Terrorist Asset-Freezing etc. Act 2010

Terrorist Asset-Freezing etc. Act 2010

2010 CHAPTER 38

Commentary on Sections and Schedules

Part 1 – Terrorist Asset-Freezing

Chapter 2 – Prohibitions in Relation to Designated Persons

Prohibitions

Section 13 – Making funds or financial services available for benefit of designated person

36. This section makes it an offence for a person to make funds or financial services available to any person for the benefit of a designated person if the person making the funds or financial services available knows, or has reasonable cause to suspect, that the funds or financial services are being made available for the benefit of a designated person. In contrast to the prohibition in section 12, which prohibits the making available of funds or financial services, directly or indirectly, to the designated person, the section 13 prohibition relates to the making available of funds or financial services to third parties but which are for the benefit of the designated person.

37. Subsection (2) provides that for the purposes of section 13, funds or financial services 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, where “financial benefit” includes the discharge of a financial obligation for which the designated person is wholly or partly responsible. No particular threshold level or amount of financial benefit is specified as constituting a “significant” financial benefit. Whether a financial benefit is “significant” is dependent on the circumstances of each particular case. Various factors may lead to a conclusion that a financial benefit is or is not significant, including the value of the financial benefit, the frequency with which the financial benefit is conferred on the designated person and the nature of the financial benefit.