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PART 7U.K.Information and records

Finance: reporting obligationsU.K.

38.—(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 committed an offence under any provision of Part 3 (Finance) or regulation 35 (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.

(5) A relevant institution must inform the Treasury without delay if that institution—

(a)credits a frozen account in accordance with regulation 30(4) (finance: exceptions from prohibitions), or

(b)transfers funds from a frozen account in accordance with regulation 30(6).

(6) A person who fails to comply with a requirement in paragraph (1), (2) or (4) commits an offence.

(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 30;

“relevant firm” is to be read in accordance with regulation 39;

“relevant institution” has the same meaning as it has in regulation 30.

Commencement Information

I1Reg. 38 not in force at made date, see reg. 1(2)

I2Reg. 38 in force at 31.12.2020 by S.I. 2019/627, reg. 12(2); 2020 c. 1, Sch. 5 para. 1(1)

“Relevant firm”U.K.

39.—(1) The following are relevant firms for the purposes of regulation 38—

(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) M1, or

(ii)a local auditor within the meaning of section 4(1) of the Local Audit and Accountability Act 2014 (general requirements for audit) M2;

(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) M3;

(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.

[F1(h)a cryptoasset exchange provider;

(i)a custodian wallet provider.]

(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 M4, 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.

[F2(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 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.

(3B) 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.

(3C) 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 (3A), “cryptoasset” includes a right to, or interest in, the cryptoasset.]

(4) Paragraph (1)(a) and (b) 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.

(5) For the purposes of regulation 38(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) M5;

(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;

(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.

Textual Amendments

Commencement Information

I3Reg. 39 not in force at made date, see reg. 1(2)

I4Reg. 39 in force at 31.12.2020 by S.I. 2019/627, reg. 12(2); 2020 c. 1, Sch. 5 para. 1(1)

Marginal Citations

Finance: powers to request informationU.K.

40.—(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), 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, F3...

(b)funds or economic resources made available under the [F4licence, or]

[F5(c)any matter to which a licence relates, where that licence authorises an act that would otherwise be prohibited under—

(i)regulation 15A (dealing with transferable securities or money market instruments),

(ii)regulation 15B (loans and credit arrangements),

(iii)regulation 15C (insurance and reinsurance services), or

(iv)regulation 15CA (provision of financial services relating to foreign exchange reserve and asset management).]

(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 38 (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 35 (finance: licensing offences) or 38 (finance: reporting obligations).

(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.

Textual Amendments

Commencement Information

I5Reg. 40 not in force at made date, see reg. 1(2)

I6Reg. 40 in force at 31.12.2020 by S.I. 2019/627, reg. 12(2); 2020 c. 1, Sch. 5 para. 1(1)

Finance: production of documentsU.K.

41.—(1) A request under regulation 40 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);

(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).

Commencement Information

I7Reg. 41 not in force at made date, see reg. 1(2)

I8Reg. 41 in force at 31.12.2020 by S.I. 2019/627, reg. 12(2); 2020 c. 1, Sch. 5 para. 1(1)

Finance: information offencesU.K.

42.—(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 40 (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 40 (finance: powers to request information) or 41 (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 40 (finance: powers to request information) or 41 (finance: production of documents).

(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.

Commencement Information

I9Reg. 42 not in force at made date, see reg. 1(2)

I10Reg. 42 in force at 31.12.2020 by S.I. 2019/627, reg. 12(2); 2020 c. 1, Sch. 5 para. 1(1)

Trade: application of information powers in CEMAU.K.

43.—(1) Section 77A of CEMA M6 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 F6... 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 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, unless done under the authority of a trade licence , constitute a contravention of—

[F7(a)any prohibition in Chapters 2, F8... 2B [F9, 2C or 2D] of Part 5 (Trade) except the prohibitions in [F10regulation 21 (export of goods to, or for use in, Belarus) or 27I (import of goods originating from, or consigned from, Belarus), or]]

(b)the prohibition in regulation 28 (circumventing etc prohibitions).

Textual Amendments

Commencement Information

I11Reg. 43 not in force at made date, see reg. 1(2)

I12Reg. 43 in force at 31.12.2020 by S.I. 2019/627, reg. 12(2); 2020 c. 1, Sch. 5 para. 1(1)

Marginal Citations

M6Section 77A was inserted by the Finance Act 1987 (c.16), section 10 and amended by S.I. 1992/3095.

General trade licences: recordsU.K.

44.—(1) This regulation applies in relation to a person (“P”) who does any act authorised by a general licence issued under regulation 33 (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 required by the licence.

(3) The register or record relating to an act must be kept until the end of the calendar year in which the register or record is created and for a further period of 4 years from the end of that calendar year.

(4) P must notify the Secretary of State in writing of P's name and the address at which the register or record may be inspected, and must make a further such notification if those details change.

(5) A notification under paragraph (4) must be given no later than 30 days after—

(a)P first does any act authorised by the licence, or

(b)there is any change to the details previously notified.

(6) A person who fails to comply with a requirement in paragraph (2), (3) or (4) commits an offence.

Commencement Information

I13Reg. 44 not in force at made date, see reg. 1(2)

I14Reg. 44 in force at 31.12.2020 by S.I. 2019/627, reg. 12(2); 2020 c. 1, Sch. 5 para. 1(1)

General trade licences: inspection of recordsU.K.

45.—(1) A person authorised by the Secretary of State or the Commissioners (an “official”) may at any reasonable hour enter premises notified under regulation 44(4) for the purposes of monitoring compliance with or detecting evasion of regulation 44(2) or (3).

(2) An official may require any person on the premises to produce any register or record required to be kept under regulation 44, or any document included in such a register or record, that is in the person's possession or control.

(3) An official may inspect and copy any such register, record or document.

(4) An official must, if requested to do so, produce documentary evidence that he or she is authorised to exercise a power conferred by this regulation.

(5) A person commits an offence if, without reasonable excuse, the person—

(a)intentionally obstructs an official in the performance of any of the official's functions under this regulation, or

(b)fails to produce a register, record or document when reasonably required to do so by an official under this regulation.

Commencement Information

I15Reg. 45 not in force at made date, see reg. 1(2)

I16Reg. 45 in force at 31.12.2020 by S.I. 2019/627, reg. 12(2); 2020 c. 1, Sch. 5 para. 1(1)

[F11Internet services: power to request information and produce documentsU.K.

45A.—(1) OFCOM may request a person to provide information within paragraph (2) if OFCOM believe that the person may be able to provide the information.

(2) Information within this paragraph is such information as OFCOM may reasonably require for the purpose of monitoring compliance with or detecting evasion of regulation 27P (preventing provision of certain internet services to or for the benefit of designated persons).

(3) OFCOM may specify the way in which, and the period within which, information is to be provided.

(4) If no such period is specified, the information which has been requested must be provided within a reasonable time.

(5) A request may include a continuing obligation to keep OFCOM informed as circumstances change, or on such regular basis as OFCOM may specify.

(6) A request may include a request to produce specified documents or documents of a specified description.

(7) Where OFCOM request that documents be produced, OFCOM 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 past or present officer or employee of the body concerned,

to give such an explanation.

Textual Amendments

Internet services: information offencesU.K.

45B.—(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 45A;

(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 45A, destroys, mutilates, defaces, conceals or removes any document;

(d)otherwise intentionally obstructs OFCOM in the exercise of their powers under regulation 45A.

(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.]

Textual Amendments

Disclosure of informationU.K.

46.—(1) The Secretary of State, the Treasury [F12, OFCOM] or the Commissioners may, in accordance with this regulation, disclose—

(a)any information obtained under or by virtue of Part 6 (Exceptions and licences), this Part or Part 9 (Maritime enforcement), or

(b)any information held in connection with—

(i)anything done under or by virtue of Part 2 (Designation of persons), Part 3 (Finance), Part 5 (Trade), [F13Part 5A (Aircraft)] [F14or Part 5B (Ships)], or

(ii)any exception or licence under Part 6 or anything done in accordance with such an exception or under the authority of such a licence.

(2) Information referred to in paragraph (1) may be disclosed for, or in connection with, any of the following purposes—

(a)the exercise of functions under these Regulations;

(b)any purpose stated in regulation 4;

(c)facilitating, monitoring or ensuring compliance with these Regulations;

(d)taking any action with a view to instituting, or otherwise for the purposes of, any proceedings in the United Kingdom—

(i)for an offence under any provision of these Regulations,

(ii)for an offence under CEMA in connection with a prohibition mentioned in [F15regulation 21 (export of goods to, or for use in, Belarus) or 27I (import of goods originating from, or consigned from, Belarus) [F16,]

(iii)in relation to a monetary penalty under section 146 of the Policing and Crime Act 2017 (breach of financial sanctions legislation) M7; [F17or]

[F18(iv)in relation to a monetary penalty under regulation 56A (OFCOM: power to impose monetary penalties).]

(e)taking any action with a view to instituting, or otherwise for the purposes of, any proceedings in any of the Channel Islands, the Isle of Man, or any British overseas territory, for an offence—

(i)under a provision in any such jurisdiction that is similar to a provision of these Regulations, or

(ii)in connection with a prohibition in any such jurisdiction that is similar to a prohibition referred to in sub-paragraph (d)(ii);

(f)compliance with an international obligation M8;

(g)facilitating the exercise by an authority outside the United Kingdom or by an international organisation of functions which correspond to functions under these Regulations.

(3) Information referred to in paragraph (1) may be disclosed to the following persons—

(a)a police officer;

(b)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 Government, the Northern Ireland Executive or the Welsh 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)any law officer of the Crown for Jersey, Guernsey or the Isle of Man;

(d)the Scottish Legal Aid Board;

(e)the Financial Conduct Authority, the Prudential Regulation Authority, the Bank of England, the Jersey Financial Services Commission, the Guernsey Financial Services Commission or the Isle of Man Financial Services Authority;

(f)any other regulatory body (whether or not in the United Kingdom);

(g)any organ of the United Nations;

(h)the Council of the European Union, the European Commission or the European External Action Service;

(i)the Government of any country;

(j)any other person where the Secretary of State, the Treasury or the Commissioners (as the case may be) considers that it is appropriate to disclose the information.

(4) Information referred to in paragraph (1) may be disclosed to any person with the consent of a person who, in their own right, is entitled to the information.

(5) In paragraph (4) “in their own right” means not merely in the capacity as a servant or agent of another person.

(6) In paragraph (1)(b)—

(a)the reference to information includes information obtained at a time when any provision of these Regulations is not in force, and

(b)the reference to a licence under Part 6 includes—

(i)a licence or authorisation which is treated as if it were a licence which had been issued under that Part, and

(ii)a licence which is deemed to have been issued under that Part.]

Textual Amendments

Commencement Information

I17Reg. 46 not in force at made date, see reg. 1(2)

I18Reg. 46 in force at 31.12.2020 by S.I. 2019/627, reg. 12(2); 2020 c. 1, Sch. 5 para. 1(1)

Marginal Citations

M8Section 1(8) of the Sanctions and Anti-Money Laundering Act 2018 defines an “international obligation” as an obligation of the United Kingdom created or arising by or under any international agreement.

[F19Finance: disclosure to the TreasuryU.K.

46A.—(1) A relevant public authority may disclose information to the Treasury if the disclosure is made for the purpose of enabling or assisting the Treasury to discharge any of its functions in connection with sanctions.

(2) In this regulation—

“relevant public authority” means—

(a)

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 Government, the Northern Ireland Executive or the Welsh Government,

(b)

any local authority,

(c)

any police officer,

(d)

the Financial Conduct Authority, the Prudential Regulation Authority, the Bank of England or any other regulatory body in the United Kingdom, or

(e)

any other person exercising functions of a public nature;

“local authority” means—

(a)

in relation to England—

(i)

a county council,

(ii)

a district council,

(iii)

a London Borough council,

(iv)

the Common Council of the City of London in its capacity as a local authority,

(v)

the Council of the Isles of Scilly, or

(vi)

an eligible parish council within the meaning of section 1(2) of the Local Government Act 2000,

(b)

in relation to Wales, a county council, a county borough council or a community council,

(c)

in relation to Scotland, a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994, or

(d)

in relation to Northern Ireland, a district council.]

Textual Amendments

Part 7: supplementaryU.K.

47.—(1) A disclosure of information under regulation 46 [F20or 46A] does not breach any restriction on such disclosure imposed by statute or otherwise.

(2) But nothing in [F21those regulations] authorises a disclosure that—

(a)contravenes the data protection legislation, or

(b)is prohibited by any of Parts 1 to 7 or Chapter 1 of Part 9 of the Investigatory Powers Act 2016 M9.

(3) Nothing in this Part is to be read as requiring a person who has acted or is acting as counsel or solicitor for any person to disclose any privileged information in their possession in that capacity.

(4) [F22Regulations 46 and 46A do] not limit the circumstances in which information may be disclosed apart from [F23those regulations].

(5) Nothing in this Part limits any conditions which may be contained in a Treasury licence or a trade licence.

(6) In this regulation—

“the data protection legislation” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act) M10;

“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.

Textual Amendments

Commencement Information

I19Reg. 47 not in force at made date, see reg. 1(2)

I20Reg. 47 in force at 31.12.2020 by S.I. 2019/627, reg. 12(2); 2020 c. 1, Sch. 5 para. 1(1)

Marginal Citations

M102018 c.12. There are amendments to this Act that are not relevant to these Regulations.