Part 2 – Terrorist Financing, Money Laundering Etc.
Directions in particular cases
Section 48 – Directions to branches of credit institutions and financial institutions
101.Directions under Schedule 7 to the Counter-Terrorism Act 2008 (see paragraph 10 above) may be given to a person operating in the financial sector i.e. a credit institution or financial institution, where the institution is a UK person or is acting in the course of business carried on by it in the UK (paragraphs 3 to 5 of that Schedule). The amendments made by section 48 ensure that such directions can apply to branches of a relevant person, wherever located.
102.Section 49 – Directions in relation to subsidiaries.
103.Directions under Schedule 7 may impose requirements on credit or financial institutions in relation to their transactions or business relationships with certain persons. The amendment made by this section will allow such requirements to be imposed in relation to a person who is a subsidiary of a person incorporated in a country of concern (see paragraph 10 above) or carrying on business there.
General directions and other requirements
104.Section 50 – Circumventing requirements of Schedule 7 directions.
105.This section introduces a prohibition on knowing and intentional circumvention of the requirements of a direction under Schedule 7. A civil penalty may be imposed in response to breach of the prohibition, and breach of the prohibition is a criminal offence.
Minor amendments and repeals
106.Section 51 – Northern Ireland credit unions
107.Schedule 7 makes provision for the supervision and enforcement of relevant persons’ compliance with the requirements of a direction. Section 51 makes amendments to remove those functions in relation to credit unions in Northern Ireland from the Department for Enterprise, Trade and Investment in Northern Ireland. The functions in relation to Northern Ireland credit unions will become exercisable by other enforcement authorities, and arrangements will be made to ensure that they are exercised by the Financial Services Authority.
108.Section 52 – Consequential amendments and repeals.
109.Section 52 introduces Part 2 of Schedule 1, which makes amendments consequential on Part 2 of the Act, and Part 2 of Schedule 2, which contains repeals consequential on Part 2 of the Act.