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1.—(1) A relevant institution 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 committed an offence under regulation 9 or 10, and
(b)the information or other matter on which the knowledge or suspicion is based came to it in the course of carrying on its business.
(2) Where a relevant institution informs the Treasury under sub-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) Sub-paragraph (4) applies if—
(a)a relevant institution informs the Treasury under sub-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 institution.
(4) The relevant institution 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.
(5) A relevant institution that fails to comply with any requirement of sub-paragraph (1), (2) or (4) commits an offence.
2.—(1) The Treasury may request a designated person to provide information concerning—
(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 or on behalf of the designated person, or
(b)for the benefit of the designated person.
(3) The power in sub-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 these Regulations.
(4) The Treasury may request a person acting under a licence granted under regulation 9 to provide information concerning—
(a)funds or economic resources dealt with under the licence, or
(b)funds or economic resources made available under the licence.
(5) The Treasury may request any person in or resident in the United Kingdom to provide such information as the Treasury may reasonably require for the purpose of—
(a)establishing for the purposes of these Regulations—
(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 these Regulations; or
(c)obtaining evidence of the commission of an offence under these Regulations.
(6) The Treasury may specify the manner in which, and the period within which, information is to be provided.
(7) If no such period is specified, the information which has been requested must be provided within a reasonable time.
(8) 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.
(9) Information requested under this paragraph may relate to any period of time during which a person is, or was, a designated person.
(10) Information requested under sub-paragraph (1)(b), (2) or (5)(a)(iii) may relate to any period of time before a person became a designated person (as well as, or instead of, any subsequent period of time).
3.—(1) A request under paragraph 2 may include a request to produce specified documents or documents of a specified description.
(2) Where the Treasury request that documents be produced, they 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,
(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 licence granted under regulation 9 to produce documents, that person must—
(a)take reasonable steps to obtain the documents (if not already in the person’s possession or control);
(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.—(1) A person commits an offence who—
(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 made under this Schedule;
(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 the provisions of this Schedule, destroys, mutilates, defaces, conceals or removes any document; or
(d)otherwise intentionally obstructs the Treasury in the exercise of their powers under this Schedule.
(2) Where a person is convicted of an offence under this paragraph, the court may make an order requiring that person, within such period as may be specified in the order, to comply with the request.
5.—(1) The Treasury may disclose any information obtained by them in the exercise of their powers under these Regulations (including any document so obtained and any copy or extract made of any document so obtained)—
(a)to a police officer;
(b)to any person holding or acting in any office under or in the service of—
(i)the Crown in right of the Government of the United Kingdom;
(ii)the Crown in right of the Scottish Administration, the Northern Ireland Administration or the Welsh Assembly Government;
(iii)the States of Jersey, Guernsey or Alderney or the Chief Pleas of Sark;
(iv)the Government of the Isle of Man; or
(v)the Government of any British overseas territory;
(c)to any law officer of the Crown for Jersey, Guernsey or the Isle of Man;
(d)to the Legal Services Commission, the Scottish Legal Aid Board or the Northern Ireland Legal Services Commission;
(e)to the Financial Services Authority, the Jersey Financial Services Commission, the Guernsey Financial Services Commission, the Isle of Man Insurance and Pensions Authority and the Isle of Man Financial Supervision Commission;
(f)for the purpose of giving assistance or co-operation, pursuant to the Council Regulation, to—
(i)any organ of the United Nations, or
(ii)any person in the service of the United Nations, the Council of the European Union, the European Commission or the Government of any country;
(g)with a view to instituting, or otherwise for the purposes of, any proceedings—
(i)in the United Kingdom, for an offence under these Regulations, or
(ii)in any of the Channel Islands, the Isle of Man or any British overseas territory, for an offence under a similar provision in any such jurisdiction; or
(h)with the consent of a person who, in their own right, is entitled to the information or to possession of the document, copy or extract, to any third party.
(2) In sub-paragraph (1)(h) “in their own right” means not merely in the capacity as a servant or agent of another person.
6.—(1) Nothing done under this Schedule is to be treated as a breach of any restriction imposed by statute or otherwise.
(2) But nothing in this Schedule authorises a disclosure that—
(a)contravenes the Data Protection Act 1998(1), or
(b)is prohibited by Part 1 of the Regulation of Investigatory Powers Act 2000(2).
(3) Nothing in this Schedule is to be read as requiring a person who has acted as counsel or solicitor for any person to disclose any privileged information in their possession in that capacity.
(4) This Schedule does not limit the circumstances in which information may be disclosed apart from this Schedule.
(5) This Schedule does not limit the powers of the Treasury to impose conditions in connection with the discharge of their functions under regulation 9.
(6) In this paragraph—
“information” includes documents;
“privileged information” means information with respect to which a claim to legal professional privilege (in Scotland, to confidentiality of communications) could be maintained in legal proceedings.
Explanatory Memorandum sets out a brief statement of the purpose of a Statutory Instrument and provides information about its policy objective and policy implications. They aim to make the Statutory Instrument accessible to readers who are not legally qualified and accompany any Statutory Instrument or Draft Statutory Instrument laid before Parliament from June 2004 onwards.
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