Part 1 General

Citation, commencement and extent

1.—(1) These Regulations may be cited as the Global Irregular Migration and Trafficking in Persons Sanctions Regulations 2025.

(2) These Regulations come into force on 23rd July 2025.

(3) These Regulations extend to England and Wales, Scotland and Northern Ireland.

Interpretation

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 (rules for interpretation of regulation 9(2) ) for the meaning of “arrangement” in that Schedule);

“ conduct ” includes acts and omissions;

“ director disqualification licence ” means a licence under regulation 27 (director disqualification licences) ;

“ 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;

“ Treasury licence ” means a licence under regulation 26(1) (Treasury licences) ;

“ United Kingdom person ” has the same meaning as in section 21 of the Act (extra-territorial application).

Application of prohibitions and requirements outside the United Kingdom

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

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

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

(a)regulation 12(2) (confidential information),

(b)Part 3 (finance), or

(c)a condition of a Treasury 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 7 (information and records), or by reason of a request made under a power conferred by that Part, or

(b)by a condition of a Treasury licence.

(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

4.—(1) The purposes of the regulations contained in this instrument are to prevent and combat—

(a)people smuggling;

(b)trafficking in persons;

(c)the instrumentalisation of migration for the purpose of destabilisation.

(2) In paragraph (1)—

“ instrumentalisation of migration for the purpose of destabilisation ” occurs where the government of a country (“ X ”), or other person who is in control of X or is otherwise responsible for administering the affairs of X, or a group backed by the government or a person who is in control of X, facilitates, encourages or assists (in each case whether by an act or omission)—

for the purpose of causing the destabilisation of any country other than X;

“ people smuggling ” occurs where a person facilitates (whether by an act or omission) with a view to obtaining (directly or indirectly) any gain or benefit—

a country of an individual who is not a national of that country or permanently resident in it;

“ trafficking in persons ” involves the undertaking (whether by an act or omission) by a person (“ B ”) of one or more of the types of conduct specified in paragraph (3), subject to the condition set out in paragraph (4).

(3) The types of conduct specified in this paragraph are the—

(a)recruitment,

(b)transportation,

(c)transfer,

(d)harbouring, or

(e)receipt,

of any individual (“ A ”) by B.

(4) The condition in this paragraph is that the conduct specified in paragraph (3) is undertaken—

(a)for the purpose of exploitation of A, and

(b)using—

(i)coercive means, or

(ii)where A has not yet reached the age of 18, any means.

(5) For the purpose of paragraph (4)(b), the identity of the person who uses the means is irrelevant.

(6) For the purpose of the definition of “trafficking in persons” in paragraph (2), any consent purportedly given by A to—

(a)A’s recruitment, transportation, transfer, harbouring or receipt, or

(b)the exploitation which is the purpose of A’s recruitment, transportation, transfer, harbouring or receipt,

is irrelevant.

(7) A is not to be treated as having been trafficked under the definition of “trafficking in persons” in paragraph (2) if—

(a)A has not yet reached the age of 18,

(b)no coercive means are used, and

(c)either of the conditions in paragraph (8) applies.

(8) These are the conditions referred to in paragraph (7)—

(a)the condition in this sub-paragraph is that—

(i) A consents to the removal of an organ (see definition of “exploitation” in paragraph (9)), or

(ii)if A is not able to give such consent, A’s parent, guardian or, if A is in the care of an organisation, a person representing that organisation consent;

(b)the condition in this sub-paragraph is that—

(i) A consents to being used to provide services of any kind (see definition of “exploitation” in paragraph (9)) regardless of whether A is rewarded for that use or not, and

(ii)a reasonable individual aged 18 or over would not consider that A being used for that purpose amounted to exploitation.

(9) In this regulation—

“ coercive means ” means—

“ exploitation ” includes—

“ unlawful arrival in a country ” occurs where an individual commits, including by fraud or other deception, a breach or attempted breach of a law which has effect in any country and which controls, in respect of some or all individuals who are not nationals of the country or permanently resident in it, entitlement to arrive in that country;

“ unlawful entry into a country ” occurs where an individual commits, including by fraud or other deception, a breach or attempted breach of a law which has effect in any country and which controls, in respect of some or all individuals who are not nationals of the country or permanently resident in it, entitlement to enter into that country;

“ unlawful stay in a country ” occurs where an individual commits, including by fraud or other deception, a breach or attempted breach of a law which has effect in any country and which controls, in respect of some or all individuals who are not nationals of the country or permanently resident in it, entitlement to remain in that country.

(10) For the purpose of paragraph (8), a person specified in paragraph (11) may only give consent if it is reasonable to do so having regard to all the circumstances of the case.

(11) The persons specified in this paragraph are—

(a)A,

(b)A’s parent or guardian, or

(c)if A is in the care of an organisation, a person representing that organisation.

Part 2 Designation of persons

Power to designate persons

5.—(1) The Secretary of State may designate persons(3) by name in accordance with regulation 6 (conditions for the designation of persons by name) for the purposes of any of the following—

(a)regulations 14 to 18 (asset freeze etc.);

(b)regulation 20 (director disqualification sanctions);

(c)regulation 21 (immigration sanctions).

(2) The Secretary of State may provide that persons of a description specified by the Secretary of State are designated persons in accordance with regulation 7 (conditions for the designation of persons by description) for the purposes of any of the following—

(a)regulations 14 to 18;

(b)regulation 20;

(c)regulation 21.

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

(4) For the purposes of these Regulations, persons “ designated under regulation 5 ” for the purposes of a particular regulation means—

(a)persons who are designated by name under paragraph (1) for the purposes of that particular regulation, and

(b)where the Secretary of State makes provision under paragraph (2) that persons of a specified description are designated persons for the purposes of that regulation, persons of that description.

Conditions for the designation of persons by name

6.—(1) The Secretary of State may choose whether to designate a person under regulation 5(1) (power to designate persons by name) 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(1) 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 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) A 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 8 (designation conditions: meaning of “involved person”).

Conditions for the designation of persons by description

7.—(1) The Secretary of State may choose whether to designate persons under regulation 5(2) (power to designate persons by description) under—

(a)the standard procedure, or

(b)the urgent procedure.

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

(3) The Secretary of State may not designate persons except where conditions A and C are met.

(4) Condition A is that the description of persons specified is such that a reasonable person would know whether that person fell within it.

(5) Condition C is that the Secretary of State has reasonable grounds to suspect—

(a)in a case where the specified description is members of a particular organisation that the organisation is an involved person, or

(b)in the case of any other specified description that any person falling within that description would necessarily be an involved person.

(6) Paragraphs (7) to (9) apply where the Secretary of State chooses to designate persons under the urgent procedure.

(7) The Secretary of State may designate persons where condition C is not met but conditions A, D and E are met.

(8) The persons of the specified description cease to be designated persons at the end of the period of 56 days beginning with the day following the day on which the persons became designated persons unless, within that period, the Secretary of State certifies that—

(a)conditions A and C are met, or

(b)conditions A, D and E continue to be met.

(9) Where the Secretary of State makes a certification under paragraph (8)(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 (8) unless, within that period, the Secretary of State certifies that conditions A and C are met.

(10) Condition D is that the description of persons specified is of persons (or some persons) to which, or in relation to which, relevant provision (whenever made) applies under the law of—

(a)the United States of America;

(b)the European Union;

(c)Australia;

(d)Canada.

(11) Condition E is that the Secretary of State considers that it is in the public interest to designate persons under the urgent procedure.

(12) For the purpose of condition D, “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 purposes of any type of sanction or sanctions in these Regulations.

(13) In this regulation—

“ involved person ” has the meaning given in regulation 8 (designation conditions: meaning of “involved person”);

“ organisation ” includes any body, association or combination of persons.

Designation conditions: meaning of “involved person”

8. —(1) For the purposes of regulations 6(4) (conditions for the designation of persons by name) and 7(5) (conditions for the designation of persons by description), an “ involved person ” means a person who—

(a)is or has been involved in a relevant activity,

(b)is owned or controlled directly or indirectly (within the meaning of regulation 9) 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.

(2) For the purposes of this regulation a person is involved in a relevant activity if—

(a)the person is responsible for or engages in (or takes any action with the intention of engaging in) such an activity;

(b)the person facilitates, incites, promotes or provides support for (or takes any action with the intention of facilitating, inciting, promoting or providing support for) such an activity;

(c)the person profits (or takes any action with the intention of profiting) financially or obtains (or takes any action with the intention of obtaining) any other benefit from such an activity;

(d)the person—

(i) receives, whether in whole or in part, funds, economic resources, goods, technology or services in relation to relevant criminality or which, whether in whole or in part, constitute payment for the people smuggling of a person (“ A ”) (or their value or any representation of their value) by any means, or

(ii)transfers, whether in whole or in part, (or takes any action with the intention of transferring) those funds, economic resources, goods, technology or services (or their value or any representation of their value) by any means;

(e)the person conceals or disguises (or takes any action with the intention of concealing or disguising), or facilitates (or takes any action with the intention of facilitating) the concealment or disguise of—

(i)such an activity, or

(ii)any profit or proceeds from such an activity;

(f)the person transfers or converts (or takes any action with the intention of transferring or converting), or facilitates (or takes any action with the intention of facilitating) the transfer or conversion of, any profit or proceeds from such an activity;

(g)the person provides (or takes any action with the intention of providing) financial services, or makes available (or takes any action with the intention of making available) funds, economic resources, goods or technology, that could contribute to such an activity, or provides financial services relating to such making available;

(h)the person provides (or takes any action with the intention of providing) financial services, or makes available (or takes any action with the intention of making available) funds, economic resources, goods or technology, to a person whose conduct falls within sub-paragraph (a) or (b);

(i)the person is involved in (or takes any action with the intention of being involved in) any other action, policy, activity or conduct which promotes, enables or facilitates (or is intended to promote, enable or facilitate) such an activity;

(j)the person is responsible for the investigation or prosecution of such an activity and intentionally or recklessly fails to fulfil that responsibility;

(k)the person uses (or takes any action with the intention of using) threats, intimidation or physical force to interfere, or otherwise interferes (or takes any action with the intention of interfering), in any law enforcement or judicial process in connection with such an activity;

(l)the person contravenes or circumvents (or takes any action with the intention of contravening or circumventing), or is involved in (or takes any action with the intention of being involved in) assisting the contravention or circumvention of, any relevant provision.

(3) For the purpose of paragraph (2)(d)—

(a)it is immaterial whether—

(i)the person or A are or have been otherwise involved in relevant activity, or

(ii)the funds, economic resources, goods, technology or services which—

(aa)the person receives as payment for the people-smuggling of A, or

(bb)including their value or any representation of their value, are then transferred by the person or any other person or received by any other person,

are from A or from any other person;

(b) “ transfers ” includes transmission by any means and making available by any means.

(4) In this regulation—

“ criminal activities ” are activities that—

“ people smuggling ” has the same meaning as in regulation 4(2) (purposes);

“ relevant activity ” means any activity falling within regulation 4(1) or any relevant criminality;

“ relevant criminality ” means any criminal activities which facilitate, promote or provide support for (or are intended to facilitate, promote or provide support for) any activity falling within regulation 4(1);

“ relevant provision ” means—

(5) Nothing in any sub-paragraph of paragraph (2) is to be taken to limit the meaning of any of the other sub-paragraphs of that paragraph.

(6) Any reference in this regulation to being involved in an activity includes being so involved wherever any actions constituting the involvement take place.

Meaning of “owned or controlled directly or indirectly”

9. —(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 power to designate by name is used

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

(a)has made a designation under regulation 5(1) (power to designate persons by name), or

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

(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, or

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

(i)that the provision 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.

(4) 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 6 (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.

(5) In this regulation a “ statement of reasons ”, in relation to a designation, means a brief statement of the matters that the Secretary of State knows, or has reasonable grounds to suspect, in relation to that 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 6(7) or (8) (as the case may be).

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

Notification and publicity where power to designate by description is used

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

(a)has provided that persons of a specified description are designated persons under regulation 5(2) (power to designate persons by specified description), or

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

(2) The Secretary of State—

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

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

(3) The information given under paragraph (2)(a)—

(a)where the Secretary of State provides that persons of a specified description are designated persons under the standard procedure, must include a statement of reasons, or

(b)where the Secretary of State provides that persons of a specified description are designated persons under the urgent procedure, must include a statement—

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

(ii)identifying the relevant provision by reference to which the Secretary of State considers that condition D is met in relation to persons of the specified description, and

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

(4) Where the Secretary of State provides that persons of a specified description are designated persons under the urgent procedure, the Secretary of State must, after the end of the period mentioned in paragraph (8) of regulation 7 (conditions for the designation of persons by description), or if the Secretary of State has made a certification under paragraph (8)(b) of that regulation the period mentioned in paragraph (9) of that regulation, but otherwise without delay—

(a)in a case where the persons cease to be designated persons, take such steps as are reasonably practicable to inform persons of the specified description that they have ceased to be designated persons, or

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

(5) In this regulation, a “ statement of reasons ”, in relation to a provision designating persons of a specified description, means a brief statement of the matters that the Secretary of State knows, or has reasonable cause to suspect, in relation to persons of the specified description—

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

(b)in the case of a designation under the urgent procedure, as a result of which the persons do not cease to be designated persons at the end of the period mentioned in regulation 7(8) or (9) (as the case may be).

(6) Matters that would otherwise be required by paragraph (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 relating to it;

(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) 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)that 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 persons of the specified description 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

12.—(1) Where the Secretary of State in accordance with regulation 10(7)(b) (notification and publicity where power to designate by name is used) or regulation 11(7)(b) (notification and publicity where power to designate by description is used) informs only certain persons of a designation, variation or revocation and (in the case of a designation) of the contents of the statement of reasons, the Secretary of State may specify that any of that information is to be treated as confidential.

(2) A person (“ P ”) who—

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

(b)otherwise obtains such information,

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

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

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

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

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

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

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

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

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

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

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

(b)the Secretary of State,

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

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

Part 3 Finance

Meaning of “designated person” in Part 3

13. In this Part a “ designated person ” means a person who is designated under regulation 5 (power to designate persons) for the purposes of regulations 14 to 18 (asset freeze etc.).

Asset-freeze in relation to designated persons

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

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

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

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

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

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

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

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

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

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

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

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

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

(7) For the purposes of paragraph (1), funds or economic resources are to be treated as owned, held or controlled by a designated person if they are owned, held or controlled by a person who is owned or controlled directly or indirectly (within the meaning of regulation 9) 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

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

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

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

(4) The reference in paragraph (1) to making funds available indirectly to a designated person includes, in particular, a reference to making them available to a person who is owned or controlled directly or indirectly (within the meaning of regulation 9) by the designated person.

Making funds available for benefit of designated persons

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

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

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

(4) 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 9) by the designated person (and references to designated person in paragraph (5) are to be read accordingly).

(5) 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

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

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

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

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

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

(4) The reference in paragraph (1) to making economic resources available indirectly to a designated person includes, in particular, a reference to making them available to a person who is owned or controlled directly or indirectly (within the meaning of regulation 9) by the designated person.

Making economic resources available for benefit of designated persons

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

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

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

(4) 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 9) by the designated person (and references to designated person in paragraph (5) are to be read accordingly).

(5) 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.

Circumventing etc. prohibitions

19.—(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 14 to 18 (asset freeze etc.), or

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

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

Part 4 Director disqualification sanctions

Director disqualification sanctions

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

(a)section 11A of the Company Directors Disqualification Act 1986(4), and

(b)Article 15A of the Company Directors Disqualification (Northern Ireland) Order 2002(5).

Part 5 Immigration

Immigration sanctions

21. 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 (persons excluded from the United Kingdom under certain instruments)(6).

Part 6 Exceptions and Licences

Finance: exceptions from prohibitions

22. —(1) The prohibition in regulation 14 (asset-freeze in relation to designated persons) is not contravened by an independent person (“ P ”) transferring to another person a legal or equitable interest in funds or economic resources where, immediately before the transfer, the interest—

(a)is held by P, and

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

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

(a)is not the designated person, and

(b)is not owned or controlled directly or indirectly (within the meaning of regulation 9) by the designated person.

(3) The prohibitions in regulations 14 to 16 (asset-freeze in relation to, and making funds available to, or for the benefit of, designated persons) are not contravened by a relevant institution crediting a frozen account with interest or other earnings due on the account.

(4) The prohibitions in regulations 15 and 16 (making funds available to, or for the benefit of, designated persons) are not contravened by a relevant institution crediting a frozen account where it receives funds transferred to that institution for crediting to that account.

(5) The prohibitions in regulations 15 and 16 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 14 to 16 are not contravened in relation to a designated person (“ P ”) by a transfer of funds from account A to account B, where—

(a)account A is with a relevant institution which carries on an excluded activity within the meaning of section 142D of the Financial Services and Markets Act 2000 (excluded activities)(7),

(b) account B is with a ring-fenced body within the meaning of section 142A of the Financial Services and Markets Act 2000 (“ring-fenced body”)( 8 ), and

(c)accounts A and B are held or controlled (directly or indirectly) by P.

(7) In this regulation—

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

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

“ relevant institution ” means a person that has permission under Part 4A of the Financial Services and Markets Act 2000 (permission to carry on regulated activities) ( 9 ).

(8) The definition of “relevant institution” in paragraph (7) is to be read with section 22 of the Financial Services and Markets Act 2000 (regulated activities) ( 10 ), any relevant order under that section( 11 ) and Schedule 2 to that Act (regulated activities)( 12 ).

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

Finance: exception from prohibitions for required payments

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

(2) A required payment is a payment which—

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

(i)the registrar of companies,

(ii)the Commissioners for His Majesty’s Revenue and Customs,

(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 14 (asset-freeze in relation to designated persons) and 16 (making funds available for benefit of designated persons) are not contravened by a person making a required payment.

(4) Where a required payment is made by a person other than a designated person, the prohibition in regulation 14 is not contravened by the designated person making a reimbursement payment to that person.

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

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

(a)a payment to the Financial Conduct Authority of a levy imposed by the scheme manager of the Financial Services Compensation Scheme by virtue of section 213 of the Financial Services and Markets Act 2000 (the compensation scheme)(13);

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

(7) For the purposes of this regulation, references to a designated person are to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 9) 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 (entitlement to vote in ballot) ( 14 );

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

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

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

“ excluded payment ” means, in relation to—

Finance: exception for authorised conduct in a relevant country

24. —(1) Where a person's conduct in a relevant country would, in the absence of this regulation, contravene a prohibition in any of regulations 14 to 18 (asset-freeze etc.) (“the relevant prohibition”), the relevant prohibition is not contravened if the conduct is authorised by a licence or other authorisation which is issued—

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

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

(2) In this regulation, “ relevant country ” means—

(a)any of the Channel Islands;

(b)the Isle of Man;

(c)any British overseas territory.

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

25.—(1) Where an act would, in the absence of this paragraph, be prohibited by regulation 12(2) (confidentiality) or any prohibition in Part 3 (finance), that prohibition does not apply to the act if the act is one which a responsible officer has determined would be in the interest of—

(a)national security, or

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

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

(a)national security, or

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

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

Treasury licences

26.—(1) The prohibitions in regulations 14 to 18 (asset freeze etc.) do not apply to anything done under the authority of a licence issued by the Treasury under this paragraph.

(2) The Treasury may issue a licence which authorises acts by a particular person only where the Treasury consider that it is appropriate to issue the licence for a purpose set out in Schedule 2 (Treasury licences: purposes).

Director disqualification licences

27. The Secretary of State may issue a licence in relation to any person who is designated under regulation 5 (designation of persons) for the purposes of regulation 20 (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.

Licences: general provisions

28.—(1) This regulation applies in relation to Treasury licences and director disqualification 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, on the application of a person (“ P ”), issues a licence which authorises acts by a particular person, or varies, revokes of suspends that licence, must give written notice to P 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.

Notices

29.—(1) This regulation applies in relation to a notice required by regulation 28(6) (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 ”—

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

Finance: licensing offences

30. —(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.

Director disqualification: licensing offences

31. —(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 purposes 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.

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

32.—(1) The Secretary of State may direct that, in relation to any person within regulation 21 (immigration sanctions) whose name is specified, or who is of a specified description, section 8B(1) and (2) of the Immigration Act 1971 (persons excluded from the United Kingdom under certain instruments), or section 8B(3) of that Act, have effect subject to specified exceptions.

(2) A direction under this regulation—

(a)may contain conditions;

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

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

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

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

Part 7 Information and records

Finance: reporting obligations

33.—(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 breached a prohibition or failed to comply with an obligation under any provision of Part 3 (finance) or regulation 30 (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.

(5) 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.

(6) Where a report has been provided further to paragraph (5) 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.

(7) For the purposes of paragraphs (5) and (6), 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 9) by the designated person.

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

(a)credits a frozen account in accordance with regulation 22(4) (finance: exceptions from prohibitions), or

(b)transfers funds from a frozen account in accordance with regulation 22(6).

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

(10) A person commits an offence if that person, without reasonable excuse, fails to comply with a requirement in paragraph (5) or (6).

(11) In this regulation—

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

“ frozen account ” has the same meaning as it has in regulation 22;

“ relevant firm ” is to be read in accordance with regulation 35;

“ relevant institution ” has the same meaning as it has in regulation 22.

Finance: reporting obligations for required payments

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

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

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

(4) For the purposes of this regulation, references to a designated person are to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 9) by the designated person.

(5) In this regulation—

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

“ reimbursement payment ” has the meaning given in regulation 23(8) (finance: exception from prohibitions for required payments) ;

“ required payment ” has the meaning given in regulation 23(2).

“Relevant firm”

35.—(1) The following are relevant firms for the purposes of regulation 33 (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)a statutory auditor within the meaning of Part 42 of the Companies Act 2006 (statutory auditors)(32), or

(ii)a local auditor within the meaning of section 4(1) of the Local Audit and Accountability Act 2014 (general requirements for audit)(33);

(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 service within the meaning of paragraph (2);

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

(f)the holder of a casino operating licence within the meaning given by section 65(2)(a) of the Gambling Act 2005 (nature of licence)(34);

(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.

(h)a cryptoasset exchange provider;

(i)a custodian wallet provider;

(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.

(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)—

“ estate agency work ” is to be read in accordance with section 1 of the Estate Agents Act 1979 (estate agency work) ( 35 ), 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 (interests in land) ) 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.

(4) 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.

(5) 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.

(6) For the purposes of this regulation—

(a) “ cryptoassets ” 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 (4), “ cryptoasset ” includes a right to, or interest in, the cryptoasset.

(7) 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.

(8) In paragraph (1), an “ art market participant ” means, subject to paragraph (9), a firm or sole practitioner that is registered or required to register with the Commissioners for His Majesty's Revenue and Customs 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 (requirement to be registered)( 36 ).

(9) A firm or sole practitioner is not an art market participant for the purposes of paragraph (8) 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.

(10) 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) ( 37 ), is a work of art for the purposes of section 21(5)(a) of that Act .

(11) 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 (meaning of “ act as insolvency practitioner ”)( 38 ) or Article 3 of the Insolvency (Northern Ireland) Order 1989 (“act as insolvency practitioner”)( 39 ).

(12) 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.

(13) For the purposes of paragraph (12)—

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

“ letting agency work ” does not include the things listed in paragraph (14) 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 (12).

(14) 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.

(15) Paragraphs (1)(a) and (b) are to be read with section 22 of the Financial Services and Markets Act 2000 (regulated activities), any relevant order under that section and Schedule 2 to that Act (regulated activities).

(16) For the purposes of regulation 33(1) (finance: reporting obligations) , 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)in 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)(40);

(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;

(e)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;

(f)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

36.—(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—

(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 33 (finance: reporting obligations), or

(iii)any condition of a Treasury licence;

(c)detecting or obtaining evidence of the commission of an offence under Part 3 or regulation 30 (finance: licensing offences) or 33.

(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

37.—(1) A request under regulation 36 (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 ” has the same meaning as it has in Part 3 (finance).

Finance: information offences

38.—(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 36 (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 36 or 37 (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 36 or 37.

(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.

Disclosure of information

39.—(1) The Secretary of State or the Treasury may, in accordance with this regulation, disclose—

(a)any information obtained under or by virtue of Part 6 (exceptions and licences) or this Part, or

(b)any information held in connection with—

(i)anything done under or by virtue of Part 2 (designation of persons), Part 3 (finance) or Part 4 (director disqualification sanctions), or

(ii)any exception or licence under Part 6 or anything done in accordance with such an exception or under the authority of such a licence.

(2) Information referred to in paragraph (1) may be disclosed for, or in connection with, any of the following purposes—

(a)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, or

(ii)in relation to a monetary penalty under section 146 of the Policing and Crime Act 2017 (breach of financial sanctions legislation)(41);

(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 under a provision in any such jurisdiction that is similar to a provision of these Regulations;

(f)compliance with an international obligation(42);

(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 or the Treasury (as the case may be) consider that it is appropriate to disclose the information.

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

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

(6) In paragraph (1)(b) the reference to information includes information obtained at a time when any provision of these Regulations is not in force.

Finance: disclosure to the Treasury

40.—(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 any sanctions regulations(43) contained in these Regulations.

(2) In this regulation—

“ relevant public authority ” means—

“ local authority ” means—

Part 7: supplementary

41.—(1) A disclosure of information under regulation 39 (disclosure of information) or 40 (finance: disclosure to the Treasury) does not breach any restriction on such disclosure imposed by statute or otherwise.

(2) But nothing in those regulations authorises a disclosure that—

(a)contravenes the data protection legislation, or

(b)is prohibited by any of Parts 1 to 7 or Chapter 1 of Part 9 of the Investigatory Powers Act 2016(46).

(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) Regulations 39 and 40 do not limit the circumstances in which information may be disclosed apart from those regulations.

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

(6) In this regulation—

“ the data protection legislation ” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act (terms relating to the processing of personal data) )( 47 );

“ privileged information ” means information with respect to which a claim to legal professional privilege (in Scotland, to confidentiality of communications) could be maintained in legal proceedings.

Part 8 Enforcement

Penalties for offences

42.—(1) A person who commits an offence under any provision of Part 3 (finance) or regulation 30 (finance: licensing offences) is liable—

(a)on summary conviction in England and Wales, to imprisonment for a term not exceeding the general limit in a magistrates’ court 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 regulation 12(6) (confidentiality) or 31 (director disqualification: licensing offences) is liable—

(a)on summary conviction in England and Wales, to imprisonment for a term not exceeding the general limit in a magistrates’ court 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).

(3) A person who commits an offence under regulation 33(9) or (10) (finance: reporting obligations) or 38 (finance: information offences) 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).

Liability of officers of bodies corporate etc.

43.—(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.

Jurisdiction to try offences

44.—(1) Wherever an offence under these Regulations is committed (whether in the United Kingdom or 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.

(2) In the application of paragraph (1) to Scotland, where an offence is committed outside the United Kingdom 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.

(3) In paragraph (2) “ sheriff court district ” is to be read in accordance with the Criminal Procedure (Scotland) Act 1995 (see section 307(1) of that Act (interpretation) )( 48 ).

Procedure for offences by unincorporated bodies

45.—(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)section 33 of the Criminal Justice Act 1925 (procedure on charge of offence against corporation)(49) and Schedule 3 to the Magistrates’ Courts Act 1980 (corporations)(50);

(ii)section 18 of the Criminal Justice Act (Northern Ireland) 1945 (procedure on charge)(51) and Article 166 of, and Schedule 4 to, the Magistrates' Courts (Northern Ireland) Order 1981 (corporations)(52).

(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

46.—(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 (time limit for certain offences) 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.

Application of Chapter 1 of Part 2 of the Serious Organised Crime and Police Act 2005

47. Chapter 1 of Part 2 of the Serious Organised Crime and Police Act 2005 (investigatory powers of DPP, etc.)(53) applies to any offence under Part 3 (finance) or regulation 30 (finance: licensing offences).

Schedules

Regulation 9(3)

Schedule 1 Rules for interpretation of regulation 9(2)

Application of Schedule

1.—(1) The rules set out in the following paragraphs of this Schedule apply for the purpose of interpreting regulation 9(2).

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

Joint interests

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

Joint arrangements

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

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

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

Calculating shareholdings

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

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

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

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

Voting rights

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

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

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

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

6. In applying regulation 9(2) and this Schedule, the voting rights in a person are to be reduced by any rights held by the person itself.

Rights to appoint or remove members of the board

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

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

Shares or rights held “indirectly”

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

(a)holds the share in question, or

(b)is part of a chain of persons—

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

(ii)the last of whom holds the share.

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

(a)holds that right, or

(b)is part of a chain of persons—

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

(ii)the last of whom holds that right.

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

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

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

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

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

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

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

(b)the directorship is held by A itself.

Shares held by nominees

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

Rights treated as held by person who controls their exercise

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

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

(a)by that person,

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

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

12. “ Arrangement ” includes—

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

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

Rights exercisable only in certain circumstances etc.

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

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

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

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

(3) “ Relevant insolvency proceedings ” means—

(a)administration within the meaning of the Insolvency Act 1986(54),

(b)administration within the meaning of the Insolvency (Northern Ireland) Order 1989(55), or

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

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

Rights attached to shares held by way of security

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

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

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

Regulation 26(2)

Schedule 2 Treasury licences: purposes

Interpretation

1.—(1) In this Schedule—

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

“ frozen account ” has the meaning given in regulation 22(7) (finance: exceptions from prohibitions) ;

“ frozen funds or economic resources ” means funds or economic resources frozen by virtue of regulation 14 (asset-freeze in relation to designated persons) , and any reference to a person's frozen funds or economic resources is to funds or economic resources frozen as a consequence of the designation of that person for the purpose of that regulation.

(2) For the purposes of this Schedule, references to a designated person are to be read as including a person (“ C ”) who is owned or controlled directly or indirectly (within the meaning of regulation 9) by the designated person (“ P ”).

(3) When determining for the purposes of paragraph 8 when C became a designated person, C is to be treated as having become a designated person at the same time as P.

Basic needs

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

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

(a)medical needs;

(b)needs for—

(i)food;

(ii)payment of insurance premiums;

(iii)payment of tax;

(iv)rent or mortgage payments;

(v)utility payments.

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

(a)payment of insurance premiums;

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

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

(d)payment of tax;

(e)rent or mortgage payments;

(f)utility payments.

(4) In sub-paragraph (1)—

“ dependent ” means financially dependent;

“ family member ” includes—

Legal services

3. To enable the payment of—

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

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

Maintenance of frozen funds and economic resources

4. To enable the payment of—

(a)reasonable fees, or

(b)reasonable service charges,

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

Extraordinary expenses

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

Judicial decisions etc.

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

(a)where funds or economic resources are made available to a designated person, they are credited to a frozen account or otherwise frozen by virtue of regulation 14 (asset-freeze in relation to designated persons);

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

Extraordinary situation

7. To enable anything to be done to deal with an extraordinary situation.

Prior obligations

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

(a)the obligation arose before the date on which the person became a designated person, and

(b)no payments are made to another designated person, whether directly or indirectly.

Diplomatic missions etc.

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

(2) In this paragraph—

“ consular post ” has the same meaning as in the Vienna Convention on Consular Relations done at Vienna on 24 April 1963( 56 ), and any reference to the functions of a consular post is to be read in accordance with that Convention;

“ diplomatic mission ” and any reference to the functions of a diplomatic mission are to be read in accordance with the Vienna Convention on Diplomatic Relations done at Vienna on 18 April 1961( 57 ).

Humanitarian assistance activity

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

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

Insolvency

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

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

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

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

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

(2) In this paragraph—

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

“ insolvency and restructuring proceedings ” includes—

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

“ other relevant proceedings ” means—

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

Designated money service businesses

12.—(1) To enable a registered money service business which is a designated person to make a repayment, provided that—

(a)no payments are made to a designated person, whether directly or indirectly,

(b)the original payment did not contravene the prohibitions in regulations 14 to 18 (asset freeze etc.), and

(c)the repayment would not be contrary to the interests of the prevention or detection of serious crime in the United Kingdom or elsewhere.

(2) In sub-paragraph (1)—-

“ money service business ” has the same meaning as it has in regulation 3 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (general interpretation) ( 74 );

“ original payment ” means a payment from a person who is not a designated person (“ P ”) to the registered money service business which was made before the registered money service business became a designated person;

“ registered money service business ” means a money service business included in a register provided for by regulation 54 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (duty to maintain registers of certain relevant persons) ( 75 );

“ repayment ” means a payment from the registered money service business to P which is of the same amount as the original payment.