PART 6Exceptions and licences
Finance: exceptions from prohibitions43
1
The prohibition in regulation 12 (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
4
5
The prohibitions in regulations 13 and 14 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 12 to 14 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 200017,
b
account B is with a ring-fenced body within the meaning of section 142A of the Financial Services and Markets Act 200018, 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 200019 (permission to carry on regulated activity).
Finance: humanitarian exception44
1
The prohibitions in regulations 12 to 16 (asset-freeze etc.) are not contravened by a person making funds or economic resources available—
a
which are necessary to ensure the timely delivery of urgently needed humanitarian assistance in Somalia by the United Nations, its specialised agencies or programmes, or by humanitarian organisations having observer status with the United Nations General Assembly that provide humanitarian assistance, or their implementing partners; or
b
which that person believes are necessary as set out in paragraph (a) and there is no reasonable cause for that person to suspect otherwise.
Exception for authorised conduct in a relevant country45
1
Where a person’s conduct in a relevant country would, in the absence of this regulation, contravene a prohibition in any of regulations 12 to 16 (asset-freeze etc.), Chapter 2 of Part 5 (Trade) or regulation 36 (enabling or facilitating the conduct of armed hostilities) (“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 crime46
1
Where an act would, in the absence of this paragraph, be prohibited by regulation 9(2) (confidentiality) or any prohibition in Part 3 (Finance) or Part 5 (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 7 (Information and records) or 9 (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 licences47
1
The prohibitions in regulations 12 to 16 (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 non-UN designated person only where the Treasury consider that it is appropriate to issue the licence for a purpose set out in Schedule 3.
3
The Treasury may issue a licence which authorises acts in relation to a UN designated person only where the Treasury consider that it is appropriate to issue the licence for a purpose set out in Part 2 of Schedule 3.
4
In this regulation “UN designated person” means—
a
Trade licences48
The prohibitions in Chapter 2 of Part 5 (Trade) and regulation 36 (enabling or facilitating the conduct of armed hostilities) do not apply to anything done under the authority of a licence issued by the Secretary of State under this regulation.
Licences: general provisions49
1
This regulation applies in relation to Treasury licences and trade licences.
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 offences50
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 offences51
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 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.
Section 8B(1) to (3) of the Immigration Act 197152
1
The Secretary of State may direct that, in relation to any person within regulation 18 whose name is specified, or who is of a specified description, section 8B(1) and (2) of the Immigration Act 1971, or section 8B(3) of that Act, have effect subject to specified exceptions.
2
A direction may contain conditions.
3
A direction must be of a defined duration (and that duration may be expressed in any way, including, for example, being expressed in a way such that the direction ceases to have effect on, or within a specified period after, the occurrence of a specified event).
4
The Secretary of State may vary, revoke or suspend a direction at any time.
5
On the issue, variation, revocation or suspension of a direction under this regulation, the Secretary of State may take such steps as the Secretary of State considers appropriate to publicise the issue, variation, revocation or suspension of the direction.
6
In this regulation “specified” means specified in a direction under this regulation.