6.—(1) A person (including the designated person) must not deal with funds or economic resources owned, held or controlled by a designated person unless he does so under the authority of a licence granted under regulation 10.
(2) A person who contravenes the prohibition in paragraph (1) is guilty of an offence.
(3) In proceedings for an offence under this regulation, it is a defence for a person to show that he did not know and had no reasonable cause to suspect that he was dealing with funds or economic resources owned, held or controlled by a designated person.
(4) In this regulation, “deal with” means—
(a)in respect of funds—
(i)use, alter, move, allow access to or transfer;
(ii)deal with 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; and
(b)in respect of economic resources, use to obtain funds, goods or services in any way, including (but not limited to) by selling, hiring or mortgaging the resources.
Commencement Information
I1Reg. 6 in force at 3.5.2007, see reg. 1(1)
7.—(1) A person must not make funds or economic resources available, directly or indirectly, to or for the benefit of a designated person unless he does so under the authority of a licence granted under regulation 10.
(2) A person who contravenes the prohibition in paragraph (1) is guilty of an offence.
(3) In proceedings for an offence under this regulation, it is a defence for a person to show that he did not know and had no reasonable cause to suspect that he was making funds or economic resources available, directly or indirectly, to or for the benefit of a designated person.
Commencement Information
I2Reg. 7 in force at 3.5.2007, see reg. 1(1)
8.—(1) A person is not guilty of an offence under regulation 6 or 7 if he credits 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 prior to 23rd December 2006.
(2) Regulation 7 does not prevent a relevant institution from crediting a frozen account where it receives funds transferred to a frozen account by a third party.
(3) For the avoidance of doubt, regulation 6 applies to any funds credited to a frozen account in accordance with this regulation.
(4) In this regulation “frozen account” means an account with a relevant institution which is held or controlled by a designated person.
Commencement Information
I3Reg. 8 in force at 3.5.2007, see reg. 1(1)
9. A person is guilty of an offence if he participates, knowingly and intentionally, in activities the object or effect of which is, directly or indirectly, to—
(a)circumvent a prohibition in regulation 6(1) or 7(1), or
(b)enable or facilitate the commission of an offence under regulation 6 or 7.
Commencement Information
I4Reg. 9 in force at 3.5.2007, see reg. 1(1)
10.—(1) The Treasury may grant a licence to exempt acts specified in the licence from the prohibition in regulation 6(1) or 7(1).
(2) A licence 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.
(3) The Treasury may vary or revoke a licence at any time.
(4) The Treasury, where they grant, vary or revoke a licence, must—
(a)in the case of a licence granted to a particular person, give written notice of the licence, variation or revocation to that person, and
(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 licence, variation or revocation.
(5) Any person who, for the purpose of obtaining a licence, knowingly or recklessly makes any statement or furnishes any document or information which is false in a material particular is guilty of an offence.
(6) Any person who has done any act under the authority of a licence and who fails to comply with any conditions attaching to that licence is guilty of an offence.
Commencement Information
I5Reg. 10 in force at 3.5.2007, see reg. 1(1)