Part 6U.K.Exceptions and licences

Finance: exceptions from prohibitionsU.K.

27.—(1) The prohibition in regulation 8 (asset-freeze in relation to designated persons) and 25 (asset-freeze in relation to Usama bin Laden) is not contravened by an independent person (“P”) transferring to another person a legal or equitable interest in funds or economic resources where, immediately before the transfer, the interest—

(a)is held by P, and

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

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

(a)is not the designated person, and

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

(3) The prohibitions in regulations 8 to 10 (asset-freeze in relation to, and making funds available to, or for the benefit of, designated persons) and 25 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 9 and 10 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 9 and 10 are not contravened by a person transferring 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 8 to 10 and 25 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 M1,

(b)account B is with a ring-fenced body within the meaning of section 142A of the Financial Services and Markets Act 2000 M2, and

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

(7) The prohibition in [F1regulation 10] is not contravened by the making of a payment which—

(a)is a benefit under or by virtue of an enactment relating to social security (irrespective of the name or nature of the benefit), and

(b)is made to a person who is not a designated person,

whether or not the payment is made in respect of a designated person.

(8) 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 M3 (permission to carry on regulated activity).

(9) The definition of “relevant institution” in paragraph 7 is to be read with section 22 of the Financial Services and Markets Act 2000 M4, any relevant order under that section M5 and Schedule 2 to that Act M6.

[F2Finance: humanitarian exceptionU.K.

27ZA.—(1) The prohibitions in regulations 8 to 12 (asset-freeze etc.) are not contravened by a person (“P”) carrying out a relevant activity which is necessary—

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

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

where Conditions A and B are met.

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

(a)the United Nations, including its—

(i)programmes and funds,

(ii)other entities and bodies, and

(iii)specialised agencies and related organisations,

(b)international organisations,

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

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

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

(f)any other persons authorised by the 1267/1989/2253 ISIL (Da’esh) and Al-Qaida Sanctions Committee for the purposes of resolution 2664.

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

(4) For the purposes of this regulation—

“relevant activity” means any activity which would, in the absence of this regulation, contravene the prohibitions in regulations 8 to 12;

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

[F3Exception for authorised conduct in a relevant countryU.K.

27A.—(1) Where a person's conduct in a relevant country would, in the absence of this regulation, contravene a prohibition in any of regulations 8 to 12 or 25 (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—

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

Exception for acts done for purposes of national security or prevention of serious crimeU.K.

28.—(1) Where an act would, in the absence of this paragraph, be prohibited by any prohibition in Part 3 (finance), Part 4 (trade), or Part 5 (other sanctions), that prohibition does not apply to the act if the act is one which a responsible officer has determined would be in the interests of—

(a)national security, or

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

(2) Where, in the absence of this paragraph, a thing would be required to be done under or by virtue of a provision of [F4Part 7] (information) or [F59] (maritime enforcement), that requirement does not apply if a responsible officer has determined that not doing the thing in question would be in the interests of—

(a)national security, or

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

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

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

Treasury licencesU.K.

29.—(1) The prohibitions in regulations 8 to 12 or 25 (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 in relation to a designated person only where the Treasury consider that it is appropriate to issue the licence for a purpose set out in Schedule 2.

(3) A licence under paragraph (1)—

(a)must specify the acts authorised by it;

(b)may be general or may authorise acts by a particular person or persons of a particular description;

(c)may—

(i)contain conditions;

(ii)be of indefinite duration or a defined duration.

(4) Where the Treasury issue a licence under paragraph (1) the Treasury may vary, revoke or suspend it at any time.

(5) Where the Treasury issue, vary, revoke or suspend a licence under paragraph (1) which authorises acts by a particular person the Treasury must give written notice to that person of the issue, variation, revocation or suspension of the licence.

(6) Where the Treasury issue, vary, revoke or suspend a general licence or a licence which authorises acts by persons of a particular description under paragraph (1) the Treasury must take such steps as are considered appropriate to publicise the issue, variation, revocation or suspension of the licence.

[F6(7) In this regulation, “designated person” has the same meaning as it has in Part 3 (Finance).]

Finance: licensing offencesU.K.

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.