Part 6Exceptions and licences
Finance: exceptions from prohibitionsI1I227
1
The prohibition in regulation 8 (asset-freeze in relation to designated persons) and 25 (asset-freeze in relation to Usama bin Laden) 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 8 to 10 (asset-freeze in relation to, and making funds available to, or for the benefit of, designated persons) and 25 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 9 and 10 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 9 and 10 are not contravened by a person transferring 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 8 to 10 and 25 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
The prohibition in F1regulation 10 is not contravened by the making of a payment which—
a
is a benefit under or by virtue of an enactment relating to social security (irrespective of the name or nature of the benefit), and
b
is made to a person who is not a designated person,
whether or not the payment is made in respect of a designated person.
8
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).