PART 3Prohibitions and licences

Freezing funds and economic resources of designated persons7

1

A person (including the designated person) must not deal with funds or economic resources belonging to, owned or held by a person referred to in paragraph (2) unless he does so under the authority of a licence granted under article 11.

2

The prohibition in paragraph (1) applies in respect of—

a

any designated person;

b

any person owned or controlled, directly or indirectly, by a designated person; and

c

any person acting on behalf or at the direction of a designated person.

3

A person who contravenes the prohibition in paragraph (1) is guilty of an offence.

4

In proceedings for an offence under this article, it is a defence for a person to show that he did not know and had no reasonable cause to suspect that he was dealing with funds or economic resources belonging to, owned or held by a person referred to in paragraph (2).

5

This article is subject to article 5(2).

6

In this article, “deal with” means—

a

in respect of funds—

i

use, alter, move, allow access to or transfer;

ii

deal with in any other way that would result in any change in volume, amount, location, ownership, possession, character or destination; or

iii

make any other change that would enable use, including portfolio management; and

b

in respect of economic resources, use to obtain funds, goods or services in any way, including (but not limited to) by selling, hiring or mortgaging the resources.