (a) to (c) of paragraph (4), “ cryptoasset ” includes a right to, or interest in, the cryptoasset. 6A In paragraph (1), a “ high value dealer ” means a firm or sole trader that by way of business trades in goods (including an auctioneer dealing in goods), when the firm or sole trader makes or receives, in respect of any transaction, a payment or payments in cash of at least £10,000 in total, whether the transaction is executed in a single operation or in several operations which appear to be linked. 6B In paragraph (1), an “ art market participant ” means, subject to paragraph (6C), a firm or sole practitioner that is registered or required to register with the Commissioners as an art market participant under regulation 56(5) and (6) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. 6C A firm or sole practitioner is not an art market participant for the purposes of paragraph (6B) in relation to the sale or storage of a work of art which is created by, or is attributable to, a member of the firm or the sole practitioner. 6D For the purposes of this regulation, “ work of art ” means anything which, in accordance with section 21(6) to (6B) of the Value Added Tax Act 1994 (value of imported goods), is a work of art for the purposes of section 21(5)(a) of that Act. 6E In paragraph (1), an “ insolvency practitioner ” means a firm or individual who acts as an insolvency practitioner within the meaning of section 388 of the Insolvency Act 1986 or Article 3 of the Insolvency (Northern Ireland) Order 1989. 6F In paragraph (1), “ letting agency work ” means work— a consisting of things done in response to instructions received from— i a person (a “prospective landlord”) seeking to find another person to whom to let land for a term of a month or more, or ii a person (a “prospective tenant”) seeking to find land to rent for a term of a month or more, and b done— i in relation to a prospective landlord, from the point that the prospective landlord instructs P, or ii otherwise in the course of concluding an agreement for the letting of land for a term of a month or more. 6G For the purposes of paragraph (6F)— “ land ” includes part of a building and part of any other structure; “ letting agency work ” does not include the things listed in paragraph (6H) when done by, or by employees of, a firm or sole practitioner if neither the firm or sole practitioner, nor any of their employees, does anything else within paragraph (6F). 6H Those things are— a publishing advertisements or disseminating information; b providing a means by which a prospective landlord or a prospective tenant can, in response to an advertisement or dissemination of information, make direct contact with a prospective tenant or a prospective landlord; c providing a means by which a prospective landlord and a prospective tenant can communicate directly with each other; d the provision of legal or notarial services by a barrister, advocate, solicitor or other legal representative communications with whom may be the subject of a claim to professional privilege or, in Scotland, protected from disclosure in legal proceedings on grounds of confidentiality of communications. 7 Sub-paragraphs (a) and (b) of paragraph (1) are 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. 8 For the purposes of regulation 31(1), information or another matter comes to a relevant firm “in the course of carrying on its business” if the information or other matter comes to the firm— a in the case of a relevant firm within paragraph (1)(a), in the course of carrying on an activity in respect of which the permission mentioned in that provision is required; b in the case of a relevant firm within paragraph (1)(c)(i), in the course of carrying out statutory audit work within the meaning of section 1210 of the Companies Act 2006 (meaning of “ statutory auditor ” etc.) ; c in the case of a relevant firm within paragraph (1)(c)(ii), in the course of carrying out an audit required by the Local Audit and Accountability Act 2014; d in the case of a relevant firm within paragraph (1)(f), in the course of carrying on an activity in respect of which the licence mentioned in that provision is required; da in the case of a relevant firm within paragraph (1)(k)— i in the course of trading, or acting as an intermediary in the sale or purchase of, works of art when the value of the transaction, or a series of linked transactions, amounts to £10,000 or more, or ii in the course of storing works of art where the value of the works of art so stored for a person amounts to £10,000 or more; e in the case of a relevant firm within any other provision of paragraph (1), in the course of carrying on an activity mentioned in that provision. Finance: powers to request information 33 1 The Treasury may request a designated person to provide information about— a funds or economic resources owned, held or controlled by or on behalf of the designated person, or b any disposal of such funds or economic resources. 2 The Treasury may request a designated person to provide such information as the Treasury may reasonably require about expenditure— a by the designated person, or b for the benefit of the designated person. 3 For the purposes of paragraph (2)(b), expenditure for the benefit of a designated person includes expenditure on the discharge (or partial discharge) of a financial obligation for which the designated person is wholly or partly responsible. 4 The power in paragraph (1) or (2) is exercisable only where the Treasury believe that it is necessary for the purpose of monitoring compliance with or detecting evasion of any provision of Part 3 (Finance). 5 The Treasury may request a person acting under a Treasury licence to provide information about— a funds or economic resources dealt with under the licence, or b funds or economic resources made available under the licence. 6 The Treasury may request a person to provide information within paragraph (7) if the Treasury believe that the person may be able to provide the information. 7 Information within this paragraph is such information as the Treasury may reasonably require for the purpose of— a establishing for the purposes of any provision of Part 3 (Finance)— i the nature and amount or quantity of any funds or economic resources owned, held or controlled by or on behalf of a designated person, ii the nature and amount or quantity of any funds or economic resources made available directly or indirectly to, or for the benefit of, a designated person, or iii the nature of any financial transactions entered into by a designated person; b monitoring compliance with or detecting evasion of— i any provision of Part 3, ii regulation 31 (finance: reporting obligations), or iii any condition of a Treasury licence; c detecting or obtaining evidence of the commission of an offence under Part 3 or regulation 30 (finance: licensing offences) or 31. 8 The Treasury may specify the way in which, and the period within which, information is to be provided. 9 If no such period is specified, the information which has been requested must be provided within a reasonable time. 10 A request may include a continuing obligation to keep the Treasury informed as circumstances change, or on such regular basis as the Treasury may specify. 11 Information requested under this regulation may relate to any period of time during which a person is, or was, a designated person. 12 Information requested by virtue of paragraph (1)(b), (2) or (7)(a)(iii) may relate to any period before a person became a designated person (as well as, or instead of, any subsequent period). 13 Expressions used in this regulation have the same meaning as they have in Part 3. Finance: production of documents 34 1 A request under regulation 33 (finance: powers to request information) may include a request to produce specified documents or documents of a specified description. 2 Where the Treasury request that documents be produced, the Treasury may— a take copies of or extracts from any document so produced, b request any person producing a document to give an explanation of it, and c where that person is a body corporate, partnership or unincorporated body other than a partnership, request any person who is— i in the case of a partnership, a present or past partner or employee of the partnership, or ii in any other case, a present or past officer or employee of the body concerned, to give such an explanation. 3 Where the Treasury request a designated person or a person acting under a Treasury licence to produce documents, that person must— a take reasonable steps to obtain the documents (if they are not already in the person’s possession or control), and b keep the documents under the person’s possession or control (except for the purpose of providing them to the Treasury or as the Treasury may otherwise permit). 4 In this regulation, “ designated person ” has the same meaning as it has in Part 3 (Finance). Finance: information offences 35 1 A person commits an offence if that person— a without reasonable excuse, refuses or fails within the time and in the manner specified (or, if no time has been specified, within a reasonable time) to comply with any request under regulation 33 (finance: powers to request information); b knowingly or recklessly gives any information, or produces any document, which is false in a material particular in response to such a request; c with intent to evade any provision of regulation 33 or 34 (finance: production of documents), destroys, mutilates, defaces, conceals or removes any document; d otherwise intentionally obstructs the Treasury in the exercise of their powers under regulation 33 or 34. 2 Where a person is convicted of an offence under this regulation, the court may make an order requiring that person, within such period as may be specified in the order, to comply with the request. Trade: application of information powers in CEMA 36 1 Section 77A of CEMA applies in relation to a person carrying on a relevant activity as it applies in relation to a person concerned in the importation or exportation of goods but as if— a in subsection (1), the reference to a person concerned in the importation or exportation of goods for which for that purpose an entry is required by regulation 5 of the Customs Controls on Importation of Goods Regulations 1991 or an entry or specification is required by or under CEMA were to a person carrying on a relevant activity; b any other reference to importation or exportation were to a relevant activity; c any other reference to goods were to the goods, technology, services or funds to which the relevant activity relates. 2 For the purposes of paragraph (1), a “ relevant activity ” means an activity which would constitute a contravention of — a any prohibition in Part 4 (Trade) except the prohibition in regulation 15(1) (export of military goods ) , or b a prohibition in regulation 23 (circumventing etc. prohibitions). General trade licences: records 36A 1 This regulation applies in relation a person (“ P ”) who does any act authorised by a general licence issued under regulation 29A (trade licences) (“ the licence ”). 2 P must keep a register or record containing such details as may be necessary to allow the following information to be identified in relation to each act done under the authority of the licence— a a description of the act; b a description of any goods, technology, services or funds to which the act relates; c the date of the act or the dates between which the act took place; d the quantity of any goods or funds to which the act relates; e P’s name and address; f the name and address of any consignee of goods to which the act relates or any recipient of technology, services or funds to which the act relates; g in so far as it is known to P, the name and address of the end-user of the goods, technology, services or funds to which the act relates; h if different from P, the name and address of the supplier of any goods to which the act relates; i any further information re