Terrorist Asset-Freezing etc. Act 2010

CHAPTER 2 Prohibitions in relation to designated persons

Prohibitions

11 Freezing of funds and economic resources

(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) In subsection (1) “deal with” means—

(a) in relation to funds—

(i) use, alter, move, allow access to or transfer,

(ii) deal with the funds 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;

(b) in relation to economic resources, exchange or use in exchange for funds, goods or services.

(3) Subsection (1) is subject to sections 16 and 17 (exceptions and licences).

(4) A person who contravenes the prohibition in subsection (1) commits an offence.

12 Making funds or financial services available to designated person

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

(2) Subsection (1) is subject to sections 16 and 17 (exceptions and licences).

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

13 Making funds or financial services available for benefit of designated person

(1) A person (“P”) must not make funds or financial services 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 or financial services so available.

(2) For the purposes of this section—

(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 of a financial obligation for which the designated person is wholly or partly responsible.

(3) Subsection (1) is subject to sections 16 and 17 (exceptions and licences).

(4) A person who contravenes the prohibition in subsection (1) commits an offence.

14 Making economic resources available to designated person

(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, or use them in exchange, for funds, goods or services.

(2) Subsection (1) is subject to section 17 (licences).

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

15 Making economic resources available for benefit of designated person

(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) For the purposes of this section—

(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 of a financial obligation for which the designated person is wholly or partly responsible.

(3) Subsection (1) is subject to section 17 (licences).

(4) A person who contravenes the prohibition in subsection (1) commits an offence.

Exceptions and licences

16 Exceptions

(1) The prohibitions in sections 11 to 13 are not contravened by a relevant institution crediting a frozen account with—

(a) interest or other earnings due on the account, or

(b) payments due under contracts, agreements or obligations that were concluded or arose before the account became a frozen account.

(2) The prohibitions in sections 12 and 13 on making funds available do not prevent a relevant institution from crediting a frozen account where it receives funds transferred to the account.

(3) The prohibition in section 13 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.

(4) A relevant institution must inform the Treasury without delay if it credits a frozen account in accordance with subsection (1)(b) or (2).

(5) In this section “frozen account” means an account with a relevant institution which is held or controlled (directly or indirectly) by a designated person.

17 Licences

(1) The prohibitions in sections 11 to 15 do not apply to anything done under the authority of a licence granted by the Treasury.

(2) Where relevant such a licence also constitutes authorisation under Article 6 of Council Regulation (EC) No 2580/2001 of 27 December 2001 on specific restrictive measures directed against certain persons and entities with a view to combating terrorism.

(3) A licence must specify the acts authorised by it and may be—

(a) general or granted to a category of persons or to a particular person;

(b) subject to conditions;

(c) of indefinite duration or subject to an expiry date.

(4) The Treasury may vary or revoke a licence at any time.

(5) On the grant, variation or revocation of a licence, the Treasury must—

(a) in the case of a licence granted to a particular person, give written notice of the grant, variation or revocation to that person;

(b) in the case of a general licence or a licence granted to a category of persons, take such steps as the Treasury consider appropriate to publicise the grant, variation or revocation of the licence.

(6) A person commits an offence who, for the purpose of obtaining a licence, 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.

(7) A person who purports to act under the authority of a licence but who fails to comply with any conditions included in the licence commits an offence.

Circumventing prohibitions etc.

18 Circumventing prohibitions etc.

A person commits an offence who intentionally participates in activities knowing that the object or effect of them is (whether directly or indirectly)—

(a) to circumvent any of the prohibitions in sections 11 to 15, or

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