PART 1 General

Citation and commencement_I1,I2

1.—(1) These Regulations may be cited as the Iran (Sanctions) (Nuclear) (EU Exit) Regulations 2019.

(2) These Regulations come into force in accordance with regulations made by the Secretary of State under section 56 of the Act.

Interpretation_I3,I4

2. In these Regulations—

“ the Act ” means the Sanctions and Anti-Money Laundering Act 2018 ;

“ arrangement ” includes any agreement, understanding, scheme, transaction or series of transactions, whether or not legally enforceable (but see Schedule 1 for the meaning of that term in that Schedule);

^M3 “ CEMA ” means the Customs and Excise Management Act 1979 ;

“ the Committee ” means the Committee of the Security Council established under paragraph 18 of resolution 1737;

“ the Commissioners ” means the Commissioners for Her Majesty's Revenue and Customs;

“ conduct ” includes acts and omissions;

[^F1 “ director disqualification licence ” means a licence under regulation 40A; ^F1]

“ document ” includes information recorded in any form and, in relation to information recorded otherwise than in legible form, references to its production include producing a copy of the information in legible form;

^M4 “ the EU Iran Regulation ” means Council Regulation (EU) No 267/2012 of 23 March 2012 concerning restrictive measures against Iran and repealing Regulation (EU) No 961/2010 as it has effect in EU law;

“ the Joint Comprehensive Plan of Action ” means the document attached as Annex A to resolution 2231;

“ non-UN designated person ” means a person who is designated under regulation 5 for the purposes of regulations 12 to 17;

“ resolution 1737 ” means resolution 1737[^F2 (2006) ^F2] adopted by the Security Council on 23 December 2006;

[^F3 “ resolution 1747 ” means resolution 1747 (2007) adopted by the Security Council on 24 March 2007; ^F3]

[^F3 “ resolution 1803 ” means resolution 1803 (2008) adopted by the Security Council on 3 March 2008; ^F3]

[^F3 “ resolution 1929 ” means resolution 1929 (2010) adopted by the Security Council on 9 June 2010; ^F3]

“ resolution 2231 ” means resolution 2231[^F4 (2015) ^F4] adopted by the Security Council on 20 July 2015;

“ trade licence ” means a licence under regulation 41;

“ Treasury licence ” means a licence under regulation 40(1).

Application of prohibitions and requirements outside the United Kingdom_I5,I6

3.—(1) A United Kingdom person may contravene a relevant prohibition by conduct wholly or partly outside the United Kingdom.

(2) Any person may contravene a relevant prohibition by conduct in the territorial sea.

(3) [^F5 In this regulation ^F5] a “ relevant prohibition ” means any prohibition imposed—

(a)by regulation 9(2) (confidential information),

(b)by Part 3 (Finance),

(c)by Part 5 (Trade), or

(d)by a condition of a Treasury licence or a trade licence.

(4) A United Kingdom person may comply, or fail to comply, with a relevant requirement by conduct wholly or partly outside the United Kingdom.

(5) Any person may comply, or fail to comply, with a relevant requirement by conduct in the territorial sea.

(6) In this regulation a “ relevant requirement ” means any requirement imposed—

(a)imposed by or under Part 7 (Information and records), or by reason of a request made under a power conferred by that Part, or

(b)by a condition of a Treasury licence or a trade licence.

(7) Nothing in this regulation is to be taken to prevent a relevant prohibition or a relevant requirement from applying to conduct (by any person) in the United Kingdom

(8) In this regulation, “ United Kingdom person ” has the same meaning as in section 21 of the Act.

Purposes_I7,I8

4.—(1) The regulations contained in this instrument that are made under section 1 of the Act have the following purposes—

(a)compliance with the relevant UN obligations, and

(b)the additional purposes mentioned in paragraph (2).

(2) Those additional purposes are—

(a)promoting the abandonment by Iran of nuclear weapons programmes, [^F6and^F6]

(b)^F7restricting the ability of Iran to develop nuclear weapons and nuclear weapons delivery systems, ...

^F7(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

otherwise than by compliance with the relevant UN obligations.

(3) In this regulation “ the relevant UN obligations ” means—

(a)^M5the obligation that the United Kingdom has by virtue of paragraph [^F812 of resolution 1737^F8] (asset-freeze etc) to take the measures required by that provision in respect of persons for the time being named for the purposes of that provision by the Security Council or the Committee;

[^F9 (b)the obligations that the United Kingdom has by virtue of paragraph 12 of resolution 1737 in respect of persons—

(i)acting on behalf of or at the direction of, or

(ii)owned or controlled by,

the persons for the time being named by the Security Council or the Committee for the purposes of paragraph 12 of resolution 1737;^F9]

[^F10 (c)the obligations that the United Kingdom has by virtue of paragraphs 3, 4, 6 and 7 of resolution 1737 and paragraph 8 of resolution 1803 (certain nuclear-related goods and technology and connected trade);

(d)the obligations that the United Kingdom has by virtue of paragraph 5 of resolution 1737 and paragraph 8 of resolution 1929 (arms and related materiel and connected trade);

(e)the obligations that the United Kingdom has by virtue of paragraph 7 of resolution 1929 (commercial activity involving uranium mining, nuclear materials, etc);

(f)the obligations that the United Kingdom has by virtue of paragraph 18 of resolution 1929 (bunkering services in respect of Iran-related ships);

(g)the obligations that the United Kingdom has by virtue of paragraph 22 of resolution 2231 (notification etc, related to certain activities).^F10]

[^F11 (4) In paragraph (3)(a) and (b), the reference to paragraph 12 of resolution 1737 is a reference to that paragraph as read with—

(a)paragraph 4 of resolution 1747;

(b)paragraph 7 of resolution 1803;

(c)paragraphs 11, 12 and 19 of resolution 1929.

(5) In paragraph (3)(c), the reference to paragraphs 3, 4, 6 and 7 of resolution 1737 is a reference to those paragraphs as read with paragraph 13 of resolution 1929.^F11]

PART 2 Designation of persons

Power to designate persons_I9,I10

5.—(1) The Secretary of State may designate persons, by name, [^F12in accordance with regulation 5A (conditions for the designation of persons by name)^F12] for the purposes of any of the following—

(a)regulations 12 to 17 (asset-freeze etc);

[^F13 (aa)regulation 18A (director disqualification sanctions).^F13]

(b)regulation 19 (immigration).

(2) The Secretary of State may designate different persons for the purposes of different provisions mentioned in paragraph (1).

[^F14Conditions for the designation of persons by name

5A.—(1) The Secretary of State may choose whether to designate a person under regulation 5 (power to designate persons) under—

(a)the standard procedure, or

(b)the urgent procedure.

(2) Paragraph (3) applies where the Secretary of State chooses to designate a person under regulation 5 under the standard procedure.

(3) The Secretary of State may not designate a person except where condition A is met.

(4) Condition A is that the Secretary of State has reasonable grounds to suspect that that person is an involved person.

(5) Paragraphs (6) to (8) apply where the Secretary of State chooses to designate a person under regulation 5 under the urgent procedure.

(6) The Secretary of State may designate a person where condition A is not met, but conditions B and C are met.

(7) The person ceases to be a designated person at the end of the period of 56 days beginning with the day following the day on which the person became a designated person unless, within that period, the Secretary of State certifies that—

(a)condition A is met, or

(b)conditions B and C continue to be met.

(8) Where the Secretary of State makes a certification under paragraph (7)(b), the designation ceases to have effect at the end of the period of 56 days beginning with the day immediately following the period mentioned in paragraph (7), unless within that period the Secretary of State certifies that condition A is met.

(9) Condition B is that relevant provision (whenever made) applies to, or in relation to, the person under the law of—

(a)the United States of America;

(b)the European Union;

(c)Australia;

(d)Canada.

(10) Condition C is that the Secretary of State considers that it is in the public interest to make designations under the urgent procedure.

(11) For the purposes of condition B, “relevant provision” is provision that the Secretary of State considers—

(a)corresponds, or is similar, to the type of sanction or sanctions in these Regulations, or

(b)is made for purposes corresponding, or similar, to any purpose of any type of sanction or sanctions in these Regulations.

(12) In this regulation, “ involved person ” has the meaning given in regulation 6 (designation criteria: meaning of “involved person”). ^F14]

[^F15Designation criteria: meaning of “involved person”^F15] _I11,I12

^F166.—(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) [^F17 For the purposes of regulation 5A ^F17] an “ involved person ” means a person who—

(a)is or has been involved in a relevant nuclear activity;

(b)is owned or controlled directly or indirectly (within the meaning of regulation 7) by a person who is or has been so involved,

(c)is acting on behalf of or at the direction of a person who is or has been so involved, or

(d)is a member of, or associated with, a person who is or has been so involved.

(3) Any reference in this regulation to being involved in a relevant nuclear activity includes being so involved in whatever way, and wherever, any actions constituting the involvement take place, and in particular includes—

(a)being responsible for, engaging in, providing support for, or promoting, or facilitating, a relevant nuclear activity;

(b)^M6,M7providing financial services , or making available funds or economic resources , that could contribute to a relevant nuclear activity;

(c)being involved in the supply to Iran of restricted goods or restricted technology, or in providing financial services relating to such supply; or

(d)being involved in assisting the contravention or circumvention of any relevant provision.

(4) In this regulation—

“ relevant nuclear activity ” means—

“ relevant provision ” means—

[^F19 “ relevant resolution ” means resolution 1737, resolution 1747, resolution 1803 or resolution 1929; ^F19]

“ restricted goods ” and “ restricted technology ” have the same meaning as they have in Chapter 1 of Part 5.

(5) Nothing in any sub-paragraph of paragraph (3) is to be taken to limit the meaning of any of the other sub-paragraphs of that paragraph.

Meaning of “owned or controlled directly or indirectly”_I13,I14

7. —(1) A person who is not an individual (“C”) is “owned or controlled directly or indirectly” by another person (“P”) if either of the following two conditions is met (or both are met).

(2) The first condition is that P—

(a)holds directly or indirectly more than 50% of the shares in C,

(b)holds directly or indirectly more than 50% of the voting rights in C, or

(c)holds the right directly or indirectly to appoint or remove a majority of the board of directors of C.

(3) Schedule 1 contains provision applying for the purpose of interpreting paragraph (2).

^F20(4) The second condition is that it is reasonable, having regard to all the circumstances, to expect that P would (if P chose to) be able, in most cases or in significant respects, by whatever means and ... whether directly or indirectly, to achieve the result that affairs of C are conducted in accordance with P's wishes.

Notification and publicity where designation power used_I15,I16

8.—(1) Paragraph (2) applies where the Secretary of State—

(a)has made a designation under regulation 5, or

(b)has by virtue of section 22 of the Act varied or revoked a designation made under that regulation.

(2) The Secretary of State—

(a)must without delay take such steps as are reasonably practicable to inform the designated person of the designation, variation or revocation, and

(b)must take steps to publicise the designation, variation or revocation.

[^F21 (3) The information given under paragraph (2)(a)—

(a)where the Secretary of State designates a person under the standard procedure, must include a statement of reasons;

(b)where the Secretary of State designates a person under the urgent procedure, must include a statement—

(i)that the designation is made under the urgent procedure,

(ii)identifying the relevant provision by reference to which the Secretary of State considers that condition B is met in relation to the person, and

(iii)setting out why the Secretary of State considers that condition C is met.

(3A) Where the Secretary of State designates a person under the urgent procedure, the Secretary of State must, after the end of the period mentioned in paragraph (7) of regulation 5A (conditions for the designation of persons by name) or, if the Secretary of State has made a certification under paragraph (7)(b) of that regulation, the period mentioned in paragraph (8) of that regulation, but otherwise without delay—

(a)in a case where the person ceases to be a designated person, take such steps as are reasonably practicable to inform the person that they have ceased to be a designated person, or

(b)in any other case, take such steps as are reasonably practicable to give the person a statement of reasons.^F21]

[^F22 (4) In this regulation, a “ statement of reasons ” means a brief statement of the matters that the Secretary of State knows, or has reasonable grounds to suspect, in relation to the person—

(a)in the case of a designation under the standard procedure, which have led the Secretary of State to make the designation, and

(b)in the case of a designation under the urgent procedure, as a result of which the person does not cease to be a designated person at the end of the period mentioned in regulation 5A(7) or (8) (as the case may be).^F22]

(5) Matters that would otherwise be required by paragraph (4) to be included in a statement of reasons may be excluded from it where the Secretary of State considers that they should be excluded—

(a)in the interests of national security or international relations,

(b)for reasons connected with the prevention or detection of serious crime in the United Kingdom or elsewhere, or

(c)in the interests of justice.

(6) The steps taken under paragraph (2)(b) must—

(a)unless one or more of the restricted publicity conditions is met, be steps to publicise generally—

(i)the designation, variation or revocation, and

(ii)in the case of a designation, the statement of reasons;

(b)if one or more of those conditions is met, be steps to inform only such persons as the Secretary of State considers appropriate of the designation, variation or revocation and (in the case of a designation) of the contents of the statement of reasons.

(7) The “restricted publicity conditions” are as follows—

(a)the designation is of a person believed by the Secretary of State to be an individual under the age of 18;

(b)the Secretary of State considers that disclosure of the designation, variation or revocation should be restricted—

(i)in the interests of national security or international relations,

(ii)for reasons connected with the prevention or detection of serious crime in the United Kingdom or elsewhere, or

(iii)in the interests of justice.

(8) Paragraph (9) applies if—

(a)when a designation is made one or more of the restricted publicity conditions is met, but

(b)at any time when the designation has effect, it becomes the case that none of the restricted publicity conditions is met.

(9) The Secretary of State must—

(a)take such steps as are reasonably practicable to inform the designated person that none of the restricted publicity conditions is now met, and

(b)take steps to publicise generally the designation and the statement of reasons relating to it.

Confidential information in certain cases where designation power used_I17,I18

9.—(1) Where the Secretary of State in accordance with regulation 8(6)(b) informs only certain persons of a designation, variation or revocation and (in the case of a designation) of the contents of the statement of reasons, the Secretary of State may specify that any of that information is to be treated as confidential.

(2) A person (“P”) who—

(a)is provided with information that is to be treated as confidential in accordance with paragraph (1), or

(b)otherwise obtains such information,

must not, subject to paragraph (3), disclose it if P knows, or has reasonable cause to suspect, that the information is to be treated as confidential.

(3) The prohibition in paragraph (2) does not apply to any disclosure made by P with lawful authority.

(4) For this purpose information is disclosed with lawful authority only if and to the extent that—

(a)the disclosure is by, or is authorised by, the Secretary of State,

(b)the disclosure is by or with the consent of the person who is or was the subject of the designation,

(c)the disclosure is necessary to give effect to a requirement imposed under or by virtue of these Regulations or any other enactment, or

(d)the disclosure is required, under rules of court, tribunal rules or a court or tribunal order, for the purposes of legal proceedings of any description.

(5) This regulation does not prevent the disclosure of information that is already, or has previously been, available to the public from other sources.

(6) A person who contravenes the prohibition in paragraph (2) commits an offence.

(7) The High Court (in Scotland, the Court of Session) may, on the application of—

(a)the person who is the subject of the information, or

(b)the Secretary of State,

grant an injunction (in Scotland, an interdict) to prevent a breach of the prohibition in paragraph (2).

(8) In paragraph (4)(c), “ enactment ” has the meaning given by section 54(6) of the Act.

Designation of persons named by or under UN Security Council Resolutions_I19,I20

10.[^F23—(1) Each person for the time being named for the purposes of paragraph 12 of resolution 1737 by the Security Council or the Committee is a designated person for the purposes of regulations 12 to 17 (asset freeze etc) (whose purposes include compliance with the UN obligation mentioned in regulation 4(3)(a)).

(1A) In paragraph (1), the reference to paragraph 12 of resolution 1737 is a reference to that paragraph as read with—

(a)paragraph 4 of resolution 1747,

(b)paragraph 7 of resolution 1803, and

(c)paragraphs 11, 12 and 19 of resolution 1929.^F23]

(2) Nothing in this regulation affects the power under regulation 5 to designate persons (in addition to those designated by this regulation) for the purposes of regulations 12 to 17.

[^F24Insolvency

10A.—(1) To enable anything to be done in connection with—

(a)any insolvency and restructuring proceedings relating to an insolvent person,

(b)any other relevant proceedings relating to a person other than an individual, or

(c)proceedings under the insolvency law of a country other than the United Kingdom that correspond to the proceedings in paragraph (a) or (b),

provided that any payments made directly or indirectly to a designated person are credited to a frozen account.

(2) In this paragraph—

“ enactment ” has the meaning given in section 54(6) of the Act;

“ insolvency and restructuring proceedings ” includes—

“ insolvent person ” means a person (“ P ”), other than an individual, where—

“ other relevant proceedings ” means—

“ special administration regime ” means provision made by an enactment for an insolvency procedure that—

[^F24Judicial decisions etc.

10B. To enable the implementation or satisfaction (in whole or in part) of a judicial, administrative or arbitral decision or lien which is enforceable in the United Kingdom (the “judicial decision”), provided that—

(a)where funds or economic resources are made available to a designated person, they are credited to a frozen account or otherwise frozen by virtue of regulation 12;

(b)where funds or economic resources are made available by a person (including a designated person) to a designated person to enable the implementation or satisfaction of the judicial decision, no other designated person benefits, directly or indirectly.^F24]

PART 3 Finance

Meaning of “designated person” in Part 3_I21,I22

11. In this Part a “ designated person ” means—

(a)a person who is designated under regulation 5 for the purposes of regulations 12 to 17, or

(b)a person who is a designated person for the purposes of those regulations by reason of regulation 10.

Asset-freeze in relation to designated persons_I23,I24

12. —(1) A person (“P”) must not deal with funds or economic resources owned, held or controlled by a designated person if P knows, or has reasonable cause to suspect, that P is dealing with such funds or economic resources.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence.

(4) For the purposes of paragraph (1) a person “deals with” funds if the person—

(a)uses, alters, moves, transfers or allows access to the funds,

(b)deals with the funds in any other way that would result in any change in volume, amount, location, ownership, possession, character or destination, or

(c)makes any other change, including portfolio management, that would enable use of the funds.

(5) For the purposes of paragraph (1) a person “deals with” economic resources if the person—

(a)exchanges the economic resources for funds, goods or services, or

(b)uses the economic resources in exchange for funds, goods or services (whether by pledging them as security or otherwise).

(6) The reference in paragraph (1) to funds or economic resources that are “owned, held or controlled” by a person includes, in particular, a reference to—

(a)funds or economic resources in which the person has any legal or equitable interest, regardless of whether the interest is held jointly with any other person and regardless of whether any other person holds an interest in the funds or economic resources;

(b)any tangible property (other than real property), or bearer security, that is comprised in funds or economic resources and is in the possession of the person.

(7) For the purposes of paragraph (1) funds or economic resources are to be treated as owned, held or controlled by a designated person if they are owned, held or controlled by a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.

(8) For the avoidance of doubt, the reference in paragraph (1) to a designated person includes P if P is a designated person.

Making funds available to designated person_I25,I26

13. —(1) A person (“P”) must not make funds available directly or indirectly to a designated person if P knows, or has reasonable cause to suspect, that P is making the funds so available.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence.

(4) The reference in paragraph (1) to making funds available indirectly to a designated person includes, in particular, a reference to making them available to a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.

Making funds available for benefit of designated person_I27,I28

14. —(1) A person (“P”) must not make funds available to any person for the benefit of a designated person if P knows, or has reasonable cause to suspect, that P is making the funds so available.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence.

[^F25 (3A) The reference in paragraph (1) to making funds available to any person for the benefit of a designated person includes making funds available for the benefit of a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person (and references to designated person in paragraph (4) are to be read accordingly).^F25]

(4) For the purposes of this regulation—

(a)funds 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, and

(b) “ financial benefit ” includes the discharge (or partial discharge) of a financial obligation for which the designated person is wholly or partly responsible.

Making economic resources available to designated person_I29,I30

15. —(1) A person (“P”) must not make economic resources available directly or indirectly to a designated person if P knows, or has reasonable cause to suspect—

(a)that P is making the economic resources so available, and

(b)that the designated person would be likely to exchange the economic resources for, or use them in exchange for, funds, goods or services.

(2) Paragraph (1) is subject to Part 6 (exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence.

(4) The reference in paragraph (1) to making economic resources available indirectly to a designated person includes, in particular, a reference to making them available to a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.

Making economic resources available for benefit of designated person_I31,I32

16. —(1) A person (“P”) must not make economic resources available to any person for the benefit of a designated person if P knows, or has reasonable cause to suspect, that P is making the economic resources so available.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence.

[^F26 (3A) The reference in paragraph (1) to making economic resources available to any person for the benefit of a designated person includes making economic resources available for the benefit of a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person (and references to designated person in paragraph (4) are to be read accordingly).^F26]

(4) For the purposes of paragraph (1)—

(a)economic resources 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, and

(b) “ financial benefit ” includes the discharge (or partial discharge) of a financial obligation for which the designated person is wholly or partly responsible.

Financial messaging services_I33,I34

17. —(1) A person (“P”) must not provide specialised financial messaging services to a designated person if P knows or has reasonable cause to suspect that P is providing such services to a designated person.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence.

(4) In paragraph (1), “ specialised financial messaging services ” means specialised services enabling credit or financial institutions to electronically transmit messages effecting financial transactions or containing information about financial transactions.

Circumventing etc prohibitions_I35,I36

18.—(1) A person must not intentionally participate in activities knowing that the object or effect of them is, whether directly or indirectly—

(a)to circumvent any of the prohibitions in regulations 12 to 17, or

(b)to enable or facilitate the contravention of any such prohibition.

(2) A person who contravenes the prohibition in paragraph (1) commits an offence.

[^F27PART 3A Director disqualification sanctions

Director disqualification sanctions

18A. A person who is designated under regulation 5 (power to designate persons) for the purposes of this regulation is a person subject to director disqualification sanctions for the purposes of—

(a)section 11A of the Company Directors Disqualification Act 1986, and

(b)Article 15A of the Company Directors Disqualification (Northern Ireland) Order 2002.^F27]

PART 4 Immigration

Immigration_I37,I38

^M819. A person who is designated under regulation 5 for the purposes of this regulation is an excluded person for the purposes of section 8B of the Immigration Act 1971 .

PART 5 Trade

CHAPTER 1 Exports to Iran and related activities

Meaning of “restricted goods” and “restricted technology” in this Chapter_I39,I40

20. In this Chapter—

“ restricted goods ” means—

“ restricted technology ” means—

Export of restricted goods to, or for use in, Iran_I41,I42

21.—(1) The export of restricted goods to, or for use in, Iran is prohibited.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

Supply and delivery of restricted goods from a third country to Iran_I43,I44

22.—(1) A person must not directly or indirectly supply or deliver restricted goods from a third country to a place in Iran.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with that offence to show that the person did not know and had no reasonable cause to suspect that the goods were destined (or ultimately destined) for Iran.

(4) In this regulation “ third country ” means a country that is not the United Kingdom, the Isle of Man or Iran.

Making available restricted goods and restricted technology_I45,I46

23.—(1) A person must not—

(a)directly or indirectly make restricted goods or restricted technology available to a person connected with Iran;

(b)directly or indirectly make restricted goods or restricted technology available for use in Iran.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but—

(a) it is a defence for a person charged with the offence of contravening paragraph (1)(a) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Iran;

(b)it is a defence for a person charged with the offence of contravening paragraph (1)(b) to show that the person did not know and had no reasonable cause to suspect that the goods or technology were for use in Iran.

Transfer of restricted technology to a place in Iran or a person connected with Iran_I47,I48

24.—(1) A person must not—

(a)transfer restricted technology to a place in Iran;

(b)transfer restricted technology to a person connected with Iran.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but—

(a)it is a defence for a person charged with the offence of contravening paragraph (1)(a) to show that the person did not know and had no reasonable cause to suspect that the transfer was to a place in Iran;

(b) it is a defence for a person charged with the offence of contravening paragraph (1)(b) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Iran.

Technical assistance relating to restricted goods and restricted technology_I49,I50

25.—(1) A person must not directly or indirectly provide technical assistance relating to restricted goods or restricted technology—

(a)to a person connected with Iran, or

(b)for use in Iran.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but—

(a) it is a defence for a person charged with the offence of contravening paragraph (1)(a) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Iran;

(b)it is a defence for a person charged with the offence of contravening paragraph (1)(b) to show that the person did not know and had no reasonable cause to suspect that the goods or technology were for use in Iran.

Financial services and funds relating to restricted goods and restricted technology_I51,I52

26.—(1) A person must not directly or indirectly provide, to a person connected with Iran, financial services in pursuance of or in connection with an arrangement whose object or effect is—

(a)the export of restricted goods,

(b)the direct or indirect supply or delivery of restricted goods,

(c)directly or indirectly making restricted goods or restricted technology available to a person,

(d)the transfer of restricted technology, or

(e)the direct or indirect provision of technical assistance relating to restricted goods or restricted technology.

(2) A person must not directly or indirectly make funds available to a person connected with Iran in pursuance of or in connection with an arrangement mentioned in paragraph (1).

(3) A person must not directly or indirectly provide financial services or funds in pursuance of or in connection with an arrangement whose object or effect is—

(a)the export of restricted goods to, or for use in, Iran,

(b)the direct or indirect supply or delivery of restricted goods to a place in Iran,

(c)directly or indirectly making restricted goods or restricted technology available—

(i)to a person connected with Iran, or

(ii)for use in Iran,

(d)the transfer of restricted technology—

(i)to a person connected with Iran, or

(ii)for use in Iran,

(e)the direct or indirect provision of technical assistance relating to restricted goods—

(i)to a person connected with Iran, or

(ii)for use in Iran.

(4) Paragraphs (1) to (3) are subject to Part 6 (Exceptions and licences).

(5) A person who contravenes a prohibition in any of paragraphs (1) to (3) commits an offence, but—

(a) it is a defence for a person charged with an offence of contravening paragraph (1) or (2) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Iran;

(b)it is a defence for a person charged with an offence of contravening a prohibition in paragraph (3) to show that the person did not know and had no reasonable cause to suspect that the financial services or funds (as the case may be) were provided in pursuance of or in connection with an arrangement mentioned in that paragraph.

Brokering services: non-UK activity relating to restricted goods and restricted technology_I53,I54

27. —(1) A person must not directly or indirectly provide brokering services in relation to an arrangement (“arrangement A”) whose object or effect is—

(a)the direct or indirect supply or delivery of restricted goods from a third country to a place in Iran;

(b)directly or indirectly making restricted goods available in a third country for direct or indirect supply or delivery—

(i)to a person connected with Iran, or

(ii)to a place in Iran;

(c)directly or indirectly making restricted technology available in a third country for transfer—

(i)to a person connected with Iran, or

(ii)to a place in Iran;

(d)the transfer of restricted technology from a place in a third country—

(i)to a person connected with Iran, or

(ii)to a place in Iran;

(e)the direct or indirect provision, in a non-UK country, of technical assistance relating to restricted goods or restricted technology—

(i)to a person connected with Iran, or

(ii)for use in Iran;

(f)the direct or indirect provision, in a non-UK country, of financial services—

(i)to a person connected with Iran, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 26(1), or

(ii)where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 26(3);

(g)directly or indirectly making funds available, in a non-UK country, to a person connected with Iran, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 26(1); or

(h)the direct or indirect provision of funds from a non-UK country, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 26(3).

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with that offence to show that the person did not know and had no reasonable cause to suspect that the brokering services were provided in relation to an arrangement mentioned in that paragraph.

(4) In this regulation—

“ brokering service ” means any service to secure, or otherwise in relation to, an arrangement, including (but not limited to)—

“ non-UK country ” means a country that is not the United Kingdom or the Isle of Man;

“ third country ” means—

(5) For the purposes of this regulation, the definition of “country” in section 62(1) of the Act does not apply.

CHAPTER 2 Imports from Iran and related activities

Import of certain goods from Iran_I55,I56

28.—(1) The import of the following goods, where they are consigned from Iran, is prohibited—

(a)arms and related materiel;

(b)missile-list goods;

(c)nuclear-list goods;

(d)other restricted goods.

(2) The import of the goods mentioned in paragraph (1), where they originate in Iran, is prohibited.

(3) Paragraphs (1) to (3) are subject to Part 6 (Exceptions and licences).

(4) In this regulation, “ arms and related materiel ” means—

(a)military goods;

(b)any goods from time to time falling with Chapter 93 of the [^F28Goods Classification Table^F28] , other than military goods.

[^F29 (5) For the purposes of the definition of “arms and related materiel” in paragraph (4)—

“ the Goods Classification Table ” means the table so named in Annex I in Part Three of the Tariff of the United Kingdom;

“ the Tariff of the United Kingdom ” means the document containing the legal classification and import rate for products being imported into the United Kingdom, entitled “The Tariff of the United Kingdom”, as revised or re-issued from time to time, including by any document published under regulations made under section 8(1) of the Taxation (Cross-border Trade) Act 2018 replacing the same in whole or in part. ^F29]

Supply and delivery of certain goods to a third country from a place in Iran_I57,I58

29.—(1) A person must not directly or indirectly supply or deliver the following goods from a place in Iran to a third country—

(a)military goods;

(b)missile-list goods;

(c)nuclear-list goods;

(d)other restricted goods.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with the offence of contravening paragraph (1) to show that the person did not know and had no reasonable cause to suspect that the supply or delivery was from a place in Iran, whether directly or indirectly.

(4) In this regulation, “ third country ” means a country that is not the United Kingdom, the Isle of Man or Iran.

Acquisition of certain goods and technology which are located in Iran_I59,I60

30.—(1) A person must not directly or indirectly acquire relevant goods and technology which are located in Iran.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with the offence of contravening paragraph (1)(“P”) to show that P did not know and had no reasonable cause to suspect that [^F30 the goods or technology were located in Iran ^F30] .

(4) In this regulation, “ relevant goods and technology ” means—

(a)goods mentioned in regulation 29(1);

(b)military technology;

(c)missile-list technology;

(d)nuclear-list technology;

(e)other restricted technology.

Transfer of certain technology from a place in Iran_I61,I62

31.—(1) A person must not transfer relevant technology to persons outside the United Kingdom or to a place outside the United Kingdom, where the transfer is from a place in Iran.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with the offence of contravening paragraph (1) to show that the person did not know and had no reasonable cause to suspect that the transfer was from a place in Iran.

(4) In this regulation, “ relevant technology ” means—

(a)military technology;

(b)missile-list technology;

(c)nuclear-list technology;

(d)other restricted technology.

CHAPTER 3 Other trade restrictions relation to Iran

Arrangements relating to uranium mining and certain restricted goods and technology_I63,I64

32. —(1) A person must not enter into an arrangement with a relevant person (“P”) where the object or effect of that arrangement is to enable P to participate in, or increase P's participation in—

(a)a commercial activity involving uranium mining;

(b)a commercial activity involving the production or use of nuclear-list goods falling within paragraph (2) or nuclear-list technology falling within paragraph (2);

(c)a commercial activity involving missile-list goods or missile-list technology;

(d)a commercial activity involving the production of military goods or military technology; or

(e)a commercial activity involving other restricted goods or other restricted technology.

(2) Nuclear-list goods and nuclear-list technology fall within this paragraph if they are specified from time to time in the International Atomic Energy Agency document mentioned in regulation 34(2)(a)(i) or in any different version of that document as mentioned in regulation 34(2)(b).

(3) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(4) A person who contravenes a prohibition in paragraph (1) commits an offence but it is a defence to show that the person did not know and had no reasonable cause to suspect that the arrangement was an arrangement mentioned in that paragraph.

(5) In this regulation—

“ arrangement ” includes the acceptance of a loan or credit from a relevant person;

“ commercial activity ” means an activity which is carried on for a commercial purpose;

“ participation ” includes participation independently or as part of a joint venture or partnership (and “ participate ” is to be construed accordingly);

“ relevant person ” means—

(6) Nothing in this regulation is to be taken to limit the meaning of any prohibition in Chapter 1 or 2.

Services in relation to certain ships and aircraft_I65,I66

33.—(1) A person must not provide—

(a)bunkering or ship supply services in relation to a ship owned or controlled, directly or indirectly, by a person connected with Iran, where the ship is carrying relevant restricted items;

(b)engineering or maintenance services in relation to a cargo aircraft owned or controlled, directly or indirectly, by a person connected with Iran, where the aircraft is carrying relevant restricted items.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with that offence to show that the person did not know and had no reasonable cause to suspect—

(a)that the ship or aircraft in question was owned or controlled, directly or indirectly, by a person connected with Iran; or

(b)that the ship or aircraft in question was carrying relevant restricted items.

(4) In this regulation—

“ bunkering or ship supply services ” includes—

“ relevant restricted items ” means any military goods, military technology, missile-list goods or missile-list technology which have been, or are being, dealt with in contravention of a prohibition—

“ship” and “aircraft” have the meanings given in paragraph 37 of Schedule 1 to the Act.

CHAPTER 4 Interpretation of this Part and further provision

Interpretation of this Part_I67,I68

34.—(1) In this Part—

“ graphite and relevant metals ” means any thing falling within Annex VIIB to Council Regulation (EU) No 267/2012 of 23 March 2012 concerning restrictive measures against Iran and repealing Regulation (EU) No 961/2010 , as it had effect immediately before [^F31 IP completion day ^F31] , other than any thing for the time being falling within Annex Ⅰ to Council Regulation (EC) No 428/2009 of 5 May 2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items;

“ military goods ” means—

“ military technology ” means any thing for the time being specified in Schedule 2 to the Export Control Order 2008 which is described as software or technology;

“ missile-list goods ” means any thing specified in [^F32 the Annex to ^F32] Security Council document[^F33 S/2012/947, as that Annex is revised or re-issued from time to time by the Security Council or the Committee, ^F33] other than any thing which is missile-list technology;

“ missile-list technology ” means any thing specified in [^F32 the Annex to ^F32] Security Council document[^F33 S/2012/947, as that Annex is revised or re-issued from time to time by the Security Council or the Committee, ^F33] which is described as software or technology;

“ nuclear-list goods ” means any thing for the time being specified in a relevant International Atomic Energy Agency list, other than any thing which is nuclear-list technology;

“ nuclear-list technology ” means any thing for the time being specified in a relevant International Atomic Energy Agency list and which is described as software or technology;

“ other restricted goods ” means any thing falling within Part II.A (goods) of Annex II to Council Regulation (EU) No 267/2012 of 23 March 2012 concerning restrictive measures against Iran and repealing Regulation (EU) No 961/2010 , as it had effect immediately before [^F34 IP completion day ^F34] ;

“ other restricted technology ” means any thing falling within Part II.B (technology) of Annex II to Council Regulation (EU) No 267/2012 of 23 March 2012 concerning restrictive measures against Iran and repealing Regulation (EU) No 961/2010 , as it had effect immediately before [^F35 IP completion day ^F35] ;

“ relevant enterprise resource planning software ” means software used for financial accounting, management accounting, human resources, manufacturing, supply chain management, project management, customer relationship management, data services, or access control, and which is specifically designed for use in nuclear and military industries;

“ technical assistance ”, in relation to goods or technology, means—

^F36...

“ transfer ” has the meaning given in paragraph 37 of Schedule 1 to the Act.

[^F37 (2) For the purposes of the definitions of “nuclear-list goods” and “nuclear-list technology”, a thing is “specified in a relevant International Atomic Energy Agency list” if it is specified in Annexes to either of the following International Atomic Energy Agency documents, as those Annexes are revised or re-issued from time to time by the Security Council or the Committee—

(a)INFCIRC/254/Rev.11/Part 1, and

(b)INFCIRC/254/Rev.8/Part 2.^F37]

(3) For the purposes of this Part a person is to be regarded as “connected with” Iran if the person is—

(a)the Government of Iran or a public authority of the Government of Iran,

(b)an individual who is, or an association or combination of individuals who are, ordinarily resident in Iran,

(c)an individual who is, or an association or combination of individuals who are, located in Iran,

(d)a person, other than an individual, which is incorporated or constituted under the law of Iran,

(e)a person, other than an individual, which is domiciled in Iran, or

(f)a person, other than an individual, which is owned or controlled directly or indirectly (within the meaning of regulation 7) by a person within any of sub-paragraphs (a) to (e).

(4) In this Part any reference to the United Kingdom includes a reference to the territorial sea.

Circumventing etc prohibitions_I69,I70

35.—(1) A person must not intentionally participate in activities knowing that the object or effect of them is, whether directly or indirectly—

(a)to circumvent any of the prohibitions in Chapters 1 to 3 of this Part, or

(b)to enable of facilitate the contravention of any such prohibition.

(2) A person who contravenes a prohibition in paragraph (1) commits an offence.

Defences_I71,I72

36.—(1) Paragraph (2) applies where a person relies on a defence under Chapters 1 to 3 of this Part.

(2) If evidence is adduced which is sufficient to raise an issue with respect to the defence, the court must assume that the defence is satisfied unless the prosecution proves beyond reasonable doubt that it is not.

PART 6 Exceptions and licences

Finance: exceptions from prohibitions_I73,I74

37. —(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) The prohibitions in regulations 12 to 14 (asset-freeze in relation to, and making funds available to, or for the benefit of, designated persons) are not contravened by a relevant institution crediting a frozen account with interest or other earnings due on the account.

(4) The prohibitions in regulations 13 and 14 (making funds available to, or for the benefit of, designated persons) are not contravened by a relevant institution crediting a frozen account where it receives funds transferred to that institution for crediting to that account.

(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 [^F38on a date when the person was not^F38] 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)^M10account 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 2000 ,

(b)^M11account B is with a ring-fenced body within the meaning of section 142A of the Financial Services and Markets Act 2000 , 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;

^M12 “ relevant institution ” means a person that has permission under Part 4A of the Financial Services and Markets Act 2000 (permission to carry on regulated activity) .

^M13,M14,M15 (8) The definition of “relevant institution” in paragraph (7) 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 .

[^F39 (9) For the purposes of paragraphs (1)(b), (5) and (6) and the definition of “frozen account” in paragraph (7), references to a designated person are to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.

(10) When determining for the purposes of paragraph (5) when a person (“ C ”) who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person (“ D ”) became a designated person, C is to be treated as having become a designated person at the same time as D. ^F39]

[^F40Finance: exception from prohibitions for required payments

37ZZA.—(1) This regulation applies to required payments within the meaning of paragraph (2).

(2) A required payment is a payment which—

(a)a non-UN designated person is required to make under or by virtue of any enactment to—

(i)the registrar of companies,

(ii)the Commissioners,

(iii)the Welsh Revenue Authority,

(iv)Revenue Scotland,

(v)the Financial Conduct Authority,

(vi)the Secretary of State,

(vii)the Welsh Ministers,

(viii)the Department of Finance in Northern Ireland, or

(ix)a local authority, and

(b)is not an excluded payment.

(3) The prohibitions in regulations 12 (asset-freeze in relation to designated persons) and 14 (making funds available for benefit of designated person) are not contravened by a person making a required payment.

(4) Where a required payment is made by a person other than a non-UN designated person, the prohibition in regulation 12 is not contravened by the non-UN designated person making a reimbursement payment to that person.

(5) The reference in paragraph (3) to a person making a required payment—

(a)does not include a UN designated person, and

(b)only includes a non-UN designated person where they are making a required payment on their own behalf.

(6) The following payments are to be treated as payments which a non-UN designated person is required to make under or by virtue of an enactment for the purposes of this regulation, where made by a non-UN designated person on their own behalf or by a person, other than a designated person, on behalf of a non-UN designated person—

(a)a payment to the Financial Conduct Authority of a levy imposed by the scheme manager of the Financial Services Compensation Scheme by virtue of section 213 of the Financial Services and Markets Act 2000 (the compensation scheme);

(b)a payment to the Financial Conduct Authority which is collected by that Authority on behalf of the Financial Reporting Council Limited.

(7) For the purposes of this regulation—

(a)references to a non-UN designated person are to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the non-UN designated person,

(b)the reference in paragraph (5) to a UN designated person is to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the UN designated person, and

(c)the reference in paragraph (6) to a designated person is to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.

(8) In this regulation—

“ BID levy ” means a levy that is imposed on those persons who are, in respect of particular business improvement district proposals, entitled to vote in accordance with section 39(3) of the Planning etc. (Scotland) Act 2006 ;

“ business improvement district ” has the meaning given in section 33 of the Planning etc. (Scotland) Act 2006 ;

“ designated person ” has the same meaning as it has in Part 3 (Finance);

“ enactment ” has the meaning given in section 54(6) of the Act;

“ excluded payment ” means, in relation to—

“ firm ” has the meaning given in section 1173(1) of the Companies Act 2006 ;

“ listing ” means being included in the official list maintained by the Financial Conduct Authority in accordance with Part 6 of the Financial Services and Markets Act 2000 ;

“ local authority ” means—

“ primary information provider ” has the meaning given in section 89P(2) of the Financial Services and Markets Act 2000 ;

^F42...

^F42...

“ registrar of companies ” has the meaning given in section 1060 of the Companies Act 2006 (the registrar) ;

“ reimbursement payment ” means a repayment from the non-UN designated person to the person who made a required payment which is of the same amount as that required payment;

“ scheme manager ” has the meaning given in section 212 of the Financial Services and Markets Act 2000 ;

“ sponsor ” has the meaning given in section 88(2) of the Financial Services and Markets Act 2000 ;

“ UN designated person ” means a person who is a designated person for the purposes of regulations 12 to 17 by reason of regulation 10 (designation of persons named by or under UN Security Council Resolutions) . ^F40]

[^F43Finance: exceptions relating to payment of Treasury debt

37ZZB.—(1) The prohibitions in regulations 12 to 14 (asset-freeze and making funds available to or for benefit of designated persons) and regulation 17 (financial messaging services) are not contravened by any act done by a person to transfer funds to—

(a) a UN designated person (“ D ”) in order to satisfy an obligation owed by the Treasury to D in respect of Treasury debt where the conditions in paragraph (2) are met; or

(b) a person (“ B ”) in respect of Treasury debt where the effect of the transfer is to make funds available to or for the benefit of D and the conditions in paragraph (3) are met.

(2) The person (“ P ”) making the transfer of funds to D knows or has reasonable cause to suspect that the obligation referred to in paragraph (1) arose on a date when D was not a designated person and P takes reasonable steps to satisfy itself that the funds to be transferred to D are credited to a specified account.

(3) The person (“ P ”) making the transfer of funds to B knows or has reasonable cause to suspect that the effect of such a transfer will be to enable the satisfaction of an obligation of any person to D in respect of Treasury debt and P takes reasonable steps to satisfy itself that such obligation arose on a date when D was not a designated person and the funds to be transferred to D are ultimately credited to a specified account.

(4) The prohibitions in regulations 12 to 14 and regulation 17 are not contravened by any act done by a person (where that person is not P in paragraph (2) or (3)) to enable a transfer of funds to any person in respect of Treasury debt—

(a)in order to satisfy an obligation owed by the Treasury to D, or

(b)where the effect of the transfer will be to enable the satisfaction of an obligation of any person to D in respect of Treasury debt.

(5) For the purposes of this regulation, references to a UN designated person, in so far as they relate to a designated person (within the meaning of regulation 11), are to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the UN designated person.

(6) In this regulation—

“ corresponding non-UK country ” means a non-UK country whose laws contain relevant—

“ frozen account ” has the meaning given in regulation 37(7);

“ non-UK country ” means a country that is not the United Kingdom;

“ non-UK relevant institution ” means—

“ recognised CSD ” has the meaning given in section 285(1)(e) of the Financial Services and Markets Act 2000 ;

“ relevant money market instrument ” means an instrument of a kind normally dealt in on the money market, such as treasury bills, certificates of deposit and commercial papers, excluding instruments of payment;

“ relevant transferable security ” means a security, negotiable on the capital market, of any of the following kinds, but excluding instruments of payment—

“ specified account ” means—

where the person referred to in (a) to (d) above is also D in paragraph (2) or (3);

“ third country CSD ” has the meaning given in section 285(1)(g) of the Financial Services and Markets Act 2000 ;

“ Treasury debt ” means any relevant transferable security, relevant money market instrument, loan or credit entered into or issued by, or on behalf of the Treasury in respect of funds borrowed by or on behalf of the Treasury;

“ UN designated person ” has the meaning given in regulation 37ZZA(8). ^F43]

[^F44Finance: humanitarian exception

37ZA. —(1) The prohibitions in regulations 12 to 17 (asset-freeze etc.) are not contravened by a person (“ P ”) carrying out a relevant activity which is necessary—

(a)to ensure the timely delivery of humanitarian assistance, or

(b)to support other activities that support basic human needs,

where Conditions A and B are met.

(2) Condition A is that the humanitarian assistance or other activities mentioned in paragraph (1) are carried out by—

(a)the United Nations, including its—

(i)programmes and funds,

(ii)other entities and bodies, and

(iii)specialised agencies and related organisations,

(b)international organisations,

(c)humanitarian organisations having observer status with the United Nations General Assembly and members of those humanitarian organisations,

(d)bilaterally or multilaterally funded non-governmental organisations participating in the United Nations Humanitarian Response Plans, Refugee Response Plans, other United Nations appeals, or humanitarian clusters coordinated by the United Nations Office for the Coordination of Humanitarian Affairs,

(e)any grantee, subsidiary, or implementing partner of any organisation falling within sub-paragraphs (a) to (d) while and to the extent that they are acting in those capacities,

(f)any other persons authorised by the Committee for the purposes of resolution 2664.

(3) Condition B is that P believes that carrying out the relevant activity is so necessary and there is no reasonable cause for P to suspect otherwise.

(4) For the purposes of this regulation—

“ relevant activity ” means any activity which would, in the absence of this regulation, contravene the prohibitions in regulations 12 to 17;

“ resolution 2664 ” means resolution 2664 (2022) adopted by the Security Council on 9th December 2022. ^F44]

[^F45Exception for authorised conduct in a relevant country

37A. —(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 17 (asset-freeze etc.) or Chapters 1 to 3 of Part 5 (Trade) (“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—

(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.^F45]

Exception for acts done for purposes of national security or prevention of serious crime_I75,I76

38.—(1) Where an act would, in the absence of this paragraph, be prohibited by the prohibition in regulation 9(2) 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.

Exception relating to services provided to certain ships and aircraft_I77,I78

39. The prohibition in regulation 33 (services in relation to certain ships and aircraft) is not contravened in circumstances where failing to do something prohibited by that regulation in relation to a ship or aircraft would endanger the lives of persons on board that ship or aircraft.

Treasury licences_I79,I80

40.—(1) The prohibitions in regulations 12 to 17 (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 by a particular person 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 [^F46Part 1 or 2 of Schedule 2^F46] .

(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 1 [^F47or 1A^F47] of Schedule 2.

(4) In paragraph (3) “ UN designated person ” means a person who is a designated person for the purposes of regulations 12 to 17 by reason of regulation 10 (designation of persons named by or under UN Security Council Resolutions) .

[^F48 (5) The reference in paragraph (2) to a non-UN designated person is to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the non-UN designated person.

(6) The reference in paragraph (3) to a UN designated person is to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the UN designated person.^F48]

[^F49Director disqualification licences

40A. The Secretary of State may issue a licence in relation to any person who is designated under regulation 5 for the purposes of regulation 18A (director disqualification sanctions) providing that the prohibitions in—

(a)section 11A(1) of the Company Directors Disqualification Act 1986, and

(b)Article 15A(1) of the Company Directors Disqualification (Northern Ireland) Order 2002,

do not apply to anything done under the authority of that licence.^F49]

Trade licences_I81,I82

41. The prohibitions in Chapters 1 to 3 of Part 5 (Trade) do not apply to anything done under the authority of a licence issued by the Secretary of State under this regulation.

Licences: general provisions_I83,I84

42.—(1) This regulation applies in relation to Treasury licences[^F50 , director disqualification licences^F50] 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 [^F51 , on the application of a person (“ P ”), ^F51][^F52 issues ^F52] a licence which authorises acts by a particular person[^F53 , or varies, revokes or suspends that licence, ^F53] must give written notice to [^F54 P ^F54] 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 offences_I85,I86

43. —(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.

[^F55Director disqualification: licensing offences

43A. —(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 director disqualification licence (whether for P or anyone else).

(2) A person who purports to act under the authority of a director disqualification 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.^F55]

Trade: licensing offences_I87,I88

44. —(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 Immigration Act 1971: directions_I89,I90

45.—(1) The Secretary of State may direct that, in relation to any person within regulation 19 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 under this regulation—

(a)may contain conditions;

(b)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).

(3) The Secretary of State may vary, revoke or suspend a direction under this regulation at any time.

(4) 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.

(5) In this regulation “ specified ” means specified in a direction under this regulation.

PART 7 Information and records

Finance: reporting obligations_I91,I92

46.—(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 [^F56breached a prohibition or failed to comply with an obligation^F56] under any provision of Part 3 (Finance) or regulation 43 (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.

[^F57 (4A) Where a person (“ P ”) knows, or has reasonable cause to suspect, that P holds funds or economic resources owned, held or controlled by a designated person, P must by no later than 30th November in each calendar year provide a report to the Treasury as to the nature and amount or quantity of those funds or economic resources held by P as of 30th September in that calendar year.

(4B) Where a report has been provided further to paragraph (4A) but as of 30th September in the following calendar year P no longer holds funds or economic resources owned, held or controlled by the designated person, P must by no later than 30th November in that calendar year report this to the Treasury.

(4C) For the purposes of paragraphs (4A) and (4B), funds or economic resources are to be treated as owned, held or controlled by a designated person if they are owned, held or controlled by a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.^F57]

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

(a)credits a frozen account in accordance with regulation 37(4) (finance: exceptions from prohibitions), or

(b)transfers funds from a frozen account in accordance with regulation 37(6).

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

[^F58 (6A) A person commits an offence if that person, without reasonable excuse, fails to comply with a requirement in paragraph (4A) or (4B).^F58]

(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 37;

“ relevant firm ” is to be read in accordance with regulation 47;

“ relevant institution ” has the same meaning as it has in regulation 37.

[^F59Finance: reporting obligations for required payments

46A.—(1) A non-UN designated person must inform the Treasury without delay if they make a required payment.

(2) A person who makes a required payment on behalf of a non-UN designated person must inform the Treasury without delay that they have made the required payment.

(3) A person must inform the Treasury without delay if they receive a reimbursement payment.

(4) For the purposes of this regulation, references to a non-UN designated person are to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the non-UN designated person.

(5) In this regulation—

“ reimbursement payment ” has the meaning given in regulation 37ZZA(8) (finance: exception from prohibitions for required payments) ;

“ required payment ” has the meaning given in regulation 37ZZA(2). ^F59]

“Relevant firm”_I93,I94

47.—(1) The following are relevant firms for the purposes of regulation 46—

(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)^M16a statutory auditor within the meaning of Part 42 of the Companies Act 2006 (statutory auditors) , or

(ii)^M17a local auditor within the meaning of section 4(1) of the Local Audit and Accountability Act 2014 (general requirements for audit) ;

(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)^M18the holder of a casino operating licence within the meaning given by section 65(2)(a) of the Gambling Act 2005 (nature of a licence) ;

(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.

[^F60 (h)a cryptoasset exchange provider;

(i)a custodian wallet provider;^F60]

[^F61 (j)a high value dealer;

(k)an art market participant;

(l)an insolvency practitioner;

(m) a firm or sole practitioner (“ P ”) that carries out, or whose employees carry out, letting agency work. ^F61]

(2) In paragraph (1)(d)(iv) “ 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)—

^M19 “ estate agency work ” is to be read in accordance with section 1 of the Estate Agents Act 1979 , 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.

[^F62 (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. ^F62]

[^F63 (3D) In paragraph (1), a “ high value dealer ” means a firm or sole trader that by way of business trades in goods (including an auctioneer dealing in goods), when the firm or sole trader makes or receives, in respect of any transaction, a payment or payments in cash of at least 10,000 euros in total, whether the transaction is executed in a single operation or in several operations which appear to be linked.

(3E) In paragraph (1), an “ art market participant ” means, subject to paragraph (3F), a firm or sole practitioner that is registered or required to register with the Commissioners as an art market participant under regulation 56(5) and (6) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 .

(3F) A firm or sole practitioner is not an art market participant for the purposes of paragraph (3E) in relation to the sale or storage of a work of art which is created by, or is attributable to, a member of the firm or the sole practitioner.

(3G) For the purposes of this regulation, “ work of art ” means anything which, in accordance with section 21(6) to (6B) of the Value Added Tax Act 1994 (value of imported goods) , is a work of art for the purposes of section 21(5)(a) of that Act .

(3H) In paragraph (1), an “ insolvency practitioner ” means a firm or individual who acts as an insolvency practitioner within the meaning of section 388 of the Insolvency Act 1986 or Article 3 of the Insolvency (Northern Ireland) Order 1989 .

(3I) In paragraph (1), “ letting agency work ” means work—

(a)consisting of things done in response to instructions received from—

(i) a person (a “prospective landlord”) seeking to find another person to whom to let land for a term of a month or more, or

(ii) a person (a “prospective tenant”) seeking to find land to rent for a term of a month or more, and

(b)done—

(i)in relation to a prospective landlord, from the point that the prospective landlord instructs P, or

(ii)otherwise in the course of concluding an agreement for the letting of land for a term of a month or more.

(3J) For the purposes of paragraph (3I)—

“ land ” includes part of a building and part of any other structure;

“ letting agency work ” does not include the things listed in paragraph (3K) when done by, or by employees of, a firm or sole practitioner if neither the firm or sole practitioner, nor any of their employees, does anything else within paragraph (3I).

(3K) Those things are—

(a)publishing advertisements or disseminating information;

(b)providing a means by which a prospective landlord or a prospective tenant can, in response to an advertisement or dissemination of information, make direct contact with a prospective tenant or a prospective landlord;

(c)providing a means by which a prospective landlord and a prospective tenant can communicate directly with each other;

(d)the provision of legal or notarial services by a barrister, advocate, solicitor or other legal representative communications with whom may be the subject of a claim to professional privilege or, in Scotland, protected from disclosure in legal proceedings on grounds of confidentiality of communications.^F63]

(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 46(1)(b), 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)^M20in 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) ;

(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;

[^F64 (da)in the case of a relevant firm within paragraph (1)(k)—

(i)in the course of trading, or acting as an intermediary in the sale or purchase of, works of art when the value of the transaction, or a series of linked transactions, amounts to 10,000 euros or more, or

(ii)in the course of storing works of art where the value of the works of art so stored for a person amounts to 10,000 euros or more;^F64]

(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.

Finance: powers to request information_I95,I96

48.—(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)(b), 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, or

(b)funds or economic resources made available under the licence.

(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 46 (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 43 (finance: licensing offences) or 46 (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.

Finance: production of documents_I97,I98

49.—(1) A request under regulation 48 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).

Finance: information offences_I99,I100

50.—(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 48 (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 48 (finance: powers to request information) or 49 (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 48 (finance: powers to request information) or 49 (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.

Trade: application of information powers in CEMA_I101,I102

^M2151.—(1) Section 77A of CEMA 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)^M22in subsection (1), the reference to a person concerned in the importation or exportation of goods for which for that purpose an entry is required by regulation 5 of the Customs Controls on Importation of Goods Regulations 1991 or an entry or specification is required by or 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 other 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—

(a)which would, unless done under the authority of a trade licence, constitute a contravention of a prohibition in Chapters 1 to 3 of Part 5 (Trade), except any prohibition on imports or exports, or

(b)which would constitute a contravention of the prohibition in regulation 35 (circumventing etc prohibitions).

General trade licences: records_I103,I104

52. —(1) This regulation applies in relation to a person (“P”) who does any act authorised by a general licence issued under regulation 41 (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.

General trade licences: inspection of records_I105,I106

53. —(1) A person authorised by the Secretary of State or the Commissioners (an “official”) may at any reasonable hour enter premises notified under regulation 52(4) for the purposes of monitoring compliance with, or detecting evasion of, a contravention under regulation 52(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 52(2), 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.

Disclosure of information_I107,I108

54.—(1) The Secretary of State, the Treasury 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), [^F65Part 3A (Director disqualification sanctions),^F65] Part 5 (Trade), 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 regulation 21(1) or 28(1)(exports and imports of restricted goods), or

(iii)^M23in relation to a monetary penalty under section 146 of the Policing and Crime Act 2017 (breach of financial sanctions legislation) ;

(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)^M24compliance with an international obligation ;

(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) consider 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.

[^F66Finance: disclosure to the Treasury

54A.—(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 [^F67 any sanctions regulations contained in these Regulations^F67] .

(2) In this regulation—

“ relevant public authority ” means—

“ local authority ” means—

Part 7: supplementary_I109,I110

55.—(1) A disclosure of information under regulation 54 [^F68or 54A^F68] does not breach any restriction on such disclosure imposed by statute or otherwise.

(2) But nothing in [^F69those regulations^F69] authorises a disclosure that—

(a)contravenes the data protection legislation, or

(b)^M25is prohibited by any of Parts 1 to 7 or Chapter 1 of Part 9 of the Investigatory Powers Act 2016 .

(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)[^F70 Regulations 54 and 54A do^F70] not limit the circumstances in which information may be disclosed apart from [^F71those regulations^F71] .

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

(6) In this regulation—

^M26 “ the data protection legislation ” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act ) ;

“ 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.

PART 8 Enforcement

Penalties for offences_I111,I112

56.—(1) A person who commits an offence under any provision of Part 3 (Finance) or regulation 43 (finance: licensing offences), is liable—

(a)on summary conviction in England and Wales, to imprisonment for a term not exceeding [^F72the general limit in a magistrates’ court^F72] or a fine (or both);

(b)on summary conviction in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum (or both);

(c)on summary conviction in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum (or both);

(d)on conviction on indictment, to imprisonment for a term not exceeding 7 years or a fine (or both).

(2) A person who commits an offence under any provision of Part 5 (Trade) is liable—

(a)on summary conviction in England and Wales, to imprisonment for a term not exceeding [^F73the general limit in a magistrates’ court^F73] or a fine (or both);

(b)on summary conviction in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum (or both);

(c)on summary conviction in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum (or both);

(d)on conviction on indictment, to imprisonment for a term not exceeding 10 years or a fine (or both).

(3) A person who commits an offence under regulation 9(6) (confidentiality), [^F7443A (director disqualification: licensing offences),^F74] 44 (Trade: licensing offences), 52(6) or 53(5) (offences in connection with trade licences) is liable—

(a)on summary conviction in England and Wales, to imprisonment for a term not exceeding [^F75the general limit in a magistrates’ court^F75] or a fine (or both);

(b)on summary conviction in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum (or both);

(c)on summary conviction in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum (or both);

(d)on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine (or both).

(4) A person who commits an offence under regulation 46(6) or 50 (information offences in connection with Part 3) is liable—

(a)on summary conviction in England and Wales, to imprisonment for a term not exceeding 6 months or a fine (or both);

(b)on summary conviction in Scotland, to imprisonment for a term not exceeding 6 months or a fine not exceeding level 5 on the standard scale (or both);

(c)on summary conviction in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding level 5 on the standard scale (or both).

(5) In relation to an offence committed before [^F762nd May 2022^F76] the reference in each of paragraphs (1)(a), (2)(a) and (3)(a) to [^F77the general limit in a magistrates’ court^F77] is to be read as a reference to 6 months.

Liability of officers of bodies corporate etc_I113,I114

57.—(1) Where an offence under these Regulations, committed by a body corporate—

(a)is committed with the consent or connivance of any director, manager, secretary or other similar officer of the body corporate, or any person who was purporting to act in any such capacity, or

(b)is attributable to any neglect on the part of any such person,

that person as well as the body corporate is guilty of the offence and is liable to be proceeded against and punished accordingly.

(2) In paragraph (1) “ director ”, in relation to a body corporate whose affairs are managed by its members, means a member of the body corporate.

(3) Paragraph (1) also applies in relation to a body that is not a body corporate, with the substitution for the reference to a director of the body of a reference—

(a)in the case of a partnership, to a partner;

(b)in the case of an unincorporated body other than a partnership—

(i)where the body's affairs are managed by its members, to a member of the body;

(ii)in any other case, to a member of the governing body.

(4) Section 171(4) of CEMA (which is a provision similar to this regulation) does not apply to any offence under these Regulations to which that provision would, in the absence of this paragraph, apply.

Jurisdiction to try offences_I115,I116

58.—(1) Where an offence under regulation 9(6) (confidentiality), Part 3 (Finance), regulation 43 (finance: licensing offences) or regulation 46(6) or 50 (information offences in connection with Part 3) is committed in the United Kingdom—

(a)proceedings for the offence may be taken at any place in the United Kingdom, and

(b)the offence may for all incidental purposes be treated as having been committed at any such place.

(2) Where an offence under these Regulations is committed outside the United Kingdom—

(a)proceedings for the offence may be taken at any place in the United Kingdom, and

(b)the offence may for all incidental purposes be treated as having been committed at any such place.

(3) In the application of paragraph (2) to Scotland, any such proceedings against a person may be taken—

(a)in any sheriff court district in which the person is apprehended or is in custody, or

(b)in such sheriff court district as the Lord Advocate may determine.

^M27 (4) In paragraph (3) “ sheriff court district ” is to be read in accordance with the Criminal Procedure (Scotland) Act 1995 (see section 307(1) of that Act ) .

Procedure for offences by unincorporated bodies_I117,I118

59.—(1) Paragraphs (2) and (3) apply if it is alleged that an offence under these Regulations has been committed by an unincorporated body (as opposed to by a member of the body).

(2) Proceedings in England and Wales or Northern Ireland for such an offence must be brought against the body in its own name.

(3) For the purposes of proceedings, for such an offence brought against an unincorporated body—

(a)rules of court relating to the service of documents have effect as if the body were a body corporate;

(b)the following provisions apply as they apply in relation to a body corporate—

(i)^M28,M29section 33 of the Criminal Justice Act 1925 and Schedule 3 to the Magistrates' Courts Act 1980 ;

(ii)^M30,M31section 18 of the Criminal Justice Act (Northern Ireland) 1945 and Article 166 of, and Schedule 4 to, the Magistrates' Courts (Northern Ireland) Order 1981 .

(4) A fine imposed on an unincorporated body on its conviction of an offence under these Regulations is to be paid out of the funds of the body.

Time limit for proceedings for summary offences_I119,I120

60.—(1) Proceedings for an offence under these Regulations which is triable only summarily may be brought within the period of 12 months beginning with the date on which evidence sufficient in the opinion of the prosecutor to justify the proceedings comes to the prosecutor's knowledge.

(2) But such proceedings may not be brought by virtue of paragraph (1) more than 3 years after the commission of the offence.

(3) A certificate signed by the prosecutor as to the date on which the evidence in question came to the prosecutor's knowledge is conclusive evidence of the date on which it did so; and a certificate to that effect and purporting to be so signed is to be treated as being so signed unless the contrary is proved.

(4) In relation to proceedings in Scotland—

(a)section 136(3) of the Criminal Procedure (Scotland) Act 1995 (date of commencement of summary proceedings) applies for the purposes of this regulation as it applies for the purposes of that section, and

(b)references in this regulation to the prosecutor are to be treated as references to the Lord Advocate.

Trade enforcement: application of CEMA_I121,I122

61.—(1) Where the Commissioners investigate or propose to investigate any matter with a view to determining—

(a)whether there are grounds for believing that a relevant offence has been committed, or

(b)whether a person should be prosecuted for such an offence,

the matter is to be treated as an assigned matter.

^M32 (2) In paragraph (1) “ assigned matter ” has the meaning given by section 1(1) of CEMA .

(3) In this regulation a “ relevant offence ” means an offence under—

(a)Part 5 (Trade),

(b)regulation 44 (trade: licensing offences),

(c)regulation 52(6) (general trade licences: records), or

(d)regulation 53(5) (general trade licences: inspection of records).

[^F78 (3A) The Commissioners may not investigate the suspected commission of a relevant offence listed in paragraph (3B), (3C) or (3D), unless the suspected offence has been the subject of—

(a)a referral to the Commissioners by the Secretary of State, or

(b)a decision by the Commissioners to treat the suspected offence as if it had been referred to them under sub-paragraph (a).

(3B) Paragraph (3A) applies to the suspected commission of an offence under any of the following provisions—

(a)regulation 22(3) (supply and delivery of restricted goods from a third country to Iran) insofar as the offence does not relate to military goods, missile-list goods, nuclear-list goods, other restricted goods, graphite and relevant metals;

(b)regulation 23(3) (making available restricted goods and restricted technology) insofar as the offence does not relate to the import or export of goods or the transfer of technology to or from the UK, to military goods and military technology, missile-list goods and missile-list technology, nuclear-list goods and nuclear-list technology, other restricted goods and other restricted technology, and graphite and relevant metals;

(c)regulation 25(3) (technical assistance relating to restricted goods and restricted technology) insofar as the offence does not relate to the import or export of goods or the transfer of technology to or from the UK, to military goods and military technology, missile-list goods and missile-list technology, nuclear-list goods and nuclear list technology, other restricted goods and restricted technology, or graphite and relevant metals;

(d)regulation 26(5) (financial services and funds relating to restricted goods and restricted technology) insofar as the offence does not relate to the import or export of goods or the transfer of technology to or from the UK, to military goods and military technology, missile-list goods and missile-list technology, nuclear-list goods and nuclear-list technology, other restricted goods and restricted technology, or graphite and relevant metals;

(e)regulation 27(3) (brokering services: non-UK activity relating to restricted goods and restricted technology) insofar as the offence does not relate to the import or export of goods or the transfer of technology to or from the UK, to military goods and military technology, missile-list goods and missile list technology, nuclear-list goods and nuclear-list technology, other restricted goods and restricted technology, or graphite and relevant metals.”.

(3C) Paragraph (3A) also applies to the suspected commission of a relevant offence under any of regulations 44(1) or (2), 52(6) and 53(5) insofar as—

(a)the suspected offence relates to a licence issued under regulation 41 (trade licences), and

(b)the activity authorised by that licence would, if no licence had been issued, amount to an offence specified in paragraph (3B).

(3D) Paragraph (3A) also applies to the suspected commission of a relevant offence under regulation 35(2) (circumventing etc. prohibitions), insofar as the prohibited activity to which the suspected offence relates is the circumvention of, or enabling or facilitation of a contravention of, a prohibition in relation to an offence specified in paragraph (3B).^F78]

^M33,M34(4) Section 138 of CEMA (arrest of persons) applies to a person who has committed, or whom there are reasonable grounds to suspect of having committed, a relevant offence as it applies to a person who has committed, or whom there are reasonable grounds to suspect of having committed, an offence for which the person is liable to be arrested under the customs and excise Acts , but as if—

(a)any reference to an offence under, or for which a person is liable to be arrested under, the customs and excise Acts were to a relevant offence;

(b)in subsection (2), the reference to any person so liable were to a person who has committed, or whom there are reasonable grounds to suspect of having committed, a relevant offence.

(5) The provisions of CEMA mentioned in paragraph (6) apply in relation to proceedings for a relevant offence as they apply in relation to proceedings for an offence under the customs and excise Acts, but as if—

(a)any reference to the customs and excise Acts were to any of the provisions mentioned in paragraph (3)(a) to (d);

(b)in section 145(6), the reference to an offence for which a person is liable to be arrested under the customs and excise Acts were to a relevant offence;

(c)in section 151, the reference to any penalty imposed under the customs and excise Acts were to any penalty imposed under these Regulations in relation to a relevant offence;

(d)in section 154(2)—

(i)the reference to proceedings relating to customs or excise were to proceedings under any of the provisions mentioned in paragraph (3)(a) to (d), and

(ii)the reference to the place from which any goods have been brought included a reference to the place to which goods have been exported, supplied or delivered or the place to or from which technology has been transferred.

^M35(6) The provisions of CEMA are sections 145, 146, 147, 148(1), 150, 151, 152, 154 and 155 (legal proceedings).

[^F79 (7) Any term in this regulation that is defined in regulation 34 (interpretation of Part 5: Trade) bears the same meaning as in that regulation.^F79]

Trade offences in CEMA: modification of penalty_I123,I124

62.—(1) Paragraph (2) applies where a person is guilty of an offence under section 68(2) of CEMA in connection with a prohibition mentioned in regulation 28 (import of certain goods from Iran).

^M36(2) Where this paragraph applies, the reference to 7 years in section 68(3)(b) of CEMA is to be read as a reference to 10 years.

(3) Paragraph (4) applies where a person is guilty of an offence under section 170(2) of CEMA in connection with a prohibition mentioned in regulation 21(1)(export of restricted goods to, or for use in, Iran).

^M37(4) Where this paragraph applies, the reference to 7 years in section 170(3)(b) of CEMA is to be read as a reference to 10 years.

Application of Chapter 1 of Part 2 of Serious Organised Crime and Police Act 2005 _I125,I126

^M3863. Chapter 1 of Part 2 of the Serious Organised Crime and Police Act 2005 (investigatory powers) applies to any offence under Part 3 (Finance) or regulation 43 (finance: licensing offences).

Monetary penalties_I127,I128

^M3964. The following provisions are to be regarded as not being financial sanctions legislation for the purposes of Part 8 of the Policing and Crime Act 2017 —

(a)regulation 23(1) (making restricted goods and restricted technology available);

(b)regulations 24(1) and 31(1) (transfer of certain technology);

(c)regulation 26(1) to (3) (financial services and funds relating to restricted goods and restricted technology);

(d)regulation 27(1) (brokering services relating to financial services and funds relating to restricted goods and restricted technology);

(e)regulation 32(1) (arrangements relating to uranium mining and certain restricted goods and technology).

PART 9 Maritime enforcement

Exercise of maritime enforcement powers_I129,I130

65.—(1) A maritime enforcement officer may, for a purpose mentioned in paragraph (2) or (3), exercise any of the maritime enforcement powers in relation to—

(a)a British ship in foreign waters or international waters,

(b)a ship without nationality in international waters, or

(c)a foreign ship in international waters,

and a ship within sub-paragraph (a), (b) or (c) is referred to in this Part as “ a relevant ship ”.

(2) The maritime enforcement powers may be exercised for the purpose of enforcing any of the following—

(a)a prohibition in any of regulations 21 to 24 (trade prohibitions relating to restricted goods and restricted technology);

(b)a prohibition in any of regulations 28 to 31 (import, supply, transfer etc of goods and technology from Iran);

(c)a prohibition imposed by a condition of a trade licence in relation to a prohibition mentioned in sub-paragraph (a) or (b).

(3) The maritime enforcement powers may also be exercised in relation to a relevant ship for the purpose of—

(a)investigating the suspected carriage of relevant goods on the ship, or

(b)preventing the continued carriage on the ship of goods suspected to be relevant goods.

(4) In this Part, “the maritime enforcement powers” are the powers conferred by regulations 67 and 68.

(5) This regulation is subject to regulation 69 (restrictions on exercise of maritime enforcement powers).

Maritime enforcement officers_I131,I132

66. —(1) The following persons are “ maritime enforcement officers ” for the purposes of this Part—

(a)a commissioned officer of any of Her Majesty's ships;

(b)^M40a member of the Ministry of Defence Police (within the meaning of section 1 of the Ministry of Defence Police Act 1987 );

(c)a constable—

(i)who is a member of a police force in England and Wales,

(ii)^M41within the meaning of section 99 of the Police and Fire Reform (Scotland) Act 2012 , or

(iii)who is a member of the Police Service of Northern Ireland or the Police Service of Northern Ireland Reserve;

(d)a special constable—

(i)^M42appointed under section 27 of the Police Act 1996 ,

(ii)appointed under section 9 of the Police and Fire Reform (Scotland) Act 2012, or

(iii)^M43in Northern Ireland, appointed by virtue of provision incorporating section 79 of the Harbours, Docks, and Piers Clauses Act 1847 ;

(e)a constable who is a member of the British Transport Police Force;

(f)^M44,M45a port constable, within the meaning of section 7 of the Marine Navigation Act 2013 , or a person appointed to act as a constable under provision made by virtue of section 16 of the Harbours Act 1964 ;

(g)^M46a designated customs official within the meaning of Part 1 of the Borders, Citizenship and Immigration Act 2009 (see section 14(6) of that Act) ;

(h)a designated NCA officer who is authorised by the Director General of the National Crime Agency (whether generally or specifically) to exercise the powers of a maritime enforcement officer under this Part.

(2) In this regulation, “ a designated NCA officer ” means a National Crime Agency officer who is either or both of the following—

(a)an officer designated under section 10 of the Crime and Courts Act 2013 as having the powers and privileges of a constable;

(b)an officer designated under that section as having the powers of a general customs official.

Power to stop, board, search etc_I133,I134

67.—(1) This regulation applies if a maritime enforcement officer has reasonable grounds to suspect that a relevant ship is carrying prohibited goods or relevant goods.

(2) The officer may—

(a)stop the ship;

(b)board the ship;

(c)for the purpose of exercising a power conferred by paragraph (3) or regulation 68, require the ship to be taken to, and remain in, a port or anchorage in the United Kingdom or any other country willing to receive it.

(3) Where the officer boards a ship by virtue of this regulation, the officer may—

(a)stop any person found on the ship and search that person for—

(i)prohibited goods or relevant goods, or

(ii)any thing that might be used to cause physical injury or damage to property or to endanger the safety of any ship;

(b)search the ship, or any thing found on the ship (including cargo) for prohibited goods or relevant goods;

(4) The officer may—

(a)require a person found on a ship boarded by virtue of this regulation to provide information or produce documents;

(b)inspect and copy such information or documents.

(5) The officer may exercise a power conferred by paragraph (3)(a)(i) or (b) only to the extent reasonably required for the purpose of discovering prohibited goods or relevant goods.

(6) The officer may exercise the power conferred by paragraph (3)(a)(ii) in relation to a person only where the officer has reasonable grounds to believe that the person might use a thing to cause physical injury or damage to property or to endanger the safety of any ship.

(7) The officer may use reasonable force, if necessary, in the exercise of any power conferred by this regulation.

Seizure power_I135,I136

68.—(1) This regulation applies if a maritime enforcement officer is lawfully on a relevant ship (whether in exercise of the powers conferred by regulation 65 or otherwise).

(2) The officer may seize any of the following which are found on the ship, in any thing found on the ship, or on any person found on the ship—

(a)goods which the officer has reasonable grounds to suspect are prohibited goods or relevant goods, or

(b)things within regulation 67(3)(a)(ii).

(3) The officer may use reasonable force, if necessary, in the exercise of any power conferred by this regulation.

Restrictions on exercise of maritime enforcement powers_I137,I138

69.—(1) The authority of the Secretary of State is required before any maritime enforcement power is exercised in reliance on regulation 65 in relation to—

(a)a British ship in foreign waters, or

(b)a foreign ship in international waters.

(2) In relation to a British ship in foreign waters other than the sea and other waters within the seaward limits of the territorial sea adjacent to any relevant British possession, the Secretary of State may give authority under paragraph (1) only if the State in whose waters the power would be exercised consents to the exercise of the power.

(3) In relation to a foreign ship in international waters, the Secretary of State may give authority under paragraph (1) only if—

(a)the home state has requested the assistance of the United Kingdom for a purpose mentioned in regulation 65(2) or (3),

(b)the home state has authorised the United Kingdom to act for such a purpose, or

(c)^M47the United Nations Convention on the Law of the Sea 1982 or a UN Security Council Resolution otherwise permits the exercise of the power in relation to the ship.

Interpretation of Part 9_I139,I140

70.—(1) Subject to paragraph (2), any expression used in this Part and in section 19 or 20 of the Act has the same meaning in this Part as it has in section 19 or (as the case may be) section 20 of the Act.

(2) For the purpose of interpreting any reference to “prohibited goods” or “relevant goods” in this Part, any reference in section 19 or 20 of the Act to a “relevant prohibition or requirement” is to be read as a reference to any prohibition specified in regulation 65(2).

PART 10 Supplementary and final provision

Notices_I141,I142

71.—(1) This regulation applies in relation to a notice required by regulation 42 (licences: general provisions) to be given to a person.

(2) The notice may be given to an individual—

(a)by delivering it to the individual,

(b)by sending it to the individual by post addressed to the individual at his or her usual or last-known place of residence or business, or

(c)by leaving it for the individual at that place.

(3) The notice may be given to a person other than an individual—

(a)by sending it by post to the proper officer of the body at its principal office, or

(b)by addressing it to the proper officer of the body and leaving it at that office.

(4) The notice may be given to the person by other means, including by electronic means, with the person's consent.

(5) In this regulation, the reference in paragraph (3) to a “principal office”—

(a)in relation to a registered company, is to be read as a reference to the company's registered office;

(b)in relation to a body incorporated or constituted under the law of a country other than the United Kingdom, includes a reference to the body's principal office in the United Kingdom (if any).

(6) In this regulation—

• “proper officer”—

  (a)

  in relation to a body other than a partnership, means the secretary or other executive officer charged with the conduct of the body's general affairs, and

  (b)

  in relation to a partnership, means a partner or a person who has the control or management of the partnership business;

• “ registered company ” means a company registered under the enactments relating to companies for the time being in force in the United Kingdom.

Article 20 of the Export Control Order 2008_I143,I144

72. Article 20 of the Export Control Order 2008 (embargoed destinations) is not to be taken to prohibit anything prohibited by Part 5 (Trade).

Trade: overlapping offences_I145,I146

73. A person is not to be taken to commit an offence under the Export Control Order 2008 if the person would, in the absence of this regulation, commit an offence under both—

(a)article 34, 35, 37 or 38 of that Order, and

(b)any provision of Part 5 (Trade) or regulation 44 (trade: licensing offences), 52(6) or 53(5) (offences in connection with record-keeping).

Revocations_I147,I148

74.—(1) Council Regulation (EU) No 267/2012 of 23 March 2012 concerning restrictive measures against Iran and repealing Regulation (EU) No 961/2010 is revoked.

^M48(2) The Iran (European Union Financial Sanctions) Regulations 2016 are revoked.

^M49(3) The Export Control (Iran Sanctions) Order 2016 is revoked.

^M50(4) The Iran (Financial Sanctions) Order 2007 is revoked.

Transitional provision: Treasury licences_I149,I150

75.—(1) Paragraphs (2) to (4) apply to a licence which—

(a)^M51was granted, or deemed to be granted, by the Treasury under regulation 9 of the 2016 Regulations ,

(b)was in effect immediately before the relevant date, and

(c)authorises conduct which would (on and after the relevant date, and in the absence of paragraphs (2) to (4)) be prohibited under Part 3 (Finance),

and such a licence is referred to in this regulation as “ an existing financial sanctions licence ”.

(2) An existing financial sanctions licence[^F80 which authorises an act which would otherwise be prohibited^F80] has effect on and after the relevant date as if it had been issued by the Treasury under regulation 40(1) (Treasury licences).

(3) Any reference in an existing financial sanctions licence to the 2016 Regulations is to be treated on and after the relevant date as a reference to these Regulations.

(4) Any reference in an existing financial sanctions licence to a prohibition in—

(a)the 2016 Regulations, or

(b)the EU Iran Regulation,

is to be treated on and after the relevant date as a reference to the corresponding prohibition in Part 3.

(5) Paragraph (6) applies where—

(a)an application for a licence, or for the variation of a licence, under the 2016 Regulations was made before the relevant date,

(b)the application is for the authorisation of conduct which would (on and after the relevant date) be prohibited under Part 3, and

(c)a decision to grant or refuse the application has not been made before that date.

(6) The application is to be treated on and after the relevant date as an application for a licence, or for the variation of a licence (as the case may be), under regulation 40(1) (Treasury licences).

(7) In paragraphs (3) and (4), a reference to the 2016 Regulations is to be treated as including a reference to—

(a)^M52the Iran (European Community Financial Sanctions) Regulations 2007 ,

(b)^M53the Iran (European Union Financial Sanctions) Regulations 2010 , or

(c)^M54the Iran (European Union Financial Sanctions) Regulations 2012 .

(8) In this regulation—

“ the 2016 Regulations ” means the Iran (European Union Financial Sanctions) Regulations 2016 ;

“ the relevant date ” means—

Transitional provision: trade licences_I151,I152

76.[^F81—(A1) Paragraph (B1) applies in relation to each licence or authorisation granted by the Secretary of State which—

(a)was in effect immediately before the relevant date, and

(b)authorises an act—

(i)which would otherwise be prohibited by any provision of the Export Control Order 2008 except article 20 of that Order (embargoed destinations), or which requires an authorisation under or pursuant to the Dual-Use Regulation, and

(ii)which would (on or after the relevant date, and in the absence of paragraph (B1)) be prohibited by Part 5 (Trade),

and such a licence or authorisation is referred to in this regulation as an “ existing trade licence ”.

(B1) A licence is deemed to have been issued by the Secretary of State at the beginning of the relevant date under regulation 41 (trade licences)—

(a)disapplying every provision of Part 5 which would, in the absence of this paragraph, prohibit any act authorised by the existing trade licence, and

(b)otherwise in the same terms as the existing trade licence.^F81]

[^F82 (1) Paragraphs (2) to (4) apply to a licence or authorisation granted by the Secretary of State which—

(a)was in effect immediately before the relevant date,

(b)is not an existing trade licence, and

(c)authorises an act—

(i)which would otherwise be prohibited by either—

(aa)the EU Iran Regulation, or

(bb)the Iran (United Nations Sanctions) Order 2009, and

(ii)which would (on and after the relevant date, and in the absence of paragraphs (2) to (4)) be prohibited by Part 5 (Trade),

and such a licence or authorisation is referred to in this regulation as “ an existing trade sanctions licence ”. ^F82]

(2) An existing trade sanctions licence has effect on and after the relevant date as if it were a licence which had been issued by the Secretary of State under regulation 41 (trade licences).

(3) Any reference in an existing trade sanctions licence to a provision of the Export Control (Iran Sanctions) Order 2016[^F83 , the Iran (United Nations Sanctions) Order 2009^F83] or the Export Control Order 2008 is to be treated on and after the relevant date as a reference to the corresponding provision of these Regulations (if any).

(4) Any reference in an existing trade sanctions licence to a prohibition in the EU Iran Regulation is to be treated on and after the relevant date as a reference to the corresponding prohibition in Part 5 (Trade).

(5) In this regulation, “ the relevant date ” means—

(a)where regulations under section 56 of the Act provide that Part 5 comes into force at a specified time on a day, that time on that day;

(b)otherwise, the date on which Part 5 comes into force.

Transitional provision: pending applications for trade licences_I153,I154

77.—(1) Paragraph (2) applies where—

(a)an application was made before the relevant date for a licence or authorisation under the Export Control (Iran Sanctions) Order 2016 or the EU Iran Regulation,

(b)the application is for authorisation of an act prohibited by Part 5 (Trade), and

(c)a decision to grant or refuse the application has not been made before the relevant date.

(2) The application is to be treated on and after the relevant date as an application for a licence under regulation 41 (trade licences).

(3) In this regulation, “ the relevant date ” means—

(a)where regulations under section 56 of the Act provide that Part 5 comes into force at a specified time on a day, that time on that day;

(b)otherwise, the date on which Part 5 comes into force.

Transitional Provisions: prior obligations_I155,I156

78.—(1) Where—

(a)a person was named in Annex ⅠX of the EU Iran Regulation immediately before the relevant date, and

(b)the person is a designated person immediately before the relevant date,

any reference in a provision mentioned in paragraph (3) to the date on which a person became a designated person is to be read as a reference to the date on which the person was named in that Annex.

^F84(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)[^F85 The provision referred to in paragraph (1) is—^F85]

(a)^F86regulation 37(5) (finance: exceptions from prohibitions), ...

[^F87 (ab)regulation 37ZZB (finance: exceptions relating to payment of Treasury debt), and^F87]

(b)paragraphs [^F887A(b)(i)^F88] and 6(1)(a) of Schedule 2 (Treasury licences: purposes).

(4) In paragraph (1), the reference to the date on which a person was named in Annex IX of the EU Iran Regulation—

(a)if the person had previously been named in Annex V of the 2007 EU Iran Regulation, is to be read as the date on which the person was named in that Annex;

(b)if the person had previously been named in Annex VIII of the 2010 EU Iran Regulation but not in Annex V of the 2007 EU Iran Regulation, is to be read as the date on which the person was named in Annex VIII of the 2010 EU Iran Regulation.

(5) In this regulation—

^M55 “ the 2007 EU Iran Regulation ” means Council Regulation (EC) No 423/2007 of 19 April 2007 concerning restrictive measures against Iran ;

^M56 “ the 2010 EU Iran Regulation ” means Council Regulation (EU) No 961/2010 of 25 October 2010 on restrictive measures against Iran and repealing Regulation (EC) No 423/2007 ;

“ designated person ” has the same meaning as it has in Part 3 (Finance);

“ the relevant date ” means—

SCHEDULES

Regulation 7(3)

SCHEDULE 1 Rules for interpretation of regulation 7(2)

Application of Schedule_I157,I158

1.—(1) The rules set out in the following paragraphs of this Schedule apply for the purpose of interpreting regulation 7(2).

(2) They also apply for the purpose of interpreting this Schedule.

Joint interests_I159,I160

2. If two or more persons each hold a share or right jointly, each of them is treated as holding that share or right.

Joint arrangements_I161,I162

3.—(1) If shares or rights held by a person and shares or rights held by another person are the subject of a joint arrangement between those persons, each of them is treated as holding the combined shares or rights of both of them.

(2) A “joint arrangement” is an arrangement between the holders of shares or rights that they will exercise all or substantially all the rights conferred by their respective shares or rights jointly in a way that is pre-determined by the arrangement.

(3) “ Arrangement ” has the meaning given by paragraph 12.

Calculating shareholdings_I163,I164

4. —(1) In relation to a person who has a share capital, a reference to holding “more than 50% of the shares” in that person is to holding shares comprised in the issued share capital of that person of a nominal value exceeding (in aggregate) 50% of that share capital.

(2) In relation to a person who does not have a share capital—

(a)a reference to holding shares in that person is to holding a right or rights to share in the capital or, as the case may be, profits of that person;

(b) a reference to holding “more than 50% of the shares” in that person is to holding a right or rights to share in more than 50% of the capital or, as the case may be, profits of that person.

Voting rights_{I165,I166,I167,I168}

5.—(1) A reference to the voting rights in a person is to the rights conferred on shareholders in respect of their shares (or, in the case of a person not having a share capital, on members) to vote at general meetings of the person on all or substantially all matters.

(2) In relation to a person that does not have general meetings at which matters are decided by the exercise of voting rights—

(a)a reference to holding voting rights in the person is to be read as a reference to holding rights in relation to the person that are equivalent to those of a person entitled to exercise voting rights in a company;

(b) a reference to holding “more than 50% of the voting rights” in the person is to be read as a reference to holding the right under the constitution of the person to block changes to the overall policy of the person or to the terms of its constitution.

6. In applying regulation 7(2) and this Schedule, the voting rights in a person are to be reduced by any rights held by the person itself.

Rights to appoint or remove members of the board_{I169,I170,I171,I172}

7. A reference to the right to appoint or remove a majority of the board of directors of a person is to the right to appoint or remove directors holding a majority of the voting rights at meetings of the board on all or substantially all matters.

8. A reference to a board of directors, in the case of a person who does not have such a board, is to be read as a reference to the equivalent management body of that person.

Shares or rights held “indirectly”_I173,I174

9. —(1) A person holds a share “indirectly” if the person has a majority stake in another person and that other person—

(a)holds the share in question, or

(b)is part of a chain of persons—

(i)each of whom (other than the last) has a majority stake in the person immediately below it in the chain, and

(ii)the last of whom holds the share.

(2) A person holds a right “indirectly” if the person has a majority stake in another person and that other person—

(a)holds that right, or

(b)is part of a chain of persons—

(i)each of whom (other than the last) has a majority stake in the person immediately below it in the chain, and

(ii)the last of whom holds that right.

(3) For these purposes, a person (“A”) has a “majority stake” in another person (“B”) if—

(a)A holds a majority of the voting rights in B,

(b)A is a member of B and has the right to appoint or remove a majority of the board of directors of B,

(c)A is a member of B and controls alone, pursuant to an agreement with other shareholders or members, a majority of the voting rights in B, or

(d)A has the right to exercise, or actually exercises, dominant influence or control over B.

(4) In the application of this paragraph to the right to appoint or remove a majority of the board of directors, a person (“A”) is to be treated as having the right to appoint a director if—

(a)any person's appointment as director follows necessarily from that person's appointment as director of A, or

(b)the directorship is held by A itself.

Shares held by nominees_I175,I176

10. A share held by a person as nominee for another is to be treated as held by the other (and not by the nominee).

Rights treated as held by person who controls their exercise_{I177,I178,I179,I180}

11.—(1) Where a person controls a right, the right is to be treated as held by that person (and not by the person who in fact holds the right, unless that person also controls it).

(2) A person “controls” a right if, by virtue of any arrangement between that person and others, the right is exercisable only—

(a)by that person,

(b)in accordance with that person's directions or instructions, or

(c)with that person's consent or concurrence.

12. “ Arrangement ” includes—

(a) any scheme, agreement or understanding, whether or not it is legally enforceable, and

(b) any convention, custom or practice of any kind.

Rights exercisable only in certain circumstances etc._I181,I182

13.—(1) Rights that are exercisable only in certain circumstances are to be taken into account only—

(a)when the circumstances have arisen, and for so long as they continue to obtain, or

(b)when the circumstances are within the control of the person having the rights.

(2) But rights that are exercisable by an administrator or by creditors while a person is subject to relevant insolvency proceedings are not to be taken into account while the person is subject to those proceedings.

(3) “ Relevant insolvency proceedings ” means—

(a)^M57administration within the meaning of the Insolvency Act 1986 ,

(b)^M58administration within the meaning of the Insolvency (Northern Ireland) Order 1989 , or

(c)proceedings under the insolvency law of another country during which a person's assets and affairs are subject to the control or supervision of a third party or creditor.

(4) Rights that are normally exercisable but are temporarily incapable of exercise are to continue to be taken into account.

Rights attached to shares held by way of security_I183,I184

14. Rights attached to shares held by way of security provided by a person are to be treated for the purposes of this Schedule as held by that person—

(a)where apart from the right to exercise them for the purpose of preserving the value of the security, or of realising it, the rights are exercisable only in accordance with that person's instructions, and

(b)where the shares are held in connection with the granting of loans as part of normal business activities and apart from the right to exercise them for the purpose of preserving the value of the security, or of realising it, the rights are exercisable only in that person's interests.

Regulation 40

SCHEDULE 2 Treasury licences: purposes

PART 1 Designated Persons

Basic needs_I185,I186

1.—(1) To enable the basic needs of a designated person, or (in the case of an individual) any dependent family member of such a person, to be met.

(2) In the case of an individual, in sub-paragraph (1) “ basic needs ” includes—

(a)medical needs;

(b)needs for—

(i)food;

(ii)[^F89 payment^F89] of insurance premiums;

(iii)[^F90 payment^F90] of tax;

(iv)rent or mortgage payments;

(v)utility payments.

(3) In the case of a person other than an individual, in sub-paragraph (1) “ basic needs ” includes needs for—

(a)payment of insurance premiums;

(b)payment of reasonable fees for the provision of property management services;

(c)payment of remuneration, allowances or pensions of employees;

(d)payment of tax;

(e)rent or mortgage payments;

(f)utility payments.

(4) In sub-paragraph (1)—

“ dependent ” means financially dependent;

“ family member ” includes—

Legal services_I187,I188

2. To enable the payment of—

(a)reasonable professional fees for the provision of legal services, or

(b)reasonable expenses associated with the provision of legal services.

Maintenance of frozen funds and economic resources_I189,I190

3. To enable the payment of—

(a)reasonable fees, or

(b)reasonable service charges,

arising from the routine holding or maintenance of frozen funds or economic resources.

Extraordinary expenses_I191,I192

4. To enable an extraordinary expense of a designated person to be met.

Pre-existing judicial decisions etc

^F915. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prior obligations_I193,I194

6.[^F92—(1)^F92] To enable, by the use of a designated person's frozen funds or economic resources, the satisfaction of an obligation of that person (whether arising under a contract, other agreement or otherwise), provided that—

(a)the obligation arose [^F93at a time when the person was not^F93] a designated person;

(b)^F95the obligation is not related to any of the prohibited items, materials, equipment, goods, technologies, assistance, training, financial assistance, investment, brokering or services referred to in [^F94paragraphs 3, 4 and 6 of resolution 1737^F94] ; ...

(c)no payments are made to another designated person, whether directly or indirectly [^F96, and^F96]

[^F97 (d)where sub-paragraph (2) applies, the activities contemplated under, and execution of, such obligations are consistent with—

(i)the Joint Comprehensive Plan of Action, and

(ii)the provisions of resolutions 1696, 1737, 1747, 1803, 1835, 1929 and 2231.^F97]

[^F98 (2) This sub-paragraph applies where the obligation concerned arose at a time when the person concerned ceased to be a designated person pursuant to paragraph 7 of resolution 2231.^F98]

Activities related to the Joint Comprehensive Plan of Action

^F997. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[^F100Part 1A Purposes relating only to UN designated persons

[^F101 7ZA. To enable anything that is necessary—

(a) for activities directly related to the items specified in the lists referred to in sub-paragraphs 3(b)(i) and (ii) of resolution 1737, as those lists are revised or re-issued from time to time by the Security Council or the Committee;

(b) for the supply, sale, or transfer of items, materials, equipment, goods and technology, and the provision of any related technical assistance, training, financial assistance, investment, brokering or other services, by participant States of the Joint Comprehensive Plan of Action, or Member States acting in coordination with them, that falls within paragraph 22 of resolution 2231 and is directly related to—

(i) the modification of two cascades at the Fordow facility for stable isotope production;

(ii) the export of Iran’s enriched uranium in excess of 300 kilograms in return for natural uranium; and

(iii) the modernization of the Arak reactor based on the agreed conceptual design and, subsequently, on the agreed final design of such reactor;

(c) for transfers and activities falling within sub-paragraphs (a), (b) or (c) of paragraph 23 of resolution 2231.^F101]

Pre-existing judicial decisions etc.

7A.—(1) To enable, by the use of a designated person's frozen funds or economic resources, the implementation or satisfaction (in whole or in part) of a judicial, administrative or arbitral decision or lien, provided that—

(a)the funds or economic resources so used are the subject of the decision or lien,

(b)the decision or lien—

(i)was made or established [^F103 at a time when the person was not^F103] a designated person, and

(ii)is enforceable in the United Kingdom, ^F104...

(c)the use of the frozen funds or economic resources does not directly or indirectly benefit any other designated person [^F105 , and^F105]

[^F106 (d)where sub-paragraph (2) applies, the activities to which the decision or the lien relate are consistent with—

(ii)the Joint Comprehensive Plan of Action, and

(iii)the provisions of resolutions 1696, 1737, 1747, 1803, 1835, 1929, and 2231.^F106]

[^F107 (2) This sub-paragraph applies where the decisions or liens concerned were made or established at a time when the person concerned ceased to be a designated person pursuant to paragraph 7 of resolution 2231.^F107]

PART 2 Non-UN designated persons

Humanitarian assistance activities _I195,I196

8.—(1) To enable anything to be done in connection with the performance of any humanitarian assistance activity.

(2) In sub-paragraph (1) “ humanitarian assistance activity ” includes the work of international and non-governmental organisations carrying out relief activities in Iran for the benefit of the civilian population there.

Diplomatic missions etc _I197,I198

9.—(1) To enable anything to be done in order that the functions of a diplomatic mission or consular post, or of an international organisation enjoying immunities in accordance with international law, may be carried out.

(2) In sub-paragraph (1)—

“ consular post ” has the same meaning as in the Vienna Convention on Consular Relations done at Vienna on 24 April 1963 ^M59 , and any reference to the functions of a consular post is to be read in accordance with that Convention;

“diplomatic mission” and any reference to the functions of a diplomatic mission, is to be read in accordance with the Vienna Convention on Diplomatic Relations done at Vienna on 18 April 1961 ^M60 .

Extraordinary situation _I199,I200

10. To enable anything to be done to deal with an extraordinary situation.

[^F24Insolvency

10A.—(1) To enable anything to be done in connection with—

(a)any insolvency and restructuring proceedings relating to an insolvent person,

(b)any other relevant proceedings relating to a person other than an individual, or

(c)proceedings under the insolvency law of a country other than the United Kingdom that correspond to the proceedings in paragraph (a) or (b),

provided that any payments made directly or indirectly to a designated person are credited to a frozen account.

(2) In this paragraph—

“ enactment ” has the meaning given in section 54(6) of the Act;

“ insolvency and restructuring proceedings ” includes—

“ insolvent person ” means a person (“ P ”), other than an individual, where—

“ other relevant proceedings ” means—

“ special administration regime ” means provision made by an enactment for an insolvency procedure that—

Judicial decisions etc.

10B. To enable the implementation or satisfaction (in whole or in part) of a judicial, administrative or arbitral decision or lien which is enforceable in the United Kingdom (the “judicial decision”), provided that—

(a)where funds or economic resources are made available to a designated person, they are credited to a frozen account or otherwise frozen by virtue of regulation 12;

(b)where funds or economic resources are made available by a person (including a designated person) to a designated person to enable the implementation or satisfaction of the judicial decision, no other designated person benefits, directly or indirectly.^F24]

PART 3 Interpretation _I201,I202

11.—(1) In this Schedule—

“ designated person ” has the same meaning as it has in Part 3 (Finance);

[^F109 “ frozen account ” has the meaning given in regulation 37(7); ^F109]

“ frozen funds or economic resources ” means funds or economic resources frozen by virtue of regulation 12, and any reference to a person's frozen funds or economic resources is to funds or economic resources frozen as a consequence of the designation of that person for the purposes of that regulation.

[^F110 (2) For the purposes of this Schedule, references to a designated person are to be read as including a person (“ C ”) who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person (“ P ”).

(3) When determining for the purposes of paragraph 6 or 7A when C became a designated person, C is to be treated as having become a designated person at the same time as P.^F110,F100]]