PART 2Funds and Economic Resources
Freezing of funds and economic resources3
1
A person (“P”) must not deal with funds or economic resources belonging to, or owned, held or controlled by, a designated person if P knows, or has reasonable cause to suspect, that P is dealing with such funds or economic resources.
2
In paragraph (1) “deal with” means—
a
in relation to funds—
i
use, alter, move, allow access to or transfer;
ii
deal with the funds 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 relation to economic resources, exchange, or use in exchange, for funds, goods or services.
3
Paragraph (1) is subject to regulation 9.
Making funds available to a designated person4
1
A person (“P”) must not make funds available, directly or indirectly, to a designated person if P knows, or has reasonable cause to suspect, that P is making the funds so available.
2
Paragraph (1) is subject to regulations 8 and 9.
Making funds available for the benefit of a designated person5
1
A person (“P”) must not make funds available to any person for the benefit of a designated person if P knows, or has reasonable cause to suspect, that P is making the funds so available.
2
For the purposes of this regulation—
a
funds are made available for the benefit of a designated 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 designated person is wholly or partly responsible.
3
Paragraph (1) is subject to regulations 8 and 9.
Making economic resources available to a designated person6
1
A person (“P”) must not make economic resources available, directly or indirectly, to a designated person if P knows, or has reasonable cause to suspect—
a
that P is making the economic resources so available, and
b
that the designated person would be likely to exchange the economic resources, or use them in exchange, for funds, goods or services.
2
Paragraph (1) is subject to regulation 9.
Making economic resources available for the benefit of a designated person7
1
A person (“P”) must not make economic resources available to any person for the benefit of a designated person if P knows, or has reasonable cause to suspect, that P is making the economic resources so available.
2
For the purposes of this regulation—
a
economic resources are made available for the benefit of a designated 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 designated person is wholly or partly responsible.
3
Paragraph (1) is subject to regulation 9.
Credits to a frozen account8
1
The prohibitions in regulations 4 and 5 are not contravened by a person who credits a frozen account with—
a
interest or other earnings due on the account,
b
payments due under contracts, agreements or obligations that were concluded or arose before the account became a frozen account, or
c
payments due under judicial, administrative or arbitral decisions rendered in a Member State or enforceable in the Member State concerned.
2
The prohibitions in regulations 4 and 5 on making funds available do not prevent a relevant institution from crediting a frozen account where it receives funds transferred to the account.
3
A relevant institution must inform the Treasury without delay if it credits a frozen account in accordance with paragraph (1)(b) or (c) or (2).
4
In this regulation “frozen account” means an account with a relevant institution which is held or controlled (directly or indirectly) by a designated person.
Licences9
1
The prohibitions in regulations 3 to 7 do not apply to anything done under the authority of a licence granted by the Treasury.
2
A licence must specify the acts authorised by it and 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
On the grant, variation or revocation of a licence, the Treasury must—
a
in the case of a licence granted to a particular person, give written notice of the grant, variation or revocation to that person,
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 grant, variation or revocation of the licence.
5
A person commits an offence 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.
6
A person who purports to act under the authority of a licence but who fails to comply with any conditions included in the licence commits an offence.