The Terrorism (United Nations Measures) Order 2009

PART 3 Prohibitions and licences

Application of prohibitions

9.  Where the Treasury in accordance with article 6(3) inform only certain persons of a direction given under article 4(1) or renewed under article 5(1), only those persons informed of the direction and the person identified in the direction are subject to the prohibitions in this Part in respect of that direction.

Freezing funds and economic resources of a restricted person

10.—(1) A person must not deal with funds or economic resources owned, held or controlled by a restricted person.

(2) In paragraph (1) “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, exchange or use in exchange for funds, goods or services.

(3) A person who contravenes the prohibition in paragraph (1) is guilty of an offence.

(4) In proceedings for an offence under this article, it is a defence for a person to show that they did not know and had no reasonable cause to suspect that the funds or economic resources were owned, held or controlled by or on behalf of a restricted person.

Making funds or financial services available to a restricted person

11.—(1) A person must not make funds or financial services available, directly or indirectly, to a restricted person.

(2) A person who contravenes the prohibition in paragraph (1) is guilty of an offence.

(3) In proceedings for an offence under this article, it is a defence for a person to show that they did not know and had no reasonable cause to suspect that the funds or financial services were being made available, directly or indirectly, to a restricted person.

Making funds or financial services available for the benefit of a restricted person

12.—(1) A person must not make funds or financial services available to any person for the benefit of a restricted person.

(2) A person who contravenes the prohibition in paragraph (1) is guilty of an offence.

(3) In proceedings for an offence under this article it is a defence for a person to show that they did not know and had no reasonable cause to suspect that the funds or financial services were being made available for the benefit of a restricted person.

(4) For the purposes of this article—

(a) funds or financial services are made available for the benefit of a restricted 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 restricted person is wholly or partly responsible.

Making economic resources available to a restricted person

13.—(1) A person must not make economic resources available, directly or indirectly, to a restricted person.

(2) A person who contravenes the prohibition in paragraph (1) is guilty of an offence.

(3) In proceedings for an offence under this article it is a defence for a person to show that they did not know and had no reasonable cause to suspect that—

(a) the economic resources were being made available, directly or indirectly, to a restricted person; or

(b) the restricted person would be likely to exchange the economic resources, or use them in exchange, for funds, goods or services.

Making economic resources available for the benefit of a restricted person

14.—(1) A person must not make economic resources available to any person for the benefit of a restricted person.

(2) A person who contravenes the prohibition in paragraph (1) is guilty of an offence.

(3) In proceedings for an offence under this article it is a defence for a person to show that they did not know and had no reasonable cause to suspect that the economic resources were being made available for the benefit of a restricted person.

(4) For the purposes of this article—

(a) economic resources are made available for the benefit of a restricted 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 restricted person is wholly or partly responsible.

Exceptions

15.—(1) A relevant institution is not guilty of an offence under this Part if the institution 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 before the account became a frozen account.

(2) Articles 11 and 12 do not prevent a relevant institution from crediting a frozen account where it receives funds transferred to a frozen account by a third party.

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

(4) For the avoidance of doubt, article 10 applies to any funds credited to a frozen account in accordance with this article.

(5) In this article—

“frozen account” means an account with a relevant institution which is held or controlled (directly or indirectly) by a restricted person;

“third party” means a person other than the account holder or the relevant institution with which the account is maintained.

Circumventing prohibitions etc.

16.  A person who participates knowingly and intentionally in activities the object or effect of which is, directly or indirectly, to—

(a) circumvent a prohibition in this Part, or

(b) enable or facilitate the contravention of a prohibition in this Part,

is guilty of an offence.

Licences

17.—(1) The Treasury may grant a licence to disapply the prohibitions in this Part in relation to acts specified in the licence.

(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) Where the relevant designated person is identified as provided in Article 2(3) of the Council Regulation, the licence also constitutes authorisation under Article 6 of the Council Regulation.

(6) A person 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,

is guilty of an offence.

(7) Any person who purports to act under the authority of a licence and who fails to comply with any conditions included in the licence is guilty of an offence.