PART 9U.K.Enforcement
Penalties for offencesU.K.
79.—(1) A person who commits an offence under any provision of Part 3 (Finance), regulation 53(1), (2) and (3) (aircraft: offences) or regulation 65 (finance: licensing offences), is liable—
(a)on summary conviction in England and Wales, to imprisonment for a term not exceeding [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 [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), ... [65A (director disqualification: licensing offences),] 66 (trade: licensing offences), 67 (aircraft: licensing offences), 75(6) or 76(5) (information offences in connection with trade licences) is liable—
(a)on summary conviction in England and Wales, to imprisonment for a term not exceeding [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 53(4) (aircraft: disclosure of information offence), 69(6) (finance: reporting obligations) or 73 (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).
[(4A) A person who commits an offence under regulation 57(6) (exceptions relating to petroleum products: notification requirement) is liable—
(a)on summary conviction in England and Wales, to a fine;
(b)on summary conviction in Scotland, to a fine not exceeding level 5 on the standard scale;
(c)on summary conviction in Northern Ireland, to a fine not exceeding level 5 on the standard scale.]
(5) In relation to an offence committed before [2nd May 2022] the reference in each of paragraphs (1)(a), (2)(a) and (3)(a) to [the general limit in a magistrates’ court] is to be read as a reference to 6 months.
Textual Amendments
Commencement Information
Liability of officers of bodies corporate etcU.K.
80.—(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.
Jurisdiction to try offencesU.K.
81.—(1) Where an offence under regulation 9(6) (confidentiality), Part 3 (Finance), Part 6 (Aircraft), regulation 65 (finance: licensing offences), 67 (aircraft: licensing offences), 69(6) (finance: reporting obligations) or 73 (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) .
Commencement Information
Marginal Citations
Procedure for offences by unincorporated bodiesU.K.
82.—(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 and Schedule 3 to the Magistrates' Courts Act 1980 ;
(ii)section 18 of the Criminal Justice Act (Northern Ireland) 1945 and Article 166 of, and Schedule 4 to, the Magistrates' Courts (Northern Ireland) Order 1981 .
(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
Marginal Citations
Time limit for proceedings for summary offencesU.K.
83.—(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.
Trade enforcement: application of CEMAU.K.
84.—(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 .
(3) In this regulation, a “relevant offence” means an offence under—
(a)Part 5 (Trade),
(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c)regulation 66 (trade: licensing offences),
(d)regulation 75(6) (general trade licences: records), or
(e)regulation 76(5) (general trade licences: inspection of records).
[(3A) The Commissioners may not investigate the suspected commission of a relevant offence listed in paragraph (3B), (3C) or (3D), unless the suspected offence has been the subject of—
(a)a referral to the Commissioners by the Secretary of State, or
(b)a decision by the Commissioners to treat the suspected offence as if it had been referred to them under sub-paragraph (a).
(3B) Paragraph (3A) applies to the suspected commission of an offence under any of the following provisions—
(a)regulation 30(3) (supply and delivery prohibition) insofar as the offence does not relate to goods relating to chemical and biological weapons, interception and monitoring goods, or internal repression goods,
(b)regulation 31(3) (prohibition in connection with making goods and technology available) insofar as the offence does not relate to the import or export of goods or the transfer of technology to or from the UK, to goods relating to chemical and biological weapons, technology relating to chemical and biological weapons, interception and monitoring goods and interception and monitoring technology, or internal repression goods and internal repression technology,
(c)regulation 33(3) (prohibition relating to the associated provision of technical assistance) insofar as the offence does not relate to the import or export of goods or the transfer of technology to or from the UK, to goods relating to chemical and biological weapons, technology relating to chemical and biological weapons, interception and monitoring goods and interception and monitoring technology, or internal repression goods and internal repression technology,
(d)regulation 34(5) (prohibitions relating to the associated provision of financial services and funds) insofar as the offence does not relate to the import or export of goods or the transfer of technology to or from the UK, to goods relating to chemical and biological weapons, technology relating to chemical and biological weapons, interception and monitoring goods and interception and monitoring technology, or internal repression goods and internal repression technology,
(e)regulation 35(3) (prohibitions relating to the associated provision of brokering services: non-UK activity) insofar as the offence does not relate to the import or export of goods or the transfer of technology to or from the UK, to goods relating to chemical and biological weapons, technology relating to chemical and biological weapons, interception and monitoring goods and technology, or internal repression goods and internal repression technology,
(f)regulation 37(4) (acquisition of military goods and technology, crude oil and petroleum products) insofar as the offence does not relate to the import or export of goods or the transfer of technology to or from the UK, to military goods and technology,
(g)regulation 38(5) (transport of military goods, crude oil and petroleum products) insofar as it does not relate to military goods,
(h)regulation 40(3) (prohibitions relating to the associated provision of financial services and funds) insofar as the offence does not relate to the import or export of goods or the transfer of technology to or from the UK, or does not relate to arms and related materiel or military goods and technology,
(i)regulation 41(4) (bank notes or coinage) insofar as the offence does not relate to the import or export of goods,
(j)regulation 42(5) (goods prohibitions relating to gold, precious metals or diamonds) insofar as the offence does not relate to the import or export of goods,
(k)regulation 43(3) (technical assistance relating to gold, precious metals or diamonds) insofar as the offence does not relate to the import or export of goods,
(l)regulation 44(5) (financial services and funds relating to gold, precious metals or diamonds) insofar as the offence does not relate to the import or export of goods,
(m)regulation 45(4) (brokering services: non-UK activity relating to gold, precious metals or diamonds) insofar as the offence does not relate to the import or export of goods,
(n)regulation 45(5) insofar as the offence does not relate to the import or export of goods,
(o)regulation 46(5) (luxury goods) insofar as the offence does not relate to the import or export of goods,
(p)regulation 47(5) (electricity production) insofar as the offence does not relate to the import or export of goods, or
(q)regulation 48(3) (provision of interception and monitoring services).
(3C) Paragraph (3A) also applies to the suspected commission of a relevant offence under any of regulations 66(1) and (2), 75(6) and 76(5) insofar as—
(a)the suspected offence relates to a licence issued under regulation 62 (trade licences), and
(b)the activity authorised by that licence would, if no licence had been issued, amount to an offence specified in paragraph (3B).
(3D) Paragraph (3A) also applies to the suspected commission of a relevant offence under regulation 49(2) (circumventing etc prohibitions) insofar as the prohibited activity to which the suspected offence relates is the circumvention of, or enabling or facilitation of a contravention of, a prohibition in relation to an offence specified in paragraph (3B).]
(4) Section 138 of CEMA (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 , 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 (e);
(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 (e), 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 (legal proceedings).
[(7) Any term in this regulation that is defined in Chapter 1 (Interpretation) of Part 5 (Trade) bears the same meaning as in that Chapter of that Part.]
Textual Amendments
Commencement Information
Marginal Citations
Trade offences in CEMA: modification of penaltyU.K.
85.—(1) Paragraph (2) applies where a person is guilty of an offence under section 50(2) of CEMA in connection with a prohibition mentioned in Chapter 3 or 4 of Part 5 (Trade) on imports.
(2) Where this paragraph applies, the reference to 7 years in section 50(4)(b) of CEMA is to be read as a reference to 10 years.
(3) Paragraph (4) applies where a person is guilty of an offence under section 68(2) of CEMA in connection with a prohibition mentioned in Chapter 2 or 4 of Part 5 (Trade) on exports.
(4) Where this paragraph applies, the reference to 7 years in section 68(3)(b) of CEMA is to be read as a reference to 10 years.
(5) Paragraph (6) applies where a person is guilty of an offence under section 170(2) of CEMA in connection with a prohibition mentioned in Chapters 2 to 4 of Part 5 (Trade) on exports or imports.
(6) Where this paragraph applies, the reference to 7 years in section 170(3)(b) of CEMA is to be read as a reference to 10 years.
Commencement Information
Marginal Citations
Application of Chapter 1 of Part 2 of the Serious Organised Crime and Police Act 2005U.K.
86. Chapter 1 of Part 2 of the Serious Organised Crime and Police Act 2005 (investigatory powers) applies to any offence under Part 3 (Finance) or regulation 65 (finance: licensing offences).
Commencement Information
Marginal Citations
Monetary penaltiesU.K.
87. Each provision in Part 5 (Trade) which contains a prohibition imposed for a purpose in section 3(1) or (2) of the Act is to be regarded as not being financial sanctions legislation for the purposes of Part 8 of the Policing and Crime Act 2017 (monetary penalties) .
Commencement Information
Marginal Citations