Statutory Instruments

2019 No. 461

Exiting The European Union

Sanctions

The Iran (Sanctions) (Nuclear) (EU Exit) Regulations 2019

Made

5th March 2019

Laid before Parliament

7th March 2019

Coming into force in accordance with regulation 1(2)

The Secretary of State M1 , in exercise of the powers conferred by sections 1(1)(a) and (c) and (3), 3(1)(a), (b)(i) and (ii), (d)(i) and (ii) and (2)(b) and (c), 4, 5, 9(2)(a), 10(2)(a) and (c), (3) and (4), 11(2) to (9), 13, 15(2)(a) and (b), (3), (4)(b), (5) and (6), 16, 17(2) to (9), 19, 20, 21(1), 54(1)(a) and (2)(a), 56(1) and 62(4) to (6) of, and paragraphs 2(b), 3(a) and (b), 4(b) and (c), 5(a)(ii), (b), (c) and (d), 6(a)(ii), (b), 7(b), 11(a), 13(b), (h), (k), (l), (m), (n) and (w), 14(a), (f) and (k), 17, 19 to 23 and 27 of Schedule 1 to, the Sanctions and Anti-Money Laundering Act 2018 M2 , and having decided, upon consideration of the matters set out in section 2(2) and 56(1) of that Act, that it is appropriate to do so, makes the following Regulations:

Modifications etc. (not altering text)

C1 Regulations extended (British overseas territories) (with modifications) (31.12.2020 immediately after both S.I. 2020/591 and S.I. 2020/950 have come into force) by The Iran (Sanctions) (Nuclear) (Overseas Territories) Order 2020 (S.I. 2020/1563), art. 2, Sch. 1, Sch. 2; S.I. 2020/1514, regs. 5, 17

Marginal Citations

M1 The power to make regulations under Part 1 of the Sanctions and Anti-Money Laundering Act 2018 is conferred on an “appropriate Minister”. Section 1(9)(a) of the Act defines an “appropriate Minister” as including the Secretary of State.

M2 2018 c.13.

PART 1 U.K. General

Citation and commencement U.K.

1.—(1) These Regulations may be cited as the Iran (Sanctions) (Nuclear) (EU Exit) Regulations 2019.

(2) These Regulations come into force in accordance with regulations made by the Secretary of State under section 56 of the Act.

Commencement Information

I1 Reg. 1 not in force at made date, see reg. 1(2)

I2 Reg. 1 in force at 25.3.2019 by S.I. 2019/627, reg. 8(1)(a)

Interpretation U.K.

2.  In these Regulations—

“the Act” means the Sanctions and Anti-Money Laundering Act 2018;

“arrangement” includes any agreement, understanding, scheme, transaction or series of transactions, whether or not legally enforceable (but see Schedule 1 for the meaning of that term in that Schedule);

“CEMA” means the Customs and Excise Management Act 1979 M3 ;

“the Committee” means the Committee of the Security Council established under paragraph 18 of resolution 1737;

“the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs;

“conduct” includes acts and omissions;

“document” includes information recorded in any form and, in relation to information recorded otherwise than in legible form, references to its production include producing a copy of the information in legible form;

“the EU Iran Regulation” means Council Regulation (EU) No 267/2012 of 23 March 2012 concerning restrictive measures against Iran and repealing Regulation (EU) No 961/2010 M4 as it has effect in EU law;

“the Joint Comprehensive Plan of Action” means the document attached as Annex A to resolution 2231;

“non-UN designated person” means a person who is designated under regulation 5 for the purposes of regulations 12 to 17;

“resolution 1737” means resolution 1737 adopted by the Security Council on 23 December 2006;

“resolution 2231” means resolution 2231 adopted by the Security Council on 20 July 2015;

“trade licence” means a licence under regulation 41;

“Treasury licence” means a licence under regulation 40(1).

Commencement Information

I3 Reg. 2 not in force at made date, see reg. 1(2)

I4 Reg. 2 in force at 25.3.2019 by S.I. 2019/627, reg. 8(1)(b)

Marginal Citations

M3 1979 c.2. Amendments have been made to this Act and are cited, where relevant, in respect of the applicable regulations.

M4 OJ L 088 24.3.2012, p. 1

Application of prohibitions and requirements outside the United Kingdom U.K.

3.—(1) A United Kingdom person may contravene a relevant prohibition by conduct wholly or partly outside the United Kingdom.

(2) Any person may contravene a relevant prohibition by conduct in the territorial sea.

(3) [F1 In this regulation] a “relevant prohibition” means any prohibition imposed—

(a) by regulation 9(2) (confidential information),

(b) by Part 3 (Finance),

(c) by Part 5 (Trade), or

(d) by a condition of a Treasury licence or a trade licence.

(4) A United Kingdom person may comply, or fail to comply, with a relevant requirement by conduct wholly or partly outside the United Kingdom.

(5) Any person may comply, or fail to comply, with a relevant requirement by conduct in the territorial sea.

(6) In this regulation a “relevant requirement” means any requirement imposed—

(a) imposed by or under Part 7 (Information and records), or by reason of a request made under a power conferred by that Part, or

(b) by a condition of a Treasury licence or a trade licence.

(7) Nothing in this regulation is to be taken to prevent a relevant prohibition or a relevant requirement from applying to conduct (by any person) in the United Kingdom

(8) In this regulation, “United Kingdom person” has the same meaning as in section 21 of the Act.

Textual Amendments

F1 Words in reg. 3(3) substituted (31.12.2020 immediately after IP completion day) by The Sanctions (EU Exit) (Miscellaneous Amendments) Regulations 2020 (S.I. 2020/591), regs. 1(2), 5(2); S.I. 2020/1514, reg. 5

Commencement Information

I5 Reg. 3 not in force at made date, see reg. 1(2)

I6 Reg. 3 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Purposes U.K.

4.—(1) The regulations contained in this instrument that are made under section 1 of the Act have the following purposes—

(a) compliance with the relevant UN obligations, and

(b) the additional purposes mentioned in paragraph (2).

(2) Those additional purposes are—

(a) promoting the abandonment by Iran of nuclear weapons programmes,

(b) restricting the ability of Iran to develop nuclear weapons and nuclear weapons delivery systems, and

(c) promoting implementation of the Joint Comprehensive Plan of Action,

otherwise than by compliance with the relevant UN obligations.

(3) In this regulation “the relevant UN obligations” means—

(a) the obligation that the United Kingdom has by virtue of paragraph 7(b) of, and paragraph 6(c) of Annex B to, resolution 2231 (asset-freeze etc) to take the measures required by that provision in respect of persons M5 for the time being named for the purposes of that provision by the Security Council or the Committee;

(b) the obligations that the United Kingdom has by virtue of paragraph 7(b) of, and paragraphs 2, 4, 5 and 6 (a), (b) and (d) to (f) of Annex B to, resolution 2231.

Commencement Information

I7 Reg. 4 not in force at made date, see reg. 1(2)

I8 Reg. 4 in force at 25.3.2019 by S.I. 2019/627, reg. 8(1)(c)

Marginal Citations

M5 “Person” is defined by section 9(5) of the Sanctions and Anti-Money Laundering Act 2018 to include (in addition to an individual and a body of persons corporate or unincorporate) any organisation and any association or combination of persons.

PART 2 U.K. Designation of persons

Power to designate persons U.K.

5.—(1) The Secretary of State may designate persons, by name, for the purposes of any of the following—

(a) regulations 12 to 17 (asset-freeze etc);

(b) regulation 19 (immigration).

(2) The Secretary of State may designate different persons for the purposes of different provisions mentioned in paragraph (1).

Commencement Information

I9 Reg. 5 not in force at made date, see reg. 1(2)

I10 Reg. 5 in force at 25.3.2019 by S.I. 2019/627, reg. 8(1)(d)

Criteria for designating a person U.K.

6.—(1) The Secretary of State may not designate a person under regulation 5 unless the Secretary of State—

(a) has reasonable grounds to suspect that that person is an involved person, and

(b) considers that the designation of that person is appropriate, having regard to—

(i) the purposes stated in regulation 4, and

(ii) the likely significant effects of the designation on that person (as they appear to the Secretary of State to be on the basis of the information that the Secretary of State has).

(2) In this regulation an “involved person” means a person who—

(a) is or has been involved in a relevant nuclear activity;

(b) is owned or controlled directly or indirectly (within the meaning of regulation 7) by a person who is or has been so involved,

(c) is acting on behalf of or at the direction of a person who is or has been so involved, or

(d) is a member of, or associated with, a person who is or has been so involved.

(3) Any reference in this regulation to being involved in a relevant nuclear activity includes being so involved in whatever way, and wherever, any actions constituting the involvement take place, and in particular includes—

(a) being responsible for, engaging in, providing support for, or promoting, or facilitating, a relevant nuclear activity;

(b) providing financial services M6 , or making available funds or economic resources M7 , that could contribute to a relevant nuclear activity;

(c) being involved in the supply to Iran of restricted goods or restricted technology, or in providing financial services relating to such supply; or

(d) being involved in assisting the contravention or circumvention of any relevant provision.

(4) In this regulation—

“relevant nuclear activity” means—

(a)

the proliferation or development of nuclear weapons in, or for use in, Iran, or an activity that could lead to the development of nuclear weapons in, or for use in, Iran, or

(b)

the development of a nuclear weapon delivery system in, or for use in, Iran;

“relevant provision” means—

(a)

any provision of Part 3 (Finance) or Part 5 (Trade),

(b)

any provision of the law of a country other than the United Kingdom made for purposes corresponding to a purpose of any provision of Part 3 or 5, or

(c)

any provision of resolution 2231;

“restricted goods” and “restricted technology” have the same meaning as they have in Chapter 1 of Part 5.

(5) Nothing in any sub-paragraph of paragraph (3) is to be taken to limit the meaning of any of the other sub-paragraphs of that paragraph.

Commencement Information

I11 Reg. 6 not in force at made date, see reg. 1(2)

I12 Reg. 6 in force at 25.3.2019 by S.I. 2019/627, reg. 8(1)(e)

Marginal Citations

M6 “financial services” is defined in section 61 of the Act.

M7 “funds” and “economic resources” are defined in section 60 of the Act.

Meaning of “owned or controlled directly or indirectly” U.K.

7.—(1) A person who is not an individual (“C”) is “owned or controlled directly or indirectly” by another person (“P”) if either of the following two conditions is met (or both are met).

(2) The first condition is that P—

(a) holds directly or indirectly more than 50% of the shares in C,

(b) holds directly or indirectly more than 50% of the voting rights in C, or

(c) holds the right directly or indirectly to appoint or remove a majority of the board of directors of C.

(3) Schedule 1 contains provision applying for the purpose of interpreting paragraph (2).

(4) The second condition is that it is reasonable, having regard to all the circumstances, to expect that P would (if P chose to) be able, in most cases or in significant respects, by whatever means and F2 ... whether directly or indirectly, to achieve the result that affairs of C are conducted in accordance with P's wishes.

Textual Amendments

F2 Reg. 7(4): comma omitted (31.12.2020 immediately after IP completion day) by virtue of The Sanctions (EU Exit) (Miscellaneous Amendments) Regulations 2020 (S.I. 2020/591), regs. 1(2), 5(3); S.I. 2020/1514, reg. 5

Commencement Information

I13 Reg. 7 not in force at made date, see reg. 1(2)

I14 Reg. 7 in force at 25.3.2019 by S.I. 2019/627, reg. 8(1)(f)

Notification and publicity where designation power used U.K.

8.—(1) Paragraph (2) applies where the Secretary of State—

(a) has made a designation under regulation 5, or

(b) has by virtue of section 22 of the Act varied or revoked a designation made under that regulation.

(2) The Secretary of State—

(a) must without delay take such steps as are reasonably practicable to inform the designated person of the designation, variation or revocation, and

(b) must take steps to publicise the designation, variation or revocation.

(3) The information given under paragraph (2)(a) where a designation is made must include a statement of reasons.

(4) In this regulation a “statement of reasons”, in relation to a designation, means a brief statement of the matters that the Secretary of State knows, or has reasonable grounds to suspect, in relation to the designated person which have led the Secretary of State to make the designation.

(5) Matters that would otherwise be required by paragraph (4) to be included in a statement of reasons may be excluded from it where the Secretary of State considers that they should be excluded—

(a) in the interests of national security or international relations,

(b) for reasons connected with the prevention or detection of serious crime in the United Kingdom or elsewhere, or

(c) in the interests of justice.

(6) The steps taken under paragraph (2)(b) must—

(a) unless one or more of the restricted publicity conditions is met, be steps to publicise generally—

(i) the designation, variation or revocation, and

(ii) in the case of a designation, the statement of reasons;

(b) if one or more of those conditions is met, be steps to inform only such persons as the Secretary of State considers appropriate of the designation, variation or revocation and (in the case of a designation) of the contents of the statement of reasons.

(7) The “restricted publicity conditions” are as follows—

(a) the designation is of a person believed by the Secretary of State to be an individual under the age of 18;

(b) the Secretary of State considers that disclosure of the designation, variation or revocation should be restricted—

(i) in the interests of national security or international relations,

(ii) for reasons connected with the prevention or detection of serious crime in the United Kingdom or elsewhere, or

(iii) in the interests of justice.

(8) Paragraph (9) applies if—

(a) when a designation is made one or more of the restricted publicity conditions is met, but

(b) at any time when the designation has effect, it becomes the case that none of the restricted publicity conditions is met.

(9) The Secretary of State must—

(a) take such steps as are reasonably practicable to inform the designated person that none of the restricted publicity conditions is now met, and

(b) take steps to publicise generally the designation and the statement of reasons relating to it.

Commencement Information

I15 Reg. 8 not in force at made date, see reg. 1(2)

I16 Reg. 8 in force at 25.3.2019 by S.I. 2019/627, reg. 8(1)(g)

Confidential information in certain cases where designation power used U.K.

9.—(1) Where the Secretary of State in accordance with regulation 8(6)(b) informs only certain persons of a designation, variation or revocation and (in the case of a designation) of the contents of the statement of reasons, the Secretary of State may specify that any of that information is to be treated as confidential.

(2) A person (“P”) who—

(a) is provided with information that is to be treated as confidential in accordance with paragraph (1), or

(b) otherwise obtains such information,

must not, subject to paragraph (3), disclose it if P knows, or has reasonable cause to suspect, that the information is to be treated as confidential.

(3) The prohibition in paragraph (2) does not apply to any disclosure made by P with lawful authority.

(4) For this purpose information is disclosed with lawful authority only if and to the extent that—

(a) the disclosure is by, or is authorised by, the Secretary of State,

(b) the disclosure is by or with the consent of the person who is or was the subject of the designation,

(c) the disclosure is necessary to give effect to a requirement imposed under or by virtue of these Regulations or any other enactment, or

(d) the disclosure is required, under rules of court, tribunal rules or a court or tribunal order, for the purposes of legal proceedings of any description.

(5) This regulation does not prevent the disclosure of information that is already, or has previously been, available to the public from other sources.

(6) A person who contravenes the prohibition in paragraph (2) commits an offence.

(7) The High Court (in Scotland, the Court of Session) may, on the application of—

(a) the person who is the subject of the information, or

(b) the Secretary of State,

grant an injunction (in Scotland, an interdict) to prevent a breach of the prohibition in paragraph (2).

(8) In paragraph (4)(c), “enactment” has the meaning given by section 54(6) of the Act.

Commencement Information

I17 Reg. 9 not in force at made date, see reg. 1(2)

I18 Reg. 9 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Designation of persons named by or under UN Security Council Resolutions U.K.

10.—(1) Each person for the time being named for the purposes of paragraph 6(c) of Annex B to resolution 2231 by the Security Council or the Committee is a designated person for the purposes of regulations 12 to 17 (asset-freeze etc) (whose purposes include compliance with the UN obligation mentioned in regulation 4(3)(a)) M8 .

(2) Nothing in this regulation affects the power under regulation 5 to designate persons (in addition to those designated by this regulation) for the purposes of regulations 12 to 17.

Commencement Information

I19 Reg. 10 not in force at made date, see reg. 1(2)

I20 Reg. 10 in force at 25.3.2019 by S.I. 2019/627, reg. 8(1)(h)

Marginal Citations

M8 Section 13 of the Act requires that where the purposes of a provision of regulations under section 1 include compliance with a UN obligation to take particular measures in relation to UN-named persons (which is the case with regulations 12 to 17), the regulations must provide for those persons to be designated persons for the purposes of that provision. In the case of regulations 12 to 17, those persons include any person in relation to whom the measures set out in paragraph 6(c) of Annex B to resolution 2231 are required to be taken (see section 62(2) of the Act).

PART 3 U.K. Finance

Meaning of “designated person” in Part 3 U.K.

11.  In this Part a “ designated person” means—

(a) a person who is designated under regulation 5 for the purposes of regulations 12 to 17, or

(b) a person who is a designated person for the purposes of those regulations by reason of regulation 10.

Commencement Information

I21 Reg. 11 not in force at made date, see reg. 1(2)

I22 Reg. 11 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Asset-freeze in relation to designated persons U.K.

12.—(1) A person (“P”) must not deal with funds or economic resources 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) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence.

(4) For the purposes of paragraph (1) a person “deals with” funds if the person—

(a) uses, alters, moves, transfers or allows access to the funds,

(b) deals with the funds in any other way that would result in any change in volume, amount, location, ownership, possession, character or destination, or

(c) makes any other change, including portfolio management, that would enable use of the funds.

(5) For the purposes of paragraph (1) a person “deals with” economic resources if the person—

(a) exchanges the economic resources for funds, goods or services, or

(b) uses the economic resources in exchange for funds, goods or services (whether by pledging them as security or otherwise).

(6) The reference in paragraph (1) to funds or economic resources that are “owned, held or controlled” by a person includes, in particular, a reference to—

(a) funds or economic resources in which the person has any legal or equitable interest, regardless of whether the interest is held jointly with any other person and regardless of whether any other person holds an interest in the funds or economic resources;

(b) any tangible property (other than real property), or bearer security, that is comprised in funds or economic resources and is in the possession of the person.

(7) For the purposes of paragraph (1) funds or economic resources are to be treated as owned, held or controlled by a designated person if they are owned, held or controlled by a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.

(8) For the avoidance of doubt, the reference in paragraph (1) to a designated person includes P if P is a designated person.

Commencement Information

I23 Reg. 12 not in force at made date, see reg. 1(2)

I24 Reg. 12 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Making funds available to designated person U.K.

13.—(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 Part 6 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence.

(4) The reference in paragraph (1) to making funds available indirectly to a designated person includes, in particular, a reference to making them available to a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.

Commencement Information

I25 Reg. 13 not in force at made date, see reg. 1(2)

I26 Reg. 13 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Making funds available for benefit of designated person U.K.

14.—(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) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence.

(4) 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 (or partial discharge) of a financial obligation for which the designated person is wholly or partly responsible.

Commencement Information

I27 Reg. 14 not in force at made date, see reg. 1(2)

I28 Reg. 14 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Making economic resources available to designated person U.K.

15.—(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 for, or use them in exchange for, funds, goods or services.

(2) Paragraph (1) is subject to Part 6 (exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence.

(4) The reference in paragraph (1) to making economic resources available indirectly to a designated person includes, in particular, a reference to making them available to a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.

Commencement Information

I29 Reg. 15 not in force at made date, see reg. 1(2)

I30 Reg. 15 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Making economic resources available for benefit of designated person U.K.

16.—(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) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence.

(4) For the purposes of paragraph (1)—

(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 (or partial discharge) of a financial obligation for which the designated person is wholly or partly responsible.

Commencement Information

I31 Reg. 16 not in force at made date, see reg. 1(2)

I32 Reg. 16 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Financial messaging services U.K.

17.—(1) A person (“P”) must not provide specialised financial messaging services to a designated person if P knows or has reasonable cause to suspect that P is providing such services to a designated person.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence.

(4) In paragraph (1), “specialised financial messaging services” means specialised services enabling credit or financial institutions to electronically transmit messages effecting financial transactions or containing information about financial transactions.

Commencement Information

I33 Reg. 17 not in force at made date, see reg. 1(2)

I34 Reg. 17 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Circumventing etc prohibitions U.K.

18.—(1) A person must not intentionally participate in activities knowing that the object or effect of them is, whether directly or indirectly—

(a) to circumvent any of the prohibitions in regulations 12 to 17, or

(b) to enable or facilitate the contravention of any such prohibition.

(2) A person who contravenes the prohibition in paragraph (1) commits an offence.

Commencement Information

I35 Reg. 18 not in force at made date, see reg. 1(2)

I36 Reg. 18 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

PART 4 U.K. Immigration

Immigration U.K.

19.  A person who is designated under regulation 5 for the purposes of this regulation is an excluded person for the purposes of section 8B of the Immigration Act 1971 M9 .

Commencement Information

I37 Reg. 19 not in force at made date, see reg. 1(2)

I38 Reg. 19 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Marginal Citations

M9 1971 c. 77. Section 8B was inserted by the Immigration and Asylum Act 1999 (c.33), section 8 and amended by the Immigration Act 2016 (c.19), section 76; and the Act, section 59 and Schedule 3, Part 1.

PART 5 U.K. Trade

CHAPTER 1 U.K. Exports to Iran and related activities

Meaning of “restricted goods” and “restricted technology” in this Chapter U.K.

20.  In this Chapter—

“restricted goods” means—

(a)

military goods,

(b)

missile-list goods,

(c)

nuclear-list goods,

(d)

graphite and relevant metals,

(e)

other restricted goods;

“restricted technology” means—

(a)

military technology,

(b)

missile-list technology,

(c)

nuclear-list technology,

(d)

other restricted technology,

(e)

relevant enterprise resource planning software.

Commencement Information

I39 Reg. 20 not in force at made date, see reg. 1(2)

I40 Reg. 20 in force at 25.3.2019 by S.I. 2019/627, reg. 8(1)(i)

Export of restricted goods to, or for use in, Iran U.K.

21.—(1) The export of restricted goods to, or for use in, Iran is prohibited.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

Commencement Information

I41 Reg. 21 not in force at made date, see reg. 1(2)

I42 Reg. 21 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Supply and delivery of restricted goods from a third country to Iran U.K.

22.—(1) A person must not directly or indirectly supply or deliver restricted goods from a third country to a place in Iran.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with that offence to show that the person did not know and had no reasonable cause to suspect that the goods were destined (or ultimately destined) for Iran.

(4) In this regulation “third country” means a country that is not the United Kingdom, the Isle of Man or Iran.

Commencement Information

I43 Reg. 22 not in force at made date, see reg. 1(2)

I44 Reg. 22 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Making available restricted goods and restricted technology U.K.

23.—(1) A person must not—

(a) directly or indirectly make restricted goods or restricted technology available to a person connected with Iran;

(b) directly or indirectly make restricted goods or restricted technology available for use in Iran.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but—

(a) it is a defence for a person charged with the offence of contravening paragraph (1)(a) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Iran;

(b) it is a defence for a person charged with the offence of contravening paragraph (1)(b) to show that the person did not know and had no reasonable cause to suspect that the goods or technology were for use in Iran.

Commencement Information

I45 Reg. 23 not in force at made date, see reg. 1(2)

I46 Reg. 23 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Transfer of restricted technology to a place in Iran or a person connected with Iran U.K.

24.—(1) A person must not—

(a) transfer restricted technology to a place in Iran;

(b) transfer restricted technology to a person connected with Iran.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but—

(a) it is a defence for a person charged with the offence of contravening paragraph (1)(a) to show that the person did not know and had no reasonable cause to suspect that the transfer was to a place in Iran;

(b) it is a defence for a person charged with the offence of contravening paragraph (1)(b) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Iran.

Commencement Information

I47 Reg. 24 not in force at made date, see reg. 1(2)

I48 Reg. 24 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Technical assistance relating to restricted goods and restricted technology U.K.

25.—(1) A person must not directly or indirectly provide technical assistance relating to restricted goods or restricted technology—

(a) to a person connected with Iran, or

(b) for use in Iran.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but—

(a) it is a defence for a person charged with the offence of contravening paragraph (1)(a) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Iran;

(b) it is a defence for a person charged with the offence of contravening paragraph (1)(b) to show that the person did not know and had no reasonable cause to suspect that the goods or technology were for use in Iran.

Commencement Information

I49 Reg. 25 not in force at made date, see reg. 1(2)

I50 Reg. 25 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Financial services and funds relating to restricted goods and restricted technology U.K.

26.—(1) A person must not directly or indirectly provide, to a person connected with Iran, financial services in pursuance of or in connection with an arrangement whose object or effect is—

(a) the export of restricted goods,

(b) the direct or indirect supply or delivery of restricted goods,

(c) directly or indirectly making restricted goods or restricted technology available to a person,

(d) the transfer of restricted technology, or

(e) the direct or indirect provision of technical assistance relating to restricted goods or restricted technology.

(2) A person must not directly or indirectly make funds available to a person connected with Iran in pursuance of or in connection with an arrangement mentioned in paragraph (1).

(3) A person must not directly or indirectly provide financial services or funds in pursuance of or in connection with an arrangement whose object or effect is—

(a) the export of restricted goods to, or for use in, Iran,

(b) the direct or indirect supply or delivery of restricted goods to a place in Iran,

(c) directly or indirectly making restricted goods or restricted technology available—

(i) to a person connected with Iran, or

(ii) for use in Iran,

(d) the transfer of restricted technology—

(i) to a person connected with Iran, or

(ii) for use in Iran,

(e) the direct or indirect provision of technical assistance relating to restricted goods—

(i) to a person connected with Iran, or

(ii) for use in Iran.

(4) Paragraphs (1) to (3) are subject to Part 6 (Exceptions and licences).

(5) A person who contravenes a prohibition in any of paragraphs (1) to (3) commits an offence, but—

(a) it is a defence for a person charged with an offence of contravening paragraph (1) or (2) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Iran;

(b) it is a defence for a person charged with an offence of contravening a prohibition in paragraph (3) to show that the person did not know and had no reasonable cause to suspect that the financial services or funds (as the case may be) were provided in pursuance of or in connection with an arrangement mentioned in that paragraph.

Commencement Information

I51 Reg. 26 not in force at made date, see reg. 1(2)

I52 Reg. 26 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Brokering services: non-UK activity relating to restricted goods and restricted technology U.K.

27.—(1) A person must not directly or indirectly provide brokering services in relation to an arrangement (“arrangement A”) whose object or effect is—

(a) the direct or indirect supply or delivery of restricted goods from a third country to a place in Iran;

(b) directly or indirectly making restricted goods available in a third country for direct or indirect supply or delivery—

(i) to a person connected with Iran, or

(ii) to a place in Iran;

(c) directly or indirectly making restricted technology available in a third country for transfer—

(i) to a person connected with Iran, or

(ii) to a place in Iran;

(d) the transfer of restricted technology from a place in a third country—

(i) to a person connected with Iran, or

(ii) to a place in Iran;

(e) the direct or indirect provision, in a non-UK country, of technical assistance relating to restricted goods or restricted technology—

(i) to a person connected with Iran, or

(ii) for use in Iran;

(f) the direct or indirect provision, in a non-UK country, of financial services—

(i) to a person connected with Iran, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 26(1), or

(ii) where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 26(3);

(g) directly or indirectly making funds available, in a non-UK country, to a person connected with Iran, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 26(1); or

(h) the direct or indirect provision of funds from a non-UK country, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 26(3).

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with that offence to show that the person did not know and had no reasonable cause to suspect that the brokering services were provided in relation to an arrangement mentioned in that paragraph.

(4) In this regulation—

“brokering service” means any service to secure, or otherwise in relation to, an arrangement, including (but not limited to)—

(a)

the selection or introduction of persons as parties or potential parties to the arrangement,

(b)

the negotiation of the arrangement,

(c)

the facilitation of anything that enables the arrangement to be entered into, and

(d)

the provision of any assistance that in any way promotes or facilitates the arrangement;

“non-UK country” means a country that is not the United Kingdom or the Isle of Man;

“third country” means—

(a)

for the purposes of paragraph (1)(a) and (b), a country that is not the United Kingdom, the Isle of Man or Iran,

(b)

for the purposes of any other provision of paragraph (1), a country that is not the United Kingdom or Iran.

(5) For the purposes of this regulation, the definition of “country” in section 62(1) of the Act does not apply.

Commencement Information

I53 Reg. 27 not in force at made date, see reg. 1(2)

I54 Reg. 27 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

CHAPTER 2 U.K. Imports from Iran and related activities

Import of certain goods from Iran U.K.

28.—(1) The import of the following goods, where they are consigned from Iran, is prohibited—

(a) arms and related materiel;

(b) missile-list goods;

(c) nuclear-list goods;

(d) other restricted goods.

(2) The import of the goods mentioned in paragraph (1), where they originate in Iran, is prohibited.

(3) Paragraphs (1) to (3) are subject to Part 6 (Exceptions and licences).

(4) In this regulation, “arms and related materiel” means—

(a) military goods;

(b) any goods from time to time falling with Chapter 93 of the [F3 Goods Classification Table], other than military goods.

[F4 (5) For the purposes of the definition of “arms and related materiel” in paragraph (4)—

“the Goods Classification Table” means the table so named in Annex I in Part Three of the Tariff of the United Kingdom;

“the Tariff of the United Kingdom” means the document containing the legal classification and import rate for products being imported into the United Kingdom, entitled “The Tariff of the United Kingdom”, as revised or re-issued from time to time, including by any document published under regulations made under section 8(1) of the Taxation (Cross-border Trade) Act 2018 replacing the same in whole or in part.]

Textual Amendments

F3 Words in reg. 28(4)(b) substituted (31.12.2020 immediately after IP completion day) by The Sanctions (EU Exit) (Miscellaneous Amendments) Regulations 2020 (S.I. 2020/591), regs. 1(2), 5(4)(a); S.I. 2020/1514, reg. 5

F4 Reg. 28(5) substituted (31.12.2020 immediately after IP completion day) by The Sanctions (EU Exit) (Miscellaneous Amendments) Regulations 2020 (S.I. 2020/591), regs. 1(2), 5(4)(b); S.I. 2020/1514, reg. 5

Commencement Information

I55 Reg. 28 not in force at made date, see reg. 1(2)

I56 Reg. 28 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Supply and delivery of certain goods to a third country from a place in Iran U.K.

29.—(1) A person must not directly or indirectly supply or deliver the following goods from a place in Iran to a third country—

(a) military goods;

(b) missile-list goods;

(c) nuclear-list goods;

(d) other restricted goods.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with the offence of contravening paragraph (1) to show that the person did not know and had no reasonable cause to suspect that the supply or delivery was from a place in Iran, whether directly or indirectly.

(4) In this regulation, “third country” means a country that is not the United Kingdom, the Isle of Man or Iran.

Commencement Information

I57 Reg. 29 not in force at made date, see reg. 1(2)

I58 Reg. 29 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Acquisition of certain goods and technology which are located in Iran U.K.

30.—(1) A person must not directly or indirectly acquire relevant goods and technology which are located in Iran.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with the offence of contravening paragraph (1)(“P”) to show that P did not know and had no reasonable cause to suspect that [F5 the goods or technology were located in Iran].

(4) In this regulation, “relevant goods and technology” means—

(a) goods mentioned in regulation 29(1);

(b) military technology;

(c) missile-list technology;

(d) nuclear-list technology;

(e) other restricted technology.

Textual Amendments

F5 Words in reg. 30(3) substituted (31.12.2020) by The Sanctions (EU Exit) (Miscellaneous Amendments) Regulations 2019 (S.I. 2019/843), regs. 1(2), 3(2); 2020 c. 1, Sch. 5 para. 1(1)

Commencement Information

I59 Reg. 30 not in force at made date, see reg. 1(2)

I60 Reg. 30 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Transfer of certain technology from a place in Iran U.K.

31.—(1) A person must not transfer relevant technology to persons outside the United Kingdom or to a place outside the United Kingdom, where the transfer is from a place in Iran.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with the offence of contravening paragraph (1) to show that the person did not know and had no reasonable cause to suspect that the transfer was from a place in Iran.

(4) In this regulation, “relevant technology” means—

(a) military technology;

(b) missile-list technology;

(c) nuclear-list technology;

(d) other restricted technology.

Commencement Information

I61 Reg. 31 not in force at made date, see reg. 1(2)

I62 Reg. 31 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

CHAPTER 3 U.K. Other trade restrictions relation to Iran

Arrangements relating to uranium mining and certain restricted goods and technology U.K.

32.—(1) A person must not enter into an arrangement with a relevant person (“P”) where the object or effect of that arrangement is to enable P to participate in, or increase P's participation in—

(a) a commercial activity involving uranium mining;

(b) a commercial activity involving the production or use of nuclear-list goods falling within paragraph (2) or nuclear-list technology falling within paragraph (2);

(c) a commercial activity involving missile-list goods or missile-list technology;

(d) a commercial activity involving the production of military goods or military technology; or

(e) a commercial activity involving other restricted goods or other restricted technology.

(2) Nuclear-list goods and nuclear-list technology fall within this paragraph if they are specified from time to time in the International Atomic Energy Agency document mentioned in regulation 34(2)(a)(i) or in any different version of that document as mentioned in regulation 34(2)(b).

(3) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(4) A person who contravenes a prohibition in paragraph (1) commits an offence but it is a defence to show that the person did not know and had no reasonable cause to suspect that the arrangement was an arrangement mentioned in that paragraph.

(5) In this regulation—

“arrangement” includes the acceptance of a loan or credit from a relevant person;

“commercial activity” means an activity which is carried on for a commercial purpose;

“participation” includes participation independently or as part of a joint venture or partnership (and “participate” is to be construed accordingly);

“relevant person” means—

(a)

a person connected with Iran;

(b)

any person acting on behalf of, or at the direction of, a person connected with Iran.

(6) Nothing in this regulation is to be taken to limit the meaning of any prohibition in Chapter 1 or 2.

Commencement Information

I63 Reg. 32 not in force at made date, see reg. 1(2)

I64 Reg. 32 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Services in relation to certain ships and aircraft U.K.

33.—(1) A person must not provide—

(a) bunkering or ship supply services in relation to a ship owned or controlled, directly or indirectly, by a person connected with Iran, where the ship is carrying relevant restricted items;

(b) engineering or maintenance services in relation to a cargo aircraft owned or controlled, directly or indirectly, by a person connected with Iran, where the aircraft is carrying relevant restricted items.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with that offence to show that the person did not know and had no reasonable cause to suspect—

(a) that the ship or aircraft in question was owned or controlled, directly or indirectly, by a person connected with Iran; or

(b) that the ship or aircraft in question was carrying relevant restricted items.

(4) In this regulation—

“bunkering or ship supply services” includes—

(a)

the supply of goods for use in a ship including fuel and spare parts, whether or not for immediate use, and

(b)

any other servicing of a ship;

“relevant restricted items” means any military goods, military technology, missile-list goods or missile-list technology which have been, or are being, dealt with in contravention of a prohibition—

(a)

in any of regulations 21 to 24 (trade prohibitions relating to restricted goods and restricted technology),

(b)

in any of regulations 28 to 31 (import, supply, transfer etc of goods and technology from Iran), or

(c)

imposed by a condition of a trade licence in relation to a prohibition mentioned in paragraph (i) or (ii);

“ship” and “aircraft” have the meanings given in paragraph 37 of Schedule 1 to the Act.

Commencement Information

I65 Reg. 33 not in force at made date, see reg. 1(2)

I66 Reg. 33 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

CHAPTER 4 U.K. Interpretation of this Part and further provision

Interpretation of this Part U.K.

34.—(1) In this Part—

“graphite and relevant metals” means any thing falling within Annex VIIB to Council Regulation (EU) No 267/2012 of 23 March 2012 concerning restrictive measures against Iran and repealing Regulation (EU) No 961/2010, as it had effect immediately before [F6 IP completion day], other than any thing for the time being falling within Annex Ⅰ to Council Regulation (EC) No 428/2009 of 5 May 2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items;

“military goods” means—

(a)

any thing for the time being specified in Schedule 2 to the Export Control Order 2008 M10 , other than any thing which is military technology, and

(b)

any tangible storage medium on which military technology is recorded or from which it can be derived;

“military technology” means any thing for the time being specified in Schedule 2 to the Export Control Order 2008 which is described as software or technology;

“missile-list goods” means any thing specified in Security Council document S/2015/546, other than any thing which is missile-list technology;

“missile-list technology” means any thing specified in Security Council document S/2015/546 which is described as software or technology;

“nuclear-list goods” means any thing for the time being specified in a relevant International Atomic Energy Agency list, other than any thing which is nuclear-list technology;

“nuclear-list technology” means any thing for the time being specified in a relevant International Atomic Energy Agency list and which is described as software or technology;

“other restricted goods” means any thing falling within Part II.A (goods) of Annex II to Council Regulation (EU) No 267/2012 of 23 March 2012 concerning restrictive measures against Iran and repealing Regulation (EU) No 961/2010, as it had effect immediately before [F7 IP completion day];

“other restricted technology” means any thing falling within Part II.B (technology) of Annex II to Council Regulation (EU) No 267/2012 of 23 March 2012 concerning restrictive measures against Iran and repealing Regulation (EU) No 961/2010, as it had effect immediately before [F8 IP completion day];

“relevant enterprise resource planning software” means software used for financial accounting, management accounting, human resources, manufacturing, supply chain management, project management, customer relationship management, data services, or access control, and which is specifically designed for use in nuclear and military industries;

“technical assistance”, in relation to goods or technology, means—

(a)

technical support relating to the repair, development, production, assembly, testing, use or maintenance of the goods or technology, or

(b)

any other technical service relating to the goods or technology;

F9 ...

“transfer” has the meaning given in paragraph 37 of Schedule 1 to the Act.

(2) For the purposes of the definitions of “nuclear-list goods” and “nuclear-list technology”, a thing is “specified in a relevant International Atomic Energy Agency list” if—

(a) the thing is specified in either of the following International Atomic Energy Agency documents—

(i) INFCIRC/254/Rev.12/Part 1;

(ii) INFCIRC/254/Rev.9/Part 2; or

(b) where a different version of document INFCIRC/254/Part 1 or document INFCIRC/254/Part 2 is published on the United Nations website for the purposes of paragraph 2(a) of Annex B to resolution 2231, the thing is specified in such a version.

(3) For the purposes of this Part a person is to be regarded as “connected with” Iran if the person is—

(a) the Government of Iran or a public authority of the Government of Iran,

(b) an individual who is, or an association or combination of individuals who are, ordinarily resident in Iran,

(c) an individual who is, or an association or combination of individuals who are, located in Iran,

(d) a person, other than an individual, which is incorporated or constituted under the law of Iran,

(e) a person, other than an individual, which is domiciled in Iran, or

(f) a person, other than an individual, which is owned or controlled directly or indirectly (within the meaning of regulation 7) by a person within any of sub-paragraphs (a) to (e).

(4) In this Part any reference to the United Kingdom includes a reference to the territorial sea.

Textual Amendments

F6 Words in reg. 34(1) substituted (31.12.2020 immediately after IP completion day) by The Sanctions (EU Exit) (Miscellaneous Amendments) Regulations 2020 (S.I. 2020/591), regs. 1(2), 5(5)(a); S.I. 2020/1514, reg. 5

F7 Words in reg. 34(1) substituted (31.12.2020 immediately after IP completion day) by The Sanctions (EU Exit) (Miscellaneous Amendments) Regulations 2020 (S.I. 2020/591), regs. 1(2), 5(5)(b); S.I. 2020/1514, reg. 5

F8 Words in reg. 34(1) substituted (31.12.2020 immediately after IP completion day) by The Sanctions (EU Exit) (Miscellaneous Amendments) Regulations 2020 (S.I. 2020/591), regs. 1(2), 5(5)(c); S.I. 2020/1514, reg. 5

F9 Words in reg. 34(1) omitted (31.12.2020 immediately after IP completion day) by virtue of The Sanctions (EU Exit) (Miscellaneous Amendments) Regulations 2020 (S.I. 2020/591), regs. 1(2), 5(5)(d); S.I. 2020/1514, reg. 5

Commencement Information

I67 Reg. 34 not in force at made date, see reg. 1(2)

I68 Reg. 34 in force at 25.3.2019 by S.I. 2019/627, reg. 8(1)(j)

I69 Reg. 34 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Marginal Citations

M10 S.I. 2008/3231. Schedule 2 was substituted by S.I. 2017/85 and subsequently amended by S.I. 2017/697 and S.I. 2018/165. There are other instruments which amend other parts of the Order.

Circumventing etc prohibitions U.K.

35.—(1) A person must not intentionally participate in activities knowing that the object or effect of them is, whether directly or indirectly—

(a) to circumvent any of the prohibitions in Chapters 1 to 3 of this Part, or

(b) to enable of facilitate the contravention of any such prohibition.

(2) A person who contravenes a prohibition in paragraph (1) commits an offence.

Commencement Information

I70 Reg. 35 not in force at made date, see reg. 1(2)

I71 Reg. 35 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Defences U.K.

36.—(1) Paragraph (2) applies where a person relies on a defence under Chapters 1 to 3 of this Part.

(2) If evidence is adduced which is sufficient to raise an issue with respect to the defence, the court must assume that the defence is satisfied unless the prosecution proves beyond reasonable doubt that it is not.

Commencement Information

I72 Reg. 36 not in force at made date, see reg. 1(2)

I73 Reg. 36 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

PART 6 U.K. Exceptions and licences

Finance: exceptions from prohibitions U.K.

37.—(1) The prohibition in regulation 12 (asset-freeze in relation to designated persons) is not contravened by an independent person (“P”) transferring to another person a legal or equitable interest in funds or economic resources where, immediately before the transfer, the interest—

(a) is held by P, and

(b) is not held jointly with the designated person.

(2) In paragraph (1) “independent person” means a person who—

(a) is not the designated person, and

(b) is not owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.

(3) The prohibitions in regulations 12 to 14 (asset-freeze in relation to, and making funds available to, or for the benefit of, designated persons) are not contravened by a relevant institution crediting a frozen account with interest or other earnings due on the account.

(4) The prohibitions in regulations 13 and 14 (making funds available to, or for the benefit of, designated persons) are not contravened by a relevant institution crediting a frozen account where it receives funds transferred to that institution for crediting to that account.

(5) The prohibitions in regulations 13 and 14 are not contravened by the transfer of funds to a relevant institution for crediting to an account held or controlled (directly or indirectly) by a designated person, where those funds are transferred in discharge (or partial discharge) of an obligation which arose before the date on which the person became a designated person.

(6) The prohibitions in regulations 12 to 14 are not contravened in relation to a designated person (“P”) by a transfer of funds from account A to account B, where—

(a) account A is with a relevant institution which carries on an excluded activity within the meaning of section 142D of the Financial Services and Markets Act 2000 M11 ,

(b) account B is with a ring-fenced body within the meaning of section 142A of the Financial Services and Markets Act 2000 M12 , and

(c) accounts A and B are held or controlled (directly or indirectly) by P.

(7) In this regulation—

“designated person” has the same meaning as it has in Part 3 (Finance);

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

“relevant institution” means a person that has permission under Part 4A of the Financial Services and Markets Act 2000 M13 (permission to carry on regulated activity).

(8) The definition of “relevant institution” in paragraph (7) is to be read with section 22 of the Financial Services and Markets Act 2000 M14 , any relevant order under that section M15 and Schedule 2 to that Act M16 .

Commencement Information

I74 Reg. 37 not in force at made date, see reg. 1(2)

I75 Reg. 37 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Marginal Citations

M11 2000 c.8. Section 142D was inserted by the Financial Services (Banking Reform) Act 2013 (c.33), section 4(1).

M12 Section 142A was inserted by the Financial Services (Banking Reform) Act 2013, section 4(1).

M13 Part 4A was inserted by the Financial Services Act 2012 (c.21), section 11(2) and amended by S.I. 2018/135.

M14 Section 22 was amended by the Financial Guidance and Claims Act 2018 (c.10), section 27(4); the Financial Services Act 2012, section 7(1); and S.I. 2018/135.

M15 S.I. 2001/544 amended by S.I. 2018/1288 and prospectively amended by S.I. 2018/1403.

M16 Schedule 2 was amended by the Regulation of Financial Services (Land Transactions) Act 2005 (c.24), section 1; the Dormant Bank and Building Society Accounts Act 2008 (c.31), section 15 and Schedule 2, paragraph 1; the Financial Services Act 2012, sections 7(2) to (5) and 8; and S.I. 2013/1881; and it is prospectively amended by S.I. 2018/135.

[F10 Exception for authorised conduct in a relevant country U.K.

37A.— (1) Where a person's conduct in a relevant country would, in the absence of this regulation, contravene a prohibition in any of regulations 12 to 17 (asset-freeze etc.) or Chapters 1 to 3 of Part 5 (Trade) (“the relevant prohibition”), the relevant prohibition is not contravened if the conduct is authorised by a licence or other authorisation which is issued—

(a) under the law of the relevant country, and

(b) for the purpose of disapplying a prohibition in that jurisdiction which corresponds to the relevant prohibition.

(2) In this regulation—

“relevant country” means—

(a)

any of the Channel Islands,

(b)

the Isle of Man, or

(c)

any British overseas territory.

(3) Nothing in this regulation affects the application of a prohibition in a case where it would be incompatible with a UN obligation for the prohibition not to apply.]

Textual Amendments

F10 Reg. 37A inserted (31.12.2020 immediately after IP completion day) by The Sanctions (EU Exit) (Miscellaneous Amendments) (No.3) Regulations 2020 (S.I. 2020/950), regs. 1(2), 5(2); S.I. 2020/1514, reg. 17

Exception for acts done for purposes of national security or prevention of serious crime U.K.

38.—(1) Where an act would, in the absence of this paragraph, be prohibited by the prohibition in regulation 9(2) or any prohibition in Part 3 (Finance) or Part 5 (Trade), that prohibition does not apply to the act if the act is one which a responsible officer has determined would be in the interests of—

(a) national security, or

(b) the prevention or detection of serious crime in the United Kingdom or elsewhere.

(2) Where, in the absence of this paragraph, a thing would be required to be done under or by virtue of a provision of Part 7 (Information and records) or 9 (Maritime enforcement), that requirement does not apply if a responsible officer has determined that not doing the thing in question would be in the interests of—

(a) national security, or

(b) the prevention or detection of serious crime in the United Kingdom or elsewhere.

(3) In this regulation “responsible officer” means a person in the service of the Crown or holding office under the Crown, acting in the course of that person's duty.

(4) Nothing in this regulation affects the application of a prohibition or requirement in a case where it would be incompatible with a UN obligation for the prohibition or requirement not to apply.

Commencement Information

I76 Reg. 38 not in force at made date, see reg. 1(2)

I77 Reg. 38 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Exception relating to services provided to certain ships and aircraft U.K.

39.  The prohibition in regulation 33 (services in relation to certain ships and aircraft) is not contravened in circumstances where failing to do something prohibited by that regulation in relation to a ship or aircraft would endanger the lives of persons on board that ship or aircraft.

Commencement Information

I78 Reg. 39 not in force at made date, see reg. 1(2)

I79 Reg. 39 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Treasury licences U.K.

40.—(1) The prohibitions in regulations 12 to 17 (asset-freeze etc) do not apply to anything done under the authority of a licence issued by the Treasury under this paragraph.

(2) The Treasury may issue a licence which authorises acts by a particular person in relation to a non-UN designated person only where the Treasury consider that it is appropriate to issue the licence for a purpose set out in Schedule 2.

(3) The Treasury may issue a licence which authorises acts in relation to a UN designated person only where the Treasury consider that it is appropriate to issue the licence for a purpose set out in Part 1 of Schedule 2.

(4) In paragraph (3) “UN designated person” means a person who is a designated person for the purposes of regulations 12 to 17 by reason of regulation 10 (designation of persons named by or under UN Security Council Resolutions).

Commencement Information

I80 Reg. 40 not in force at made date, see reg. 1(2)

I81 Reg. 40 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Trade licences U.K.

41.  The prohibitions in Chapters 1 to 3 of Part 5 (Trade) do not apply to anything done under the authority of a licence issued by the Secretary of State under this regulation.

Commencement Information

I82 Reg. 41 not in force at made date, see reg. 1(2)

I83 Reg. 41 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Licences: general provisions U.K.

42.—(1) This regulation applies in relation to Treasury licences and trade licences.

(2) A licence must specify the acts authorised by it.

(3) A licence may be general or may authorise acts by a particular person or persons of a particular description.

(4) A licence may —

(a) contain conditions;

(b) be of indefinite duration or a defined duration.

(5) A person who issues a licence may vary, revoke or suspend it at any time.

(6) A person who issues, varies, revokes or suspends a licence which authorises acts by a particular person must give written notice to that person of the issue, variation, revocation or suspension of the licence.

(7) A person who issues, varies, revokes or suspends a general licence or a licence which authorises acts by persons of a particular description must take such steps as that person considers appropriate to publicise the issue, variation, revocation or suspension of the licence.

Commencement Information

I84 Reg. 42 not in force at made date, see reg. 1(2)

I85 Reg. 42 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Finance: licensing offences U.K.

43.—(1) A person (“P”) commits an offence if P 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,

for the purpose of obtaining a Treasury licence (whether for P or anyone else).

(2) A person who purports to act under the authority of a Treasury licence but who fails to comply with any condition of the licence commits an offence.

Commencement Information

I86 Reg. 43 not in force at made date, see reg. 1(2)

I87 Reg. 43 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Trade: licensing offences U.K.

44.—(1) A person (“P”) commits an offence if P 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,

for the purpose of obtaining a trade licence (whether for P or anyone else).

(2) A person who purports to act under the authority of a trade licence but who fails to comply with any condition of the licence commits an offence.

(3) A licence in respect of which an offence under paragraph (1) has been committed is to be treated as void from the time at which it was issued.

Commencement Information

I88 Reg. 44 not in force at made date, see reg. 1(2)

I89 Reg. 44 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Section 8B(1) to (3) of Immigration Act 1971: directions U.K.

45.—(1) The Secretary of State may direct that, in relation to any person within regulation 19 whose name is specified, or who is of a specified description, section 8B(1) and (2) of the Immigration Act 1971, or section 8B(3) of that Act, have effect subject to specified exceptions.

(2) A direction under this regulation—

(a) may contain conditions;

(b) must be of a defined duration (and that duration may be expressed in any way, including, for example, being expressed in a way such that the direction ceases to have effect on, or within a specified period after, the occurrence of a specified event).

(3) The Secretary of State may vary, revoke or suspend a direction under this regulation at any time.

(4) On the issue, variation, revocation or suspension of a direction under this regulation, the Secretary of State may take such steps as the Secretary of State considers appropriate to publicise the issue, variation, revocation or suspension of the direction.

(5) In this regulation “specified” means specified in a direction under this regulation.

Commencement Information

I90 Reg. 45 not in force at made date, see reg. 1(2)

I91 Reg. 45 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

PART 7 U.K. Information and records

Finance: reporting obligations U.K.

46.—(1) A relevant firm must inform the Treasury as soon as practicable if—

(a) it knows, or has reasonable cause to suspect, that a person—

(i) is a designated person, or

(ii) has committed an offence under any provision of Part 3 (Finance) or regulation 43 (finance: licensing offences), and

(b) the information or other matter on which the knowledge or cause for suspicion is based came to it in the course of carrying on its business.

(2) Where a relevant firm informs the Treasury under paragraph (1), it must state—

(a) the information or other matter on which the knowledge or suspicion is based, and

(b) any information it holds about the person by which the person can be identified.

(3) Paragraph (4) applies if—

(a) a relevant firm informs the Treasury under paragraph (1) that it knows, or has reasonable cause to suspect, that a person is a designated person, and

(b) that person is a customer of the relevant firm.

(4) The relevant firm must also state the nature and amount or quantity of any funds or economic resources held by it for the customer at the time when it first had the knowledge or suspicion.

(5) A relevant institution must inform the Treasury without delay if that institution—

(a) credits a frozen account in accordance with regulation 37(4) (finance: exceptions from prohibitions), or

(b) transfers funds from a frozen account in accordance with regulation 37(6).

(6) A person who fails to comply with a requirement in paragraph (1), (2) or (4) commits an offence.

(7) In this regulation—

“designated person” has the same meaning as it has in Part 3 (Finance);

“frozen account” has the same meaning as it has in regulation 37;

“relevant firm” is to be read in accordance with regulation 47;

“relevant institution” has the same meaning as it has in regulation 37.

Commencement Information

I92 Reg. 46 not in force at made date, see reg. 1(2)

I93 Reg. 46 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

“Relevant firm” U.K.

47.—(1) The following are relevant firms for the purposes of regulation 46—

(a) a person that has permission under Part 4A of the Financial Services and Markets Act 2000 (permission to carry on regulated activity);

(b) an undertaking that by way of business—

(i) operates a currency exchange office,

(ii) transmits money (or any representation of monetary value) by any means, or

(iii) cashes cheques that are made payable to customers;

(c) a firm or sole practitioner that is—

(i) a statutory auditor within the meaning of Part 42 of the Companies Act 2006 (statutory auditors) M17 , or

(ii) a local auditor within the meaning of section 4(1) of the Local Audit and Accountability Act 2014 (general requirements for audit) M18 ;

(d) a firm or sole practitioner that provides to other persons, by way of business—

(i) accountancy services,

(ii) legal or notarial services,

(iii) advice about tax affairs, or

(iv) trust or company services within the meaning of paragraph (2);

(e) a firm or sole practitioner that carries out, or whose employees carry out, estate agency work;

(f) the holder of a casino operating licence within the meaning given by section 65(2)(a) of the Gambling Act 2005 (nature of a licence) M19 ;

(g) a person engaged in the business of making, supplying, selling (including selling by auction) or exchanging—

(i) articles made from gold, silver, platinum or palladium, or

(ii) precious stones or pearls.

[F11 (h) a cryptoasset exchange provider;

(i) a custodian wallet provider.]

(2) In paragraph (1)(d)(iv) “trust or company services” means any of the following services—

(a) forming companies or other legal persons;

(b) acting, or arranging for another person to act—

(i) as a director or secretary of a company,

(ii) as a partner of a partnership, or

(iii) in a similar capacity in relation to other legal persons;

(c) providing a registered office, business address, correspondence or administrative address or other related services for a company, partnership or any other legal person or arrangement;

(d) acting, or arranging for another person to act, as—

(i) a trustee of an express trust or similar legal arrangement, or

(ii) a nominee shareholder for a person.

(3) In paragraph (1)—

“estate agency work” is to be read in accordance with section 1 of the Estate Agents Act 1979 M20 , but as if references in that section to disposing of or acquiring an interest in land included (despite anything in section 2 of that Act) references to disposing of or acquiring an estate or interest in land outside the United Kingdom where that estate or interest is capable of being owned or held as a separate interest;

“firm” means any entity that, whether or not a legal person, is not an individual, and includes a body corporate and a partnership or other unincorporated body.

[F12 (3A) In paragraph (1), a “cryptoasset exchange provider” means a firm or sole practitioner that by way of business provides one or more of the following services, including where the firm or sole practitioner does so as creator or issuer of any of the cryptoassets involved—

(a) exchanging, or arranging or making arrangements with a view to the exchange of, cryptoassets for money or money for cryptoassets,

(b) exchanging, or arranging or making arrangements with a view to the exchange of, one cryptoasset for another, or

(c) operating a machine which utilises automated processes to exchange cryptoassets for money or money for cryptoassets.

(3B) In paragraph (1), a “custodian wallet provider” means a firm or sole practitioner that by way of business provides services to safeguard, or to safeguard and administer—

(a) cryptoassets on behalf of its customers, or

(b) private cryptographic keys on behalf of its customers in order to hold, store and transfer cryptoassets.

(3C) For the purposes of this regulation—

(a) “cryptoasset” means a cryptographically secured digital representation of value or contractual rights that uses a form of distributed ledger technology and can be transferred, stored or traded electronically;

(b) “money” means—

(i) money in sterling,

(ii) money in any other currency, or

(iii) money in any other medium of exchange,

but does not include a cryptoasset; and

(c) in sub-paragraphs (a) to (c) of paragraph (3A), “cryptoasset” includes a right to, or interest in, the cryptoasset.]

(4) Paragraph (1)(a) and (b) is to be read with section 22 of the Financial Services and Markets Act 2000, any relevant order under that section and Schedule 2 to that Act.

(5) For the purposes of regulation 46(1)(b), information or another matter comes to a relevant firm “in the course of carrying on its business” if the information or other matter comes to the firm—

(a) in the case of a relevant firm within paragraph (1)(a), in the course of carrying on an activity in respect of which the permission mentioned in that provision is required;

(b) in the case of a relevant firm within paragraph (1)(c)(i), in the course of carrying out statutory audit work within the meaning of section 1210 of the Companies Act 2006 (meaning of statutory auditor) M21 ;

(c) in the case of a relevant firm within paragraph (1)(c)(ii), in the course of carrying out an audit required by the Local Audit and Accountability Act 2014;

(d) in the case of a relevant firm within paragraph (1)(f), in the course of carrying on an activity in respect of which the licence mentioned in that provision is required;

(e) in the case of a relevant firm within any other provision of paragraph (1), in the course of carrying on an activity mentioned in that provision.

Textual Amendments

F11 Reg. 47(1)(h)(i) inserted (30.8.2022) by The Sanctions (EU Exit) (Miscellaneous Amendments) Regulations 2022 (S.I. 2022/819), regs. 1(3)(d), 5(2)(a)

F12 Reg. 47(3A)-(3C) inserted (30.8.2022) by The Sanctions (EU Exit) (Miscellaneous Amendments) Regulations 2022 (S.I. 2022/819), regs. 1(3)(d), 5(2)(b)

Commencement Information

I94 Reg. 47 not in force at made date, see reg. 1(2)

I95 Reg. 47 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Marginal Citations

M17 2006 c.46.

M18 2014 c.2.

M19 2005 c.19.

M20 1979 c.38. Section 1 was amended by the Law Reform (Miscellaneous Provisions) (Scotland) Act 1985 (c.73), Schedule 1, paragraph 40; the Planning (Consequential Provisions) Act 1990 (c.11), Schedule 2, paragraph 42; the Planning (Consequential Provisions) (Scotland) Act 1997 (c.11), Schedule 2, paragraph 28; the Enterprise and Regulatory Reform Act 2013 (c.24), section 70; S.I. 1991/2684; S.I. 2000/121 and S.I. 2001/1283.

M21 Section 1210 was amended by S.I. 2008/565; S.I. 2008/567; S.I. 2008/1950; S.I. 2011/99; S.I. 2012/1809; S.I. 2013/3115; S.I. 2017/516 and S.I. 2017/1164.

Finance: powers to request information U.K.

48.—(1) The Treasury may request a designated person to provide information about—

(a) funds or economic resources owned, held or controlled by or on behalf of the designated person, or

(b) any disposal of such funds or economic resources.

(2) The Treasury may request a designated person to provide such information as the Treasury may reasonably require about expenditure—

(a) by the designated person, or

(b) for the benefit of the designated person.

(3) For the purposes of paragraph (2)(b), expenditure for the benefit of a designated person includes expenditure on the discharge (or partial discharge) of a financial obligation for which the designated person is wholly or partly responsible.

(4) The power in paragraph (1) or (2) is exercisable only where the Treasury believe that it is necessary for the purpose of monitoring compliance with or detecting evasion of any provision of Part 3 (Finance).

(5) The Treasury may request a person acting under a Treasury licence to provide information about—

(a) funds or economic resources dealt with under the licence, or

(b) funds or economic resources made available under the licence.

(6) The Treasury may request a person to provide information within paragraph (7) if the Treasury believe that the person may be able to provide the information.

(7) Information within this paragraph is such information as the Treasury may reasonably require for the purpose of—

(a) establishing for the purposes of any provision of Part 3 (Finance)—

(i) the nature and amount or quantity of any funds or economic resources owned, held or controlled by or on behalf of a designated person,

(ii) the nature and amount or quantity of any funds or economic resources made available directly or indirectly to, or for the benefit of, a designated person, or

(iii) the nature of any financial transactions entered into by a designated person;

(b) monitoring compliance with or detecting evasion of—

(i) any provision of Part 3,

(ii) regulation 46 (finance: reporting obligations), or

(iii) any condition of a Treasury licence;

(c) detecting or obtaining evidence of the commission of an offence under Part 3 or regulation 43 (finance: licensing offences) or 46 (finance: reporting obligations).

(8) The Treasury may specify the way in which, and the period within which, information is to be provided.

(9) If no such period is specified, the information which has been requested must be provided within a reasonable time.

(10) A request may include a continuing obligation to keep the Treasury informed as circumstances change, or on such regular basis as the Treasury may specify.

(11) Information requested under this regulation may relate to any period of time during which a person is, or was, a designated person.

(12) Information requested by virtue of paragraph (1)(b), (2) or (7)(a)(iii) may relate to any period before a person became a designated person (as well as, or instead of, any subsequent period).

(13) Expressions used in this regulation have the same meaning as they have in Part 3.

Commencement Information

I96 Reg. 48 not in force at made date, see reg. 1(2)

I97 Reg. 48 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Finance: production of documents U.K.

49.—(1) A request under regulation 48 may include a request to produce specified documents or documents of a specified description.

(2) Where the Treasury request that documents be produced, the Treasury may—

(a) take copies of or extracts from any document so produced,

(b) request any person producing a document to give an explanation of it, and

(c) where that person is a body corporate, partnership or unincorporated body other than a partnership, request any person who is—

(i) in the case of a partnership, a present or past partner or employee of the partnership, or

(ii) in any other case, a present or past officer or employee of the body concerned,

to give such an explanation.

(3) Where the Treasury request a designated person or a person acting under a Treasury licence to produce documents, that person must—

(a) take reasonable steps to obtain the documents (if they are not already in the person's possession or control);

(b) keep the documents under the person's possession or control (except for the purpose of providing them to the Treasury or as the Treasury may otherwise permit).

(4) In this regulation “designated person” has the same meaning as it has in Part 3 (Finance).

Commencement Information

I98 Reg. 49 not in force at made date, see reg. 1(2)

I99 Reg. 49 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Finance: information offences U.K.

50.—(1) A person commits an offence if that person—

(a) without reasonable excuse, refuses or fails within the time and in the manner specified (or, if no time has been specified, within a reasonable time) to comply with any request under regulation 48 (finance: powers to request information);

(b) knowingly or recklessly gives any information, or produces any document, which is false in a material particular in response to such a request;

(c) with intent to evade any provision of regulation 48 (finance: powers to request information) or 49 (finance: production of documents), destroys, mutilates, defaces, conceals or removes any document;

(d) otherwise intentionally obstructs the Treasury in the exercise of their powers under regulation 48 (finance: powers to request information) or 49 (finance: production of documents).

(2) Where a person is convicted of an offence under this regulation, the court may make an order requiring that person, within such period as may be specified in the order, to comply with the request.

Commencement Information

I100 Reg. 50 not in force at made date, see reg. 1(2)

I101 Reg. 50 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Trade: application of information powers in CEMA U.K.

51.—(1) Section 77A of CEMA M22 applies in relation to a person carrying on a relevant activity as it applies in relation to a person concerned in the importation or exportation of goods but as if—

(a) in subsection (1), the reference to a person concerned in the importation or exportation of goods for which for that purpose an entry is required by regulation 5 of the Customs Controls on Importation of Goods Regulations 1991 M23 or an entry or specification is required by or under CEMA were to a person carrying on a relevant activity;

(b) any other reference to importation or exportation were to a relevant activity;

(c) any other reference to goods were to the goods, technology, services or funds to which the relevant activity relates.

(2) For the purposes of paragraph (1), a “relevant activity” means an activity—

(a) which would, unless done under the authority of a trade licence, constitute a contravention of a prohibition in Chapters 1 to 3 of Part 5 (Trade), except any prohibition on imports or exports, or

(b) which would constitute a contravention of the prohibition in regulation 35 (circumventing etc prohibitions).

Commencement Information

I102 Reg. 51 not in force at made date, see reg. 1(2)

I103 Reg. 51 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Marginal Citations

M22 c.2. Section 77A was inserted by the Finance Act 1987 (c.16), section 10 and amended by S.I. 1992/3095.

M23 S.I. 1991/2724 is amended by S.I. 1992/3095; S.I. 1993/3014; and S.I. 2011/1043 and is prospectively revoked by S.I. 2018/1247.

General trade licences: records U.K.

52.—(1) This regulation applies in relation to a person (“P”) who does any act authorised by a general licence issued under regulation 41 (trade licences) (“ the licence”).

(2) P must keep a register or record containing such details as may be necessary to allow the following information to be identified in relation to each act done under the authority of the licence—

(a) a description of the act;

(b) a description of any goods, technology, services or funds to which the act relates;

(c) the date of the act or the dates between which the act took place;

(d) the quantity of any goods or funds to which the act relates;

(e) P's name and address;

(f) the name and address of any consignee of goods to which the act relates or any recipient of technology, services or funds to which the act relates;

(g) in so far as it is known to P, the name and address of the end-user of the goods, technology, services or funds to which the act relates;

(h) if different from P, the name and address of the supplier of any goods to which the act relates;

(i) any further information required by the licence.

(3) The register or record relating to an act must be kept until the end of the calendar year in which the register or record is created and for a further period of 4 years from the end of that calendar year.

(4) P must notify the Secretary of State in writing of P's name and the address at which the register or record may be inspected, and must make a further such notification if those details change.

(5) A notification under paragraph (4) must be given no later than 30 days after—

(a) P first does any act authorised by the licence, or

(b) there is any change to the details previously notified.

(6) A person who fails to comply with a requirement in paragraph (2), (3) or (4) commits an offence.

Commencement Information

I104 Reg. 52 not in force at made date, see reg. 1(2)

I105 Reg. 52 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

General trade licences: inspection of records U.K.

53.—(1) A person authorised by the Secretary of State or the Commissioners (an “official”) may at any reasonable hour enter premises notified under regulation 52(4) for the purposes of monitoring compliance with, or detecting evasion of, a contravention under regulation 52(2) or (3).

(2) An official may require any person on the premises to produce any register or record required to be kept under regulation 52(2), or any document included in such a register or record, that is in the person's possession or control.

(3) An official may inspect and copy any such register, record or document.

(4) An official must, if requested to do so, produce documentary evidence that he or she is authorised to exercise a power conferred by this regulation.

(5) A person commits an offence if, without reasonable excuse, the person—

(a) intentionally obstructs an official in the performance of any of the official's functions under this regulation, or

(b) fails to produce a register, record or document when reasonably required to do so by an official under this regulation.

Commencement Information

I106 Reg. 53 not in force at made date, see reg. 1(2)

I107 Reg. 53 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Disclosure of information U.K.

54.—(1) The Secretary of State, the Treasury or the Commissioners may, in accordance with this regulation, disclose—

(a) any information obtained under or by virtue of Part 6 (Exceptions and licences), this Part or Part 9 (Maritime enforcement), or

(b) any information held in connection with—

(i) anything done under or by virtue of Part 2 (Designation of persons), Part 3 (Finance), Part 5 (Trade), or

(ii) any exception or licence under Part 6 or anything done in accordance with such an exception or under the authority of such a licence.

(2) Information referred to in paragraph (1) may be disclosed for, or in connection with, any of the following purposes—

(a) the exercise of functions under these Regulations;

(b) any purpose stated in regulation 4;

(c) facilitating, monitoring or ensuring compliance with these Regulations;

(d) taking any action with a view to instituting, or otherwise for the purposes of, any proceedings in the United Kingdom—

(i) for an offence under any provision of these Regulations,

(ii) for an offence under CEMA in connection with a prohibition mentioned in regulation 21(1) or 28(1)(exports and imports of restricted goods), or

(iii) in relation to a monetary penalty under section 146 of the Policing and Crime Act 2017 (breach of financial sanctions legislation) M24 ;

(e) taking any action with a view to instituting, or otherwise for the purposes of, any proceedings in any of the Channel Islands, the Isle of Man or any British overseas territory for an offence—

(i) under a provision in any such jurisdiction that is similar to a provision of these Regulations, or

(ii) in connection with a prohibition in any such jurisdiction that is similar to a prohibition referred to in sub-paragraph (d)(ii);

(f) compliance with an international obligation M25 ;

(g) facilitating the exercise by an authority outside the United Kingdom or by an international organisation of functions which correspond to functions under these Regulations.

(3) Information referred to in paragraph (1) may be disclosed to the following persons—

(a) a police officer;

(b) any person holding or acting in any office under or in the service of—

(i) the Crown in right of the Government of the United Kingdom,

(ii) the Crown in right of the Scottish Government, the Northern Ireland Executive or the Welsh Government,

(iii) the States of Jersey, Guernsey or Alderney or the Chief Pleas of Sark,

(iv) the Government of the Isle of Man, or

(v) the Government of any British overseas territory;

(c) any law officer of the Crown for Jersey, Guernsey or the Isle of Man;

(d) the Scottish Legal Aid Board;

(e) the Financial Conduct Authority, the Prudential Regulation Authority, the Bank of England, the Jersey Financial Services Commission, the Guernsey Financial Services Commission or the Isle of Man Financial Services Authority;

(f) any other regulatory body (whether or not in the United Kingdom);

(g) any organ of the United Nations;

(h) the Council of the European Union, the European Commission or the European External Action Service;

(i) the Government of any country;

(j) any other person where the Secretary of State, the Treasury or the Commissioners (as the case may be) consider that it is appropriate to disclose the information.

(4) Information referred to in paragraph (1) may be disclosed to any person with the consent of a person who, in their own right, is entitled to the information.

(5) In paragraph (4) “in their own right” means not merely in the capacity as a servant or agent of another person.

(6) In paragraph (1)(b)—

(a) the reference to information includes information obtained at a time when any provision of these Regulations is not in force, and

(b) the reference to a licence under Part 6 includes—

(i) a licence or authorisation which is treated as if it were a licence which had been issued under that Part, and

(ii) a licence which is deemed to have been issued under that Part.

Commencement Information

I108 Reg. 54 not in force at made date, see reg. 1(2)

I109 Reg. 54 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Marginal Citations

M24 2017 c.3.

M25 Section 1(8) of the Act defines an “international obligation” as an obligation of the United Kingdom created or arising by or under any international agreement.

[F13 Finance: disclosure to the Treasury U.K.

54A.— (1) A relevant public authority may disclose information to the Treasury if the disclosure is made for the purpose of enabling or assisting the Treasury to discharge any of its functions in connection with sanctions.

(2) In this regulation—

“relevant public authority” means—

(a)

any person holding or acting in any office under or in the service of—

(i)

the Crown in right of the Government of the United Kingdom,

(ii)

the Crown in right of the Scottish Government, the Northern Ireland Executive or the Welsh Government,

(b)

any local authority,

(c)

any police officer,

(d)

the Financial Conduct Authority, the Prudential Regulation Authority, the Bank of England or any other regulatory body in the United Kingdom, or

(e)

any other person exercising functions of a public nature;

“local authority” means—

(a)

in relation to England—

(i)

a county council,

(ii)

a district council,

(iii)

a London Borough council,

(iv)

the Common Council of the City of London in its capacity as a local authority,

(v)

the Council of the Isles of Scilly, or

(vi)

an eligible parish council within the meaning of section 1(2) of the Local Government Act 2000,

(b)

in relation to Wales, a county council, a county borough council or a community council,

(c)

in relation to Scotland, a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994, or

(d)

in relation to Northern Ireland, a district council.]

Textual Amendments

F13 Reg. 54A inserted (9.8.2022) by The Sanctions (EU Exit) (Miscellaneous Amendments) Regulations 2022 (S.I. 2022/819), regs. 1(2), 5(3)

Part 7: supplementary U.K.

55.—(1) A disclosure of information under regulation 54 [F14 or 54A] does not breach any restriction on such disclosure imposed by statute or otherwise.

(2) But nothing in [F15 those regulations] authorises a disclosure that—

(a) contravenes the data protection legislation, or

(b) is prohibited by any of Parts 1 to 7 or Chapter 1 of Part 9 of the Investigatory Powers Act 2016 M26 .

(3) Nothing in this Part is to be read as requiring a person who has acted or is acting as counsel or solicitor for any person to disclose any privileged information in their possession in that capacity.

(4) [F16 Regulations 54 and 54A do] not limit the circumstances in which information may be disclosed apart from [F17 those regulations].

(5) Nothing in this Part limits any conditions which may be contained in a Treasury licence or a trade licence.

(6) In this regulation—

“the data protection legislation” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act) M27 ;

“privileged information” means information with respect to which a claim to legal professional privilege (in Scotland, to confidentiality of communications) could be maintained in legal proceedings.

Textual Amendments

F14 Words in reg. 55(1) inserted (9.8.2022) by The Sanctions (EU Exit) (Miscellaneous Amendments) Regulations 2022 (S.I. 2022/819), regs. 1(2), 5(4)(a)

F15 Words in reg. 55(2) substituted (9.8.2022) by The Sanctions (EU Exit) (Miscellaneous Amendments) Regulations 2022 (S.I. 2022/819), regs. 1(2), 5(4)(b)

F16 Words in reg. 55(4) substituted (9.8.2022) by The Sanctions (EU Exit) (Miscellaneous Amendments) Regulations 2022 (S.I. 2022/819), regs. 1(2), 5(4)(c)(i)

F17 Words in reg. 55(4) substituted (9.8.2022) by The Sanctions (EU Exit) (Miscellaneous Amendments) Regulations 2022 (S.I. 2022/819), regs. 1(2), 5(4)(c)(ii)

Commencement Information

I110 Reg. 55 not in force at made date, see reg. 1(2)

I111 Reg. 55 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Marginal Citations

M26 2016 c.25. Amendments have been made by the Policing and Crime Act 2017, Schedule 9, paragraph 74; the Data Protection Act 2018 (c.12), Schedule 19, paragraphs 198-203; S.I. 2018/652 and S.I. 2018/1123. Saving provisions are made by S.I. 2017/859.

M27 2018 c.12. There are amendments to this Act that are not relevant to these Regulations.

PART 8 U.K. Enforcement

Penalties for offences U.K.

56.—(1) A person who commits an offence under any provision of Part 3 (Finance) or regulation 43 (finance: licensing offences), is liable—

(a) on summary conviction in England and Wales, to imprisonment for a term not exceeding [F18 the general limit in a magistrates’ court] or a fine (or both);

(b) on summary conviction in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum (or both);

(c) on summary conviction in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum (or both);

(d) on conviction on indictment, to imprisonment for a term not exceeding 7 years or a fine (or both).

(2) A person who commits an offence under any provision of Part 5 (Trade) is liable—

(a) on summary conviction in England and Wales, to imprisonment for a term not exceeding [F19 the general limit in a magistrates’ court] or a fine (or both);

(b) on summary conviction in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum (or both);

(c) on summary conviction in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum (or both);

(d) on conviction on indictment, to imprisonment for a term not exceeding 10 years or a fine (or both).

(3) A person who commits an offence under regulation 9(6) (confidentiality), 44 (Trade: licensing offences), 52(6) or 53(5) (offences in connection with trade licences) is liable—

(a) on summary conviction in England and Wales, to imprisonment for a term not exceeding [F20 the general limit in a magistrates’ court] or a fine (or both);

(b) on summary conviction in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum (or both);

(c) on summary conviction in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum (or both);

(d) on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine (or both).

(4) A person who commits an offence under regulation 46(6) or 50 (information offences in connection with Part 3) is liable—

(a) on summary conviction in England and Wales, to imprisonment for a term not exceeding 6 months or a fine (or both);

(b) on summary conviction in Scotland, to imprisonment for a term not exceeding 6 months or a fine not exceeding level 5 on the standard scale (or both);

(c) on summary conviction in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding level 5 on the standard scale (or both).

(5) In relation to an offence committed before [F21 2nd May 2022] the reference in each of paragraphs (1)(a), (2)(a) and (3)(a) to [F22 the general limit in a magistrates’ court] is to be read as a reference to 6 months.

Textual Amendments

F18 Words in reg. 56(1)(a) substituted (7.2.2023 at 12.00 p.m.) by The Judicial Review and Courts Act 2022 (Magistrates’ Court Sentencing Powers) Regulations 2023 (S.I. 2023/149), regs. 1(2), 2(2), Sch. Pt. 2

F19 Words in reg. 56(2)(a) substituted (7.2.2023 at 12.00 p.m.) by The Judicial Review and Courts Act 2022 (Magistrates’ Court Sentencing Powers) Regulations 2023 (S.I. 2023/149), regs. 1(2), 2(2), Sch. Pt. 2

F20 Words in reg. 56(3)(a) substituted (7.2.2023 at 12.00 p.m.) by The Judicial Review and Courts Act 2022 (Magistrates’ Court Sentencing Powers) Regulations 2023 (S.I. 2023/149), regs. 1(2), 2(2), Sch. Pt. 2

F21 Words in reg. 56(5) substituted (28.4.2022) by The Criminal Justice Act 2003 (Commencement No. 33) and Sentencing Act 2020 (Commencement No. 2) Regulations 2022 (S.I. 2022/500), regs. 1(2), 5(2), Sch. Pt. 2

F22 Words in reg. 56(5) substituted (7.2.2023 at 12.00 p.m.) by The Judicial Review and Courts Act 2022 (Magistrates’ Court Sentencing Powers) Regulations 2023 (S.I. 2023/149), regs. 1(2), 2(2), Sch. Pt. 2

Commencement Information

I112 Reg. 56 not in force at made date, see reg. 1(2)

I113 Reg. 56 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Liability of officers of bodies corporate etc U.K.

57.—(1) Where an offence under these Regulations, committed by a body corporate—

(a) is committed with the consent or connivance of any director, manager, secretary or other similar officer of the body corporate, or any person who was purporting to act in any such capacity, or

(b) is attributable to any neglect on the part of any such person,

that person as well as the body corporate is guilty of the offence and is liable to be proceeded against and punished accordingly.

(2) In paragraph (1) “director”, in relation to a body corporate whose affairs are managed by its members, means a member of the body corporate.

(3) Paragraph (1) also applies in relation to a body that is not a body corporate, with the substitution for the reference to a director of the body of a reference—

(a) in the case of a partnership, to a partner;

(b) in the case of an unincorporated body other than a partnership—

(i) where the body's affairs are managed by its members, to a member of the body;

(ii) in any other case, to a member of the governing body.

(4) Section 171(4) of CEMA (which is a provision similar to this regulation) does not apply to any offence under these Regulations to which that provision would, in the absence of this paragraph, apply.

Commencement Information

I114 Reg. 57 not in force at made date, see reg. 1(2)

I115 Reg. 57 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Jurisdiction to try offences U.K.

58.—(1) Where an offence under regulation 9(6) (confidentiality), Part 3 (Finance), regulation 43 (finance: licensing offences) or regulation 46(6) or 50 (information offences in connection with Part 3) is committed in the United Kingdom—

(a) proceedings for the offence may be taken at any place in the United Kingdom, and

(b) the offence may for all incidental purposes be treated as having been committed at any such place.

(2) Where an offence under these Regulations is committed outside the United Kingdom—

(a) proceedings for the offence may be taken at any place in the United Kingdom, and

(b) the offence may for all incidental purposes be treated as having been committed at any such place.

(3) In the application of paragraph (2) to Scotland, any such proceedings against a person may be taken—

(a) in any sheriff court district in which the person is apprehended or is in custody, or

(b) in such sheriff court district as the Lord Advocate may determine.

(4) In paragraph (3) “sheriff court district” is to be read in accordance with the Criminal Procedure (Scotland) Act 1995 (see section 307(1) of that Act) M28 .

Commencement Information

I116 Reg. 58 not in force at made date, see reg. 1(2)

I117 Reg. 58 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Marginal Citations

M28 1995 c.46.

Procedure for offences by unincorporated bodies U.K.

59.—(1) Paragraphs (2) and (3) apply if it is alleged that an offence under these Regulations has been committed by an unincorporated body (as opposed to by a member of the body).

(2) Proceedings in England and Wales or Northern Ireland for such an offence must be brought against the body in its own name.

(3) For the purposes of proceedings, for such an offence brought against an unincorporated body—

(a) rules of court relating to the service of documents have effect as if the body were a body corporate;

(b) the following provisions apply as they apply in relation to a body corporate—

(i) section 33 of the Criminal Justice Act 1925 M29 and Schedule 3 to the Magistrates' Courts Act 1980 M30 ;

(ii) section 18 of the Criminal Justice Act (Northern Ireland) 1945 M31 and Article 166 of, and Schedule 4 to, the Magistrates' Courts (Northern Ireland) Order 1981 M32 .

(4) A fine imposed on an unincorporated body on its conviction of an offence under these Regulations is to be paid out of the funds of the body.

Commencement Information

I118 Reg. 59 not in force at made date, see reg. 1(2)

I119 Reg. 59 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Marginal Citations

M29 1925 c.86 as amended by the Statute Law (Repeals) Act 2004 (c.14), section 1(1) and Schedule 1, Part 17. Other amendments have been made to section 33 that are not relevant to these Regulations.

M30 1980 c.43. Amendments have been made to Schedule 3 that are not relevant to these Regulations.

M31 c.15 (N.I.).

M32 S.I. 1981/1675 (N.I. 26).

Time limit for proceedings for summary offences U.K.

60.—(1) Proceedings for an offence under these Regulations which is triable only summarily may be brought within the period of 12 months beginning with the date on which evidence sufficient in the opinion of the prosecutor to justify the proceedings comes to the prosecutor's knowledge.

(2) But such proceedings may not be brought by virtue of paragraph (1) more than 3 years after the commission of the offence.

(3) A certificate signed by the prosecutor as to the date on which the evidence in question came to the prosecutor's knowledge is conclusive evidence of the date on which it did so; and a certificate to that effect and purporting to be so signed is to be treated as being so signed unless the contrary is proved.

(4) In relation to proceedings in Scotland—

(a) section 136(3) of the Criminal Procedure (Scotland) Act 1995 (date of commencement of summary proceedings) applies for the purposes of this regulation as it applies for the purposes of that section, and

(b) references in this regulation to the prosecutor are to be treated as references to the Lord Advocate.

Commencement Information

I120 Reg. 60 not in force at made date, see reg. 1(2)

I121 Reg. 60 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Trade enforcement: application of CEMA U.K.

61.—(1) Where the Commissioners investigate or propose to investigate any matter with a view to determining—

(a) whether there are grounds for believing that a relevant offence has been committed, or

(b) whether a person should be prosecuted for such an offence,

the matter is to be treated as an assigned matter.

(2) In paragraph (1) “assigned matter” has the meaning given by section 1(1) of CEMA M33 .

(3) In this regulation a “relevant offence” means an offence under—

(a) Part 5 (Trade),

(b) regulation 44 (trade: licensing offences),

(c) regulation 52(6) (general trade licences: records), or

(d) regulation 53(5) (general trade licences: inspection of records).

(4) Section 138 of CEMA M34 (arrest of persons) applies to a person who has committed, or whom there are reasonable grounds to suspect of having committed, a relevant offence as it applies to a person who has committed, or whom there are reasonable grounds to suspect of having committed, an offence for which the person is liable to be arrested under the customs and excise Acts M35 , but as if—

(a) any reference to an offence under, or for which a person is liable to be arrested under, the customs and excise Acts were to a relevant offence;

(b) in subsection (2), the reference to any person so liable were to a person who has committed, or whom there are reasonable grounds to suspect of having committed, a relevant offence.

(5) The provisions of CEMA mentioned in paragraph (6) apply in relation to proceedings for a relevant offence as they apply in relation to proceedings for an offence under the customs and excise Acts, but as if—

(a) any reference to the customs and excise Acts were to any of the provisions mentioned in paragraph (3)(a) to (d);

(b) in section 145(6), the reference to an offence for which a person is liable to be arrested under the customs and excise Acts were to a relevant offence;

(c) in section 151, the reference to any penalty imposed under the customs and excise Acts were to any penalty imposed under these Regulations in relation to a relevant offence;

(d) in section 154(2)—

(i) the reference to proceedings relating to customs or excise were to proceedings under any of the provisions mentioned in paragraph (3)(a) to (d), and

(ii) the reference to the place from which any goods have been brought included a reference to the place to which goods have been exported, supplied or delivered or the place to or from which technology has been transferred.

(6) The provisions of CEMA are sections 145, 146, 147, 148(1), 150, 151, 152, 154 and 155 M36 (legal proceedings).

Commencement Information

I122 Reg. 61 not in force at made date, see reg. 1(2)

I123 Reg. 61 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Marginal Citations

M33 The definition of “assigned matter” in section 1(1) of CEMA was amended by the Commissioners for Revenue and Customs Act 2005 (c.11), Schedule 4, paragraph 22(a); the Scotland Act 2012 (c.11), section 24(7); and the Wales Act 2014 (c.29), section 7(1).

M34 Section 138 of CEMA was amended by the Police and Criminal Evidence Act 1984 (c.60), section 114(1), Schedule 6, paragraph 37 and Schedule 7, Part 1; the Finance Act 1988 (c.39), section 11; the Serious Organised Crime and Police Act 2005 (c.15), Schedule 7, paragraph 54; S.I 1989/1341; and S.I. 2007/288.

M35 “The customs and excise Acts” is defined in section 1 of CEMA.

M36 Section 145 of CEMA was amended by the Police and Criminal Evidence Act 1984, section 114(1); the Commissioners for Revenue and Customs Act 2005, Schedule 4, paragraph 23(a); and S.I. 2014/834. Section 147 was amended by the Criminal Justice Act 1982 (c. 48), Schedule 14, paragraph 42; the Finance Act 1989, section 16(2); and the Criminal Justice Act 2003, Schedule 3, paragraph 50. Section 152 was amended by the Commissioners for Revenue and Customs Act 2005, Schedule 4, paragraph 26, and Schedule 5. Section 155 was amended by the Commissioners for Revenue and Customs Act 2005, Schedule, 4, paragraph 27, and Schedule 5.

Trade offences in CEMA: modification of penalty U.K.

62.—(1) Paragraph (2) applies where a person is guilty of an offence under section 68(2) of CEMA in connection with a prohibition mentioned in regulation 28 (import of certain goods from Iran).

(2) Where this paragraph applies, the reference to 7 years in section 68(3)(b) of CEMA M37 is to be read as a reference to 10 years.

(3) Paragraph (4) applies where a person is guilty of an offence under section 170(2) of CEMA in connection with a prohibition mentioned in regulation 21(1)(export of restricted goods to, or for use in, Iran).

(4) Where this paragraph applies, the reference to 7 years in section 170(3)(b) of CEMA M38 is to be read as a reference to 10 years.

Commencement Information

I124 Reg. 62 not in force at made date, see reg. 1(2)

I125 Reg. 62 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Marginal Citations

M37 The words “7 years” were inserted in section 68(3)(b) of CEMA by the Finance Act 1988, section 12.

M38 The words “7 years” were inserted in section 170(3)(b) of CEMA by the Finance Act 1988, section 12.

Application of Chapter 1 of Part 2 of Serious Organised Crime and Police Act 2005 U.K.

63.  Chapter 1 of Part 2 of the Serious Organised Crime and Police Act 2005 (investigatory powers) M39 applies to any offence under Part 3 (Finance) or regulation 43 (finance: licensing offences).

Commencement Information

I126 Reg. 63 not in force at made date, see reg. 1(2)

I127 Reg. 63 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Marginal Citations

M39 2005 c.15. Chapter 1 of Part 2 has been amended by the Terrorism Act 2006 (c.11), section 33(3) and (4); the Northern Ireland (Miscellaneous Provisions) Act 2006 (c.33), sections 26(2) and 30(2) and Schedules 3 and 5; the Bribery Act 2010 (c.23), section 17(2) and Schedule 1; the Criminal Justice and Licensing (Scotland) Act 2010 (asp.13), section 203 and Schedule 7, paragraph 77; the Crime and Courts Act 2013 (c.22), section 17(4) and Schedule 8, paragraphs 157 and 159; the Criminal Finances Act 2017 (c.22), section 51(1); the Act, section 59(4) and Schedule 3, paragraph 4; and S.I. 2014/823.

Monetary penalties U.K.

64.  The following provisions are to be regarded as not being financial sanctions legislation for the purposes of Part 8 of the Policing and Crime Act 2017 M40 —

(a) regulation 23(1) (making restricted goods and restricted technology available);

(b) regulations 24(1) and 31(1) (transfer of certain technology);

(c) regulation 26(1) to (3) (financial services and funds relating to restricted goods and restricted technology);

(d) regulation 27(1) (brokering services relating to financial services and funds relating to restricted goods and restricted technology);

(e) regulation 32(1) (arrangements relating to uranium mining and certain restricted goods and technology).

Commencement Information

I128 Reg. 64 not in force at made date, see reg. 1(2)

I129 Reg. 64 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Marginal Citations

M40 See section 143(4)(f) and (4A), as inserted by the Act, Schedule 3, paragraph 8(1) and (3).

PART 9 U.K. Maritime enforcement

Exercise of maritime enforcement powers U.K.

65.—(1) A maritime enforcement officer may, for a purpose mentioned in paragraph (2) or (3), exercise any of the maritime enforcement powers in relation to—

(a) a British ship in foreign waters or international waters,

(b) a ship without nationality in international waters, or

(c) a foreign ship in international waters,

and a ship within sub-paragraph (a), (b) or (c) is referred to in this Part as “a relevant ship”.

(2) The maritime enforcement powers may be exercised for the purpose of enforcing any of the following—

(a) a prohibition in any of regulations 21 to 24 (trade prohibitions relating to restricted goods and restricted technology);

(b) a prohibition in any of regulations 28 to 31 (import, supply, transfer etc of goods and technology from Iran);

(c) a prohibition imposed by a condition of a trade licence in relation to a prohibition mentioned in sub-paragraph (a) or (b).

(3) The maritime enforcement powers may also be exercised in relation to a relevant ship for the purpose of—

(a) investigating the suspected carriage of relevant goods on the ship, or

(b) preventing the continued carriage on the ship of goods suspected to be relevant goods.

(4) In this Part, “the maritime enforcement powers” are the powers conferred by regulations 67 and 68.

(5) This regulation is subject to regulation 69 (restrictions on exercise of maritime enforcement powers).

Commencement Information

I130 Reg. 65 not in force at made date, see reg. 1(2)

I131 Reg. 65 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Maritime enforcement officers U.K.

66.—(1) The following persons are “ maritime enforcement officers” for the purposes of this Part—

(a) a commissioned officer of any of Her Majesty's ships;

(b) a member of the Ministry of Defence Police (within the meaning of section 1 of the Ministry of Defence Police Act 1987 M41 );

(c) a constable—

(i) who is a member of a police force in England and Wales,

(ii) within the meaning of section 99 of the Police and Fire Reform (Scotland) Act 2012 M42 , or

(iii) who is a member of the Police Service of Northern Ireland or the Police Service of Northern Ireland Reserve;

(d) a special constable—

(i) appointed under section 27 of the Police Act 1996 M43 ,

(ii) appointed under section 9 of the Police and Fire Reform (Scotland) Act 2012, or

(iii) in Northern Ireland, appointed by virtue of provision incorporating section 79 of the Harbours, Docks, and Piers Clauses Act 1847 M44 ;

(e) a constable who is a member of the British Transport Police Force;

(f) a port constable, within the meaning of section 7 of the Marine Navigation Act 2013 M45 , or a person appointed to act as a constable under provision made by virtue of section 16 of the Harbours Act 1964 M46 ;

(g) a designated customs official within the meaning of Part 1 of the Borders, Citizenship and Immigration Act 2009 (see section 14(6) of that Act) M47 ;

(h) a designated NCA officer who is authorised by the Director General of the National Crime Agency (whether generally or specifically) to exercise the powers of a maritime enforcement officer under this Part.

(2) In this regulation, “a designated NCA officer” means a National Crime Agency officer who is either or both of the following—

(a) an officer designated under section 10 of the Crime and Courts Act 2013 as having the powers and privileges of a constable;

(b) an officer designated under that section as having the powers of a general customs official.

Commencement Information

I132 Reg. 66 not in force at made date, see reg. 1(2)

I133 Reg. 66 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Marginal Citations

M41 c.4. Section 1 was amended by the Police Act 1996 (c.16), Schedule 7, paragraph 41; the Police (Northern Ireland) Act 1998 (c.32), Schedule 4, paragraph 16; the Police (Northern Ireland) Act 2000 (c.32), section 78(2); the Police Reform Act 2002 (c.30), section 79(3); and S.I. 2013/602.

M42 asp.8.

M43 c.16. Section 27 was amended by the Police and Justice Act 2006 (c.48), Schedule 2, paragraph 23; the Policing and Crime Act 2009 (c.26), Schedule 7, paragraphs 1 and 6; and the Police Reform and Social Responsibility Act 2011 (c.13), Schedule 16, paragraphs 22 and 26.

M44 c.27.

M45 c.23.

M46 c.40. Section 16 has been amended by various instruments but none are relevant to these Regulations.

M47 c.11. Designated customs officials are designated, as either a general customs official or a customs revenue official, under sections 3 and 11 of this Act respectively.

Power to stop, board, search etc U.K.

67.—(1) This regulation applies if a maritime enforcement officer has reasonable grounds to suspect that a relevant ship is carrying prohibited goods or relevant goods.

(2) The officer may—

(a) stop the ship;

(b) board the ship;

(c) for the purpose of exercising a power conferred by paragraph (3) or regulation 68, require the ship to be taken to, and remain in, a port or anchorage in the United Kingdom or any other country willing to receive it.

(3) Where the officer boards a ship by virtue of this regulation, the officer may—

(a) stop any person found on the ship and search that person for—

(i) prohibited goods or relevant goods, or

(ii) any thing that might be used to cause physical injury or damage to property or to endanger the safety of any ship;

(b) search the ship, or any thing found on the ship (including cargo) for prohibited goods or relevant goods;

(4) The officer may—

(a) require a person found on a ship boarded by virtue of this regulation to provide information or produce documents;

(b) inspect and copy such information or documents.

(5) The officer may exercise a power conferred by paragraph (3)(a)(i) or (b) only to the extent reasonably required for the purpose of discovering prohibited goods or relevant goods.

(6) The officer may exercise the power conferred by paragraph (3)(a)(ii) in relation to a person only where the officer has reasonable grounds to believe that the person might use a thing to cause physical injury or damage to property or to endanger the safety of any ship.

(7) The officer may use reasonable force, if necessary, in the exercise of any power conferred by this regulation.

Commencement Information

I134 Reg. 67 not in force at made date, see reg. 1(2)

I135 Reg. 67 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Seizure power U.K.

68.—(1) This regulation applies if a maritime enforcement officer is lawfully on a relevant ship (whether in exercise of the powers conferred by regulation 65 or otherwise).

(2) The officer may seize any of the following which are found on the ship, in any thing found on the ship, or on any person found on the ship—

(a) goods which the officer has reasonable grounds to suspect are prohibited goods or relevant goods, or

(b) things within regulation 67(3)(a)(ii).

(3) The officer may use reasonable force, if necessary, in the exercise of any power conferred by this regulation.

Commencement Information

I136 Reg. 68 not in force at made date, see reg. 1(2)

I137 Reg. 68 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Restrictions on exercise of maritime enforcement powers U.K.

69.—(1) The authority of the Secretary of State is required before any maritime enforcement power is exercised in reliance on regulation 65 in relation to—

(a) a British ship in foreign waters, or

(b) a foreign ship in international waters.

(2) In relation to a British ship in foreign waters other than the sea and other waters within the seaward limits of the territorial sea adjacent to any relevant British possession, the Secretary of State may give authority under paragraph (1) only if the State in whose waters the power would be exercised consents to the exercise of the power.

(3) In relation to a foreign ship in international waters, the Secretary of State may give authority under paragraph (1) only if—

(a) the home state has requested the assistance of the United Kingdom for a purpose mentioned in regulation 65(2) or (3),

(b) the home state has authorised the United Kingdom to act for such a purpose, or

(c) the United Nations Convention on the Law of the Sea 1982 M48 or a UN Security Council Resolution otherwise permits the exercise of the power in relation to the ship.

Commencement Information

I138 Reg. 69 not in force at made date, see reg. 1(2)

I139 Reg. 69 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Marginal Citations

M48 Command 8941.

Interpretation of Part 9 U.K.

70.—(1) Subject to paragraph (2), any expression used in this Part and in section 19 or 20 of the Act has the same meaning in this Part as it has in section 19 or (as the case may be) section 20 of the Act.

(2) For the purpose of interpreting any reference to “prohibited goods” or “relevant goods” in this Part, any reference in section 19 or 20 of the Act to a “relevant prohibition or requirement” is to be read as a reference to any prohibition specified in regulation 65(2).

Commencement Information

I140 Reg. 70 not in force at made date, see reg. 1(2)

I141 Reg. 70 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

PART 10 U.K. Supplementary and final provision

Notices U.K.

71.—(1) This regulation applies in relation to a notice required by regulation 42 (licences: general provisions) to be given to a person.

(2) The notice may be given to an individual—

(a) by delivering it to the individual,

(b) by sending it to the individual by post addressed to the individual at his or her usual or last-known place of residence or business, or

(c) by leaving it for the individual at that place.

(3) The notice may be given to a person other than an individual—

(a) by sending it by post to the proper officer of the body at its principal office, or

(b) by addressing it to the proper officer of the body and leaving it at that office.

(4) The notice may be given to the person by other means, including by electronic means, with the person's consent.

(5) In this regulation, the reference in paragraph (3) to a “principal office”—

(a) in relation to a registered company, is to be read as a reference to the company's registered office;

(b) in relation to a body incorporated or constituted under the law of a country other than the United Kingdom, includes a reference to the body's principal office in the United Kingdom (if any).

(6) In this regulation—

• “proper officer”—

  (a)

  in relation to a body other than a partnership, means the secretary or other executive officer charged with the conduct of the body's general affairs, and

  (b)

  in relation to a partnership, means a partner or a person who has the control or management of the partnership business;

• “registered company” means a company registered under the enactments relating to companies for the time being in force in the United Kingdom.

Commencement Information

I142 Reg. 71 not in force at made date, see reg. 1(2)

I143 Reg. 71 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Article 20 of the Export Control Order 2008 U.K.

72.  Article 20 of the Export Control Order 2008 (embargoed destinations) is not to be taken to prohibit anything prohibited by Part 5 (Trade).

Commencement Information

I144 Reg. 72 not in force at made date, see reg. 1(2)

I145 Reg. 72 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Trade: overlapping offences U.K.

73.  A person is not to be taken to commit an offence under the Export Control Order 2008 if the person would, in the absence of this regulation, commit an offence under both—

(a) article 34, 35, 37 or 38 of that Order, and

(b) any provision of Part 5 (Trade) or regulation 44 (trade: licensing offences), 52(6) or 53(5) (offences in connection with record-keeping).

Commencement Information

I146 Reg. 73 not in force at made date, see reg. 1(2)

I147 Reg. 73 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Revocations U.K.

74.—(1) Council Regulation (EU) No 267/2012 of 23 March 2012 concerning restrictive measures against Iran and repealing Regulation (EU) No 961/2010 is revoked.

(2) The Iran (European Union Financial Sanctions) Regulations 2016 M49 are revoked.

(3) The Export Control (Iran Sanctions) Order 2016 M50 is revoked.

(4) The Iran (Financial Sanctions) Order 2007 M51 is revoked.

Commencement Information

I148 Reg. 74 not in force at made date, see reg. 1(2)

I149 Reg. 74 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Marginal Citations

M49 S.I. 2016/36.

M50 S.I. 2016/503.

M51 S.I. 2007/281

Transitional provision: Treasury licences U.K.

75.—(1) Paragraphs (2) to (4) apply to a licence which—

(a) was granted, or deemed to be granted, by the Treasury under regulation 9 of the 2016 Regulations M52 ,

(b) was in effect immediately before the relevant date, and

(c) authorises conduct which would (on and after the relevant date, and in the absence of paragraphs (2) to (4)) be prohibited under Part 3 (Finance),

and such a licence is referred to in this regulation as “an existing financial sanctions licence”.

(2) An existing financial sanctions licence [F23 which authorises an act which would otherwise be prohibited] has effect on and after the relevant date as if it had been issued by the Treasury under regulation 40(1) (Treasury licences).

(3) Any reference in an existing financial sanctions licence to the 2016 Regulations is to be treated on and after the relevant date as a reference to these Regulations.

(4) Any reference in an existing financial sanctions licence to a prohibition in—

(a) the 2016 Regulations, or

(b) the EU Iran Regulation,

is to be treated on and after the relevant date as a reference to the corresponding prohibition in Part 3.

(5) Paragraph (6) applies where—

(a) an application for a licence, or for the variation of a licence, under the 2016 Regulations was made before the relevant date,

(b) the application is for the authorisation of conduct which would (on and after the relevant date) be prohibited under Part 3, and

(c) a decision to grant or refuse the application has not been made before that date.

(6) The application is to be treated on and after the relevant date as an application for a licence, or for the variation of a licence (as the case may be), under regulation 40(1) (Treasury licences).

(7) In paragraphs (3) and (4), a reference to the 2016 Regulations is to be treated as including a reference to—

(a) the Iran (European Community Financial Sanctions) Regulations 2007 M53 ,

(b) the Iran (European Union Financial Sanctions) Regulations 2010 M54 , or

(c) the Iran (European Union Financial Sanctions) Regulations 2012 M55 .

(8) In this regulation—

“the 2016 Regulations” means the Iran (European Union Financial Sanctions) Regulations 2016;

“the relevant date” means—

(a)

where regulations under section 56 of the Act provide that Part 3 comes into force at a specified time on a day, that time on that day;

(b)

otherwise, the date on which Part 3 comes into force.

Textual Amendments

F23 Words in reg. 75(2) inserted (31.12.2020 immediately after IP completion day) by The Sanctions (EU Exit) (Miscellaneous Amendments) Regulations 2020 (S.I. 2020/591), regs. 1(2), 5(6); S.I. 2020/1514, reg. 5

Commencement Information

I150 Reg. 75 not in force at made date, see reg. 1(2)

I151 Reg. 75 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Marginal Citations

M52 Regulation 21 of the 2016 Regulations saved licences granted under certain instruments revoked by the 2016 Regulations.

M53 S.I. 2007/1374. These Regulations were revoked by S.I. 2010/2937

M54 S.I. 2010/2937. These Regulations were revoked by S.I. 2012/925.

M55 S.I. 2012/925. These Regulations were revoked by S.I. 2016/36.

Transitional provision: trade licences U.K.

76.— [F24 (A1) Paragraph (B1) applies in relation to each licence or authorisation granted by the Secretary of State which—

(a) was in effect immediately before the relevant date, and

(b) authorises an act—

(i) which would otherwise be prohibited by any provision of the Export Control Order 2008 except article 20 of that Order (embargoed destinations), or which requires an authorisation under or pursuant to the Dual-Use Regulation, and

(ii) which would (on or after the relevant date, and in the absence of paragraph (B1)) be prohibited by Part 5 (Trade),

and such a licence or authorisation is referred to in this regulation as an “existing trade licence”.

(B1) A licence is deemed to have been issued by the Secretary of State at the beginning of the relevant date under regulation 41 (trade licences)—

(a) disapplying every provision of Part 5 which would, in the absence of this paragraph, prohibit any act authorised by the existing trade licence, and

(b) otherwise in the same terms as the existing trade licence.]

[F25 (1) Paragraphs (2) to (4) apply to a licence or authorisation granted by the Secretary of State which—

(a) was in effect immediately before the relevant date,

(b) is not an existing trade licence, and

(c) authorises an act—

(i) which would otherwise be prohibited by either—

(aa) the EU Iran Regulation, or

(bb) the Iran (United Nations Sanctions) Order 2009, and

(ii) which would (on and after the relevant date, and in the absence of paragraphs (2) to (4)) be prohibited by Part 5 (Trade),

and such a licence or authorisation is referred to in this regulation as “an existing trade sanctions licence”.]

(2) An existing trade sanctions licence has effect on and after the relevant date as if it were a licence which had been issued by the Secretary of State under regulation 41 (trade licences).

(3) Any reference in an existing trade sanctions licence to a provision of the Export Control (Iran Sanctions) Order 2016 [F26 , the Iran (United Nations Sanctions) Order 2009] or the Export Control Order 2008 is to be treated on and after the relevant date as a reference to the corresponding provision of these Regulations (if any).

(4) Any reference in an existing trade sanctions licence to a prohibition in the EU Iran Regulation is to be treated on and after the relevant date as a reference to the corresponding prohibition in Part 5 (Trade).

(5) In this regulation, “the relevant date” means—

(a) where regulations under section 56 of the Act provide that Part 5 comes into force at a specified time on a day, that time on that day;

(b) otherwise, the date on which Part 5 comes into force.

Textual Amendments

F24 Reg. 76(A1)(B1) inserted (31.12.2020 immediately after IP completion day) by The Sanctions (EU Exit) (Miscellaneous Amendments) Regulations 2020 (S.I. 2020/591), regs. 1(2), 5(7)(a); S.I. 2020/1514, reg. 5

F25 Reg. 76(1) substituted (31.12.2020 immediately after IP completion day) by The Sanctions (EU Exit) (Miscellaneous Amendments) Regulations 2020 (S.I. 2020/591), regs. 1(2), 5(7)(b); S.I. 2020/1514, reg. 5

F26 Words in reg. 76(3) inserted (31.12.2020 immediately after IP completion day) by The Sanctions (EU Exit) (Miscellaneous Amendments) Regulations 2020 (S.I. 2020/591), regs. 1(2), 5(7)(c); S.I. 2020/1514, reg. 5

Commencement Information

I152 Reg. 76 not in force at made date, see reg. 1(2)

I153 Reg. 76 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Transitional provision: pending applications for trade licences U.K.

77.—(1) Paragraph (2) applies where—

(a) an application was made before the relevant date for a licence or authorisation under the Export Control (Iran Sanctions) Order 2016 or the EU Iran Regulation,

(b) the application is for authorisation of an act prohibited by Part 5 (Trade), and

(c) a decision to grant or refuse the application has not been made before the relevant date.

(2) The application is to be treated on and after the relevant date as an application for a licence under regulation 41 (trade licences).

(3) In this regulation, “the relevant date” means—

(a) where regulations under section 56 of the Act provide that Part 5 comes into force at a specified time on a day, that time on that day;

(b) otherwise, the date on which Part 5 comes into force.

Commencement Information

I154 Reg. 77 not in force at made date, see reg. 1(2)

I155 Reg. 77 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Transitional Provisions: prior obligations U.K.

78.—(1) Where—

(a) a person was named in Annex ⅠX of the EU Iran Regulation immediately before the relevant date, and

(b) the person is a designated person immediately before the relevant date,

any reference in a provision mentioned in paragraph (3) to the date on which a person became a designated person is to be read as a reference to the date on which the person was named in that Annex.

(2) Where, immediately before the coming into force of regulation 10 (designation of persons named by or under UN Security Council Resolutions), a person was named for the purposes of paragraph 6(c) of Annex B to resolution 2231 by the Security Council or the Committee, any reference in a provision mentioned in paragraph (3) to the date on which a person became a designated person is to be read as a reference to—

(a) the date on which the person was named on the list established by the Committee pursuant to resolution 1737, or

(b) if the person was not named on that list, the date on which the person was otherwise named for the purposes of paragraph 6(c) of Annex B to resolution 2231.

(3) The provisions referred to in paragraphs (1) and (2) are—

(a) regulation 37(5) (finance: exceptions from prohibitions), and

(b) paragraphs 5(b)(i) and 6(1)(a) of Schedule 2 (Treasury licences: purposes).

(4) In paragraph (1), the reference to the date on which a person was named in Annex IX of the EU Iran Regulation—

(a) if the person had previously been named in Annex V of the 2007 EU Iran Regulation, is to be read as the date on which the person was named in that Annex;

(b) if the person had previously been named in Annex VIII of the 2010 EU Iran Regulation but not in Annex V of the 2007 EU Iran Regulation, is to be read as the date on which the person was named in Annex VIII of the 2010 EU Iran Regulation.

(5) In this regulation—

“the 2007 EU Iran Regulation” means Council Regulation (EC) No 423/2007 of 19 April 2007 concerning restrictive measures against Iran M56 ;

“the 2010 EU Iran Regulation” means Council Regulation (EU) No 961/2010 of 25 October 2010 on restrictive measures against Iran and repealing Regulation (EC) No 423/2007 M57 ;

“designated person” has the same meaning as it has in Part 3 (Finance);

“the relevant date” means—

(a)

where regulations under section 56 of the Act provide that Part 3 comes into force at a specified time on a day, that time on that day;

(b)

otherwise, the date on which Part 3 comes into force.

Commencement Information

I156 Reg. 78 not in force at made date, see reg. 1(2)

I157 Reg. 78 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Marginal Citations

M56 OJ L 103, 20.4.2007, p. 1.

M57 OJ L 281, 27.10.2010, p. 1.

Alan Duncan

Minister of State

Foreign and Commonwealth Office

SCHEDULES

Regulation 7(3)

SCHEDULE 1 U.K. Rules for interpretation of regulation 7(2)

Application of Schedule U.K.

1.—(1) The rules set out in the following paragraphs of this Schedule apply for the purpose of interpreting regulation 7(2).

(2) They also apply for the purpose of interpreting this Schedule.

Commencement Information

I158 Sch. 1 para. 1 not in force at made date, see reg. 1(2)

I159 Sch. 1 para. 1 in force at 25.3.2019 by S.I. 2019/627, reg. 8(1)(k)

Joint interests U.K.

2.  If two or more persons each hold a share or right jointly, each of them is treated as holding that share or right.

Commencement Information

I160 Sch. 1 para. 2 not in force at made date, see reg. 1(2)

I161 Sch. 1 para. 2 in force at 25.3.2019 by S.I. 2019/627, reg. 8(1)(k)

Joint arrangements U.K.

3.—(1) If shares or rights held by a person and shares or rights held by another person are the subject of a joint arrangement between those persons, each of them is treated as holding the combined shares or rights of both of them.

(2) A “joint arrangement” is an arrangement between the holders of shares or rights that they will exercise all or substantially all the rights conferred by their respective shares or rights jointly in a way that is pre-determined by the arrangement.

(3) “Arrangement” has the meaning given by paragraph 12.

Commencement Information

I162 Sch. 1 para. 3 not in force at made date, see reg. 1(2)

I163 Sch. 1 para. 3 in force at 25.3.2019 by S.I. 2019/627, reg. 8(1)(k)

Calculating shareholdings U.K.

4.—(1) In relation to a person who has a share capital, a reference to holding “more than 50% of the shares” in that person is to holding shares comprised in the issued share capital of that person of a nominal value exceeding (in aggregate) 50% of that share capital.

(2) In relation to a person who does not have a share capital—

(a) a reference to holding shares in that person is to holding a right or rights to share in the capital or, as the case may be, profits of that person;

(b) a reference to holding “more than 50% of the shares” in that person is to holding a right or rights to share in more than 50% of the capital or, as the case may be, profits of that person.

Commencement Information

I164 Sch. 1 para. 4 not in force at made date, see reg. 1(2)

I165 Sch. 1 para. 4 in force at 25.3.2019 by S.I. 2019/627, reg. 8(1)(k)

Voting rights U.K.

5.—(1) A reference to the voting rights in a person is to the rights conferred on shareholders in respect of their shares (or, in the case of a person not having a share capital, on members) to vote at general meetings of the person on all or substantially all matters.

(2) In relation to a person that does not have general meetings at which matters are decided by the exercise of voting rights—

(a) a reference to holding voting rights in the person is to be read as a reference to holding rights in relation to the person that are equivalent to those of a person entitled to exercise voting rights in a company;

(b) a reference to holding “more than 50% of the voting rights” in the person is to be read as a reference to holding the right under the constitution of the person to block changes to the overall policy of the person or to the terms of its constitution.

Commencement Information

I166 Sch. 1 para. 5 not in force at made date, see reg. 1(2)

I167 Sch. 1 para. 5 in force at 25.3.2019 by S.I. 2019/627, reg. 8(1)(k)

6.  In applying regulation 7(2) and this Schedule, the voting rights in a person are to be reduced by any rights held by the person itself. U.K.

Commencement Information

I168 Sch. 1 para. 6 not in force at made date, see reg. 1(2)

I169 Sch. 1 para. 6 in force at 25.3.2019 by S.I. 2019/627, reg. 8(1)(k)

Rights to appoint or remove members of the board U.K.

7.  A reference to the right to appoint or remove a majority of the board of directors of a person is to the right to appoint or remove directors holding a majority of the voting rights at meetings of the board on all or substantially all matters.

Commencement Information

I170 Sch. 1 para. 7 not in force at made date, see reg. 1(2)

I171 Sch. 1 para. 7 in force at 25.3.2019 by S.I. 2019/627, reg. 8(1)(k)

8.  A reference to a board of directors, in the case of a person who does not have such a board, is to be read as a reference to the equivalent management body of that person. U.K.

Commencement Information

I172 Sch. 1 para. 8 not in force at made date, see reg. 1(2)

I173 Sch. 1 para. 8 in force at 25.3.2019 by S.I. 2019/627, reg. 8(1)(k)

Shares or rights held “indirectly” U.K.

9.—(1) A person holds a share “indirectly” if the person has a majority stake in another person and that other person—

(a) holds the share in question, or

(b) is part of a chain of persons—

(i) each of whom (other than the last) has a majority stake in the person immediately below it in the chain, and

(ii) the last of whom holds the share.

(2) A person holds a right “indirectly” if the person has a majority stake in another person and that other person—

(a) holds that right, or

(b) is part of a chain of persons—

(i) each of whom (other than the last) has a majority stake in the person immediately below it in the chain, and

(ii) the last of whom holds that right.

(3) For these purposes, a person (“A”) has a “majority stake” in another person (“B”) if—

(a) A holds a majority of the voting rights in B,

(b) A is a member of B and has the right to appoint or remove a majority of the board of directors of B,

(c) A is a member of B and controls alone, pursuant to an agreement with other shareholders or members, a majority of the voting rights in B, or

(d) A has the right to exercise, or actually exercises, dominant influence or control over B.

(4) In the application of this paragraph to the right to appoint or remove a majority of the board of directors, a person (“A”) is to be treated as having the right to appoint a director if—

(a) any person's appointment as director follows necessarily from that person's appointment as director of A, or

(b) the directorship is held by A itself.

Commencement Information

I174 Sch. 1 para. 9 not in force at made date, see reg. 1(2)

I175 Sch. 1 para. 9 in force at 25.3.2019 by S.I. 2019/627, reg. 8(1)(k)

Shares held by nominees U.K.

10.  A share held by a person as nominee for another is to be treated as held by the other (and not by the nominee).

Commencement Information

I176 Sch. 1 para. 10 not in force at made date, see reg. 1(2)

I177 Sch. 1 para. 10 in force at 25.3.2019 by S.I. 2019/627, reg. 8(1)(k)

Rights treated as held by person who controls their exercise U.K.

11.—(1) Where a person controls a right, the right is to be treated as held by that person (and not by the person who in fact holds the right, unless that person also controls it).

(2) A person “controls” a right if, by virtue of any arrangement between that person and others, the right is exercisable only—

(a) by that person,

(b) in accordance with that person's directions or instructions, or

(c) with that person's consent or concurrence.

Commencement Information

I178 Sch. 1 para. 11 not in force at made date, see reg. 1(2)

I179 Sch. 1 para. 11 in force at 25.3.2019 by S.I. 2019/627, reg. 8(1)(k)

12.  “ Arrangement” includes— U.K.

(a) any scheme, agreement or understanding, whether or not it is legally enforceable, and

(b) any convention, custom or practice of any kind.

Commencement Information

I180 Sch. 1 para. 12 not in force at made date, see reg. 1(2)

I181 Sch. 1 para. 12 in force at 25.3.2019 by S.I. 2019/627, reg. 8(1)(k)

Rights exercisable only in certain circumstances etc. U.K.

13.—(1) Rights that are exercisable only in certain circumstances are to be taken into account only—

(a) when the circumstances have arisen, and for so long as they continue to obtain, or

(b) when the circumstances are within the control of the person having the rights.

(2) But rights that are exercisable by an administrator or by creditors while a person is subject to relevant insolvency proceedings are not to be taken into account while the person is subject to those proceedings.

(3) “Relevant insolvency proceedings” means—

(a) administration within the meaning of the Insolvency Act 1986 M58 ,

(b) administration within the meaning of the Insolvency (Northern Ireland) Order 1989 M59 , or

(c) proceedings under the insolvency law of another country during which a person's assets and affairs are subject to the control or supervision of a third party or creditor.

(4) Rights that are normally exercisable but are temporarily incapable of exercise are to continue to be taken into account.

Commencement Information

I182 Sch. 1 para. 13 not in force at made date, see reg. 1(2)

I183 Sch. 1 para. 13 in force at 25.3.2019 by S.I. 2019/627, reg. 8(1)(k)

Marginal Citations

M58 1986 c.45.

M59 S.I. 1989/2405 (N.I. 19).

Rights attached to shares held by way of security U.K.

14.  Rights attached to shares held by way of security provided by a person are to be treated for the purposes of this Schedule as held by that person—

(a) where apart from the right to exercise them for the purpose of preserving the value of the security, or of realising it, the rights are exercisable only in accordance with that person's instructions, and

(b) where the shares are held in connection with the granting of loans as part of normal business activities and apart from the right to exercise them for the purpose of preserving the value of the security, or of realising it, the rights are exercisable only in that person's interests.

Commencement Information

I184 Sch. 1 para. 14 not in force at made date, see reg. 1(2)

I185 Sch. 1 para. 14 in force at 25.3.2019 by S.I. 2019/627, reg. 8(1)(k)

Regulation 40

SCHEDULE 2 U.K. Treasury licences: purposes

PART 1 U.K. Designated Persons

Basic needs U.K.

1.—(1) To enable the basic needs of a designated person, or (in the case of an individual) any dependent family member of such a person, to be met.

(2) In the case of an individual, in sub-paragraph (1) “basic needs” includes—

(a) medical needs;

(b) needs for—

(i) food;

(ii) [F27 payment] of insurance premiums;

(iii) [F28 payment] of tax;

(iv) rent or mortgage payments;

(v) utility payments.

(3) In the case of a person other than an individual, in sub-paragraph (1) “basic needs” includes needs for—

(a) payment of insurance premiums;

(b) payment of reasonable fees for the provision of property management services;

(c) payment of remuneration, allowances or pensions of employees;

(d) payment of tax;

(e) rent or mortgage payments;

(f) utility payments.

(4) In sub-paragraph (1)—

“dependent” means financially dependent;

“family member” includes—

(a)

the wife or husband of the designated person;

(b)

the civil partner of the designated person;

(c)

any parent or other ascendant of the designated person;

(d)

any child or other descendant of the designated person;

(e)

any person who is a brother or sister of the designated person, or a child or other descendant of such a person.

Textual Amendments

F27 Word in Sch. 2 para. 1(2)(b)(ii) substituted (31.12.2020 immediately after IP completion day) by The Sanctions (EU Exit) (Miscellaneous Amendments) Regulations 2020 (S.I. 2020/591), regs. 1(2), 5(8); S.I. 2020/1514, reg. 5

F28 Word in Sch. 2 para. 1(2)(b)(iii) substituted (31.12.2020 immediately after IP completion day) by The Sanctions (EU Exit) (Miscellaneous Amendments) Regulations 2020 (S.I. 2020/591), regs. 1(2), 5(8); S.I. 2020/1514, reg. 5

Commencement Information

I186 Sch. 2 para. 1 not in force at made date, see reg. 1(2)

I187 Sch. 2 para. 1 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Legal services U.K.

2.  To enable the payment of—

(a) reasonable professional fees for the provision of legal services, or

(b) reasonable expenses associated with the provision of legal services.

Commencement Information

I188 Sch. 2 para. 2 not in force at made date, see reg. 1(2)

I189 Sch. 2 para. 2 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Maintenance of frozen funds and economic resources U.K.

3.  To enable the payment of—

(a) reasonable fees, or

(b) reasonable service charges,

arising from the routine holding or maintenance of frozen funds or economic resources.

Commencement Information

I190 Sch. 2 para. 3 not in force at made date, see reg. 1(2)

I191 Sch. 2 para. 3 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Extraordinary expenses U.K.

4.  To enable an extraordinary expense of a designated person to be met.

Commencement Information

I192 Sch. 2 para. 4 not in force at made date, see reg. 1(2)

I193 Sch. 2 para. 4 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Pre-existing judicial decisions etc U.K.

5.  To enable, by the use of a designated person's frozen funds or economic resources, the implementation or satisfaction (in whole or in part) of a judicial, administrative or arbitral decision or lien, provided that—

(a) the funds or economic resources so used are the subject of the decision or lien,

(b) the decision or lien—

(i) was made or established before the date on which the person became a designated person, and

(ii) is enforceable in the United Kingdom, and

(c) the use of the frozen funds or economic resources does not directly or indirectly benefit any other designated person.

Commencement Information

I194 Sch. 2 para. 5 not in force at made date, see reg. 1(2)

I195 Sch. 2 para. 5 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Prior obligations U.K.

6.  To enable, by the use of a designated person's frozen funds or economic resources, the satisfaction of an obligation of that person (whether arising under a contract, other agreement or otherwise), provided that—

(a) the obligation arose before the date on which the person became a designated person;

(b) the obligation is not related to any of the prohibited items, materials, equipment, goods, technologies, assistance, training, financial assistance, investment, brokering or services referred to in Annex B of resolution 2231; and

(c) no payments are made to another designated person, whether directly or indirectly.

Commencement Information

I196 Sch. 2 para. 6 not in force at made date, see reg. 1(2)

I197 Sch. 2 para. 6 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Activities related to the Joint Comprehensive Plan of Action U.K.

7.—(1) To enable anything to be done that is—

(a) necessary for the civil nuclear cooperation projects described in Annex III of the Joint Comprehensive Plan of Action;

(b) necessary for activities directly related to any activity required for the implementation of the Joint Comprehensive Plan of Action; or

(c) necessary for any other activities directly related to nuclear-list goods or nuclear-list technology provided that such activities are consistent with the Joint Comprehensive Plan of Action.

(2) In sub-paragraph (1), “nuclear-list goods” and “nuclear-list technology” have the same meaning that they have in Part 5 (Trade).

Commencement Information

I198 Sch. 2 para. 7 not in force at made date, see reg. 1(2)

I199 Sch. 2 para. 7 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

PART 2 U.K. Non-UN designated persons

Humanitarian assistance activities U.K.

8.—(1) To enable anything to be done in connection with the performance of any humanitarian assistance activity.

(2) In sub-paragraph (1) “humanitarian assistance activity” includes the work of international and non-governmental organisations carrying out relief activities in Iran for the benefit of the civilian population there.

Commencement Information

I200 Sch. 2 para. 8 not in force at made date, see reg. 1(2)

I201 Sch. 2 para. 8 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Diplomatic missions etc U.K.

9.—(1) To enable anything to be done in order that the functions of a diplomatic mission or consular post, or of an international organisation enjoying immunities in accordance with international law, may be carried out.

(2) In sub-paragraph (1)—

“consular post” has the same meaning as in the Vienna Convention on Consular Relations done at Vienna on 24 April 1963 M60 , and any reference to the functions of a consular post is to be read in accordance with that Convention;

“diplomatic mission” and any reference to the functions of a diplomatic mission, is to be read in accordance with the Vienna Convention on Diplomatic Relations done at Vienna on 18 April 1961 M61 .

Commencement Information

I202 Sch. 2 para. 9 not in force at made date, see reg. 1(2)

I203 Sch. 2 para. 9 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Marginal Citations

M60 United Nations Treaty Series, vol. 596, p.261.

M61 United Nations Treaty Series, vol. 500, p.95.

Extraordinary situation U.K.

10.  To enable anything to be done to deal with an extraordinary situation.

Commencement Information

I204 Sch. 2 para. 10 not in force at made date, see reg. 1(2)

I205 Sch. 2 para. 10 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

PART 3 U.K. Interpretation

11.  In this Schedule— U.K.

“designated person” has the same meaning as it has in Part 3 (Finance);

“frozen funds or economic resources” means funds or economic resources frozen by virtue of regulation 12, and any reference to a person's frozen funds or economic resources is to funds or economic resources frozen as a consequence of the designation of that person for the purposes of that regulation.

Commencement Information

I206 Sch. 2 para. 11 not in force at made date, see reg. 1(2)

I207 Sch. 2 para. 11 in force at 31.12.2020 by S.I. 2019/627, reg. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

Explanatory Note

(This note is not part of the Regulations)

These Regulations are made under the Sanctions and Anti-Money Laundering Act 2018 (c.13) to establish a sanctions regime under that Act relating to nuclear activities in Iran. These Regulations are made for the purpose of complying with United Nations obligations and for the purposes of: encouraging Iran to abandon nuclear weapons programmes; restricting the ability of Iran to develop nuclear weapons and nuclear weapons delivery systems; and promoting implementation of the Joint Comprehensive Plan of Action agreed by Iran and others in 2015.

Following the UK's withdrawal from the European Union, these Regulations will replace the corresponding EU sanctions regime which is currently implemented via an EU Council Decision and Regulation.

These Regulations provide that persons who are listed by the UN are designated persons in the UK. The Regulations also confer a power on the Secretary of State to designate further persons who are, or have been, involved in activities related to the proliferation or development of nuclear weapons or nuclear weapons delivery systems in relation to Iran. Designated persons are excluded from the United Kingdom and are subject to financial sanctions, including having their funds and economic resources frozen.

These Regulations also impose trade restrictions in relation to specified goods and technology which are relevant to nuclear activities. They include military items and items on lists published by the UN and the International Atomic Energy Agency.

The Regulations provide for certain exceptions to this sanctions regime, in particular in relation to financial sanctions (for example to allow for frozen accounts to be credited with interest or other earnings) and also acts done for the purpose of national security or the prevention of serious crime. The Regulations also confer powers on the Secretary of State and the Treasury to issue licences in respect of activities that would otherwise be prohibited under the financial and trade sanctions. Schedule 3 to these Regulations sets out the purposes for which the Treasury will issue such licences.

The Regulations prescribe powers for the provision and sharing of information to enable the effective implementation and enforcement of the sanctions regime. The Regulations make it a criminal offence to contravene, or circumvent, any of the prohibitions in these Regulations and set out the penalties that apply to such offences. The Regulations also confer powers on specified maritime enforcement officers to stop and search ships in international and foreign waters for the purpose of enforcing specified trade sanctions and to seize goods found on board ships which are being, or have been, dealt with in contravention, or deemed contravention, of those prohibitions.

Council Regulation (EU) No 267/2012 of 23 March 2012 (restrictive measures against Iran) is revoked by these Regulations. The Iran (European Union Financial Sanctions) Regulations 2016, the Export Control (Iran Sanctions) Order 2016, and the Iran (Financial Sanctions) Order 2007 are also revoked by these Regulations.

The UN Security Council documents relating to this sanctions regime, including lists of goods and technology referred to in UN Security Council resolution 2231, which are mentioned in regulation 34, are available at https://www.un.org/securitycouncil/content/2231/background.

The Harmonized Commodity Description and Coding System referred to in regulation 28 is available at: http://www.wcoomd.org/en/topics/nomenclature/instrument-and-tools/hs-nomenclature-2017-edition/hs-nomenclature-2017-edition.aspx. A copy may be inspected free of charge by arrangement with HM Revenue and Customs at 100 Parliament Street, London SW1A 2BQ.

An Impact Assessment has not been produced for these Regulations, as they are intended to ensure existing sanctions remain in place following the United Kingdom's withdrawal from the European Union. These Regulations are intended to deliver substantially the same policy effects as the existing European Union sanctions. An Impact Assessment was, however, produced for the Sanctions and Anti-Money Laundering Act 2018 and can be found at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/653271/Sanctions_and_Anti-Money_Laundering_Bill_Impact_Assessment_18102017.pdf.