^F1,F2Part 1 Terrorist Asset-Freezing _cross-notes

CHAPTER 1 Designated persons

Introductory

note ^F21 Meaning of “designated person”

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Final designations

note ^F22 Treasury's power to make final designation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

note ^F23 Notification of final designation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

note ^F24 Duration of final designation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

note ^F25 Variation or revocation of final designation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interim designations

note ^F26 Treasury's power to make interim designation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

note ^F27 Notification of interim designation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

note ^F28 Duration of interim designation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

note ^F29 Variation or revocation of interim designation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Confidential information

note ^F210 Confidential information

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 2 Prohibitions in relation to designated persons

Prohibitions

note ^F211 Freezing of funds and economic resources

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

note ^F212 Making funds or financial services available to designated person

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

note ^F213 Making funds or financial services available for benefit of designated person

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

note ^F214 Making economic resources available to designated person

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

note ^F215 Making economic resources available for benefit of designated person

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Exceptions and licences

note ^F216 Exceptions

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

note ^F217 Licences

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Circumventing prohibitions etc.

note ^F218 Circumventing prohibitions etc.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 3 Information

Information for Treasury

note ^F219 Reporting obligations of relevant institutions

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

note ^F220 Powers to request information

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

note ^F221 Production of documents

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

note ^F222 Failure to comply with request for information

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Disclosure of information by Treasury

note ^F223 General power to disclose information

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other

note ^F224 Co-operation with UK or international investigations

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

note ^F225 Application of provisions

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 4 Supplementary provisions

Supervision of exercise of powers

note ^F226 Appeal to the court in relation to designations

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

note ^F227 Review of other decisions by the court

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

note ^F228 Appeals and reviews: supplementary

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

noteSI ^F229 Initial exercise of powers to make rules of court

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

note ^F230 Treasury report on operation of Part 1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

note ^F231 Independent review of operation of Part 1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Offences

note ^F232 Penalties

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

note ^F233 Extra-territorial application of offences

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

note ^F234 Liability of officers of body corporate etc.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

note ^F235 Jurisdiction to try offences

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

note ^F236 Time limit for proceedings for summary offences

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

note ^F237 Consent to prosecution

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

note ^F238 Procedure for offences by unincorporated bodies

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation

note ^F239 Meaning of “funds” and “economic resources”

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

note ^F240 Meaning of “financial services”

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

note ^F241 Meaning of “relevant institution”

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

note ^F242 Interpretation: general

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Miscellaneous

note ^F243 Service of notices

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

note ^F244 Crown application

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

note 45 Consequential amendments, repeals and revocations

[^F2 (1)Part 1 of Schedule 1 (which contains amendments consequential on this Part) has effect.^F2]

^F2(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F246 Transitional provisions and savings

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F247 Power to repeal Part

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part 2 Terrorist financing, money laundering etc.

Directions in particular cases

note 48 Directions to branches of credit institutions and financial institutions

(1) In paragraph 5 of Schedule 7 to the Counter-Terrorism Act 2008 (directions in relation to terrorist financing and money laundering etc : meaning of “credit institution” and “financial institution”)—

(a)for sub-paragraph (1) substitute—

“(1)Credit institution” means a credit institution, as defined in Article 4(1)(a) of the banking consolidation directive, when it accepts deposits or other repayable funds from the public or grants credits for its own account (within the meaning of that directive).”,

(b)after sub-paragraph (2)(b) insert—

“(ba)a person equivalent to an insurance company within paragraph (b) whose head office is located in a non-EEA state, when carrying out activities of the kind mentioned in paragraph (b);”,

(c)omit sub-paragraph (2)(f), and

(d)after sub-paragraph (2) insert—

“(3)The fact that an institution's head office is located in a non-EEA state does not prevent it from being a credit institution or a financial institution for the purposes of this Schedule.”

(2)In paragraph 9 of that Schedule (requirements that may be imposed by a direction), after sub-paragraph (5) insert—

“(5A)Descriptions of transactions or business relationships for the purposes of sub-paragraph (5)(b) may, in particular, include transactions or business relationships of a particular branch (or description of branch) of a relevant person.”

49 Directions in relation to subsidiaries

(1)Paragraph 9 of Schedule 7 to the Counter-Terrorism Act 2008 (requirements that may be imposed by a direction) is amended as follows.

(2)In sub-paragraph (1), after paragraph (c), insert—

“(d)a company that is a subsidiary of a company within paragraph (a) or (c).”

(3)After sub-paragraph (6) insert—

“(7)In this paragraph “subsidiary” has the meaning given by section 1159 of the Companies Act 2006 (and “company” has the same meaning as in that section).”

General directions and other requirements

50 Circumventing requirements of Schedule 7 directions

(1)Schedule 7 to the Counter-Terrorism Act 2008 is amended as follows.

(2)After paragraph 25 (civil penalties for failure to comply with requirements) insert—

“25A(1)An enforcement authority may impose a penalty of such amount as it considers appropriate on a relevant person who has intentionally participated in activities knowing that the object or effect of them was (whether directly or indirectly) to circumvent a requirement imposed by a direction under this Schedule.

(2)In sub-paragraph (1) “appropriate” means effective, proportionate and dissuasive.

(3)A person on whom a penalty is imposed under this paragraph is not liable to be proceeded against for an offence under paragraph 30A in respect of participation in the same activities.”

(3)After paragraph 30 (offence of failing to comply with requirements) insert—

“30A Offences: relevant person circumventing requirements

(1)A relevant person who intentionally participates in activities knowing that the object or effect of them is (whether directly or indirectly) to circumvent a requirement imposed by a direction under this Schedule commits an offence.

(2)A person guilty of an offence under this paragraph is liable—

(a)on summary conviction, to a fine not exceeding the statutory maximum;

(b)on conviction on indictment, to imprisonment for a term not exceeding two years or a fine or both.

(3)A person who is convicted of an offence under this paragraph is not liable to a penalty under paragraph 25A in respect of participation in the same activities.”

Minor amendments and repeals

51 Northern Ireland credit unions _I1

(1)In paragraph 18(1) of Schedule 7 to the Counter-Terrorism Act 2008 (Department of Enterprise, Trade and Investment in Northern Ireland to be the enforcement authority for credit unions in Northern Ireland)—

(a)at the end of paragraph (b) insert “ or ”, and

(b)omit paragraph (d) and the word “or” before it.

(2)In paragraph 39(2) of that Schedule (Department of Enterprise, Trade and Investment in Northern Ireland to be the supervisory authority for credit unions in Northern Ireland), omit paragraph (d).

52 Consequential amendments and repeals _I2

(1)Part 2 of Schedule 1 (which contains amendments consequential on this Part) has effect.

(2)Part 2 of Schedule 2 (which contains repeals consequential on this Part) has effect.

Part 3 Final provisions

Extent etc.

note 53 Extent

(1)Subject as follows, this Act extends to England and Wales, Scotland and Northern Ireland.

(2)Sections 54 and 56 (and this section and section 55 so far as relating to sections 54 and 56) also extend to the Channel Islands, the Isle of Man and the British overseas territories.

(3)The amendments made by section 28(1) (amendment of Senior Courts Act 1981) and paragraph 5 of Schedule 1 (amendment of civil procedure rules: England and Wales) extend to England and Wales only.

(4)The amendments made by paragraphs 1 to 4 of Schedule 1 (amendments of rules of the Court of Judicature (Northern Ireland)) extend to Northern Ireland only.

note 54 Channel Islands, Isle of Man and British overseas territories

SI(1)Her Majesty may by Order in Council provide for any of the provisions of Part 1 (including Part 1 of Schedules 1 and 2) to extend, with or without modifications, to any of the Channel Islands, the Isle of Man or any British overseas territory.

(2)Sections 1 and 3 of the Terrorist Asset-Freezing (Temporary Provisions) Act 2010, so far as they have effect as part of the law of Guernsey, Jersey, the Isle of Man and the territories listed in Schedule 1 to the Terrorism (United Nations Measures) (Overseas Territories) Order 2001 (S.I. 2001/3366), have effect as if the reference in section 1(1) of that Act to 31 December 2010 were a reference to 31 March 2011.

Commencement and short title

55 Commencement

(1)Subject to subsection (2), Parts 1 and 2 (including Schedules 1 and 2) come into force on the day following that on which this Act is passed.

SI(2)Section 51 (and section 52, and Part 2 of Schedules 1 and 2, so far as relating to section 51) come into force on such day as the Treasury may by order made by statutory instrument appoint.

(3)An order under subsection (2) may include such transitional, transitory or saving provision as the Treasury consider appropriate.

(4)This Part comes into force on the day on which this Act is passed.

note 56 Short title

This Act may be cited as the Terrorist Asset-Freezing etc. Act 2010.

SCHEDULES

Sections 45(1) and 52(1)

SCHEDULE 1 Consequential amendments

Part 1 Terrorist asset-freezing

Rules of the Court of Judicature (Northern Ireland) 1980 (S.R. 1980 No.346)

1 The Rules of the Court of Judicature (Northern Ireland) 1980 are amended as follows.

2 In the Arrangement of Orders, in the entry relating to Order 116B, after “2008” insert “ and Part 1 of the Terrorist Asset-Freezing etc. Act 2010 ”.

3 In Order 1, after rule 11(l) insert—

“(la)proceedings on an application under section 27 of the Terrorist Asset-Freezing etc. Act 2010, or on a claim arising from any matter to which such an application relates;”.”

4 In Order 116B—

(a) in the title of the Order, at the end insert “ and Part 1 of the Terrorist Asset-Freezing etc. Act 2010 ”,

(b) in rule 1(2)(a), after “the”, in the first place in which it appears, insert “ 2008 ”,

(c) after rule 1(2)(a) insert—

“(aa)the 2010 Act” means the Terrorist Asset-Freezing etc. Act 2010;”,

(d) in rule 1(2)(b), after “the” insert “ 2008 Act or section 27 of the 2010 ”,

(e) in rule 1(2)(c) for “has the same meaning as in section 65 of the Act” substitute

“means—

(i)financial restrictions proceedings within the meaning of section 65 of the 2008 Act; and

(ii)proceedings in the High Court on an application under section 27 of the 2010 Act, or on a claim arising from any matter to which such an application relates”,

(f) in rule 1(2)(h), for “Act” substitute “ 2008 Act (including that section as applied by section 28(4) of the 2010 Act) ”,

(g) in rule 4(3)(a)(ii), after “the”, in the first place in which it appears, insert “ 2008 ”,

(h) in rule 5(1) after “2008”, insert “ , or section 27 of the Terrorist Asset-Freezing etc. Act 2010, as the case may be, ”,

(i) in rule 36(1), after “the” insert “ 2008 ”, and

(j) in rule 36(2), after “the” in the second place in which it appears, insert “ 2008 ”.

Civil Procedure Rules 1998 (S.I. 1998/3132)

5 In Part 79 of the Civil Procedure Rules 1998 (proceedings under the Counter-Terrorism Act 2008)—

(a) in the title of Part 79, at the end insert “ and Part 1 of the Terrorist Asset-Freezing etc. Act 2010 ”,

(b) in rule 79.1(2)(a), after “the”, in the first place in which it appears, insert “ 2008 ”,

(c) after rule 79.1(2)(a) insert—

“(aa)the 2010 Act” means the Terrorist Asset-Freezing etc. Act 2010;”,

(d) in rule 79.1(2)(b), after “the” insert “ 2008 Act or section 27 of the 2010 ”,

(e) in rule 79.1(2)(c) for “has the same meaning as in section 65 of the Act” substitute “means—

(i)financial restrictions proceedings within the meaning of section 65 of the 2008 Act; and

(ii)proceedings in the High Court on an application under section 27 of the 2010 Act, or on a claim arising from any matter to which such an application relates”,

(f) in rule 79.1(2)(h), for “Act” substitute “ 2008 Act (including that section as applied by section 28(4) of the 2010 Act) ”,

(g) in rule 79.6(3)(a)(ii), after “the”, in the first place in which it appears, insert “ 2008 ”,

(h) in rule 79.31(1), after “the” insert “ 2008 ”, and

(i) in rule 79.31(2), after “the” in the second place in which it appears, insert “ 2008 ”.

Money Laundering Regulations 2007 (S.I. 2007/2157)

^F3 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Transfer of Funds (Information on the Payer) Regulations 2007 (S.I. 2007/3298)

^F3 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Payment Services Regulations 2009 (S.I. 2009/209)

^F3 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part 2 Terrorist financing, money laundering etc.

Amendment relating to section 48: branches

9 In paragraph 46 of Schedule 7 to the Counter-Terrorism Act 2008 (terrorist financing and money laundering etc: index of defined expressions), in the table—

(a) in the entry for “credit institution”, after “5(1)” insert “ and (3) ”, and

(b) in the entry for “financial institution”, after “5(2)” insert “ and (3) ”.

Amendments relating to section 50: circumvention

10 (1) In paragraph 26(1) of Schedule 7 to the Counter-Terrorism Act 2008 (imposition of penalty by HMRC) after “25” insert “ or 25A ”.

(2) In paragraph 27 of that Schedule (imposition of penalty by other enforcement authority)—

(a) in sub-paragraph (1) after “25” insert “ or 25A ”, and

(b) in sub-paragraph (3) after “25” insert “ or (as the case may be) 25A ”.

(3) In paragraph 29(1) of that Schedule (payment and recovery of civil penalties) after “25” insert “ or 25A ”.

(4) In paragraph 41(2) of that Schedule (application of civil penalties by Financial Services Authority) after “25” insert “ or 25A ”.

Amendments relating to section 51: Northern Ireland credit unions

11 _I3 (1) In paragraph 18(2) of Schedule 7 to the Counter-Terrorism Act 2008 (definition of “enforcement officer”) omit paragraph (d) (but not the word “or” at the end of the paragraph).

(2) In paragraph 18(3)(b) of that Schedule (definition of “local enforcement officer” in Northern Ireland) for “DETINI” substitute “ the Department of Enterprise, Trade and Investment in Northern Ireland (“DETINI”) ”.

(3) In paragraph 27(1) of that Schedule (imposition of penalty by enforcement authority) for “, the OFT or DETINI” substitute “ or the OFT ”.

(4) In paragraph 28 of that Schedule (appeal against imposition of certain civil penalties)—

(a) omit sub-paragraph (2), and

(b) in sub-paragraph (3) omit “or court”.

(5) In paragraph 46 of that Schedule (index of defined expressions), in the entry for DETINI, for “paragraph 18(1)(d)” substitute “ paragraph 18(3)(b) ”.

Sections 45(2) and 52(2)

SCHEDULE 2 Repeals and revocations

Part 1 Terrorist asset-freezing

Part 2 Terrorist financing, money laundering etc. _I4,I5