The Trade, Aircraft and Shipping Sanctions (Civil Enforcement) Regulations 2024

Reporting obligations: trade sanctions

15.—(1) A relevant person (“ RP”) must inform the Secretary of State as soon as practicable if—

(a) RP knows, or has reasonable cause to suspect, that a person (“P”) has breached a prohibition or failed to comply with an obligation under trade sanctions regulations, and

(b) the information or other matter on which the knowledge or cause for suspicion is based came to RP in the course of carrying on their business.

(2) Where RP informs the Secretary of State under paragraph (1), RP must state—

(a) the information or other matter on which the knowledge or suspicion is based, and

(b) any information it holds about P by which P can be identified.

(3) An RP who fails to comply with a requirement in this regulation commits an offence.

(4) In this regulation—

“cryptoasset” 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;

“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;

“money” means—

(a)

money in sterling,

(b)

money in any other currency, or

(c)

money in any other medium of exchange,

but does not include a cryptoasset;

“relevant person” means—

(a)

a person that has permission under Part 4A of the Financial Services and Markets Act 2000(1) to carry on one or more regulated activities (permission to carry on a regulated activity);

(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 provides legal or notarial services to other persons, by way of business,

and paragraphs (a) and (b) are to be read with section 22 (regulated activities) of the Financial Services and Markets Act 2000(2), any relevant order under that section and Schedule 2 (regulated activities) to that Act(3).

(5) For the purpose of paragraph (1)(b), information or another matter comes to RP “in the course of carrying on their business” if the information or other matter comes to RP—

(a) in the case of a person within paragraph (a) of the definition of “relevant person” in paragraph (4), in the course of carrying on the regulated activity to which the permission mentioned in paragraph (a) of that definition relates;

(b) in the case of an undertaking within paragraph (b) of the definition of “relevant person” in paragraph (4), in the course of carrying on an activity mentioned in paragraph (b) of that definition;

(c) in the case of a firm or sole practitioner within paragraph (c) of the definition of “relevant person” in paragraph (4), in the course of providing the services mentioned in paragraph (c) of that definition.

(1)

2000 c. 8. Part 4A is inserted by the Financial Services Act 2012 (c. 21), section 11(2) and amended by the Financial Services Act 2021 (c. 22), Schedule 11, paragraph 2 and the Financial Services and Markets Act 2023 (c. 29), section 20; Schedule 5, paragraphs 4 to 12; and Schedule 8, paragraphs 2 and 4 to 6 and S.I. 2013/504; S.I. 2013/1773; S.I. 2013/3115; S.I. 2015/575; S.I. 2015/910; S.I. 2016/225; S.I. 2016/680; S.I. 2016/1239; S.I. 2017/701; S.I. 2017/1064; S.I. 2018/135; S.I. 2018/546; S.I. 2018/698; S.I. 2018/1149; S.I. 2019/632; S.I. 2021/1376; S.I. 2023/1410 and S.I. 2023/1424.

(2)

Section 22 is amended by the Financial Services Act 2012, section 7(1); the Financial Guidance and Claims Act 2018 (c. 10), section 27; the Financial Services and Markets Act 2023, section 69(3) and S.I. 2018/135.

(3)

Schedule 2 is amended as follows. Paragraph 9A is inserted by the Dormant Bank and Building Society Accounts Act 2008 (c. 31), Schedule 2, paragraph 1(3). Paragraph 13 is amended by S.I. 2019/632. Paragraph 23 is amended, and paragraphs 23B, and 24A to 24D are inserted, by the Financial Services Act 2012, section 7. Paragraph 23A is inserted by the Regulation of Financial Services (Land Transactions) Act 2005 (c. 24), section 1. Paragraph 24C is amended by S.I. 2013/1881. Paragraph 25 is amended by the Financial Services Act 2012, section 8 and the Financial Guidance and Claims Act 2018, section 27 for England, Scotland and Wales. Paragraph 26 is amended by the Financial Services Act 2012, section 8 and the Financial Guidance and Claims Act 2018, section 27.