Schedule 3: Freezing Orders
369.The Schedule sets out a series of measures that the Treasury may include in a freezing order. The Treasury may include other supplementary, incidental, saving or transitional provisions.
Interpretation
370.References to a person specified in a freezing order means those specified by name or description in accordance with section 5(4).
Funds
371.This section provides that freezing orders may include a provision defining funds.
Making funds available
372.This paragraph provides that a freezing order must define the meaning of making funds available to or for the benefit of a person.
Licences
373.A freezing order must include provisions for authorising funds to be made available, subject to conditions set out by the Treasury. The Treasury may charge fees to cover the administrative costs of granting a licence.
Information and documents
374.A freezing order may provide that a person must provide information or a document if it is reasonably needed in order establish whether an offence under the order has been committed. The requirement to provide information or a document may be made by the Treasury or a person authorised by the Treasury. The requirement is to do so, in a certain time period and at a place set out in the order. The order may provide that the requirement to provide information is not to be taken to breach any restriction on the disclosure of information. However, the requirement does not apply to information or documents subject to legal privilege, except to the extent that the information or document is held with the intention of furthering a criminal purpose.
Disclosure of information
375.This paragraph provides that a freezing order may include a provision requiring a person to disclose information if three conditions apply. First, the person required to disclose must be specified in the order. Secondly, the person must know or suspect, or have grounds to know or suspect, that a person specified in a freezing order is a customer of his or has dealings with him. Thirdly, the information must have come to him in the course of a business in the regulated sector. The freezing order may include provisions: that the requirement to disclose information is not a breach of any restriction on the disclosure of information; on the use to which the information may be put and further disclosures; and, that the obligation to disclose does not apply to privileged information except where the information is held with the intention of furthering a criminal purpose.
Offences
376.A freezing order may include any of the following provisions providing for offences.
377.A person commits an offence if he fails to comply with a prohibition imposed by an order or facilitates the breach of a freezing order by another person. A person does not commit these offences if he did not know and had no reason to suppose that the person to whom funds were made available was the person specified in the freezing order. On summary conviction, a person guilty of an offence under either provision is subject to imprisonment for up to 6 months or a fine not exceeding the statutory maximum or to both. On conviction on indictment, a person guilty of an offence under either such provision is subject to imprisonment for up to 2 years or to a fine or to both.
378.A person commits an offence if he fails, without reasonable excuse to provide information or a document as required by an order. A person commits an offence if he provides information or a document which he knows includes information which is false in a material particular, or he does so recklessly. On summary conviction, a person guilty of an offence under either such provision is subject to imprisonment for up to 6 months or a fine not exceeding level 5 on the standard scale.
Offences: procedure
379.A freezing order may include a provision that proceedings for an offence under the order are not to be instituted unless the relevant Director of Public Prosecutions or the Treasury consents.
380.An information or complaint relating to an offence under the order may be tried in England and Wales or Northern Ireland if it is laid or made within one year from the commission of the offence. In Scotland, summary proceedings for an offence may be commenced within one year of the commission of the offence.
Offences by bodies corporate
381.A freezing order may provide that where an offence has been committed by a body corporate with the consent, connivance or by neglect of a director, manager, secretary or other similar officer, or by a partner of a Scottish partnership, then he is also liable for the offence.
Compensation
382.A freezing order may include provision for compensation to be paid to a person who has suffered loss as a result of the order, or the grant or refusal of a licence under the order, or the revocation of a licence. The entitlement to compensation may be made subject to a requirement that the claimant has behaved reasonably (for example by mitigating his loss).
Treasury’s duty to give reasons
384.A freezing order must provide that if a person specified as having their funds frozen makes a request to the Treasury to give him the reason why he is so specified, then the Treasury must give the person the reason in writing as soon as practicable.
