PART 1 General

Citation and commencement_I1

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

(2) The following provisions come into force on the day after the day on which the Regulations are laid before Parliament—

(a)this regulation;

(b)regulation 2 (interpretation);

(c)regulation 4 (purposes);

(d)regulation 5 (power to designate persons)

(e)regulation 6 (designation criteria);

(f)regulation 7 (interpretation of regulation 6);

(g)regulation 8 (notification and publicity where designation power used);

(h)Schedule 1 (rules for interpretation of regulation 7(2)).

^M3(3) All other provisions come into force on exit day .

Interpretation_I2

2. In these Regulations—

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

^F1...

“ arrangement ” includes any agreement, understanding, scheme, transaction or series of transactions, whether or not legally enforceable (but see paragraph 12 of Schedule 1 for the meaning of that term in that Schedule);

[^F2 “ the Assad regime ” means the regime in Syria from 9th May 2011 to 8th December 2024 led by Bashar Al-Assad and includes its public bodies, corporations or agencies, or any person who acted on its behalf or at its direction; ^F2]

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

^M4 “ CEMA ” means the Customs and Excise Management Act 1979 ;

“ chemical weapons ” has the same meaning as it has in article 2 of the Chemical Weapons Convention;

^M5 “ the Chemical Weapons Convention ” means the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction signed at Paris on 13th January 1993 ;

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

“ conduct ” includes acts and omissions;

^M6 “ consular post ” has the same meaning as it has in the Vienna Convention on Consular Relations done at Vienna on 24 April 1963 , and any reference to the functions of a consular post is to be read in accordance with that Convention;

^M7 “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 ;

[^F3 “ director disqualification licence ” means a licence under regulation 61A; ^F3]

“ 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;

“ the Dual-Use Regulation ” means 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;

^M8 “ the EU Syria Regulation ” means Council Regulation (EU) No 36/2012 of 18 January 2012 , concerning restrictive measures in view of the situation in Syria and repealing Regulation (EU) No 442/2011 , as it has effect in EU law immediately before [^F4 IP completion day ^F4] ;

“ humanitarian assistance activity ” includes the work of international and non-governmental organisations carrying out relief activities in Syria for the benefit of the civilian population there;

^F1...

“ trade licence ” means a licence under regulation 62;

“ Treasury licence ” means a licence under regulation 61(1);

“ United Kingdom person ” has the same meaning as in section 21 of the Act.

Application of prohibitions and requirements outside the United Kingdom_I3

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

^F5(2) Any person may contravene a relevant prohibition ... by conduct in the territorial sea.

(3) In this regulation a “ relevant prohibition ” means any prohibition imposed by—

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

(b)Part 3 (Finance),

(c)Part 5 (Trade),

^F6(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e)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.

^F7(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)by Chapter 2 of Part 3 (Investment, financial services and financial markets),

(b)by or under regulation 57(5) (notification requirements in respect of exceptions relating to petroleum products) or Part 8 (Information and records), or by reason of a request made under a power conferred by Part 8, or

(c)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.

[^F8Purposes

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

(a)to promote the peace, stability and security of Syria;

(b)to promote respect for democracy, the rule of law and good governance in Syria, including in particular promoting the successful completion of Syria’s transition to a democratic country;

(c)to discourage actions, policies or activities which repress the civilian population in Syria;

(d)to promote compliance with international human rights law and respect for human rights in Syria, including in particular, respect for—

(i)the right to life of persons in Syria;

(ii)the right of persons in Syria not to be held in slavery or required to perform forced or compulsory labour;

(iii)the right of persons not to be subjected to torture or cruel, inhuman or degrading treatment or punishment in Syria;

(iv)the right to liberty and security of persons in Syria, including freedom from arbitrary arrest, detention or enforced disappearance;

(v)the right to a fair trial of persons charged with criminal offences in Syria;

(vi)the rights of journalists, human rights defenders, civil society activists, religious leaders, politicians and all other persons in Syria to freedom of expression, peaceful assembly and association with others;

(vii)the enjoyment of rights and freedoms in Syria without discrimination, including on the basis of a person’s sex, race, colour, language, religion, political or other opinion, national or social origin, association with a national minority, property, birth or other status;

(e)to provide accountability for gross violations of human rights carried out by or on behalf of the Assad regime.^F8]

PART 2 Designation of persons

Power to designate persons_I4

5.—(1) The Secretary of State may designate persons by name [^F9in accordance with regulation 5A (conditions for the designation of persons by name)^F9] for the purposes of any of the following—

(a)regulations 11 to 15 (asset-freeze etc);

[^F10 (aa)regulation 23A (director disqualification sanctions);^F10]

(b)regulation 24 (immigration).

(2) The Secretary of State may designate different persons for the purposes of[^F11 different provisions mentioned in^F11] paragraph (1).

[^F12Conditions 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”). ^F12]

[^F13Designation criteria: meaning of “involved person”^F13] _I5

^F146.—(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) [^F15 For the purposes of regulation 5A (conditions for the designation of persons by name) ^F15] an “ involved person ” means a person who—

(a)is or has been involved in—

(i)repressing the civilian population in Syria;

[^F16 (ii)activities carried out on behalf of the Assad regime, implementing or connected to the repressive policies of that regime;^F16]

[^F17 (iii)supporting or benefitting from the Assad regime;

(iv)the commission of, or the obstruction of an independent investigation into, a serious human rights violation or abuse in Syria;

(v)the commission of a violation of international humanitarian law in Syria;

(vi)undermining democracy, the rule of law and good governance in Syria;

(vii)the obstruction of humanitarian assistance activity in Syria;

(viii)any other action, policy or activity which threatens the peace, stability or security of Syria,^F17]

(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 one or more of the activities mentioned in paragraph (2)(a) includes being so involved in whatever way and wherever any actions constituting the involvement take place, and in particular includes—

(a)a prominent person operating or controlling a business in Syria [^F18during the period of the Assad regime^F18] ;

(b)working for, or being affiliated to, the [^F19Assad regime^F19] as—

(i)a Minister,

(ii)a member of the Syrian Armed Forces of the rank of colonel or the equivalent or higher,

(iii)a member of the Syrian security and intelligence services, or

(iv)a member of a militia;

(c)carrying on prohibited activities related to chemical weapons in Syria;

(d)being responsible for, engaging in or promoting an activity set out in [^F20paragraphs 2(a)(i), (ii) or (iv) to (vii)^F20] ;

(e)^M9,M10providing financial services , or making available funds or economic resources , that could contribute to an activity set out in paragraph (2)(a);

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

(g)being involved in the supply to Syria of goods or technology which could contribute to an activity set out in paragraph (2)(a), or in providing financial services relating to such supply;

(h)assisting the contravention or circumvention of any relevant provision.

(4) In this regulation “ relevant provision ” means—

(a)any provision of Part 3, 5 or 6;

(b)any provision of the law of a country other than the United Kingdom made for purposes corresponding to a purpose of any provision of Part 3, 5 or 6.

(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.

(6) In this regulation, “restricted goods” and “restricted technology” mean any goods or any technology subject to a prohibition under Part 5 (Trade).

Interpretation of regulation 6_I6

7. —(1) For the purposes of regulation 6, 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).

^F21(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.

(5) For the purposes of regulation 6(2)(d), the reference to a person who is “associated” with another person includes, in particular, a person who is a family member of Bashar al-Assad or Rami Makhlouf.

(6) The following definitions apply for the purposes of this regulation and regulation 6—

“ family member ” has the same meaning as it has in paragraph 2(4) in Part 2 of Schedule 6 (Treasury licences: purposes) ;

“ militia ” means a foreign, national or local armed group that is not part of the Syrian Armed Forces or the Syrian security and intelligence services;

“ prohibited activities related to chemical weapons ” means—

Notification and publicity where designation power used_I7

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.

[^F22 (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.^F22]

[^F23 (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).^F23]

(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_I8

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.

PART 3 Finance

CHAPTER 1 Asset-freeze etc

Meaning of “designated person” in Chapter 1 of Part 3_I9

10. In this Chapter, a “ designated person ” means a person who is designated under regulation 5 for the purposes of regulations 11 to 15.

Asset-freeze in relation to designated persons_I10

11. —(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 7 (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 persons_I11

12. —(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 7 (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 persons_I12

13. —(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 7 (Exceptions and licences).

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

[^F24 (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).^F24]

(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 persons_I13

14. —(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 7 (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 persons_I14

15. —(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 7 (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 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).^F25]

(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.

CHAPTER 2 Investment, financial services and financial markets

UK credit or financial institutions: accounts and correspondent banking relationships etc

^F2616. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Opening of, or taking up of business by, a representative office, branch or subsidiary of Syrian credit or financial institution

^F2717. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Acquisition or extension of ownership interest by Syrian credit or financial institution

^F2818. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Sale or purchase of bonds_I15

19. —(1) A person (“P”) must not directly or indirectly—

(a)sell to a person falling within paragraph (4), or

(b)purchase from such a person,

[^F29 Assad regime bonds^F29] or bonds guaranteed by the [^F30Assad regime^F30] and issued between 19th January 2012 and 8th December 2024 if P knows, or has reasonable cause to suspect, that the sale or purchase of such bonds is directly or indirectly to or from such a person.

(2) A person (“P”) must not provide brokering services to a person falling within paragraph (4) in respect of [^F31 Assad regime bonds ^F31] or bonds guaranteed by the [^F32 Assad regime ^F32] and issued [^F33 between 19th January 2012 and 8th December 2024 ^F33] , if P knows, or has reasonable cause to suspect, that the person falls within paragraph (4).

(3) A person (“P”) must not provide—

(a)brokering services,

(b)advertising services, or

(c)any other service,

if P knows, or has reasonable cause to suspect, that the provision of the service assists a person falling within paragraph (4) to [^F34sell or purchase Assad regime bonds^F34] or bonds guaranteed by the [^F35Assad regime^F35] .

(4) The following persons fall within this paragraph—

^F36(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[^F37 (b)a Syrian credit or financial institution^F37]

(c)^F38a person acting on behalf of or at the direction of a person falling within sub-paragraph ... (b);

(d)^F39a person, other than an individual, which is owned or controlled directly or indirectly (within the meaning of regulation 7) by a person falling within sub-paragraph ... (b) or (c).

(5) Paragraphs (1) to (3) are subject to regulation 60 (exception for acts done for purposes of national security or prevention of serious crime).

(6) A person who contravenes a prohibition in paragraph (1) to (3) commits an offence.

(7) For the purposes of this regulation, [^F40 “Assad regime bonds” ^F40] means bonds issued by the [^F41 Assad regime ^F41] .

[^F42 (8) For the purposes of this regulation, “ Syrian credit or financial institution ” means—

(a)a credit or financial institution domiciled in Syria; or

(b)a branch or subsidiary, wherever located, of a credit or financial institution domiciled in Syria.^F42]

Insurance and reinsurance services

^F4320. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Investments in relation to crude oil and electricity production

^F4421. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 3 Interpretation and further provision

Circumventing etc prohibitions_I16

22.—(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 [^F45regulations 11 to 15 or 19^F45] , or

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

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

Interpretation of Part 3_I17

23.—(1) In this Part—

“ branch ” means—

“ credit or financial institution domiciled in Syria ” means a person, other than an individual, who—

^M12 “ subsidiary ” has the meaning given by section 1159 of the Companies Act 2006 ;

^F47...

(2) In paragraph (1), the definitions of—

(a) ^F48 “credit or financial institution domiciled in Syria”, ...

^F48(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^M13,M14,M15[^F49 is to be read^F49] with section 22 of the Financial Services and Markets Act 2000 , any relevant order under that section and Schedule 2 to that Act .

[^F50PART 3A Director disqualification sanctions

Director disqualification sanctions

23A. 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.^F50]

PART 4 Immigration

Immigration_I18

^M1624. 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 Interpretation

Definitions relating to goods and technology prohibited under Part 5_I19

25.—(1) For the purposes of this Part—

“ arms and related materiel ” means—

^F51...

^F51...

^F51...

“ gold, precious metals or diamonds ” has the meaning given to it in paragraph 6 in [^F52 Part ^F52] 2 of Schedule 2;

“ the Goods Classification Table ” has the same meaning as it has in paragraph 1(3) in Part 1 of Schedule 2;

“ goods relating to chemical and biological weapons ” means—

^F51...

^F51...

“ interception and monitoring goods ” means any item mentioned in sub-paragraph (a) or (b), provided that it may be used for interception and monitoring services—

“ interception and monitoring technology ” means any thing—

“ internal repression goods ” means—

“ internal repression technology ” means any thing which is described in Schedule 5 as software or technology;

“ luxury goods ” has the meaning given to it in paragraph 7 in Part 2 of Schedule 2;

“ 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;

“ technology relating to chemical and biological weapons ” means any thing specified as technology or software in Schedule 3, other than technology which is—

^F51...

(2) For the purpose of the definition of “arms and related materiel” in paragraph (1), paragraph 1(2) in Part 1 of Schedule 2 (the rules of interpretation for the purpose of determining whether or not a thing is “classified”) applies.

(3) The definition of “goods relating to chemical and biological weapons” does not apply to anything specified in Part 3 of Schedule 3, other than Isopropanol (as specified in paragraph 6(p) of that Part), which are consumer goods packaged for—

(a)retail sale for an individual's personal use, or

(b)individual use.

(4) For the purpose of the definition of “interception and monitoring goods” in paragraph (1) “ a relevant Schedule 4 item ” means any thing described in Schedule 4, other than—

(a)any thing which is interception and monitoring technology, or

(b)any thing for the time being specified in—

(i)Schedule 2 to the Export Control Order 2008, or

(ii)Annex Ⅰ of the Dual-Use Regulation.

(5) The definition of “interception and monitoring technology” does not apply to software which is—

(a)generally available to the public, or

(b)in the public domain.

Definition of “interception and monitoring services”_I20

26. —(1) For the purposes of this Part, “ interception and monitoring services ” means any service that has as its object or effect the interception of a communication in the course of its transmission by means of a telecommunication system.

(2) A person intercepts a communication in the course of its transmission by means of a telecommunication system if, and only if—

(a)the person does a relevant act in relation to the system, and

(b)the effect of the relevant act is to make any content of the communication available, at a relevant time, to a person who is not the sender or intended recipient of the communication.

(3) In paragraph (2) a “ relevant act ”, in relation to a telecommunication system, means—

(a)modifying, or interfering with, the system or its operation;

(b)monitoring transmissions made by means of the system;

(c)monitoring transmissions made by wireless telegraphy to or from apparatus that is part of the system.

(4) In paragraph (2), a “ relevant time ”, in relation to a communication transmitted by means of a telecommunication system, means—

(a)any time while the communication is being transmitted, and

(b)any time when the communication is stored in or by the system (whether before or after its transmission).

(5) For the purpose of paragraph (2), the cases in which any content of a communication is to be taken to be made available to a person at a relevant time include any case in which any of the communication is diverted or recorded at a relevant time so as to make the content of the communication available to a person after that time.

(6) In paragraph (3), references to modifying a telecommunication system include references to attaching any apparatus to, or otherwise modifying or interfering with—

(a)any part of the system, or

(b)any wireless telegraphy apparatus used for making transmissions to or from apparatus that is part of the system.

(7) For the purposes of this regulation, the following definitions also apply—

“ apparatus ” includes any equipment, machinery or device (whether physical or logical) and any wire or cable;

“communication”, for the purpose of a telecommunication system, includes—

“ content ”, in relation to a communication and a telecommunication system, means any element of the communication, or any data attached to or logically associated with the communication, which reveals anything of what might reasonably be considered to be the meaning (if any) of the communication, but—

“ systems data ” means any data that enables or facilitates, or identifies or describes anything connected with enabling or facilitating, the functioning of a telecommunication system (including any apparatus forming part of the system);

“ a telecommunication system ” means a system (including the apparatus comprised in it) that exists for the purpose of facilitating the transmission of communications by any means involving the use of electrical or electromagnetic energy;

^M18 “ wireless telegraphy ” and “ wireless telegraphy apparatus ” have the same meaning as in sections 116 and 117 of the Wireless Telegraphy Act 2006 .

Interpretation of other expressions used in Part 5_I21

27.—(1) Paragraphs 32 to 36 of Schedule 1 to the Act (trade sanctions) apply for the purpose of interpreting expressions in this Part.

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

(3) In this Part—

(a)the following definitions apply—

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

“ transfer ” has the meaning given by paragraph 37 of Schedule 1 to the Act;

“basic scientific research”;

“in the public domain”.

(4) For the purpose of regulation 25(5), software is “generally available to the public” if the software is sold from stock at retail selling points without restriction, by means of—

(a)over the counter transactions,

(b)mail order transactions,

(c)electronic transactions, or

(d)telephone order transactions.

(5) For the purposes of Chapters 2 and 4, a person is to be regarded as “connected with” Syria if the person is—

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

(b)an individual who is, or an association or combination of individuals who are, located in Syria,

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

(d)a person, other than an individual, which is domiciled in Syria.

[^F53 (6) For the purposes of Chapter 4, “ the Governing Authority of Syria ” means—

(a)the transitional Syrian authorities formed on 8 December 2024 and any successor authorities appointed thereto;

(b)the Central Bank of Syria;

(c)a person acting on behalf, or at the direction, of a person mentioned in sub-paragraph (a) or (b);

(d)a person who is not an individual and who is, or was, owned or controlled directly or indirectly (within the meaning of regulation 7) by a person mentioned in sub-paragraph (a) or (b).^F53]

CHAPTER 2 Trade prohibitions relating to export, supply, sale and transfer

Application of prohibitions in Chapter 2 of Part 5_I22

28.—(1) Except where otherwise provided, the prohibitions contained in this Chapter apply to the goods falling within paragraph (2) and the technology falling within paragraph (3).

(2) The following goods fall within this paragraph—

^F54(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)goods relating to chemical and biological weapons;

^F55(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d)interception and monitoring goods;

(e)internal repression goods.

(3) The following technology falls within this paragraph—

(a)interception and monitoring technology;

(b)internal repression technology;

(c)technology relating to chemical and biological weapons;

^F56(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Export prohibition_I23

29.—(1) The export of goods to which this paragraph applies to, or for use in, Syria is prohibited.

(2) Paragraph (1) is subject to Part 7 (Exceptions and licences).

Supply and delivery prohibition_I24

30.—(1) A person must not directly or indirectly supply or deliver goods to which this paragraph applies from a third country to a place in Syria.

(2) Paragraph (1) is subject to Part 7 (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 Syria.

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

Prohibition in connection with making goods and technology available_I25

31.—(1) A person must not—

(a)directly or indirectly make goods or technology to which this paragraph applies available to a person connected with Syria, or

(b)directly or indirectly make goods or technology to which this paragraph applies available for use in Syria.

(2) Paragraph (1) is subject to Part 7 (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 Syria;

(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 Syria.

Transfer of technology prohibition_I26

32.—(1) A person must not—

(a)transfer technology to which this paragraph applies to a place in Syria, or

(b)transfer technology to which this paragraph applies to a person connected with Syria.

(2) Paragraph (1) is subject to Part 7 (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 Syria;

(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 Syria.

Prohibition relating to the associated provision of technical assistance_I27

33.—(1) A person must not directly or indirectly provide technical assistance relating to goods or technology to which this paragraph applies—

(a)to a person connected with Syria, or

(b)for use in Syria.

(2) Paragraph (1) is subject to Part 7 (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 Syria;

(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 Syria.

^F57(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prohibitions relating to the associated provision of financial services and funds_I28

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

(a)the export of goods to which this paragraph applies,

(b)the direct or indirect supply or delivery of goods to which this paragraph applies,

(c)directly or indirectly making goods or technology to which this paragraph applies available to a person,

(d)the transfer of technology to which this paragraph applies, or

(e)the direct or indirect provision of technical assistance relating to goods or technology to which this paragraph applies.

(2) A person must not directly or indirectly make funds available to a person connected with Syria 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 goods to which this paragraph applies to, or for use in, Syria,

(b)the direct or indirect supply or delivery of goods to which this paragraph applies to a place in Syria,

(c)directly or indirectly making goods or technology to which this paragraph applies available—

(i)to a person connected with Syria, or

(ii)for use in Syria,

(d)the transfer of technology to which this paragraph applies —

(i)to a person connected with Syria, or

(ii)to a place in Syria, or

(e)the direct or indirect provision of technical assistance relating to goods or technology to which this paragraph applies —

(i)to a person connected with Syria, or

(ii)for use in Syria.

(4) Paragraphs (1) to (3) are subject to Part 7 (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 Syria;

(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.

^F58(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prohibitions relating to the associated provision of brokering services: non-UK activity_I29

35. —(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 goods to which this paragraph applies from a third country to a place in Syria,

(b)directly or indirectly making goods to which this paragraph applies available in a third country for direct or indirect supply or delivery—

(i)to a person connected with Syria, or

(ii)to a place in Syria,

(c)directly or indirectly making technology to which this paragraph applies available in a third country for transfer—

(i)to a person connected with Syria, or

(ii)to a place in Syria,

(d)the transfer of technology to which this paragraph applies from a place in a third country—

(i)to a person connected with Syria, or

(ii)to a place in Syria,

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

(i)to a person connected with Syria, or

(ii)for use in Syria,

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

(i)to a person connected with Syria, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 34(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 34(3),

(g)directly or indirectly making funds available, in a non-UK country, to a person connected with Syria, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 34(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 34(3).

(2) Paragraph (1) is subject to Part 7 (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—

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

“ third country ” means—

^F59(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 3 Trade prohibitions relating to import, purchase and transportation

^F60Import of arms and related materiel ..._I30

36.—(1) The import of the following goods which are consigned from Syria is prohibited—

(a)arms and related materiel;

^F61(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) The import of the goods mentioned in paragraph (1) which originate in Syria is prohibited.

(3) Paragraphs (1) and (2) are subject to Part 7 (Exceptions and licences).

^F63 [^F62Acquisition^F62] of military goods and technology ..._I31

37.—(1) A person must not—

(a)directly or indirectly acquire goods or technology to which this paragraph applies which originate in Syria;

(b)directly or indirectly acquire goods or technology to which this paragraph applies which are located in Syria [^F64;^F64]

[^F65 (c)directly or indirectly acquire goods or technology to which this paragraph applies from a person connected with Syria.^F65]

(2) Paragraph (1) applies to—

^F66(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)military goods, and

(c)military technology.

(3) Paragraph (1) is subject to Part 7 (Exceptions and licences).

(4) 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 goods or technology originated in Syria;

(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 located in Syria [^F67;^F67]

[^F68 (c) it is a defence for a person charged with the offence of contravening paragraph (1)(c) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Syria. ^F68]

^F69Transport of military goods ..._I32

38.—(1) A person must not directly or indirectly supply or deliver goods to which this paragraph applies from a place in Syria to a third country where those goods—

(a)originate in Syria, or

(b)are consigned from Syria.

^F70(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) Paragraph (1) applies to—

^F71(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)military goods.

(4)[^F72 Paragraph (1) is^F72] subject to Part 7 (Exceptions and licences).

^F73(5) A person who contravenes a prohibition in paragraph (1) ... commits an offence, but—

(a)^F73it 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 goods originated in Syria;

(a)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 were consigned from Syria.

(6) In this regulation—

• ^F74 ...

• “third country” means a country that is not the United Kingdom, the Isle of Man or Syria

Transfer of military technology_I33

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

(2) Paragraph (1) is subject to Part 7 (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 to show that the person did not know and had no reasonable cause to suspect that the transfer was from a place in Syria.

Prohibitions relating to the associated provision of financial services and funds_I34

40.—(1) 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 import of goods to which regulation 36 applies which—

(i)originate in Syria, or

(ii)are consigned from Syria;

(b)the direct or indirect acquisition of goods or technology to which regulation 37(1) applies—

(i)originating in Syria, or

(ii)located in Syria;

(c)the direct or indirect supply or delivery of goods to which regulation 38(1) applies from a place in Syria to a third country, where those goods—

(i)originate in Syria, or

(ii)are consigned from Syria;

^F75(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e)the transfer of military technology to persons outside the United Kingdom or to a place outside the United Kingdom where the transfer is from a place in Syria.

(2) Paragraph (1) is subject to Part 7 (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 an offence of contravening a prohibition in paragraph (1) 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.

CHAPTER 4 Trade prohibitions relating to particular categories of goods

Bank notes or coinage

^F7641. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Goods prohibitions relating to gold, precious metals or diamonds_I35

42.—(1) The export of gold, precious metals or diamonds to [^F77the Governing Authority of Syria^F77] is prohibited.

(2) The import of gold, precious metals or diamonds consigned from [^F77the Governing Authority of Syria^F77] is prohibited.

(3) A person must not directly or indirectly—

(a)supply or deliver gold, precious metals or diamonds from a third country to [^F77the Governing Authority of Syria^F77] ;

(b)make gold, precious metals or diamonds available to [^F77the Governing Authority of Syria^F77] ;

(c)supply or deliver gold, precious metals or diamonds from [^F77the Governing Authority of Syria^F77] to a place in a non-UK country;

(d)acquire gold, precious metals or diamonds from [^F77the Governing Authority of Syria^F77] .

(4) Paragraphs (1) to (3) are subject to Part 7 (Exceptions and licences).

[^F78 (5) A person who contravenes a prohibition in paragraph (3) commits an offence, but—

(a)it is a defence for a person charged with an offence of contravening paragraph (3)(a) to show that the person did not know and had no reasonable cause to suspect that the supply or delivery of gold, precious metals or diamonds was to the Governing Authority of Syria;

(b)it is a defence for a person charged with an offence of contravening paragraph (3)(b) to show that the person did not know and had no reasonable cause to suspect that the gold, precious metals or diamonds were being made available to the Governing Authority of Syria;

(c)it is a defence for a person charged with an offence of contravening paragraph (3)(c) to show that the person did not know and had no reasonable cause to suspect that the supply or delivery of gold, precious metals or diamonds was from the Governing Authority of Syria;

(d)it is a defence for a person charged with an offence of contravening paragraph (3)(d) to show that the person did not know and had no reasonable cause to suspect that the acquisition of gold, precious metals or diamonds was from the Governing Authority of Syria.^F78]

(6) In this regulation—

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

“ third country ” means a country that is not the United Kingdom, the Isle of Man or Syria.

Technical assistance relating to gold, precious metals or diamonds_I36

43.—(1) A person must not directly or indirectly provide technical assistance relating to gold, precious metals or diamonds to [^F79the Governing Authority of Syria^F79] .

(2) Paragraph (1) is subject to Part 7 (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 (“P”) to show that P did not know and had no reasonable cause to suspect that [^F80 the provision of technical assistance was to the Governing Authority of Syria ^F80] .

Financial services and funds relating to gold, precious metals or diamonds_I37

44.—(1) A person must not directly or indirectly provide financial services to [^F81the Governing Authority of Syria^F81] in pursuance of or in connection with an arrangement whose object or effect is—

(a)the export of gold, precious metals or diamonds,

(b)the import of gold, precious metals or diamonds,

(c)the direct or indirect supply or delivery of gold, precious metals or diamonds, or

(d)directly or indirectly making gold, precious metals or diamonds available to a person.

(2) A person must not directly or indirectly make funds available to [^F81the Governing Authority of Syria^F81] 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 gold, precious metals or diamonds to [^F81the Governing Authority of Syria^F81] ,

(b)the import of gold, precious metals or diamonds consigned from [^F81the Governing Authority of Syria^F81] ,

(c)the direct or indirect supply or delivery of gold, precious metals or diamonds to or from [^F81the Governing Authority of Syria^F81] , or

(d)directly or indirectly making gold, precious metals or diamonds available to [^F81the Governing Authority of Syria^F81] .

(4) Paragraphs (1) to (3) are subject to Part 7 (Exceptions and licences).

^F82(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) A person who contravenes the prohibition in [^F83paragraph (1), (2) or (3)^F83] 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 financial services or funds (as the case may be) were provided in pursuance of or in connection with an arrangement mentioned in [^F84paragraph (1), (2) or (3) (as the case may be)^F84] .

Brokering services: non-UK activity relating to gold, precious metals or diamonds_I38

45. —(1) A person must not directly or indirectly provide brokering services to [^F85 the Governing Authority of Syria ^F85] in relation to an arrangement (“arrangement A”) whose object or effect is—

(a)the direct or indirect supply or delivery of gold, precious metals or diamonds from a non-UK country to a different non-UK country,

(b)directly or indirectly making gold, precious metals or diamonds available, in a non-UK country, for supply or delivery to a different non-UK country,

(c)the direct or indirect acquisition, in a non-UK country, of gold, precious metals or diamonds for supply or delivery to a different non-UK country,

(d)the direct or indirect procurement, from a non-UK country, of technical assistance relating to gold, precious metals or diamonds,

(e)the direct or indirect procurement of financial services, 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 44(1), or

(f)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 44(1).

(2) 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 gold, precious metals or diamonds from a third country to [^F86the Governing Authority of Syria^F86] ,

(b)the direct or indirect supply or delivery of gold, precious metals or diamonds from [^F85the Governing Authority of Syria^F85] to a place in a third country,

(c)directly or indirectly making gold, precious metals or diamonds available, in a third country, for direct or indirect supply or delivery to [^F86the Governing Authority of Syria^F86] ,

(d)the direct or indirect acquisition, in a third country, of gold, precious metals or diamonds from [^F86the Governing Authority of Syria^F86] .

(3) Paragraphs (1) and (2) are subject to Part 7 (Exceptions and licences).

^F87(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) A person who contravenes a prohibition in [^F88paragraph (1) or (2)^F88] 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 [^F89paragraph (1) or (2) (as the case may be)^F89] .

(6) In this regulation—

“ non-UK country ” means—

“ third country ” means a country that is not the United Kingdom, the Isle of Man or Syria.

Luxury goods_I39

46.—(1) The export of luxury goods to Syria is prohibited.

(2) A person must not directly or indirectly supply or deliver luxury goods from a third country to a place in Syria.

(3) A person must not directly or indirectly make luxury goods available to a person connected with Syria.

(4) Paragraphs (1) to (3) are subject to Part 7 (Exceptions and licences).

(5) A person who contravenes a prohibition in paragraphs (2) or (3) commits an offence, but—

(a)it is a defence for a person charged with the offence of contravening paragraph (2) to show that the person did not know and had no reasonable cause to suspect that the goods were destined (or ultimately destined) for Syria;

(b) it is a defence for a person charged with the offence of contravening paragraph (3) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Syria.

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

Electricity production

^F9047. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 5 Interception and monitoring services

Provision of interception and monitoring services_I40

48.—(1) A person must not directly or indirectly provide interception and monitoring services to, or for the benefit of, [^F91the Governing Authority of Syria^F91] .

(2) Paragraph (1) is subject to Part 7 (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 (“P”) to show that P did not know and had no reasonable cause to suspect that the services were provided to, or for the benefit of, [^F92 the Governing Authority of Syria ^F92] .

CHAPTER 6 Further provision

Circumventing etc prohibitions_I41

49.—(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 2 to 5 of this Part, or

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

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

Defences_I42

50.—(1) Paragraph (2) applies where a person relies on a defence under any of Chapters 2 to 5 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.

^F93PART 6 Aircraft

Movement of aircraft

^F9351. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Directions under regulation 51: supplementary

^F9352. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Offences

^F9353. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation

^F9354. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 7 Exceptions and licences

Asset-freeze etc: exceptions from prohibitions_I43

55. —(1) The prohibition in regulation 11 (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 11 to 13 (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 12 and 13 (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 12 and 13 are not contravened by the transfer of funds to a relevant institution for crediting to an account held or controlled (directly or indirectly) by a designated person, where those funds are transferred in discharge (or partial discharge) of an obligation which arose before the date on which the person became a designated person.

(6) The prohibitions in regulations 11 to 13 are not contravened in relation to a designated person (“P”) by a transfer of funds from account A to account B, where—

(a)^M19account 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)^M20account 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 Chapter 1 of Part 3 (Finance);

“ frozen account ” means an account with a relevant institution which is held or controlled (directly or indirectly) by a designated person;

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

(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.

[^F94 (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. ^F94]

[^F95Asset-freeze etc.: exception from prohibitions for required payments

55A.—(1) This regulation applies to required payments within the meaning of paragraph (2).

(2) A required payment is a payment which—

(a)a 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 11 (asset-freeze in relation to designated persons) and 13 (making funds available for benefit of designated persons) are not contravened by a person making a required payment.

(4) Where a required payment is made by a person other than a designated person, the prohibition in regulation 11 is not contravened by the designated person making a reimbursement payment to that person.

(5) The reference in paragraph (3) to a person making a required payment includes a designated person, but only where they are making a required payment on their own behalf.

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

(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 Chapter 1 of 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 ;

“ prospectus regulation ” means Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market, and repealing Directive 2003/71/EC ;

“ prospectus rules ” has the meaning given in section 73A(4) of the Financial Services and Markets Act 2000 ;

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

“ reimbursement payment ” means a repayment from the 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 . ^F95]

Exceptions relating to insurance and reinsurance services

^F9656. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Exceptions relating to petroleum products_I44

57.—(1) A relevant prohibition is not contravened where funds or economic resources are made available from the account of a diplomatic mission or consular post for the purposes of—

(a)[^F97 acquiring^F97] , supplying or delivering petroleum products, or

(b)providing funds, economic resources or financial services in relation to the [^F98acquisition^F98] , delivery or supply of petroleum products,

where the petroleum products are [^F99acquired^F99] exclusively for the official purposes of that diplomatic mission or that consular post (as the case may be).

(2) A relevant prohibition is not contravened where funds or economic resources are made available [^F100by a relevant person^F100] for the purposes of—

(a)[^F101 acquiring^F101] , supplying or delivering petroleum products, or

(b)providing funds, economic resources or financial services in relation to the [^F102acquisition^F102] , supply or delivery of petroleum products,

where the petroleum products are [^F103acquired^F103] , supplied or delivered exclusively for the purposes of providing a humanitarian assistance activity.

[^F104 (2A) A relevant prohibition is not contravened where a person provides financial services, funds or economic resources to a relevant person in relation to the making available of funds or economic resources by that relevant person in accordance with paragraph (2).^F104]

(3) For the purposes of paragraphs (1) [^F105 , (2) and (2A) ^F105] , “ a relevant prohibition ” means—

(a)a prohibition in any of regulations 12 to 15,

^F106(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F106(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F106(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F107(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[^F108 (5) If a relevant person (“ P ”) makes funds or economic resources available in accordance with paragraph (2), P must notify the Treasury that P is involved in the provision of humanitarian assistance activity in Syria by no later than the end of the calendar year in which the funds or economic resources are made available.

(5A) The notification requirement in paragraph (5) does not apply to—

(a) a person described in sub-paragraph (b) or (f) of the definition of “relevant person” in paragraph (7);

(b)humanitarian organisations having observer status with the United Nations General Assembly;

(c)the British Red Cross.^F108]

(6) A person who fails to comply with the requirement in paragraph (5) commits an offence.

(7) In this regulation—

“ kerosene jet fuel ” means any thing falling within paragraph 2(c) in Part 2 of Schedule 2;

“ petroleum products ” has the meaning given to it in Schedule 2;

[^F109 “ relevant person ” means—

^F110...

Trade: exceptions from further prohibitions_I45

^F11158.—(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F112(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) The prohibitions in regulation 46 (luxury goods) are not contravened by the export, supply, delivery or making available of—

(a)the personal effects of a person travelling to Syria;

(b)goods of a non-commercial nature for the personal use of a person travelling to Syria and contained in that person's luggage.

(4) The following prohibitions are not contravened by any thing done in accordance with paragraph 10 of resolution 2118 to ensure the elimination of [^F113chemical weapons in Syria^F113] —

(a)the prohibitions in regulation 36(1) and (2), insofar as they relate to arms and related materiel (import of arms and related materiel);

(b)^F114the prohibition in regulation 38(1) ... (transport of military goods);

(c)regulation 39(1) (transfer of military technology);

(d)the prohibition in regulation 40(1)(a), insofar as it relates to arms and related materiel (prohibition relating to the provision of financial services and funds relating to the import of arms and related materiel);

(e)the prohibition in regulation 40(1)(c), insofar as it relates to military goods (prohibition relating to the provision of financial services and funds relating to the transport of military goods);

(f)the prohibition in regulation 40(1)(e) (prohibition relating to the provision of financial services and funds relating to the transfer of military technology).

(5) For the purposes of this regulation—

^F115...

“ luxury goods ” has the meaning given to it in paragraph 7 in Part 2 of Schedule 2;

^F115...

“ resolution 2118 ” means resolution 2118 (2013) adopted by the Security Council on 27 September 2013.

Aircraft: exceptions from prohibitions

^F11659. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[^F117Exception for authorised conduct in a relevant country _I46

59A.—(1) Where a person's conduct in a relevant country would, in the absence of this regulation, contravene a relevant prohibition, the relevant prohibition is not contravened if the conduct is authorised by a licence or other authorisation which is issued—

(a)under the law of the relevant country, and

(b)for the purpose of disapplying a prohibition in that jurisdiction which corresponds to the relevant prohibition.

(2) In this regulation—

• “relevant country” means—

  (a)

  any of the Channel Islands,

  (b)

  the Isle of Man, or

  (c)

  any British overseas territory;

• “relevant prohibition” means a prohibition in—

  (a)

  any of regulations 11 to 15 (asset-freeze etc.),

  (b)

  ^F118 ...

  (c)

  ^F118 ...

  (d)

  Chapters 2 to 5 of Part 5 (Trade), or

  (e)

  ^F118 ...^F117]

Exception for acts done for purposes of national security or prevention of serious crime_I47

60.—(1) Where an act would, in the absence of this paragraph, be prohibited by regulation 9(2) (confidentiality) or any prohibition in Part 3 (Finance) [^F119or 5 (Trade)^F119] , 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.

^F120(2) Where, in the absence of this paragraph, a thing would be required to be done under or by virtue of a provision of ... regulation 57(5) (notification requirement in respect of exceptions relating to petroleum products), Part 8 (Information and records) or Part 10 (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.

Treasury licences_I48

^F12161.—(1) The prohibitions in regulations 11 to 15 (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 only where—

(a)^F122in relation to acts which would otherwise be prohibited by regulations 11 to 15, the Treasury consider that it is appropriate to issue the licence for a purpose set out in Part 2 of Schedule 6, ...

^F122(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[^F123Director disqualification licences

61A. The Secretary of State may issue a licence in relation to any person who is designated under regulation 5 for the purposes of regulation 23A (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.^F123]

Trade licences_I49

62. The prohibitions in Chapters 2 to 5 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.

Aircraft licences

^F12463. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Licences: general provisions_I50

^F12564.—(1) This regulation applies in relation to ... Treasury licences[^F126 , director disqualification licences^F126] 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 [^F127 , on the application of a person (“ P ”), ^F127][^F128 issues ^F128] a licence which authorises acts by a particular person[^F129 , or varies, revokes or suspends that licence, ^F129] must give written notice to [^F130 P ^F130] 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_I51

65. —(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.

[^F131Director disqualification: licensing offences

65A. —(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.^F131]

Trade: licensing offences_I52

66. —(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.

Aircraft: licensing offences

^F13267. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 8B(1) to (3) of Immigration Act 1971: directions_I53

68.—(1) The Secretary of State may direct that, in relation to any person within regulation 24 whose name is specified, or who is of a specified description, section 8B(1) and (2) of the Immigration Act 1971, or section 8B(3) of that Act, have effect subject to specified exceptions.

(2) A direction may contain conditions.

(3) A direction must be of a defined duration (and that duration may be expressed in any way, including, for example, being expressed in a way such that the direction ceases to have effect on, or within a specified period after, the occurrence of a specified event).

(4) The Secretary of State may vary, revoke or suspend a direction at any time.

(5) On the issue, variation, revocation or suspension of a direction, the Secretary of State may take such steps as the Secretary of State considers appropriate to publicise the issue, variation, revocation or suspension of the direction.

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

PART 8 Information and records

Finance: reporting obligations_I54

69.—(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 [^F133breached a prohibition or failed to comply with an obligation^F133] under any provision of Part 3 (Finance) or regulation 65 (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.

[^F134 (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.^F134]

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

(a)credits a frozen account in accordance with regulation 55(4) (finance: exceptions from prohibitions), or

(b)transfers funds from a frozen account in accordance with regulation 55(6).

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

[^F135 (6A) A person commits an offence if that person, without reasonable excuse, fails to comply with a requirement in paragraph (4A) or (4B).^F135]

(7) In this regulation—

“ designated person ” has the same meaning as it has in Chapter 1 of Part 3 (Finance);

“ frozen account ” has the same meaning as it has in regulation 55;

“ relevant firm ” is to be read in accordance with regulation 70;

“ relevant institution ” has the same meaning as it has in regulation 55.

[^F136Finance: reporting obligations for required payments

69A.—(1) A 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 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 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.

(5) In this regulation—

“ designated person ” has the meaning given in regulation 55A(8) (finance: exception from prohibitions for required payments) ;

“ reimbursement payment ” has the meaning given in regulation 55A(8);

“ required payment ” has the meaning given in regulation 55A(2). ^F136]

“Relevant firm”_I55

70.—(1) The following are relevant firms for the purposes of regulation 69—

(a)a person that has permission under Part 4A of the Financial Services and Markets Act 2000 (permission to carry on regulated activity);

(b)an undertaking that by way of business—

(i)operates a currency exchange office,

(ii)transmits money (or any representation of monetary value) by any means, or

(iii)cashes cheques that are made payable to customers;

(c)a firm or sole practitioner that is—

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

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

^M21(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)^M22the 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.

[^F137 (h)a cryptoasset exchange provider;

(i)a custodian wallet provider;^F137]

[^F138 (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. ^F138]

(2) In paragraph (1) “ trust or company services ” means any of the following services—

(a)forming companies or other legal persons;

(b)acting, or arranging for another person to act—

(i)as a director or secretary of a company,

(ii)as a partner of a partnership, or

(iii)in a similar capacity in relation to other legal persons;

(c)providing a registered office, business address, correspondence or administrative address or other related services for a company, partnership or any other legal person or arrangement;

(d)acting, or arranging for another person to act, as—

(i)a trustee of an express trust or similar legal arrangement, or

(ii)a nominee shareholder for a person.

(3) In paragraph (1)—

^M23 “ 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.

[^F139 (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. ^F139]

[^F140 (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.^F140]

(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 69(1), information or another matter comes to a relevant firm “in the course of carrying on its business” if the information or other matter comes to the firm—

(a)in the case of a relevant firm within paragraph (1)(a), in the course of carrying on an activity in respect of which the permission mentioned in that provision is required;

(b)^M24in 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;

[^F141 (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;^F141]

(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_I56

71.—(1) The Treasury may request a designated person to provide information about—

(a)funds or economic resources owned, held or controlled by, or on behalf of, the designated person, or

(b)any disposal of such funds or economic resources.

(2) The Treasury may request a designated person to provide such information as the Treasury may reasonably require about expenditure—

(a)by the designated person, or

(b)for the benefit of the designated person.

(3) For the purposes of paragraph (2), expenditure for the benefit of a designated person includes expenditure on the discharge (or partial discharge) of a financial obligation for which the designated person is wholly or partly responsible.

(4) The power in paragraph (1) or (2) is exercisable only where the Treasury believe that it is necessary for the purpose of monitoring compliance with or detecting evasion of any provision of Part 3 (Finance).

(5) The Treasury may request a person acting under a Treasury licence to provide information about—

(a)funds or economic resources dealt with under the licence,

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

(c)any matter to which a licence relates, where that licence authorises an act that would otherwise be prohibited under Chapter 2 of Part 3 (Investments, financial services and financial markets).

(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 Chapter 1 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 69 (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 65 (finance: licensing offences) or 69 (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_I57

72.—(1) A request under regulation 71 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 Chapter 1 of Part 3 (Finance).

Finance: information offences_I58

73.—(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 71 (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 71 (finance: powers to request information) or 72 (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 71 (finance: powers to request information) or 72 (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_I59

^M2574.—(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)^M26in 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 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 any prohibition in Chapters 2 to 5 of Part 5 (Trade), except any prohibition on imports or exports, or

(b)which would constitute a contravention of a prohibition in regulation 49 (circumventing etc prohibitions).

General trade licences: records_I60

75. —(1) This regulation applies in relation to a person (“P”) who does any act authorised by a general licence issued under regulation 62 (trade licences) (“ the licence ”).

(2) P must keep a register or record containing such details as may be necessary to allow the following information [^F142, where appropriate,^F142] 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_I61

76. —(1) A person authorised by the Secretary of State or the Commissioners (an “official”) may at any reasonable hour enter premises notified under regulation 75(4) for the purposes of monitoring compliance with or detecting evasion of regulation 75(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 75, 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_I62

77.—(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 7 (Exceptions and licences), this Part or Part 10 (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), [^F143Part 3A (Director disqualification sanctions^F143] ) [^F144or Part 5 (Trade)^F144] , or

(ii)any exception or licence under Part 7 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 in Chapter 2 or 4 of Part 5 on exports, or

(iii)in 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)^M27compliance 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) considers that it is appropriate to disclose the information.

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

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

(6) In paragraph (1)(b)—

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

(b)the reference to a licence under Part 7 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.

[^F145Finance: disclosure to the Treasury

77A.—(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 [^F146 any sanctions regulations contained in these Regulations^F146] .

(2) In this regulation—

“ relevant public authority ” means—

“ local authority ” means—

Part 8: supplementary_I63

78.—(1) A disclosure of information under regulation 77 [^F147or 77A^F147] does not breach any restriction on such disclosure imposed by statute or otherwise.

(2) But nothing in [^F148those regulations^F148] authorises a disclosure that—

(a)contravenes the data protection legislation, or

(b)^M28is 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)[^F149 Regulations 77 and 77A do^F149] not limit the circumstances in which information may be disclosed apart from [^F150those regulations^F150] .

(5) Nothing in this Part limits any conditions which may be contained in a licence under Part 7.

(6) In this regulation—

^M29 “ 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 9 Enforcement

Penalties for offences_I64

^F15179.—(1) A person who commits an offence under any provision of Part 3 (Finance) ... or regulation 65 (finance: licensing offences), is liable—

(a)on summary conviction in England and Wales, to imprisonment for a term not exceeding [^F152the general limit in a magistrates’ court^F152] 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 [^F153the general limit in a magistrates’ court^F153] 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).

^F154,F156(3) A person who commits an offence under regulation 9(6) (confidentiality), ... [^F15565A (director disqualification: licensing offences),^F155] 66 (trade: licensing offences), ... 75(6) or 76(5) (information offences in connection with trade licences) is liable—

(a)on summary conviction in England and Wales, to imprisonment for a term not exceeding [^F157the general limit in a magistrates’ court^F157] 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).

^F158(4) A person who commits an offence under regulation ... 69(6) (finance: reporting obligations) or 73 (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).

[^F159 (4A) A person who commits an offence under regulation 57(6) (exceptions relating to petroleum products: notification requirement) is liable—

(a)on summary conviction in England and Wales, to a fine;

(b)on summary conviction in Scotland, to a fine not exceeding level 5 on the standard scale;

(c)on summary conviction in Northern Ireland, to a fine not exceeding level 5 on the standard scale.^F159]

(5) In relation to an offence committed before [^F1602nd May 2022^F160] the reference in each of paragraphs (1)(a), (2)(a) and (3)(a) to [^F161the general limit in a magistrates’ court^F161] is to be read as a reference to 6 months.

Liability of officers of bodies corporate etc_I65

80.—(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_I66

^F162,F16281.—(1) Where an offence under regulation 9(6) (confidentiality), Part 3 (Finance), ... regulation 65 (finance: licensing offences), ... 69(6) (finance: reporting obligations) or 73 (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.

^M30 (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_I67

82.—(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)^M31,M32section 33 of the Criminal Justice Act 1925 and Schedule 3 to the Magistrates' Courts Act 1980 ;

(ii)^M33,M34section 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_I68

83.—(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_I69

84.—(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.

^M35 (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),

^F163(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)regulation 66 (trade: licensing offences),

(d)regulation 75(6) (general trade licences: records), or

(e)regulation 76(5) (general trade licences: inspection of records).

[^F164 (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—

^F165(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F165(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F165(ba). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F165(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F165(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F165(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F165(f). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F165(g). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F165(h). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F165(i). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(j)regulation 42(5) (goods prohibitions relating to gold, precious metals or diamonds) insofar as the offence does not relate to the import or export of goods,

(k)regulation 43(3) (technical assistance relating to gold, precious metals or diamonds) insofar as the offence does not relate to the import or export of goods,

(l)regulation 44(5) (financial services and funds relating to gold, precious metals or diamonds) insofar as the offence does not relate to the import or export of goods,

(m)regulation 45(4) (brokering services: non-UK activity relating to gold, precious metals or diamonds) insofar as the offence does not relate to the import or export of goods,

(n)regulation 45(5) insofar as the offence does not relate to the import or export of goods,

(o)regulation 46(5) (luxury goods) insofar as the offence does not relate to the import or export of goods,

^F166(p). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(q)regulation 48(3) (provision of interception and monitoring services).

(3C) Paragraph (3A) also applies to the suspected commission of a relevant offence under any of regulations 66(1) and (2), 75(6) and 76(5) insofar as—

(a)the suspected offence relates to a licence issued under regulation 62 (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 49(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).^F164]

^M36,M37(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 (e);

(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 (e), 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.

^M38(6) The provisions of CEMA are sections 145, 146, 147, 148(1), 150, 151, 152, 154 and 155 (legal proceedings).

[^F167 (7) Any term in this regulation that is defined in Chapter 1 (Interpretation) of Part 5 (Trade) bears the same meaning as in that Chapter of that Part.^F167]

Trade offences in CEMA: modification of penalty_I70

85.—(1) Paragraph (2) applies where a person is guilty of an offence under section 50(2) of CEMA in connection with a prohibition mentioned in Chapter 3 or 4 of Part 5 (Trade) on imports.

^M39(2) Where this paragraph applies, the reference to 7 years in section 50(4)(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 68(2) of CEMA in connection with a prohibition mentioned in Chapter 2 or 4 of Part 5 (Trade) on exports.

^M40(4) 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.

(5) Paragraph (6) applies where a person is guilty of an offence under section 170(2) of CEMA in connection with a prohibition mentioned in Chapters 2 to 4 of Part 5 (Trade) on exports or imports.

^M41(6) 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 the Serious Organised Crime and Police Act 2005 _I71

^M4286. 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 65 (finance: licensing offences).

Monetary penalties_I72

^M4387. Each provision in Part 5 (Trade) which contains a prohibition imposed for a purpose in section 3(1) or (2) of the Act is to be regarded as not being financial sanctions legislation for the purposes of Part 8 of the Policing and Crime Act 2017 (monetary penalties) .

PART 10 Maritime enforcement

Exercise of maritime enforcement powers_I73

88.—(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 29 to 32 (goods or technology prohibitions relating to export, supply, sale and transfer);

(b)a prohibition in any of regulations 36 to 39 (goods or technology prohibitions relating to import, purchase and transport and relating to the transfer of military technology);

^F168(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d)the prohibitions in regulation 42 (goods prohibitions relating to gold, precious metals or diamonds);

(e)the prohibitions in regulation 46 (luxury goods);

^F169(f). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(g)a prohibition imposed by a condition of a trade licence in relation to a prohibition mentioned in sub-paragraphs (a) to (f).

(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 90 and 91.

(5) This regulation is subject to regulation 92 (restrictions on exercise of maritime enforcement powers).

Maritime enforcement officers_I74

89. —(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)^M44a 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)^M45within 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)^M46appointed under section 27 of the Police Act 1996 ,

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

(iii)^M47in 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)^M48,M49a 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)^M50a 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)^M51an 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_I75

90.—(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 91, 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_I76

91.—(1) This regulation applies if a maritime enforcement officer is lawfully on a relevant ship (whether in exercise of the powers conferred by regulation 90 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 90(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_I77

92.—(1) The authority of the Secretary of State is required before any maritime enforcement power is exercised in reliance on regulation 88 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 88(2) or (3),

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

(c)^M52the 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 10_I78

93.—(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 88(2)(a) to (g).

PART 11 Supplementary and final provision

Directions under Part 6

^F17094. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Notices_I79

95.—(1) This regulation applies in relation to a notice required by regulation 64 (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 its 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_I80

96. 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_I81

97. 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)^M53article 34, 35, 37 or 38 of that Order , and

(b)^F171any provision of Part 5 (Trade) or regulation ... 66 (trade: licensing offences), 75(6) or 76(5) (information offences in connection with general trade licences).

Amendment to the Syria Council Regulation_I82

^M5498.—(1) Council Regulation (EU) No 36/2012 of 18 January 2012, concerning restrictive measures in view of the situation in Syria and repealing Regulation (EU) No 442/2011 is amended as follows.

(2) Omit Articles 1 to 11b.

(3) Omit Articles 12 to 26a.

(4) In Article 27(1)—

(a)for “measures” substitute “ measure ”;

(b)omit point (a);

(c)in point (c), for “points (a) or (b)” substitute “ point (b) ”.

(5) In Article 27a, for “Articles 2a, 3, 3a, 4, 5, 6, 7a, 8, 9, 11, 11a, 11b, 11c, 12, 13, 14, 24, 25, 26 and 26a” substitute “ Article 11c ”.

(6) In Article 28, for “prohibitions” substitute “ prohibition ”.

(7) In Article 29(1)(a), omit the words “, such as accounts and amounts frozen in accordance with Article 14,”.

(8) Omit Article 36.

(9) Omit Annexes Ⅰa, ⅠⅠa, ⅠⅠⅠ, Ⅳ, Ⅴ, Ⅴa, Ⅴb, Ⅵ, Ⅶ, Ⅷ, Ⅸ and Ⅹ.

Other amendments and revocations_I83

^M5599.—(1) The Syria (European Union Financial Sanctions) Regulations 2012 are revoked.

^M56(2) The Export Control (Syria Sanctions) Order 2013 is amended as follows.

(3) Omit article 2.

(4) In article 3(1), omit all definitions except for the definitions of “the 1979 Act” and “the Syria Regulation”.

(5) Omit articles 4 to 12.

(6) Omit articles 13 to 16.

(7) In article 17—

(a)paragraphs (1) and (2) are omitted;

(b)in paragraph (3), for “articles 6(1)(b) to (c) or (3), 7(a)(ii) to (iv), 8, 8A(b), 9(b) or (c), 11(b) or (c), 12A, 13(b), 14, 15 or 16(2)” substitute “ article 12A ”;

(c)in paragraph (4), for the words from “in article 4 of this Order” to “or 12(1)(a)” substitute “ Article 11c(1) ”;

(d)in paragraph (5), for “Articles 6(a), 11a(1)(b) or 11c(1)” substitute “ Article 11c(1) ”.

(8) Omit article 18(2).

(9) Omit article 19.

(10) Omit Schedules 1 and 2.

Transitional provision: Treasury licences_I84

100.—(1) Paragraphs (2) to (4) apply to a licence or authorisation which—

(a)was granted, or deemed to be granted, by the Treasury under regulation 10 of the 2012 Regulations,

(b)was in effect immediately before [^F172IP completion day^F172] , and

(c)authorises conduct which would (on and after [^F172IP completion day^F172] , and in the absence of paragraphs (2) to (4)) be prohibited under Part 3 (Finance),

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

(2) An existing financial sanctions licence which authorises an act which would otherwise be prohibited has effect on and after [^F172IP completion day^F172] as if it had been issued by the Treasury under regulation 61(1) (Treasury licences).

(3) Any reference in an existing financial sanctions licence to the 2012 Regulations is to be treated on and after [^F172IP completion day^F172] as a reference to these Regulations.

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

(a)the 2012 Regulations, or

(b)the EU Syria Regulation,

is to be treated on and after [^F172IP completion day^F172] as a reference to the corresponding prohibition in Part 3.

(5) Paragraph (6) applies where—

(a)an application for a licence or authorisation, or for the variation of a licence or authorisation, under the 2012 Regulations was made before [^F172IP completion day^F172] ,

(b)the application is for the authorisation of conduct which would (on and after [^F172IP completion day^F172] ) 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 [^F172IP completion day^F172] as an application for a licence, or for the variation of a licence (as the case may be), under regulation 61(1) (Treasury licences).

(7) In this regulation, “ the 2012 Regulations ” means the Syria (European Union Financial Sanctions) Regulations 2012 .

^M57(8) In paragraphs (3) and (4), a reference to the 2012 Regulations includes a reference to the Syria (Asset-Freezing) Regulations 2011 .

Transitional provision: trade licences_I85

101.—(1) Paragraph (2) applies in relation to each licence or authorisation granted by the Secretary of State which—

(a)was in effect immediately before [^F173IP completion day^F173] , 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 and after [^F173IP completion day^F173] , and in the absence of paragraph (2)) be prohibited by Part 5 (Trade),

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

(2) A licence is deemed to have been issued by the Secretary of State on [^F173IP completion day^F173] under regulation 62 (trade licences)—

(a)disapplying every provision of Part 5 (Trade) 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.

(3) Paragraphs (4) to (6) apply to a licence or authorisation granted by the Secretary of State which—

(a)^F174was in effect immediately before [^F173IP completion day^F173] , ...

[^F175 (aa)is not an existing trade licence, and^F175]

(b)authorises an act—

(i)which would otherwise be prohibited by the EU Syria Regulation, and

(ii)which would (on and after [^F173IP completion day^F173] , and in the absence of paragraphs (4) to (6)) be prohibited by Part 5 (Trade),

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

(4) An existing trade sanctions licence has effect on and after [^F173IP completion day^F173] as if it were a licence which had been issued by the Secretary of State under regulation 62 (trade licences).

(5) Any reference in an existing trade sanctions licence to a provision of the Export Control Order 2008 is to be treated on and after [^F173IP completion day^F173] as a reference to the corresponding provision of these Regulations (if any).

(6) Any reference in an existing trade sanctions licence to a prohibition in the EU Syria Regulation is to be treated on and after [^F173IP completion day^F173] as a reference to the corresponding prohibition in Part 5 (Trade).

Transitional provision: pending applications for trade licences_I86

102.—(1) Paragraph (2) applies where—

(a)an application was made before [^F176IP completion day^F176] for a licence or authorisation under or pursuant to the Export Control Order 2008 or the Dual-Use 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 [^F176IP completion day^F176] .

(2) The application is to be treated on and after [^F176IP completion day^F176] as including an application for a licence under regulation 62 (trade licences).

(3) Paragraph (4) applies where—

(a)an application was made before [^F176IP completion day^F176] for a licence or authorisation under the Export Control (Syria Sanctions) Order 2013 or the EU Syria 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 [^F176IP completion day^F176] .

(4) The application is to be treated on and after [^F176IP completion day^F176] as an application for a licence under regulation 62 (trade licences).

Transitional Provisions: prior obligations_I87

103.—(1) Where—

(a)a person was named in Annex ⅠⅠ or ⅠⅠa of the EU Syria Regulation immediately before [^F177IP completion day^F177] , and

(b)the person is a designated person immediately before [^F177IP completion day^F177] ,

any reference in a provision mentioned in paragraph (2) to the date on which a person became a designated person is a reference to the original listing date.

(2) The provisions referred to in paragraph (1) are—

(a)regulation 55(5) (asset-freeze etc: exceptions from prohibitions), and

(b)in Schedule 6 (Treasury licences: purposes)—

^F178(i). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii)paragraph 15(a);

(iii)paragraph 16(3);

(iv)paragraph 16(5)(b).

(3) In this regulation—

“ designated person ” has the same meaning as it has in Chapter 1 of Part 3 (Finance);

“ original listing date ” means the earlier of—

SCHEDULES

Regulation 7(3)

SCHEDULE 1 Rules for interpretation of regulation 7(2)

Application of Schedule_I88

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_I89

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_I90

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_I91

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_I92,I93

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_I94,I95

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”_I96

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_I97

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_I98,I99

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_I100

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)administration within the meaning of the Insolvency Act 1986

^M59(b)^M60administration 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_I101

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 25(1)

SCHEDULE 2 Definitions of goods subject to certain trade prohibitions

PART 1 General

Definitions_I102

1.—(1) For the purposes of this Schedule—

(a) a thing “falls within” a commodity code if it is, or would be, classified under that commodity code, as set out in the Goods Classification Table;

(b) a thing “falls within” a chapter if it is, or would be, classified under that chapter, as set out in the Goods Classification Table;

(c) where a commodity code or chapter is preceded by “ex”, the goods specified in this Schedule constitute only a part of the scope of the commodity code or chapter and must fall within both the description given to that code or chapter in this Schedule and the scope of the code or chapter in the Goods Classification Table.

(2) For the purposes of determining whether or not a thing is, or would be, “classified” in accordance with sub-paragraph (1), the rules of interpretation contained in the following have effect—

(a)Part Two (Goods Classification Table Rules of Interpretation) of the Tariff of the United Kingdom;

(b)notes to a section or chapter of the Goods Classification Table.

(3) For the purposes of this paragraph—

“ commodity code ” includes a code denoting a heading or sub-heading;

“ 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 ^M61[^F179 , 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 ^F179] .

PART 2 Goods subject to certain trade prohibitions

Aviation fuel and aviation fuel additives

^F1802. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Crude oil and petroleum products

^F1803. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F1804. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Goods relating to electricity production

^F1805. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Gold, precious metals or diamonds_I103

6. For the purposes of regulation 25(1), “ gold, precious metals or diamonds ” means any thing falling which falls within the following commodity codes—

(a)7102;

(b)7106;

(c)[^F181 7108^F181] ;

(d)7109;