PART 8Enforcement

Penalties for offencesI751

1

A person who commits an offence under any provision of Part 3 (Finance) or regulation 38 (finance: licensing offences), is liable—

a

on summary conviction in England and Wales, to imprisonment for a term not exceeding F6the 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 any provision of Part 5 (Trade) is liable—

a

on summary conviction in England and Wales, to imprisonment for a term not exceeding F7the 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 10 years or a fine (or both).

3

A person who commits an offence under regulation 9(6) (confidentiality), F1038A (director disqualification: licensing offences), 39, 47(6) or 48(5) (offences in connection with trade licences) is liable—

a

on summary conviction in England and Wales, to imprisonment for a term not exceeding F8the 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).

4

A person who commits an offence under regulation 41(6) or 45 (information offences in connection with Part 3) is liable—

a

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

b

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

c

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

5

In relation to an offence committed before F52nd May 2022 the reference in each of paragraphs (1)(a), (2)(a) and (3)(a) to F9the general limit in a magistrates’ court is to be read as a reference to 6 months.

Liability of officers of bodies corporate etcI152

1

Where an offence under these Regulations, committed by a body corporate—

a

is committed with the consent or connivance of any director, manager, secretary or other similar officer of the body corporate, or any person who was purporting to act in any such capacity, or

b

is attributable to any neglect on the part of any such person,

that person as well as the body corporate is guilty of the offence and is liable to be proceeded against and punished accordingly.

2

In paragraph (1) “director”, in relation to a body corporate whose affairs are managed by its members, means a member of the body corporate.

3

Paragraph (1) also applies in relation to a body that is not a body corporate, with the substitution for the reference to a director of the body of a reference—

a

in the case of a partnership, to a partner;

b

in the case of an unincorporated body other than a partnership—

i

where the body's affairs are managed by its members, to a member of the body;

ii

in any other case, to a member of the governing body.

4

Section 171(4) of CEMA (which is a provision similar to this regulation) does not apply to any offence under these Regulations to which that provision would, in the absence of this paragraph, apply.

Jurisdiction to try offencesI853

1

Where an offence under regulation 9(6) (confidentiality), Part 3 (Finance), regulation 38 (finance: licensing offences) or regulation 41(6) or 45 (information offences in connection with Part 3) is committed in the United Kingdom—

a

proceedings for the offence may be taken at any place in the United Kingdom, and

b

the offence may for all incidental purposes be treated as having been committed at any such place.

2

F1Where an offence under these Regulations is committed outside the United Kingdom—

a

proceedings for the offence may be taken at any place in the United Kingdom, and

b

the offence may for all incidental purposes be treated as having been committed at any such place.

3

In the application of paragraph (2) to Scotland, any such proceedings against a person may be taken—

a

in any sheriff court district in which the person is apprehended or is in custody, or

b

in such sheriff court district as the Lord Advocate may determine.

4

In paragraph (3) “sheriff court district” is to be read in accordance with the Criminal Procedure (Scotland) Act 1995 (see section 307(1) of that Act) M1.

Procedure for offences by unincorporated bodiesI454

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 M2 and Schedule 3 to the Magistrates' Courts Act 1980 M3;

ii

section 18 of the Criminal Justice Act (Northern Ireland) 1945 M4 and Article 166 of, and Schedule 4 to, the Magistrates' Courts (Northern Ireland) Order 1981 M5.

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 offencesI555

1

Proceedings for an offence under these Regulations which is triable only summarily may be brought within the period of 12 months beginning with the date on which evidence sufficient in the opinion of the prosecutor to justify the proceedings comes to the prosecutor's knowledge.

2

But such proceedings may not be brought by virtue of paragraph (1) more than 3 years after the commission of the offence.

3

A certificate signed by the prosecutor as to the date on which the evidence in question came to the prosecutor's knowledge is conclusive evidence of the date on which it did so; and a certificate to that effect and purporting to be so signed is to be treated as being so signed unless the contrary is proved.

4

In relation to proceedings in Scotland—

a

section 136(3) of the Criminal Procedure (Scotland) Act 1995 (date of commencement of summary proceedings) applies for the purposes of this regulation as it applies for the purposes of that section, and

b

references in this regulation to the prosecutor are to be treated as references to the Lord Advocate.

Trade enforcement: application of CEMAI256

1

Where the Commissioners investigate or propose to investigate any matter with a view to determining—

a

whether there are grounds for believing that a relevant offence has been committed, or

b

whether a person should be prosecuted for such an offence,

the matter is to be treated as an assigned matter.

2

In paragraph (1) “assigned matter” has the meaning given by section 1(1) of CEMA M6.

3

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

a

Part 5 (Trade),

b

regulation 39 (trade: licensing offences),

c

regulation 47(6) (general trade licences: records), or

d

regulation 48(5) (general trade licences: inspection of records).

F113A

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

a

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

b

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

3B

Paragraph (3A) applies to the suspected commission of an offence under regulation 30(4) (provision of military-related services).

3C

Paragraph (3A) also applies to the suspected commission of a relevant offence under any of regulations 39(1), 39(2), 47(6) and 48(5) insofar as—

a

the suspected offence relates to a licence issued under regulation 36 (trade licences), and

b

the prohibited activity authorised by that licence would, if no licence had been issued, amount to an offence specified in paragraph (3B).

3D

Paragraph (3A) also applies to the suspected commission of a relevant offence under regulation 31(2) (circumventing etc prohibitions), insofar as the prohibited activity to which the suspected offence relates is the circumvention of, or enabling or facilitation of a contravention of, a prohibition in relation to an offence specified in paragraph (3B).

4

Section 138 of CEMA M7 (arrest of persons) applies to a person who has committed, or whom there are reasonable grounds to suspect of having committed, a relevant offence as it applies to a person who has committed, or whom there are reasonable grounds to suspect of having committed, an offence for which the person is liable to be arrested under the customs and excise Acts M8, but as if—

a

any reference to an offence under, or for which a person is liable to be arrested under, the customs and excise Acts were to a relevant offence;

b

in subsection (2), the reference to any person so liable were to a person who has committed, or whom there are reasonable grounds to suspect of having committed, a relevant offence.

5

The provisions of CEMA mentioned in paragraph (6) apply in relation to proceedings for a relevant offence as they apply in relation to proceedings for an offence under the customs and excise Acts, but as if—

a

any reference to the customs and excise Acts were to any of the provisions mentioned in paragraph (3)(a) to (d);

b

in section 145(6), the reference to an offence for which a person is liable to be arrested under the customs and excise Acts were to a relevant offence;

c

in section 151, the reference to any penalty imposed under the customs and excise Acts were to any penalty imposed under these Regulations in relation to a relevant offence;

d

in section 154(2)—

i

the reference to proceedings relating to customs or excise were to proceedings under any of the provisions mentioned in paragraph (3)(a) to (d), and

ii

the reference to the place from which any goods have been brought included a reference to the place to which goods have been exported, supplied or delivered or the place to or from which technology has been transferred.

6

The provisions of CEMA are sections 145, 146, 147, 148(1), 150, 151, 152, 154 and 155 M9 (legal proceedings).

Trade offences in CEMA: modification of penaltyI357

1

Paragraph (2) applies where a person is guilty of an offence under section 68(2) of CEMA in connection with a prohibition mentioned in regulation 22(1).

2

Where this paragraph applies, the reference to 7 years in section 68(3)(b) of CEMA M10 is to be read as a reference to 10 years.

3

Paragraph (4) applies where a person is guilty of an offence under section 170(2) of CEMA in connection with a prohibition mentioned in regulation 22(1).

4

Where this paragraph applies, the reference to 7 years in section 170(3)(b) of CEMA M11 is to be read as a reference to 10 years.

Annotations:
Commencement Information
I3

Reg. 57 in force at 31.12.2020 on IP completion day by S.I. 2019/627, reg. 3(2); 2020 c. 1, Sch. 5 para. 1(1)

Marginal Citations
M10

The words “7 years” were inserted in section 68(3)(b) of CEMA by the Finance Act 1988, section 12.

M11

The words “7 years” were inserted in section 170(3)(b) of CEMA by the Finance Act 1988, section 12.

Application of Chapter 1 of Part 2 of Serious Organised Crime and Police Act 2005I658

Chapter 1 of Part 2 of the Serious Organised Crime and Police Act 2005 (investigatory powers) M12 applies to any offence under Part 3 (Finance) F2or regulation 38 (finance: licensing offences).

Monetary penaltiesI959

The following provisions are to be regarded as not being financial sanctions legislation for the purposes of Part 8 of the Policing and Crime Act 2017 M13

a

regulation 24(1)(a) (making restricted goods and restricted technology available);

b

regulation 25(1)(b) (transfer of restricted technology);

c

regulation 27(1) and (2) (financial services and funds relating to restricted goods and restricted technology);

d

regulation 28(1)(f)(i) and (g) (brokering services relating to financial services and funds relating to restricted goods and restricted technology) F3;

F4e

regulation 30(1) (military activities or otherwise enabling or facilitating the conduct of armed hostilities).