PART 6Exceptions and licences
Finance: exceptions from prohibitionsI1I1137
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 M1,
b
account B is with a ring-fenced body within the meaning of section 142A of the Financial Services and Markets Act 2000 M2, 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 M3 (permission to carry on regulated activity).
F2Finance: humanitarian exception37ZA
1
The prohibitions in regulations 12 to 17 (asset-freeze etc.) are not contravened by a person (“P”) carrying out a relevant activity which is necessary—
a
to ensure the timely delivery of humanitarian assistance, or
b
to support other activities that support basic human needs,
where Conditions A and B are met.
2
Condition A is that the humanitarian assistance or other activities mentioned in paragraph (1) are carried out by—
a
the United Nations, including its—
i
programmes and funds,
ii
other entities and bodies, and
iii
specialised agencies and related organisations,
b
international organisations,
c
humanitarian organisations having observer status with the United Nations General Assembly and members of those humanitarian organisations,
d
bilaterally or multilaterally funded non-governmental organisations participating in the United Nations Humanitarian Response Plans, Refugee Response Plans, other United Nations appeals, or humanitarian clusters coordinated by the United Nations Office for the Coordination of Humanitarian Affairs,
e
any grantee, subsidiary, or implementing partner of any organisation falling within sub-paragraphs (a) to (d) while and to the extent that they are acting in those capacities,
f
any other persons authorised by the Committee for the purposes of resolution 2664.
3
Condition B is that P believes that carrying out the relevant activity is so necessary and there is no reasonable cause for P to suspect otherwise.
4
For the purposes of this regulation—
“relevant activity” means any activity which would, in the absence of this regulation, contravene the prohibitions in regulations 12 to 17;
“resolution 2664” means resolution 2664 (2022) adopted by the Security Council on 9th December 2022.
F1Exception for authorised conduct in a relevant country37A
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.
Exception for acts done for purposes of national security or prevention of serious crimeI2I1238
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.
Exception relating to services provided to certain ships and aircraftI3I1339
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.
Treasury licencesI4I1440
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).
F3Director disqualification licences40A
The Secretary of State may issue a licence in relation to any person who is designated under regulation 5 for the purposes of regulation 18A (director disqualification sanctions) providing that the prohibitions in—
a
section 11A(1) of the Company Directors Disqualification Act 1986, and
b
Article 15A(1) of the Company Directors Disqualification (Northern Ireland) Order 2002,
do not apply to anything done under the authority of that licence.
Trade licencesI5I1541
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.
Licences: general provisionsI6I1642
1
This regulation applies in relation to Treasury licences F5, director disqualification 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.
Finance: licensing offencesI7I1743
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.
F4Director disqualification: licensing offences43A
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 director disqualification licence (whether for P or anyone else).
2
A person who purports to act under the authority of a director disqualification 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.
Trade: licensing offencesI8I1844
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.
Section 8B(1) to (3) of Immigration Act 1971: directionsI9I1045
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.