PART 5Exceptions and licences
Finance: exceptions from prohibitions18
1
The prohibition in regulation 11 (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 11 to 13 (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 12 and 13 (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 12 and 13 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 11 to 13 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 20006,
b
account B is with a ring-fenced body within the meaning of section 142A of the Financial Services and Markets Act 20007, 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 20008 (permission to carry on regulated activity).
Exception for acts done for purposes of national security or prevention of serious crime19
1
Where an act would, in the absence of this paragraph, be prohibited by the prohibition in regulation 9(2) (confidentiality) or any prohibition in Part 3 (Finance), 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 6 (Information and records), 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.
Treasury licences20
1
The prohibitions in regulations 11 to 15 (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 only where the Treasury consider that it is appropriate to issue the licence for a purpose set out in Schedule 2.
Licences: general provisions21
1
This regulation applies in relation to Treasury 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 offences22
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.
Section 8B(1) to (3) of Immigration Act 1971: directions23
1
The Secretary of State may direct that, in relation to any person within regulation 17 whose name is specified, or who is of a description specified, 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 may contain conditions.
3
A direction 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).
4
The Secretary of State may vary, revoke or suspend a direction at any time.
5
On the issue, variation, revocation or suspension of a direction, 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.
6
In this regulation “specified” means specified in a direction.