SCHEDULES

SCHEDULE 7Terrorist financing and money laundering

Part 2Persons to whom a direction may be given

Meaning of “credit institution” and “financial institution”

5

1

“Credit institution” means—

a

a credit institution as defined in Article 4(1)(a) of the banking consolidation directive, or

b

a branch (within the meaning of Article 4(3) of that directive) located in an EEA state of—

i

an institution within sub-paragraph (a), or

ii

an equivalent institution whose head office is located in a non-EEA state,

when it accepts deposits or other repayable funds from the public or grants credits for its own account (within the meaning of the banking consolidation directive).

2

“Financial institution” means—

a

an undertaking, including a money service business, when it carries out one or more of the activities listed in points 2 to 12 and 14 of Annex 1 to the banking consolidation directive, other than—

i

a credit institution;

ii

an undertaking whose only listed activity is trading for own account in one or more of the products listed in point 7 of Annex 1 to the banking consolidation directive where the undertaking does not have a customer,

and for this purpose “customer” means a person who is not a member of the same group as the undertaking;

b

an insurance company duly authorised in accordance with the life assurance consolidation directive, when it carries out activities covered by that directive;

c

a person whose regular occupation or business is the provision to other persons of an investment service or the performance of an investment activity on a professional basis, when providing or performing investment services or activities (within the meaning of the markets in financial instruments directive), other than a person falling within Article 2 of that directive;

d

a collective investment undertaking, when marketing or otherwise offering its units or shares;

e

an insurance intermediary as defined in Article 2(5) of Directive 2002/92/EC of the European Parliament and of the Council of 9th December 2002 on insurance mediation (other than a tied insurance intermediary as mentioned in Article 2(7) of that Directive), when it acts in respect of contracts of long-term insurance within the meaning given by article 3(1) of, and Part II of Schedule 1 to, the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544);

f

a branch located in an EEA state of—

i

a person referred to in any of paragraphs (a) to (e), or

ii

a person equivalent to a person within any of those paragraphs whose head office is located in a non-EEA state,

when carrying out any activity mentioned in that paragraph;

g

an insurance company (as defined by section 1165(3) of the Companies Act 2006 (c. 46));

h

the National Savings Bank;

i

the Director of Savings, when money is raised under the auspices of the Director under the National Loans Act 1968 (c. 13).