PART 1 General

Citation and commencement_I1

1.—(1) These Regulations may be cited as the Libya (Sanctions) (EU Exit) Regulations 2020.

(2) The following provisions come into force on 30th December 2020—

(a)this regulation;

(b)regulation 2 (interpretation);

(c)regulation 4 (purposes);

(d)regulation 5 (power to designate persons);

(e)regulation 6 (criteria for designating a person);

(f) regulation 7 (meaning of “owned or controlled directly or indirectly”);

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

(h)regulation 10 (designation of persons named by or under UN Security Council Resolutions);

(i)regulation 32 (interpretation of Part 5);

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

^M1(3) All other provisions come into force on IP completion day .

Interpretation_I2

2. In these Regulations—

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

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

^M2 “ CEMA ” means the Customs and Excise Management Act 1979 ;

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

“ the Committee ” means the Committee of the Security Council established in accordance with paragraph 24 of resolution 1970;

“ conduct ” includes acts and omissions;

[^F1 “ director disqualification licence ” means a licence under regulation 48A; ^F1]

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

^M3 “ the EU Libya Regulation ” means Council Regulation (EU) 2016/44 of 18 January 2016 concerning restrictive measures in view of the situation in Libya and repealing Regulation (EU) No 204/2011 , as it has effect in EU law;

a “ non-UN designated person ” means a person—

“ port licence ” means a licence under regulation 50;

“ resolution 1970 ” means resolution 1970 (2011) adopted by the Security Council on 26 February 2011;

“ resolution 1973 ” means resolution 1973 (2011) adopted by the Security Council on 17 March 2011;

“ resolution 2009 ” means resolution 2009 (2011) adopted by the Security Council on 16 September 2011;

“ resolution 2095 ” means resolution 2095 (2013) adopted by the Security Council on 14 March 2013;

“ resolution 2146 ” means resolution 2146 (2014) adopted by the Security Council on 19 March 2014;

“ resolution 2174 ” means resolution 2174 (2014) adopted by the Security Council on 27 August 2014;

“ resolution 2213 ” means resolution 2213 (2015) adopted by the Security Council on 27 March 2015;

“ resolution 2362 ” means resolution 2362 (2017 adopted by the Security Council on 29 June 2017;

“ resolution 2441 ” means resolution 2441 (2018) adopted by the Security Council on 5 November 2018;

“ trade licence ” means a licence under regulation 49;

“ Treasury licence ” means a licence under regulation 48(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.

(2) Any person may contravene a relevant prohibition or the prohibition under regulation 42(2)(b) (overflight of aircraft) 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),

(d)Part 6 (UN designated ships), except for regulation 36 (port access or entry for UN designated ships), or

(e)a condition of a Treasury licence, a trade licence or a port licence.

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

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

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

(a)by or under Part 9 (Information and records), or by reason of a request made under a power conferred by that Part, or

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

Purposes_I4

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

(a)compliance with the relevant UN obligations, and

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

(2) Those additional purposes are—

(a)promoting respect for human rights in Libya,

(b)promoting the peace, stability and security of Libya,

(c)promoting the successful completion of Libya's transition to a democratic, independent and united country, and

(d)preventing migrant smuggling and human trafficking taking place from Libya,

otherwise than by compliance with the relevant UN obligations.

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

(a)^M4the obligation that the United Kingdom has by virtue of paragraph 17 of resolution 1970 (asset-freeze etc.) to take the measures required by that provision in respect of persons for the time being named for the purposes of that provision by the Security Council or the Committee;

(b)the obligations that the United Kingdom has by virtue of paragraph 17 of resolution 1970 in respect of persons—

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

(ii)owned or controlled by,

the persons for the time being named by the Security Council or the Committee for the purposes of paragraph 17 of resolution 1970;

(c)the obligations that the United Kingdom has by virtue of paragraphs 9, 10 and 12 of resolution 1970 (arms embargo etc.) as read with paragraph 13 of resolution 2009, paragraphs 9 and 10 of resolution 2095 and paragraph 8 of resolution 2174;

(d)the obligation that the United Kingdom has by virtue of paragraph 18 of resolution 1973 (in relation to the landing, taking off and overflying of certain aircraft);

(e)^M5the obligations that the United Kingdom has by virtue of paragraph 10 of resolution 2146 (in relation to ships for the time being designated by the Committee for the purposes of that paragraph) .

(4) In paragraph (3)(a) and (b)—

(a)a reference to persons named by the Security Council or the Committee for the purposes of paragraph 17 of resolution 1970 includes persons named by virtue of paragraph 19 of resolution 1973;

(b)a reference to the obligations the United Kingdom has by virtue of paragraph 17 of resolution 1970 is to that provision as read with—

(i)paragraph 23 of resolution 1973,

(ii)paragraph 15 of resolution 2009,

(iii)paragraph 4 of resolution 2174,

(iv)paragraph 11 of resolution 2213,

(v)paragraph 11 of resolution 2362, and

(vi)paragraph 11 of resolution 2441.

PART 2 Designation of persons

Power to designate persons_I5

5.—(1) The Secretary of State may designate persons by name [^F3in accordance with regulation 5A (conditions for the designation of persons by name)^F3] for the purposes of any of the following—

(a)regulations 12 to 16 (asset-freeze etc.);

[^F4 (aa)regulation 21A (director disqualification sanctions);^F4]

(b)regulation 22 (immigration).

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

[^F5Conditions 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”). ^F5]

[^F6Designation criteria: meaning of “involved person”^F6] _I6

^F76.—(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) [^F8 For the purposes of regulation 5A (conditions for the designation of persons by name) ^F8] an “ involved person ” means a person who—

(a)is or has been involved in—

(i)the commission of a serious human rights violation or abuse in Libya;

(ii)the commission of a violation of international humanitarian law in Libya, including in particular attacking civilian populations or facilities in violation of international law;

(iii)activities carried out on behalf of the former regime of Muammar Qadhafi implementing or connected to the repressive policies of that regime;

(iv)any other activity which threatens the peace, stability and security of Libya or undermines its transition to a democratic, peaceful and independent country, including in particular—

(aa)attacking a port, airport, or other infrastructure, a foreign mission, or United Nations personnel, in Libya;

(bb)illicitly exploiting oil or any other natural resources in Libya for the purposes of providing support to armed groups or criminal networks;

(cc)threatening or coercing the Libyan National Oil Company or Libyan state financial institutions;

(dd)misappropriating Libyan state funds, or taking action that may lead to such misappropriation,

(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 an activity set out 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)being responsible for, engaging in, providing support for, or promoting any such activity;

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

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

(d)being involved in the supply to Libya of goods or technology which could contribute to any such activity, or in providing financial services relating to such supply;

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

(4) For the purposes of this regulation, being “involved in” misappropriating Libyan state funds includes owning or controlling Libyan state funds which were misappropriated during the former regime of Muammar Qadhafi.

(5) In this regulation—

“ relevant provision ” means—

“restricted goods” and “restricted technology” have the meanings given by Part 5.

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

Meaning of “owned or controlled directly or indirectly”_I7

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

(2) The first condition is that P—

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

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

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

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

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

Notification and publicity where designation power used_I8

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

(a)has made a designation under regulation 5 (power to designate persons), 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.

[^F9 (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.^F9]

[^F10 (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).^F10]

(5) Where the Secretary of State considers that a person's designation is required by paragraph 17 of resolution 1970, the statement of reasons must include a statement that in the Secretary of State's opinion the designation is required by that paragraph.

(6) Matters that would otherwise be required by paragraph (4) or (5) 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.

(7) 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.

(8) 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.

(9) Paragraph (10) 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.

(10) 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_I9

9.—(1) Where the Secretary of State in accordance with regulation 8(7)(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)obtains such information,

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

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

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

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

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

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

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

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

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

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

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

(b)the Secretary of State,

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

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

Designation of persons named by or under UN Security Council Resolutions_I10

^M810.—(1) Any person falling within paragraph (2), other than the Libyan Investment Authority and the Libyan Africa Investment Portfolio, is a designated person for the purposes of regulations 12 to 16 (asset-freeze etc.) (whose purposes include compliance with the UN obligations mentioned in regulation 4(3)(a)) .

(2) A person falls within this paragraph if that person is—

(a)for the time being named by the Security Council or the Committee for the purposes of paragraph 17 of resolution 1970;

(b)for the time being named by the Security Council or the Committee for the purposes of paragraph 19 of resolution 1973.

(3) The Libyan Investment Authority and the Libyan Africa Investment Portfolio named in Annex II of resolution 1973 are designated persons for the purposes of regulations 18 to 20 (partial asset-freeze etc.) (whose purpose is compliance with the UN obligations mentioned in regulation 4(3)(a) and in particular regulation 4(4)(b)(ii)).

(4) Nothing in this regulation affects the power under regulation 5 to designate persons (in addition to those designated by this regulation) for the purposes of regulations 12 to 16.

PART 3 Finance

CHAPTER 1 Asset-freeze etc.

Meaning of “designated person” in Chapter 1_I11

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

(a)a person who is designated under regulation 5 for the purposes of regulations 12 to 16 (asset-freeze etc.), or

(b)a person who is a designated person for the purposes of those regulations by reason of regulation 10(1).

Asset-freeze in relation to designated persons_I12

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

(2) Paragraph (1) is subject to Part 8 (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_I13

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

(2) Paragraph (1) is subject to Part 8 (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_I14

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

(2) Paragraph (1) is subject to Part 8 (Exceptions and licences).

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

[^F11 (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).^F11]

(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_I15

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

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

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

(2) Paragraph (1) is subject to Part 8 (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_I16

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

(2) Paragraph (1) is subject to Part 8 (Exceptions and licences).

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

[^F12 (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).^F12]

(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 Partial asset-freeze etc.

Meaning of “designated person” in Chapter 2_I17

17. In this Chapter a “ designated person ” means a person who is a designated person for the purposes of regulation 18 to 20 (partial asset-freeze etc.) by reason of regulation 10(3).

Partial asset-freeze in relation to designated persons_I18

18. —(1) A person (“P”) must not deal with relevant 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 8 (Exceptions and licences).

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

(4) For the purposes of paragraph (1), “relevant funds or economic resources” are—

(a)funds or economic resources located outside Libya immediately before 17 September 2011,

(b)funds credited on or after 17 September 2011 to a relevant account in discharge (or partial discharge) of an obligation which arose before the date on which the person became a designated person, and

(c)any interest or other earnings on the funds referred to in sub-paragraphs (a) and (b) credited on or after 17 September 2011 to a relevant account.

(5) 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.

(6) 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).

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

(a)includes, in particular, a reference to—

(i)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;

(ii)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;

(b)does not include funds or economic resources 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) In this regulation—

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

“relevant institution” has the same meaning that it has in regulation 43 (finance: exceptions from prohibitions) .

(9) For the avoidance of doubt the reference to a designated person in paragraph (4), and in the definition of “relevant account” in paragraph (8), includes P if P is a designated person.

Making funds available to designated persons_I19

19. —(1) A person (“P”) must not make relevant 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 8 (Exceptions and licences).

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

(4) For the purposes of paragraph (1), “relevant funds” are—

(a)interest or other earnings due on funds held in a relevant account (within the meaning of regulation 18) which are frozen by virtue of regulation 18(1), and

(b)funds due to a designated person by virtue of an obligation which arose prior to the date on which the person became a designated person.

(5) 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_I20

20. —(1) A person (“P”) must not make relevant 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 8 (Exceptions and licences).

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

(4) In paragraph (1), “ relevant funds ” has the same meaning as in regulation 19 (making funds available to designated persons) .

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

(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.

CHAPTER 3 Circumvention

Circumventing etc. prohibitions_I21

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

(a)to circumvent any of the prohibitions in regulations 12 to 16 (asset-freeze etc.) or regulations 18 to 20 (partial asset-freeze etc.), 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.

[^F13PART 3A Director disqualification sanctions

Director disqualification sanctions

21A. 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.^F13]

PART 4 Immigration

Immigration_I22

^M922. A person who is designated under regulation 5 (power to designate persons) 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 Trade prohibitions related to goods and technology

Export of restricted goods_I23

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

(2) Paragraph (1) is subject to Part 8 (Exceptions and licences).

Import of arms and related materiel and internal repression goods_I24

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

(a)arms and related materiel;

(b)internal repression goods.

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

(3) Paragraphs (1) and (2) are subject to Part 8 (Exceptions and licences).

Supply and delivery of certain goods_I25

25.—(1) A person must not—

(a)directly or indirectly supply or deliver restricted goods from a third country to a place in Libya;

(b)directly or indirectly supply or deliver military goods or internal repression goods from a place in Libya to a third country.

(2) Paragraph (1) is subject to Part 8 (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 goods were destined (or ultimately destined) for Libya.

(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 supply or delivery was from a place in Libya, whether directly or indirectly.

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

Making available or acquiring certain goods and technology_I26

26.—(1) A person must not—

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

(b)directly or indirectly make restricted goods or restricted technology available for use in Libya;

(c)directly or indirectly acquire military goods, internal repression goods or restricted technology from a person connected with Libya;

(d)directly or indirectly acquire military goods, internal repression goods or restricted technology which originate in Libya;

(e)directly or indirectly acquire military goods, internal repression goods or restricted technology located in Libya.

(2) Paragraph (1) is subject to Part 8 (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) or (c) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Libya;

(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 Libya;

(c)it is a defence for a person charged with the offence of contravening paragraph (1)(d) to show that the person did not know and had no reasonable cause to suspect that the goods or technology originated in Libya;

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

Transfer of restricted technology_I27

27.—(1) A person must not—

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

(b)transfer restricted technology to a person connected with Libya;

(c)transfer restricted technology to persons outside the United Kingdom or to a place outside the United Kingdom, where the transfer is from a place in Libya.

(2) Paragraph (1) is subject to Part 8 (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 Libya;

(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 Libya;

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

Technical assistance relating to restricted goods and restricted technology_I28

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

(a)to a person connected with Libya, or

(b)for use in Libya.

(2) Paragraph (1) is subject to Part 8 (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 Libya;

(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 Libya.

Financial services and funds relating to restricted goods and restricted technology_I29

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

(a)the export of restricted goods,

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

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

(d)the transfer of restricted technology, or

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

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

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

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

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

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

(i)to a person connected with Libya, or

(ii)for use in Libya,

(d)the transfer of restricted technology—

(i)to a person connected with Libya, or

(ii)to a place in Libya, or

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

(i)to a person connected with Libya, or

(ii)for use in Libya.

(4) Paragraphs (1) to (3) are subject to Part 8 (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 the 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 Libya;

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

Brokering services: non-UK activity relating to restricted goods and restricted technology_I30

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

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

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

(i)to a person connected with Libya, or

(ii)to a place in Libya,

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

(i)to a person connected with Libya, or

(ii)to a place in Libya,

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

(i)to a person connected with Libya, or

(ii)to a place in Libya,

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

(i)to a person connected with Libya, or

(ii)for use in Libya,

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

(i)to a person connected with Libya, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 29(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 29(3),

(g)directly or indirectly making funds available, in a non-UK country, to a person connected with Libya, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 29(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 29(3).

(2) Paragraph (1) is subject to Part 8 (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—

CHAPTER 2 Enabling or facilitating the conduct of armed hostilities

Enabling or facilitating the conduct of armed hostilities_I31

31.—(1) A person must not directly or indirectly provide—

(a)technical assistance,

(b)armed personnel,

(c)financial services or funds, or

(d)brokering services in relation to an arrangement whose object or effect is to provide, in a non-UK country, anything mentioned in sub-paragraphs (a) to (c),

where such provision enables or facilitates the conduct of armed hostilities in Libya.

(2) Paragraph (1) is subject to Part 8 (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 provision as mentioned in paragraph (1) would enable or facilitate the conduct of armed hostilities in Libya.

(4) In this regulation—

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

“ technical assistance ” means the provision of technical support or any other technical service.

(5) Nothing in this regulation is to be taken to limit the meaning of any of the prohibitions contained in Chapter 1.

CHAPTER 3 Interpretation, circumvention and defences

Interpretation of this Part_I32

32.—(1) In this Part—

“ arms and related materiel ” means—

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

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

“ goods which could be used for migrant smuggling and human trafficking ” has the meaning given in paragraph 2 of Schedule 3;

“ internal repression goods ” means—

“ internal repression technology ” means any thing which is described in Schedule 2 as software or technology, within the meaning of that Schedule;

“ 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;

“ restricted goods ” means—

“ restricted technology ” means—

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

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

(2) For the purpose of the definition of “arms and related materiel” in paragraph (1), paragraph 1(2) of Schedule 3 (rules of interpretation for the purpose of determining whether or not a thing is “classified”) applies.

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

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

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

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

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

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

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

Circumventing etc. prohibitions_I33

33.—(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 Chapter 1 or 2 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_I34

34.—(1) Paragraph (2) applies where a person relies on a defence under Chapter 1 or 2 of this Part.

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

PART 6 Trade, transport and finance measures related to UN designated ships

Transporting etc. Libyan oil in relation to UN designated ships_I35

35.—(1) A person must not cause or permit a designated ship—

(a)to transport Libyan oil, or

(b)to have Libyan oil loaded onto or discharged from it.

(2) Paragraph (1) is subject to Part 8 (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 ship was a designated ship.

(4) For the purposes of paragraph (1), a “ designated ship ” means a ship for the time being designated by the Committee for the purpose of paragraph 10(a) of resolution 2146.

Port access or entry for UN designated ships_I36

36.—(1) A person must not provide a designated ship with access to a port in the United Kingdom, if the person knows, or has reasonable cause to suspect, that the ship is a designated ship.

(2) The master or pilot of a designated ship must not cause or permit that ship to enter any port in the United Kingdom if the master or pilot knows, or has reasonable cause to suspect, that the ship is a designated ship.

(3) Paragraphs (1) and (2) are subject to Part 8 (Exceptions and licences).

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

(5) In paragraphs (1) and (2), “ designated ship ” means a ship for the time being designated by the Committee for the purpose of paragraph 10(b) of resolution 2146.

Bunkering or ship supply services_I37

37.—(1) A person must not provide bunkering or ship supply services relating to a designated ship.

(2) Paragraph (1) is subject to Part 8 (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 ship was a designated ship.

(4) In this regulation—

“ bunkering or ship supply services ” includes—

“ designated ship ” means a ship for the time being designated by the Committee for the purpose of paragraph 10(c) of resolution 2146.

Financial transactions in relation to Libyan oil aboard UN designated ships_I38

38.—(1) A person must not enter into any financial transaction relating to Libyan oil aboard a designated ship.

(2) Paragraph (1) is subject to Part 8 (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 ship was a designated ship.

(4) In this regulation—

Circumventing etc. prohibitions_I39

39.—(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 a prohibition in regulation 35 (transporting etc. Libyan oil in relation to UN designated ships) or 37 (bunkering or ship supply services), 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.

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

(a)to circumvent the prohibition in regulation 38 (financial transactions in relation to Libyan oil aboard UN designated ships), or

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

(4) A person who contravenes a prohibition in paragraph (3) commits an offence.

Defences_I40

40.—(1) Paragraph (2) applies where a person relies on a defence under 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.

Interpretation of Part 6_I41

41. —(1) In this Part, “ Libyan oil ” means petroleum, including crude oil and refined petroleum products, originating from Libya.

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

“ crude oil ” means anything which falls within the commodity code 2709;

“ refined petroleum products ” means anything which falls within any of the following commodity codes—

(3) For the purposes of paragraph (2), whether or not a thing “falls within” any of the “commodity codes” specified in that paragraph is to be determined in accordance with paragraph 1 in Part 1 of Schedule 3.

(4) In regulations 35, 37 and 38 (transporting etc. Libyan oil in relation to UN designated ships, bunkering or ship supply services, and financial transactions in relation to Libyan oil aboard UN designated ships), “ ship ” includes every description of vessel (including a hovercraft) used in navigation.

(5) In regulation 36 (port access or entry for UN designated ships) , “ ship ” includes every description of vessel (including a hovercraft) used in navigation, except the naval, military or air-force ships of any country.

(6) Any other expression used in this Part and in section 7 of the Act (shipping sanctions) has the same meaning in this Part as it has in that section.

PART 7 Aircraft

Movement of aircraft_I42

42.—(1) Paragraph (2) applies where an aircraft is being used to transport military goods or armed personnel (or both) to any place in Libya (directly or indirectly).

(2) The operator or pilot in command of an aircraft to which this paragraph applies must not cause or permit the aircraft to—

(a)take off from the United Kingdom,

(b)overfly the United Kingdom, or

(c)land in the United Kingdom.

(3) Where air traffic control knows or has reasonable grounds to suspect that an aircraft approaching UK airspace or which has already entered UK airspace is being used to transport military goods or armed personnel (or both) to any place in Libya (directly or indirectly), air traffic control must—

(a)refuse permission for the aircraft to enter UK airspace or to overfly the United Kingdom;

(b)require the aircraft to leave UK airspace.

(4) Air traffic control may issue instructions to the aircraft in connection with a refusal or requirement under paragraph (3).

(5) Instructions issued to an aircraft pursuant to paragraph (4) may permit incursion into UK airspace by the aircraft only where it is necessary to do so in order to enable the aircraft to comply safely with an instruction to leave UK airspace.

(6) Where an airport operator knows or has reasonable grounds to suspect that an aircraft at or approaching an airport is being used to transport military goods or armed personnel (or both) to any place in Libya (directly or indirectly) the airport operator must (as the case may be)—

(a)not permit the aircraft to take off from the airport;

(b)refuse permission to the aircraft to land at the airport.

(7) Paragraphs (2) to (6) are subject to Part 8 (Exceptions and licences).

(8) A person who contravenes a prohibition in paragraph (2) or (6) or fails to comply with a requirement in paragraph (6) commits an offence.

(9) It is a defence for a person charged with the offence of breaching the prohibition in paragraph (2) to show that the person did not know and had no reasonable cause to suspect that the aircraft was being used to transport military goods or armed personnel to any place in Libya.

(10) For the purposes of this regulation, an aircraft is being used to “transport” military goods if the aircraft contains military goods which have been, or are being, dealt with in contravention of a prohibition—

(a)in regulation 23 or 25 (trade prohibitions relating to restricted goods), or

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

(11) In this regulation, “ UK airspace ” means the airspace above the United Kingdom (and includes the airspace above the territorial sea of the United Kingdom).

(12) Any expression used in this regulation and in section 6 of the Act (aircraft sanctions) has the same meaning in this regulation as it has in that section.

PART 8 Exceptions and licences

Finance: exceptions from prohibitions_I43

43. —(1) The prohibitions in regulation 12 and 18 (asset-freeze and partial asset-freeze in relation to designated persons) are not contravened by an independent person (“P”) transferring to another person a legal or equitable interest in funds or economic resources where, immediately before the transfer, the interest—

(a)is held by P, and

(b)is not held jointly with the designated person.

(2) In paragraph (1) “ independent person ” means a person who—

(a)is not the designated person, and

(b)is not owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.

(3) The prohibitions in regulations 12 to 14 (asset-freeze in relation to, and making funds available to or for the benefit of, designated persons) and [^F1418 to 20 (partial-asset freeze in relation to, and making funds available to, or for the benefit of, designated persons)^F14] are not contravened by a relevant institution crediting a frozen account or a relevant account with interest or other earnings due on the account.

(4) The prohibitions in regulations 13 and 14 (making funds available to, or for the benefit of, designated persons) and 19 and 20 (making funds available to, or for the benefit of, designated persons in connection with a partial asset-freeze) are not contravened by a relevant institution crediting a frozen account or a relevant account where it receives funds transferred to that institution for crediting to that account.

(5) The prohibitions in regulations 13, 14, 19 and 20 are not contravened by the transfer of funds to a relevant institution for crediting to an account held or controlled (directly or indirectly) by a designated person, where those funds are transferred in discharge (or partial discharge) of an obligation which arose before the date on which the person became a designated person.

(6) The prohibitions in regulations 12 to 14, and regulations 18 to 20, are not contravened in relation to a designated person (“P”) by a transfer of funds from account A to account B, where—

(a)^M11account 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)^M12account 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 ” means a designated person within the meaning of regulation 11 or 17;

“ frozen account ” means an account with a relevant institution which is held or controlled (directly or indirectly) by a designated person within the meaning of regulation 11;

“ relevant account ” means an account with a relevant institution which is held or controlled (directly or indirectly) by a designated person within the meaning of regulation 17;

^M13 “ 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) .

^M14,M15,M16 (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 .

[^F15 (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, in so far as they relate to a designated person within the meaning of regulation 11, are to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the 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. ^F15]

[^F16Finance: exception from prohibitions for required payments

43ZA.—(1) This regulation applies to required payments within the meaning of paragraph (2).

(2) A required payment is a payment which—

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

(i)the registrar of companies,

(ii)the Commissioners,

(iii)the Welsh Revenue Authority,

(iv)Revenue Scotland,

(v)the Financial Conduct Authority,

(vi)the Secretary of State,

(vii)the Welsh Ministers,

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

(ix)a local authority, and

(b)is not an excluded payment.

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

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

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

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

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

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

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

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

(7) For the purposes of this regulation—

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

(b)the reference in paragraph (5) to a UN designated person, in so far as it relates to a designated person within the meaning of regulation 11, is to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the UN designated person, and

(c)the reference in paragraph (6) to a designated person, in so far as it relates to a designated person within the meaning of regulation 11, is to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.

(8) In this regulation—

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

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

“ designated person ” means a designated person within the meaning of regulation 11 (meaning of “ designated person ” in Chapter 1) or 17 (meaning of “ designated person ” in Chapter 2);

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

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

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

“ UN designated person ” means—

[^F17Finance: exceptions relating to payment of Treasury debt

43ZB.—(1) The prohibitions in regulations 12 to 14 (asset-freeze in relation to, and making funds available to, or for the benefit of, designated persons) and regulations 18 to 20 (partial asset-freeze and making funds available to or for benefit of designated persons) are not contravened by any act done by a person to transfer funds to—

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

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

(2) The person (“ P ”) making the transfer of funds to D knows or has reasonable cause to suspect that the obligation referred to in paragraph (1) arose before the date on which D was designated and P takes reasonable steps to satisfy itself that the funds to be transferred to D are credited to a specified account.

(3) The person (“ P ”) making the transfer of funds to B knows or has reasonable cause to suspect that the effect of such a transfer will be to enable the satisfaction of an obligation of any person to D in respect of Treasury debt and P takes reasonable steps to satisfy itself that such obligation arose before the date on which D was designated and the funds to be transferred to D are ultimately credited to a specified account.

(4) The prohibitions in regulations 12 to 14 and regulations 18 to 20 are not contravened by any act done by a person (where that person is not P in paragraph (2) or (3)) to enable a transfer of funds to any person in respect of Treasury debt—

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

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

(5) For the purposes of this regulation, references to a UN designated person, in so far as they relate to a designated person within the meaning of regulation 11 or 17, are to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the UN designated person.

(6) In this regulation—

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

“ frozen account ” has the meaning given in regulation 43(7);

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

“ non-UK relevant institution ” means—

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

“ relevant account ” has the meaning given in regulation 43(7);

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

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

“ specified account ” means—

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

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

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

“ UN designated person ” has the meaning given in regulation 43ZA(8). ^F17]

[^F18Finance: humanitarian exception

43A. —(1) The prohibitions in regulations 12 to 16 (asset-freeze etc.) and 18 to 20 (partial asset-freeze etc.) are not contravened by a person (“ P ”) carrying out a relevant activity which is necessary—

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

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

where Conditions A and B are met.

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

(a)the United Nations, including its—

(i)programmes and funds,

(ii)other entities and bodies, and

(iii)specialised agencies and related organisations,

(b)international organisations,

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

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

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

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

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

(4) For the purposes of this regulation—

“ relevant activity ” means any activity which would, in the absence of this regulation, contravene the prohibitions in regulations 12 to 16 or 18 to 20;

“ resolution 2664 ” means resolution 2664 (2022) adopted by the Security Council on 9th December 2022. ^F18]

Port access or entry for UN designated ships: exception from prohibitions_I44

44.—(1) The prohibition in regulation 36(1) (port access or entry for UN designated ships) is not contravened by providing a ship with access to a port if the access is needed by the ship in a case of emergency.

(2) The prohibition in regulation 36(2) is not contravened by the entry into port of a ship if the entry is needed by the ship in a case of emergency.

Aircraft: exceptions_I45

45.—(1) The prohibition in regulation 42(2)(c) (movement of aircraft) is not contravened by the landing of an aircraft in the United Kingdom if failing to land would endanger the lives of persons on board or the safety of the aircraft.

(2) The prohibition in regulation 42(2)(b) is not contravened by the flight of an aircraft in UK airspace preparatory to a landing as mentioned in paragraph (1).

(3) A prohibition or requirement in regulations 42(3) to (6) is not contravened by conduct necessary to—

(a)avoid endangering the lives of persons on board or the safety of the aircraft,

(b)protect the safety of another aircraft, or

(c)protect the safety of persons on the ground.

(4) In paragraph (2) “ UK airspace ” has the same meaning as in regulation 42(11).

Exception for authorised conduct in a relevant country_I46

46.—(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—

“ relevant prohibition ” means a prohibition in any of—

(3) Nothing in this regulation affects the application of a prohibition in a case where it would be incompatible with a UN obligation for the prohibition not to apply.

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

47.—(1) Where an act would, in the absence of this paragraph, be prohibited by the prohibition in regulation 9(2) (confidentiality) or any prohibition in Part 3 (Finance), Part 5 (Trade), Part 6 (UN designated ships) or Part 7 (Aircraft), that prohibition does not apply to the act if the act is one which a responsible officer has determined would be in the interests of—

(a)national security, or

(b)the prevention or detection of serious crime in the United Kingdom or elsewhere.

(2) Where, in the absence of this paragraph, a thing would be required to be done under or by virtue of a provision of Part 7, Part 9 (Information and records) or Part 11 (Maritime enforcement), that requirement does not apply if a responsible officer has determined that not doing the thing in question would be in the interests of—

(a)national security, or

(b)the prevention or detection of serious crime in the United Kingdom or elsewhere.

(3) In this regulation “ responsible officer ” means a person in the service of the Crown or holding office under the Crown, acting in the course of that person's duty.

(4) Nothing in this regulation affects the application of a prohibition or requirement in a case where it would be incompatible with a UN obligation for the prohibition or requirement not to apply.

Treasury licences_I48

48.—(1) The prohibitions in regulations 12 to 16 (asset-freeze etc.), 18 to 20 (partial asset-freeze etc.) and regulation 38 (financial transactions in relation to Libyan oil) do not apply to anything done under the authority of a licence issued by the Treasury under this paragraph.

(2) Paragraphs (3) and (4) apply to the issuing of a licence which authorises acts which would otherwise be prohibited by regulations 12 to 16.

(3) The Treasury may issue a licence which authorises acts by a particular person in relation to a non-UN designated person only where the Treasury consider that it is appropriate to issue the licence for a purpose set out in Chapter 1 of Part 1, or in Part 3 of, Schedule 4.

(4) The Treasury may issue a licence which authorises acts in relation to a UN designated person, other than the Libyan Investment Authority or the Libyan Africa Investment Portfolio, only where the Treasury consider that it is appropriate to issue the licence for a purpose set out in Chapter 1 of Part 1, or in Part 2 of Schedule 4.

(5) Paragraph (6) applies to the issuing of a licence which authorises acts which would otherwise be prohibited by regulations 18 to 20.

(6) The Treasury may issue a licence which authorises acts in relation to the Libyan Investment Authority or the Libyan Africa Investment Portfolio only where the Treasury consider that it is appropriate to issue the licence for a purpose set out in Part 1 [^F19or Part 2^F19] of Schedule 4.

(7) The Treasury may issue a licence which authorises acts which would otherwise be prohibited by regulation 38 only where the Treasury consider that it is appropriate to issue the licence in order to give effect to an exception made by the Committee to paragraph 10(d) of resolution 2146.

(8) In paragraph (4) “ UN designated person ” means—

(a)a person who is a designated person for the purposes of regulations 12 to 16 or regulations 18 to 20 by reason of regulation 10 (designation of persons named by or under UN Security Council Resolutions), or

(b)a person who is designated under regulation 5 (power to designate persons) for the purposes of regulations 12 to 16 and whose designation is (in the opinion of the Secretary of State) required by paragraph 17 of resolution 1970 (read in accordance with regulation 4(4)).

[^F20 (9) The reference in paragraph (3) to a non-UN designated person is to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the non-UN designated person.

(10) The reference in paragraph (4) to a UN designated person is to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the UN designated person.^F20]

[^F21Director disqualification licences

48A. The Secretary of State may issue a licence in relation to any person who is designated under regulation 5 for the purposes of regulation 21A (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.^F21]

Trade licences_I49

49. The prohibitions in Chapters 1 and 2 of Part 5 (Trade), regulation 35 (transporting etc. Libyan oil in relation to UN designated ships) and regulation 37 (bunkering or ship supply services) do not apply to anything done under the authority of a licence issued by the Secretary of State under this regulation.

Port licences_I50

50. The prohibitions in regulation 36 (port access or entry for UN designated ships) do not apply to anything done under the authority of a licence issued by the Secretary of State under this regulation.

Licences: general provisions_I51

51.—(1) This regulation applies in relation to Treasury licences[^F22 , director disqualification licences^F22] , trade licences and port 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 [^F23 , on the application of a person (“P”), ^F23][^F24 issues ^F24] a licence which authorises acts by a particular person[^F25 , or varies, revokes or suspends that licence, ^F25] must give written notice to [^F26 P ^F26] 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_I52

52. —(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.

[^F27Director disqualification: licensing offences

52A. —(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.^F27]

Trade: licensing offences_I53

53. —(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.

Port access or entry for UN designated ships: licensing offences_I54

54. —(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 port licence (whether for P or anyone else).

(2) A person who purports to act under the authority of a port licence but who fails to comply with any condition of the licence commits an offence.

(3) A licence in respect of which an offence under paragraph (1) has been committed is to be treated as void from the time at which it was issued.

Section 8B(1) to (3) of the Immigration Act 1971: directions_I55

55.—(1) The Secretary of State may direct that, in relation to any person within regulation 22 (immigration) whose name is specified, or who is of a specified description, section 8B(1) and (2) of the Immigration Act 1971, or section 8B(3) of that Act, have effect subject to specified exceptions.

(2) A direction under this regulation—

(a)may contain conditions;

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

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

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

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

PART 9 Information and records

Finance: reporting obligations_I56

56.—(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 [^F28breached a prohibition or failed to comply with an obligation^F28] under any provision of Part 3 (Finance), regulation 38(3) (financial transactions in relation to Libyan oil) or regulation 52 (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.

[^F29 (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.^F29]

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

(a)credits a frozen account or a relevant account in accordance with regulation 43(4) (finance: exceptions from prohibitions), or

(b)transfers funds from a frozen account or a relevant account in accordance with regulation 43(6).

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

[^F30 (6A) A person commits an offence if that person, without reasonable excuse, fails to comply with a requirement in paragraph (4A) or (4B).^F30]

(7) In this regulation, the following terms have the same meaning as they have in regulation 43—

• “designated person”;

• “frozen account”;

• “relevant account”;

• “relevant institution”.

(8) For the purposes of this regulation, “ relevant firm ” is to be read in accordance with regulation 57.

[^F31Finance: reporting obligations for required payments

56A.—(1) A non-UN designated person must inform the Treasury without delay if they make a required payment.

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

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

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

(5) In this regulation—

“ reimbursement payment ” has the meaning given in regulation 43ZA(8) (finance: exception from prohibitions for required payments) ;

“ required payment ” has the meaning given in regulation 43ZA(2). ^F31]

“Relevant firm”_I57

57.—(1) The following are relevant firms for the purposes of regulation 56 (finance: reporting obligations)—

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

(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)^M17a statutory auditor within the meaning of Part 42 of the Companies Act 2006 (Statutory auditors) , or

(ii)^M18a local auditor within the meaning of section 4(1) of the Local Audit and Accountability Act 2014 (general requirements for audit) ;

(d)a firm or sole practitioner that provides to other persons, by way of business—

(i)accountancy services,

(ii)legal or notarial services,

(iii)advice about tax affairs, or

(iv)trust or company services within the meaning of paragraph (2);

(e)a firm or sole practitioner that carries out, or whose employees carry out, estate agency work;

(f)^M19the 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.

[^F32 (h)a cryptoasset exchange provider;

(i)a custodian wallet provider.^F32]

[^F33 (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. ^F33]

(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)—

^M20 “ 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.

[^F34 (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. ^F34]

[^F35 (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.^F35]

(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 56(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)^M21in 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;

[^F36 (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;^F36]

(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_I58

58.—(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, or

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

(6) The Treasury may request a person to provide information within paragraph (7) if the Treasury believe that the person may be able to provide the information.

(7) Information within this paragraph is such information as the Treasury may reasonably require for the purpose of—

(a)establishing for the purposes of any provision of Part 3 (Finance)—

(i)the nature and amount or quantity of any funds or economic resources owned, held or controlled by or on behalf of a designated person,

(ii)the nature and amount or quantity of any funds or economic resources made available directly or indirectly to, or for the benefit of, a designated person, or

(iii)the nature of any financial transactions entered into by a designated person;

(b)monitoring compliance with or detecting evasion of—

(i)any provision of Part 3,

(ii)regulation 38 (financial transactions in relation to Libyan oil aboard UN designated ships);

(iii)regulation 56 (finance: reporting obligations), or

(iv)any condition of a Treasury licence;

(c)detecting or obtaining evidence of the commission of an offence under Part 3, regulation 38(3), regulation 52 (finance: licensing offences) or regulation 56.

(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_I59

59.—(1) A request under regulation 58 (finance: powers to request information) 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 ” means a designated person within the meaning of regulation 11 or 17.

Finance: information offences_I60

60.—(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 58 (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 58 or 59 (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 58 or 59.

(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_I61

^M2261.—(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)^M23in 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—

(i)Chapter 1 or 2 of Part 5 (Trade) except the prohibitions in regulations 23 and 24 (exports and imports), or

(ii)regulation 35 (transporting etc. Libyan oil in relation to UN designated ships) or 37 (bunkering or ship supply services), or

(b)which would constitute a contravention of a prohibition in regulation 33 and 39(1) (circumventing etc. prohibitions).

General trade licences: records_I62

62. —(1) This regulation applies in relation to a person (“P”) who does any act authorised by a general licence issued under regulation 49 (trade licences) (“ the licence ”).

(2) P must keep a register or record containing such details as may be necessary to allow the following information to be identified in relation to each act done under the authority of the licence—

(a)a description of the act;

(b)a description of any goods, technology, services or funds to which the act relates;

(c)the date of the act or the dates between which the act took place;

(d)the quantity of any goods or funds to which the act relates;

(e)P's name and address;

(f)the name and address of any consignee of goods to which the act relates or any recipient of technology, services or funds to which the act relates;

(g)in so far as it is known to P, the name and address of the end-user of the goods, technology, services or funds to which the act relates;

(h)if different from P, the name and address of the supplier of any goods to which the act relates;

(i)any further information required by the licence.

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

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

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

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

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

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

General trade licences: inspection of records_I63

63. —(1) A person authorised by the Secretary of State or the Commissioners (an “official”) may at any reasonable hour enter premises notified under regulation 62(4) (general trade licences: records) for the purposes of monitoring compliance with, or detecting evasion of, regulation 62(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 62, 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_I64

64.—(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 8 (Exceptions and licences), this Part or Part 11 (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), [^F37Part 3A (Director disqualification sanctions),^F37] Part 5 (Trade), Part 6 (UN designated Ships) or Part 7 (Aircraft), or

(ii)any exception or licence under Part 8 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)any purpose stated in regulation 4 (purposes);

(b)the exercise of functions under these Regulations;

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

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

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

(ii)for an offence under CEMA in connection with a prohibition mentioned in regulation 23 or 24 (exports or imports), or

(iii)^M24in 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)^M25compliance 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)references to a licence under Part 8 include—

(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.

[^F38Finance: disclosure to the Treasury

64A.—(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 [^F39 any sanctions regulations contained in these Regulations^F39] .

(2) In this regulation—

“ relevant public authority ” means—

“ local authority ” means—

Part 9: supplementary_I65

65.—(1) A disclosure of information under regulation 64 (disclosure of information)[^F40 or 64A (finance: disclosure to the Treasury)^F40] does not breach any restriction on such disclosure imposed by statute or otherwise.

(2) But nothing in [^F41those regulations^F41] authorises a disclosure that—

(a)contravenes the data protection legislation, or

(b)^M26is 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)[^F42 Regulations 64 and 64A do^F42] not limit the circumstances in which information may be disclosed apart from [^F43those regulations^F43] .

(5) Nothing in this Part limits any conditions which may be contained in a licence under Part 8.

(6) In this regulation—

^M27 “ 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 10 Enforcement

Penalties for offences_I66

66.—(1) A person who commits an offence under any provision of Part 3 (Finance), regulation 36 (port access or entry for UN designated ships), regulation 38(3) (financial transactions in relation to Libyan oil aboard UN designated ships), regulation 39(4) (circumvention of regulation 38), regulation 42 (movement of aircraft), or regulation 52 (finance: licensing offences) is liable—

(a)on summary conviction in England and Wales, to imprisonment for a term not exceeding [^F44the general limit in a magistrates’ court^F44] 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), regulation 35 (transporting etc. Libyan oil in relation to UN designated ships), regulation 37 (bunkering or ship supply services) or regulation 39(2) (circumvention of regulations 35 and 37) is liable—

(a)on summary conviction in England and Wales, to imprisonment for a term not exceeding [^F45the general limit in a magistrates’ court^F45] or a fine (or both);

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

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

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

(3) A person who commits an offence under regulation 9(6) (confidentiality), [^F4652A (director disqualification: licensing offences),^F46] regulation 53 (trade: licensing offences), regulation 54 (port access or entry for UN designated ships: licensing offences), or regulation 62(6) or 63(5) (information offences in connection with general trade licences) is liable—

(a)on summary conviction in England and Wales, to imprisonment for a term not exceeding [^F47the general limit in a magistrates’ court^F47] or a fine (or both);

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

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

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

(4) A person who commits an offence under regulation 56(6) (finance: reporting obligations) or 60 (information offences in connection with Part 3) is liable—

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

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

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

(5) In relation to an offence committed before [^F482nd May 2022^F48] , the reference in each of paragraphs (1)(a), (2)(a) and (3)(a) to [^F49the general limit in a magistrates’ court^F49] is to be read as a reference to 6 months.

Liability of officers of bodies corporate etc._I67

67.—(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_I68

68.—(1) Where an offence under Part 3 (Finance), Part 7 (Aircraft), or regulation 9(6) (confidentiality), regulation 36 (port access or entry for UN designated ships), regulation 38(3) (financial transactions relating in relation to Libyan oil aboard UN designated ships), 39(4) (circumvention of regulation 38), regulation 52 (finance: licensing offences), regulation 54 (port access or entry for UN designated ships: licensing offences), regulation 56(6) (finance: reporting obligations) or regulation 60 (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.

^M28 (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_I69

69.—(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)^M29,M30section 33 of the Criminal Justice Act 1925 and Schedule 3 to the Magistrates' Courts Act 1980 ;

(ii)^M31,M32section 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_I70

70.—(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_I71

71.—(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.

^M33 (2) In paragraph (1) “ assigned matter ” has the meaning given by section 1(1) of CEMA .

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

(a)Part 5 (Trade),

(b)regulation 35 (transporting etc. Libyan oil in relation to UN designated ships),

(c)regulation 37 (bunkering or ship supply services),

(d)regulation 39(2) (circumventing etc. prohibitions),

(e)regulation 53 (trade: licensing offences),

(f)regulation 62(6) (general trade licences: records), or

(g)regulation 63(5) (general trade licences: inspection of records).

[^F50 (3A) The Commissioners may not investigate the suspected commission of a relevant offence listed in paragraphs (3B), (3C) or (3D), unless the suspected offence has been the subject of—

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

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

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

(a)regulation 25(3) (supply and delivery of certain goods) insofar as the offence does not relate to internal repression goods or military goods;

(b)regulation 26(3) (making available or acquiring certain goods and technology) insofar as the offence does not relate to the import or export of goods or the transfer of technology to or from the UK, or does not relate to internal repression goods or internal repression technology, military goods or military technology;

(c)regulation 28(3) (technical assistance relating to restricted goods and restricted technology) insofar as the offence does not relate to the import or export of goods or the transfer of technology to or from the UK, or does not relate to internal repression goods and internal repression technology, military goods and military technology;

(d)regulation 29(5) (financial services and funds relating to restricted goods and restricted technology) insofar as the offence does not relate to the import or export of goods or the transfer of technology to or from the UK, or does not relate to internal repression goods and internal repression technology, military goods and military technology;

(e)regulation 30(3) (brokering services: non-UK activity relating to restricted goods and restricted technology) insofar as the offence does not relate to the import or export of goods or the transfer of technology to or from the UK, or does not relate to internal repression goods and internal repression technology, military goods and military technology;

(f)regulation 31(3) (enabling or facilitating the conduct of armed hostilities);

(g)regulation 35(3) (transporting etc. Libyan oil in relation to UN designated ships) insofar as the offence does not relate to the import or export of goods;

(h)regulation 37(3) (bunkering or ship supply services).

(3C) Paragraph (3A) also applies to the suspected commission of a relevant offence under any of regulations 53(1), 53(2), 62(6) and 63(5) insofar as—

(a)the suspected offence relates to a licence issued under regulation 49 (trade licences), and

(b)the prohibited 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 33(2) (circumventing etc. prohibitions) or regulation 39(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).^F50]

^M34,M35(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 (g);

(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 (g), 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.

^M36(6) The provisions of CEMA are sections 145, 146, 147, 148(1), 150, 151, 152, 154 and 155 (legal proceedings).

[^F51 (7) Any term in this regulation that is defined in Chapter 3 of Part 5 (Trade) bears the same meaning as in that Chapter of that Part.^F51]

Trade offences in CEMA: modification of penalty_I72

72.—(1) Paragraph (2) applies where a person is guilty of an offence under section 50(2) or (3) of CEMA in connection with a prohibition mentioned in regulation 24 (import of arms and related materiel and internal repression goods).

^M37(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 regulation 23(1) (export of restricted goods).

^M38(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 regulation 23(1) or 24 (exports and imports).

^M39(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 _I73

^M4073. Chapter 1 of Part 2 of the Serious Organised Crime and Police Act 2005 (investigatory powers) applies to an offence under Part 3 (Finance), regulation 38 (financial transactions relating to Libyan oil) or regulation 52 (finance: licensing offences).

Monetary penalties_I74

^M4174. Each provision in Part 5 (Trade) which contains a prohibition imposed for a purpose mentioned 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 11 Maritime enforcement

Exercise of maritime enforcement powers_I75

75.—(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)the prohibition in regulation 23(1) (export of restricted goods);

(b)a prohibition in regulation 24 (import of arms and related materiel etc.);

(c)a prohibition in regulation 25(1) (supply and delivery of certain goods);

(d)a prohibition in regulation 26(1) (making available or acquiring certain goods and technology);

(e)a prohibition in regulation 27(1) (transfer of restricted technology);

(f)a prohibition in relation 35 (transporting etc. Libyan oil in relation to UN designated ships);

(g)a prohibition imposed by a condition of a trade licence in relation to a prohibition mentioned in any of 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 77 (power to stop, search, board etc.) and 78 (seizure power).

(5) This regulation is subject to regulation 79 (restrictions on exercise of maritime enforcement powers).

Maritime enforcement officers_I76

76. —(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)^M42a 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)^M43within 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)^M44appointed under section 27 of the Police Act 1996 ,

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

(iii)^M45in 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)^M46,M47a 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)^M48a 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)^M49an 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._I77

77.—(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 78 (seizure power), 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_I78

78.—(1) This regulation applies if a maritime enforcement officer is lawfully on a relevant ship (whether in exercise of the powers conferred by regulation 77 (power to stop, board, search etc.) 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 77(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_I79

79.—(1) The authority of the Secretary of State is required before any maritime enforcement power is exercised in reliance on regulation 75 (exercise of maritime enforcement powers) 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 75(2) or (3),

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

(c)^M50the 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 11_I80

80.—(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 75(2)(a) to (g) (exercise of maritime enforcement powers).

PART 12 Supplementary and final provision

Notices_I81

81.—(1) This regulation applies in relation to a notice required by regulation 51 (licences: general provisions) to be given to a person.

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

(a)by delivering it to the individual,

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

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

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

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

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

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

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

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

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

(6) In this regulation—

• “proper officer”—

  (a)

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

  (b)

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

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

Article 20 of the Export Control Order 2008_I82

82. 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_I83

83. 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)^M51article 34, 35, 37 or 38 of that Order , and

(b)any provision of Part 5 (Trade) or regulation 37 (bunkering or ship supply services), regulation 53 (trade: licensing offences), 62(6) or 63(5) (information offences in connection with general trade licences).

Amendment of the United Nations and European Union Financial Sanctions (Linking) Regulations 2017_I84

^M5284. In the Schedule to the United Nations and European Union Financial Sanctions (Linking) Regulations 2017 , omit the following row from the table—

Revocations_I85

85.—(1) Council Regulation (EU) 2016/44 of 18 January 2016 concerning restrictive measures in view of the situation in Libya and repealing Regulation (EU) No 204/2011 is revoked.

^M53(2) The Libya (European Union Financial Sanctions) Regulations 2016 are revoked.

^M54(3) The Libya (Financial Sanctions) Order 2011 is revoked.

^M55(4) The Export Control (Libya Sanctions) Order 2016 is revoked.

Transitional provision: Treasury licences_I86

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

(a)was granted, or deemed to be granted, by the Treasury under—

(i)article 9 of the 2011 Order, or

(ii)regulation 9 of the 2016 Regulations, and

(b)was in effect immediately before IP completion day, and

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

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

(2) An existing financial sanctions licence which authorises an act which would otherwise be prohibited has effect on and after IP completion day as if it had been issued by the Treasury under regulation 48(1) (Treasury licences).

(3) Any reference in an existing financial sanctions licence to—

(a)the 2011 Order,

(b)the 2016 Regulations ,or

(c)the EU Libya Regulation,

is to be treated on and after IP completion day as a reference to these Regulations.

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

(a)the 2011 Order,

(b)the 2016 Regulations,

(c)the EU Libya Regulation, or

(d)^M56Council Regulation (EU) No 204/2011 ,

is to be treated on and after IP completion day as a reference to the corresponding prohibition in Part 3 (Finance).

(5) Paragraph (6) applies where—

(a)an application for a licence, or for the variation of a licence, under the 2011 Order or 2016 Regulations was made before IP completion day,

(b)the application is for the authorisation of conduct which would (on and after IP completion day) 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 IP completion day as an application for a licence, or for the variation of a licence (as the case may be), under regulation 48(1).

(7) In this regulation—

“ the 2011 Order ” means the Libya (Financial Sanctions) Order 2011 ;

“ the 2016 Regulations ” means the Libya (European Union Financial Sanctions) Regulations 2016 .

Transitional provision: trade licences_I87

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

(a)was in effect immediately before IP completion day, 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), and

(ii)which would (on and after IP completion day, 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 IP completion day under regulation 49 (trade licences)—

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

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

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

(a)was in effect immediately before IP completion day,

(b)is not an existing trade licence, and

(c)authorises an act—

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

(ii)which would (on and after IP completion day, and in the absence of paragraphs (4) to (6)) be prohibited by Part 5,

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 IP completion day as if it were a licence which had been issued by the Secretary of State under regulation 49.

(5) Any reference in an existing trade sanctions licence to a provision of the Export Control (Libya Sanctions) Order 2016 or the Export Control Order 2008 is to be treated on and after IP completion day 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 Libya Regulation is to be treated on and after IP completion day as a reference to the corresponding prohibition in Part 5.

Transitional provision: pending applications for trade licences_I88

88.—(1) Paragraph (2) applies where—

(a)an application was made before IP completion day for a licence or authorisation under or pursuant to the Export Control Order 2008,

(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 IP completion day.

(2) The application is to be treated on and after IP completion day as including an application for a licence under regulation 49 (trade licences).

(3) Paragraph (4) applies where—

(a)an application was made before IP completion day for a licence or authorisation under the Export Control (Libya Sanctions) Order 2016 or the EU Libya Regulation,

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

(c)a decision to grant or refuse the application has not been made before IP completion day.

(4) The application is to be treated on and after IP completion day as an application for a licence under regulation 49.

Transitional provision: prior obligations etc._I89

89.—(1) Where—

(a)a person was named in Annex II, III or VI of the EU Libya Regulation immediately before IP completion day, and

(b)the person is a designated person immediately before IP completion day,

any reference in a provision mentioned in paragraph (3) to the date on which a person became a designated person is to be read as a reference to the original listing date.

(2) Where, immediately before IP completion day, a person was named for the purposes of paragraph 17 of resolution 1970 by the Security Council or the Committee, the reference in each of the provisions mentioned in paragraph (3) to the date on which a person became a designated person is a reference to the date on which the person was so named.

(3) The provisions referred to in paragraphs (1) and (2) are—

(a)regulation 19(4)(b) (partial asset-freeze prohibition in relation to making funds available to designated persons),

(b)^F52regulation 43(5) (finance: exceptions from prohibitions), ...

[^F53 (ba)regulation 43ZB (finance: exceptions relating to payment of Treasury debt), and^F53]

(c)paragraphs [^F5411(a), 11A(b)(i)^F54] and 12(a) of Schedule 4 (Treasury licences: purposes).

(4) In this regulation—

“ designated person ” means a designated person within the meaning of regulation 11 or 17;

“ original listing date ” means—