The Sudan (Sanctions) (EU Exit) Regulations 2020

Statutory Instruments

2020 No. 753

Exiting The European Union

Sanctions

The Sudan (Sanctions) (EU Exit) Regulations 2020

Made

16th July 2020

Laid before Parliament

20th July 2020

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)(ii), (d)(i) and (ii), 4, 5, 9(2), 10(2)(a) and (c), (3) and (4), 11, 13, 15(2)(a) and (b), (3), (4)(b), (5) and (6), 16, 17, 19, 20, 21(1), 54(1) and (2), 56(1) and 62(4) to (6) of, and paragraphs 2(b), 4(b), 5(a)(ii) and (b), 6(a)(ii) and (b), 10(b), 11(a)(ii), 13(b), (h), (k) to (n) and (w), 14(a), (f) and (k), 17(a) 20, 21 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) by The Sudan (Sanctions) (Overseas Territories) Order 2020 (S.I. 2020/1592), art. 2, Sch. 1, Sch. 2

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 Sudan (Sanctions) (EU Exit) Regulations 2020.

(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 in force at 14.12.2020 by S.I. 2020/1514, reg. 15(1)

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 paragraph 12 of Schedule 1 for the meaning of that term in that Schedule);

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

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

“the Committee” means the Committee of the Security Council established in accordance with paragraph 3(a) of resolution 1591;

“conduct” includes acts and omissions;

“Council Regulation (EC) No 131/2004” means Council Regulation (EC) No 131/2004 of 26 January 2004 concerning certain restrictive measures in respect of Sudan M4 ;

“Council Regulation (EC) No 1184/2005” means Council Regulation (EC) No 1184/2005 of 18 July 2005 imposing certain specific restrictive measures directed against certain persons impeding the peace process and breaking international law in the conflict in the Darfur region in Sudan M5 ;

“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 Sudan Regulation” means Council Regulation (EU) No 747/2014 of 10 July 2014, concerning restrictive measures in view of the situation in Sudan, and repealing Regulations (EC) No 131/2004 and (EC) No 1184/2005 M6 , as it has effect in EU law;

“humanitarian assistance activity” includes the work of international and non-governmental organisations carrying out relief activities in Sudan for the benefit of the civilian population there;

“resolution 1556” means resolution 1556 (2004) adopted by the Security Council on 30 July 2004;

“resolution 1591” means resolution 1591 (2005) adopted by the Security Council on 29 March 2005;

“resolution 2035” means resolution 2035 (2012) adopted by the Security Council on 17 February 2012;

“serious human rights violation or abuse” means a serious violation or abuse of any of the human rights specified in regulation 4(2)(g);

“trade licence” means a licence under regulation 35;

“Treasury licence” means a licence under regulation 34(1);

“United Kingdom person” has the same meaning as in section 21 of the Act.

Commencement Information

I2 Reg. 2 in force at 14.12.2020 by S.I. 2020/1514, reg. 15(1)

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 No. L 21, 28.1.2004, p.1 as repealed by the EU Sudan Regulation.

M5 OJ No. L 193, 23.7.2005, p.9 as repealed by the EU Sudan Regulation.

M6 OJ No. L 203, 11.7.2014, 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) In this regulation a “relevant prohibition” means any prohibition imposed by—

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

(b) Part 3 (Finance),

(c) Part 5 (Trade), or

(d) 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) 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.

Commencement Information

I3 Reg. 3 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

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 peace, stability and security of Sudan,

(b) encouraging the resolution of the armed conflicts in Sudan and the stabilisation of Sudan, including by way of—

(i) comprehensive and inclusive peace negotiations and agreements, and

(ii) transition to civilian-led government and democracy, with particular reference to the Constitutional Document M7 ,

(c) promoting respect for democracy, the rule of law and good governance in Sudan,

(d) promoting the effective delivery of the mandates of the regional or international monitoring and peace-support missions and mechanisms whose activities contribute to the peace, stability and security of Sudan, including—

(i) the United Nations Integrated Transition Assistance Mission in Sudan M8 ,

(ii) the United Nations-African Union Hybrid Operation in Darfur M9 ,

(iii) the United Nations Interim Security Force for Abeyi M10 ,

(e) promoting respect for humanitarian assistance activity in Sudan,

(f) promoting compliance with the rules of international humanitarian law applicable to the armed conflicts in Sudan, and

(g) promoting respect for, and accountability in relation to violations or abuses of human rights in Sudan, including, in particular, respect for—

(i) the right to life of persons in Sudan;

(ii) the right of persons in Sudan not to be held in slavery or required to perform forced or compulsory labour;

(iii) the right of persons not to be subjected to torture or cruel, inhuman or degrading treatment or punishment in Sudan;

(iv) the right to liberty and security of persons in Sudan, including freedom from arbitrary arrest, detention or enforced disappearance;

(v) the right to a fair trial of persons charged with criminal offences in Sudan;

(vi) the rights of journalists, human rights defenders, civil society activists and other persons in Sudan to freedom of expression and peaceful assembly;

(vii) the enjoyment of rights and freedoms in Sudan without discrimination, including on the basis of a person's sex, race, colour, language, religion, political or other opinion, national or social origin, association with a national minority, property, birth or other status,

otherwise than by compliance with the relevant UN obligations.

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

(a) the obligations that the United Kingdom has by virtue of paragraph 3(e) of resolution 1591 (asset-freeze) to take the measures required by that provision in respect of persons M11 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 3(e) of resolution 1591 (asset-freeze) in respect of persons—

(i) acting on behalf of or at the direction of, or

(ii) owned or controlled by,

the persons for the time being named by the Security Council or the Committee for the purposes of that paragraph;

(c) the obligations that the United Kingdom has by virtue of paragraphs 7 and 8 of resolution 1556 (arms embargo) M12 .

(4) Any reference to the obligation that the United Kingdom has by virtue of paragraph 3(e) of resolution 1591 is to that provision read with—

(a) paragraph 3(c) of resolution 1591; and

(b) paragraph 3 of resolution 2035.

(5) Any reference to the obligation that the United Kingdom has by virtue of paragraphs 7 and 8 of resolution 1556 is to that provision read with—

(a) paragraph 7 of resolution 1591; and

(b) paragraphs 2 and 4 of resolution 2035.

Commencement Information

I4 Reg. 4 in force at 14.12.2020 by S.I. 2020/1514, reg. 15(1)

Marginal Citations

M7 The Constitutional Document (also referred to as the Constitutional Charter for the 2019 Transitional Period) was signed by representatives of the Transitional Military Council and the Forces for Freedom and Change in Khartoum on 17th August 2019. The UN Security Council “welcom[ed] the signing of the Constitutional Document on 17 August 2019…” in the preamble to resolution 2524 (2020) adopted by the Security Council on 3 June 2020.

M8 The United Nations Integrated Transition Assistance Mission in Sudan (UNITAMS) was established pursuant to resolution 2524 (2020) adopted by the Security Council on 3 June 2020.

M9 The United Nations-African Union Hybrid Operation in Darfur (UNAMID) was established pursuant to resolution 1769 (2007) adopted by the Security Council on 31 July 2007 and most recently extended by resolution 2525 (2020) adopted by the Security Council on 3 June 2020.

M10 The United Nations Interim Security Force for Abyei (UNISFA) was established pursuant to resolution 1990 (2011) adopted by the Security Council on 27 June 2011. The mandate was expanded by resolution 2024 (2011) adopted by the Security Council on 14 December 2011 to include monitoring along the entire border between North and South Sudan and most recently extended by resolution 2519 (2020) adopted by the Security Council on 14 May 2020.

M11 “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.

M12 The arms embargo measures provided for in paragraphs 7 and 8 of resolution 1556 (2004) have been modified and updated by paragraph 7 of resolution 1591 (2005), paragraph 9 of resolution 1945 (2010) adopted by the Security Council on 14^th October 2010, and paragraphs 2 and 4 of resolution 2035 (2012).

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 16 (asset-freeze etc.); and

(b) regulation 18 (immigration).

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

Commencement Information

I5 Reg. 5 in force at 14.12.2020 by S.I. 2020/1514, reg. 15(1)

Criteria for designating a person U.K.

6.—(1) The Secretary of State may not designate a person under regulation 5 (power to designate persons) 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 (purposes), 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 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) In this regulation a “relevant activity” means—

(a) the commission of a serious human rights violation or abuse, or a violation of international humanitarian law in Sudan including in particular in relation to—

(i) rape and other forms of sexual and gender-based violence;

(ii) violence against persons on the basis of their ethnicity or religious beliefs;

(iii) the recruitment or use of children in armed conflict;

(iv) deliberate targeting of civilians, schools and hospitals;

(v) enforced or involuntary disappearances;

(vi) the forced displacement of the civilian population;

(vii) any of the rights referred to in regulation 4(2)(g);

(b) an attack against, or obstruction of the activities of—

(i) diplomatic personnel,

(ii) the regional or international monitoring and peace-support missions and mechanisms mentioned in paragraphs (i) to (iii) of regulation 4(2)(d), or

(iii) personnel undertaking humanitarian assistance activity,

in Sudan;

(c) obstruction of the delivery or distribution of, or access to, humanitarian assistance in Sudan;

(d) being responsible for offensive military overflights in and over the Darfur region as described in paragraph 6 of resolution 1591;

(e) the provision of support for armed groups or criminal networks in Sudan including through the illicit exploitation of any natural resources, wildlife or wildlife products;

(f) any other action, policy or activity which threatens the peace, stability and security of Sudan, including acts that—

(i) undermine efforts to resolve the armed conflicts or achieve stabilisation and reconciliation,

(ii) threaten, impede or frustrate inclusive peace negotiations or transition to democratic, civilian-led government;

(iii) obstruct or undermine respect for democracy, the rule of law and good governance, or

(iv) incite violence,

in Sudan.

(4) Any reference in this regulation to being involved in a relevant 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, any such activity;

(b) providing financial services, or making available funds or economic resources, that could contribute to any such activity;

(c) being involved in the supply to Sudan of military goods or military technology or of material related to such goods or technology, or in providing financial services relating to such supply;

(d) being involved in the supply to Sudan of goods or technology which could contribute to any such activity, or in providing financial services relating to such supply;

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

(5) In this regulation “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 (Finance) or Part 5 (Trade);

(c) any provision of resolutions 1556, 1591 and 2035.

(6) Nothing in any sub-paragraph of paragraph (3) or (4) is to be taken to limit the meaning of any of the other sub-paragraphs of those paragraphs.

(7) In this regulation, “military goods” and “military technology” have the meanings given by Part 5.

Commencement Information

I6 Reg. 6 in force at 14.12.2020 by S.I. 2020/1514, reg. 15(1)

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 whether directly or indirectly, to achieve the result that affairs of C are conducted in accordance with P's wishes.

Commencement Information

I7 Reg. 7 in force at 14.12.2020 by S.I. 2020/1514, reg. 15(1)

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

I8 Reg. 8 in force at 14.12.2020 by S.I. 2020/1514, reg. 15(1)

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

I9 Reg. 9 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

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 3(c) of resolution 1591 by the Security Council or the Committee is a designated person for the purposes of regulations 12 to 16 (asset-freeze etc.) (whose purposes include compliance with the UN obligations mentioned in regulation 4(3)(a) M13 ).

(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 16.

Commencement Information

I10 Reg. 10 in force at 14.12.2020 by S.I. 2020/1514, reg. 15(1)

Marginal Citations

M13 Section 13 of the Sanctions and Anti-Money Laundering Act 2018 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 the regulations mentioned in regulation 10), the regulations must provide for those persons to be designated persons for the purposes of that provision.

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 16 (asset-freeze etc.), or

(b) a person who is a designated person for the purposes of those regulations by reason of regulation 10(1).

Commencement Information

I11 Reg. 11 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

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

I12 Reg. 12 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Making funds available to designated persons 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

I13 Reg. 13 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Making funds available for benefit of designated persons 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

I14 Reg. 14 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Making economic resources available to designated persons 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

I15 Reg. 15 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Making economic resources available for benefit of designated persons 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

I16 Reg. 16 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Circumventing etc. prohibitions U.K.

17.—(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 16 (asset-freeze etc.), or

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

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

Commencement Information

I17 Reg. 17 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

PART 4 U.K. Immigration

Immigration U.K.

18.  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 M14 .

Commencement Information

I18 Reg. 18 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Marginal Citations

M14 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 Sanctions and Anti-Money Laundering Act 2018, section 59 and Schedule 3, Part 1.

PART 5 U.K. Trade

CHAPTER 1 U.K. Interpretation

Definition of “military goods” and “military technology” U.K.

19.  In this Part—

“military goods” means—

(a)

any thing for the time being specified in Schedule 2 to the Export Control Order 2008 M15 , 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.

Commencement Information

I19 Reg. 19 in force at 14.12.2020 by S.I. 2020/1514, reg. 15(1)

Marginal Citations

M15 S.I. 2008/3231. Schedule 2 was substituted by S.I. 2017/85 and subsequently amended by S.I. 2017/697; S.I. 2018/165; S.I. 2018/939; S.I. 2019/137; and S.I. 2019/989. There are other instruments which amend other parts of the Order, which are not relevant to these Regulations.

Interpretation of other expressions used in this Part U.K.

20.—(1) Paragraphs 32 and 36 of Schedule 1 to the Act (trade sanctions) apply for the purpose of interpreting expressions in this Part.

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

(3) In this Part—

“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;

“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;

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

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

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

(b) an individual who is, or an association or combination of individuals who are, located in Sudan,

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

(d) a person, other than an individual, which is domiciled in Sudan.

Commencement Information

I20 Reg. 20 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

CHAPTER 2 U.K. Military goods and military technology

Export of military goods U.K.

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

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

Commencement Information

I21 Reg. 21 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Supply and delivery of military goods U.K.

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

(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 Sudan.

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

Commencement Information

I22 Reg. 22 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Making military goods and military technology available U.K.

23.—(1) A person must not—

(a) directly or indirectly make military goods or military technology available to a person connected with Sudan;

(b) directly or indirectly make military goods or military technology available for use in Sudan.

(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 Sudan;

(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 Sudan.

Commencement Information

I23 Reg. 23 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Transfer of military technology U.K.

24.—(1) A person must not—

(a) transfer military technology to a place in Sudan;

(b) transfer military technology to a person connected with Sudan.

(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 Sudan;

(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 Sudan.

Commencement Information

I24 Reg. 24 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

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

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

(a) to a person connected with Sudan, or

(b) for use in Sudan.

(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 Sudan;

(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 Sudan.

Commencement Information

I25 Reg. 25 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

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

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

(a) the export of military goods,

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

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

(d) the transfer of military technology, or

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

(2) A person must not directly or indirectly make funds available to a person connected with Sudan 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 military goods to, or for use in, Sudan,

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

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

(i) to a person connected with Sudan, or

(ii) for use in Sudan,

(d) the transfer of military technology—

(i) to a person connected with Sudan, or

(ii) to a place in Sudan, or

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

(i) to a person connected with Sudan, or

(ii) for use in Sudan.

(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 Sudan;

(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

I26 Reg. 26 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Brokering services: non-UK activity relating to military goods and military 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 military goods from a third country to a place in Sudan,

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

(i) to a person connected with Sudan, or

(ii) to a place in Sudan,

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

(i) to a person connected with Sudan, or

(ii) to a place in Sudan,

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

(i) to a person connected with Sudan, or

(ii) to a place in Sudan,

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

(i) to a person connected with Sudan, or

(ii) for use in Sudan,

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

(i) to a person connected with Sudan, 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 Sudan, 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—

“non-UK country” means a country that is not the United Kingdom;

“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 Sudan, and

(b)

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

Commencement Information

I27 Reg. 27 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

CHAPTER 3 U.K. Enabling or facilitating the conduct of armed hostilities

Enabling or facilitating the conduct of armed hostilities U.K.

28.—(1) A person must not directly or indirectly provide—

(a) technical assistance,

(b) armed personnel,

(c) financial services or funds, or

(d) brokering services provided in relation to an arrangement whose object or effect is to provide, in a non-UK country, anything mentioned in sub-paragraphs (a) to (c),

where such provision enables or facilitates the conduct of armed hostilities in Sudan.

(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 provision as mentioned in paragraph (1) would enable or facilitate the conduct of armed hostilities in Sudan.

(4) In this regulation—

“non-UK country” means a country that is not the United Kingdom;

“technical assistance” means the provision of technical support or any other technical service.

(5) Nothing in this regulation is to be taken to limit the meaning of any of the prohibitions contained in Chapter 2.

Commencement Information

I28 Reg. 28 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

CHAPTER 4 U.K. Further provision

Circumventing etc. prohibitions U.K.

29.—(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 Chapter 2 or 3 of this Part, or

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

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

Commencement Information

I29 Reg. 29 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Defences U.K.

30.—(1) Paragraph (2) applies where a person relies on a defence under Chapter 2 or 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

I30 Reg. 30 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

PART 6 U.K. Exceptions and licences

Finance: exceptions from prohibitions U.K.

31.—(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 M16 ,

(b) account B is with a ring-fenced body within the meaning of section 142A of the Financial Services and Markets Act 2000 M17 , 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 M18 (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 M19 , any relevant order under that section M20 and Schedule 2 to that Act M21 .

Commencement Information

I31 Reg. 31 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Marginal Citations

M16 2000 c.8. Section 142D was inserted by the Financial Services (Banking Reform) Act 2013 (c.33), section 4(1).

M17 Section 142A was inserted by the Financial Services (Banking Reform) Act 2013, section 4(1).

M18 Part 4A was inserted by the Financial Services Act 2012 (c.21), section 11(2) and most recently amended by S.I. 2018/546; it is prospectively amended by S.I. 2019/632.

M19 Section 22 was amended by the Financial Guidance and Claims Act 2018 (c.10), section 27(4); the Financial Services Act 2012 (c.21), section 7(1); and S.I. 2018/135.

M20 S.I. 2001/544, as most recently amended by S.I. 2019/679; S.I. 2020/117; and S.I. 2020/480; it is amended and prospectively amended by S.I. 2019/632; and it is prospectively amended by S.I. 2019/710.

M21 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; the Financial Guidance and Claims Act 2018, section 27(13); S.I. 2013/1881; S.I. 2018/135; and it is prospectively amended by S.I. 2019/632.

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

32.—(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 16 (asset-freeze etc.) or Chapters 2 and 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;

(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.

Commencement Information

I32 Reg. 32 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

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

33.—(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) or 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 Part 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

I33 Reg. 33 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Treasury licences U.K.

34.—(1) The prohibitions in regulations 12 to 16 (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 2 of Schedule 2.

(4) In this regulation “UN designated person” means—

(a) a person who is a designated person for the purposes of regulations 12 to 16 by reason of regulation 10 (designation of persons named by or under UN Security Council resolutions), or

(b) a person who is designated under regulation 5 (power to designate persons) for the purposes of regulations 12 to 16 and whose designation is (in the opinion of the Secretary of State) required by a provision mentioned in regulation 4(3).

Commencement Information

I34 Reg. 34 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Trade licences U.K.

35.  The prohibitions in Chapters 2 and 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

I35 Reg. 35 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Licences: general provisions U.K.

36.—(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

I36 Reg. 36 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Finance: licensing offences U.K.

37.—(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

I37 Reg. 37 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Trade: licensing offences U.K.

38.—(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

I38 Reg. 38 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

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

39.—(1) The Secretary of State may direct that, in relation to any person within regulation 18 (immigration) 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 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 under this regulation at any time.

(5) 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.

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

Commencement Information

I39 Reg. 39 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

PART 7 U.K. Information and records

Finance: reporting obligations U.K.

40.—(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 37 (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 31(4) (finance: exceptions from prohibitions), or

(b) transfers funds from a frozen account in accordance with regulation 31(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 31;

“relevant firm” is to be read in accordance with regulation 41;

“relevant institution” has the same meaning as it has in regulation 31.

Commencement Information

I40 Reg. 40 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

“Relevant firm” U.K.

41.—(1) The following are relevant firms for the purposes of regulation 40 (finance: reporting obligations)—

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

(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) M22 , or

(ii) a local auditor within the meaning of section 4(1) of the Local Audit and Accountability Act 2014 (general requirements for audit) M23 ;

(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) M24 ;

(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.

(2) In paragraph (1) “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 M25 , 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.

(4) Sub-paragraphs (a) and (b) of paragraph (1) are 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 40(1), 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) M26 ;

(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.

Commencement Information

I41 Reg. 41 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Marginal Citations

M22 2006 c.46.

M23 2014 c.2.

M24 2005 c.19.

M25 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 Planning Act (Northern Ireland) 2011 (c.25), Schedule 6, paragraph 21; the Enterprise and Regulatory Reform Act 2013 (c.24), section 70; S.I. 1991/1220; S.I. 1991/2684; S.S.I. 2000/121 and S.I. 2001/1283.

M26 Section 1210 was amended by S.I. 2008/565; S.I. 2008/1950; S.I. 2011/99; S.I. 2012/1809; S.I. 2013/3115; S.I. 2017/516; and 2017/1164; and it is prospectively amended by S.I. 2019/177.

Finance: powers to request information U.K.

42.—(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), 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 40 (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 37 (finance: licensing offences) or 40.

(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

I42 Reg. 42 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Finance: production of documents U.K.

43.—(1) A request under regulation 42 (finance: powers to request information) 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

I43 Reg. 43 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Finance: information offences U.K.

44.—(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 42 (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 42 or 43 (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 42 or 43.

(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

I44 Reg. 44 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

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

45.—(1) Section 77A of CEMA M27 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 M28 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 which would, unless done under the authority of a trade licence, constitute a contravention of—

(a) any prohibition in Chapter 2 or 3 of Part 5 (Trade) except the prohibition in regulation 21(1) (export of military goods), or

(b) the prohibition in regulation 29 (circumventing etc. prohibitions).

Commencement Information

I45 Reg. 45 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Marginal Citations

M27 Section 77A was inserted by the Finance Act 1987 (c.16), section 10 and amended by S.I. 1992/3095.

M28 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.

46.—(1) This regulation applies in relation to a person (“P”) who does any act authorised by a general licence issued under regulation 35 (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

I46 Reg. 46 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

General trade licences: inspection of records U.K.

47.—(1) A person authorised by the Secretary of State or the Commissioners (an “official”) may at any reasonable hour enter premises notified under regulation 46(4) for the purposes of monitoring compliance with, or detecting evasion of, regulation 46(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 46, 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

I47 Reg. 47 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Disclosure of information U.K.

48.—(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) any purpose stated in regulation 4 (purposes);

(b) the exercise of functions under these Regulations;

(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) (export of military goods), or

(iii) in relation to a monetary penalty under section 146 of the Policing and Crime Act 2017 (breach of financial sanctions legislation) M29 ;

(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 M30 ;

(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) considers 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 has effect or 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

I48 Reg. 48 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Marginal Citations

M29 2017 c.3.

M30 Section 1(8) of the Sanctions and Anti-Money Laundering Act 2018 defines an “international obligation” as an obligation of the United Kingdom created or arising by or under any international agreement.

Part 7: supplementary U.K.

49.—(1) A disclosure of information under regulation 48 does not breach any restriction on such disclosure imposed by statute or otherwise.

(2) But nothing in that regulation 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 M31 .

(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) Regulation 48 does not limit the circumstances in which information may be disclosed apart from that regulation.

(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) M32 ;

“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.

Commencement Information

I49 Reg. 49 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Marginal Citations

M31 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; Counter-Terrorism and Border Security Act 2019 (c. 3) Schedule 4, paragraph 33; the Sanctions and Anti-Money Laundering Act 2018, section 59(4), Schedule 3, paragraph 7; Crime (Overseas Production Orders) Act 2019 (c. 5) section 16; S.I. 2018/652; S.I. 2018/1123; S.I. 2018/378; S.I. 2018/905; S.I. 2018/1123; S.I. 2019/419; S.I. 2019/742; S.I. 2019/ 939. Saving provisions are made by S.I. 2017/859.

M32 2018 c.12. There are amendments to this Act but none is relevant to these Regulations.

PART 8 U.K. Enforcement

Penalties for offences U.K.

50.—(1) A person who commits an offence under any provision of Part 3 (Finance) or regulation 37 (finance: licensing offences), is liable—

(a) on summary conviction in England and Wales, to imprisonment for a term not exceeding 12 months 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 12 months 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), 38, 46(6) or 47(5) (offences in connection with trade licences) is liable—

(a) on summary conviction in England and Wales, to imprisonment for a term not exceeding 12 months 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 40(6) or 44 (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 section 154(1) of the Criminal Justice Act 2003 M33 comes into force, the reference in each of paragraphs (1)(a), (2)(a) and (3)(a) to 12 months is to be read as a reference to 6 months.

Commencement Information

I50 Reg. 50 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Marginal Citations

M33 2003 c.44. Amendments have been made to section 154(1), but none is relevant to these Regulations.

Liability of officers of bodies corporate etc. U.K.

51.—(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

I51 Reg. 51 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Jurisdiction to try offences U.K.

52.—(1) Where an offence under Part 3 (Finance), regulation 9(6) (confidentiality), regulation 37 (finance: licensing offences) or regulation 40(6) or 44 (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) M34 .

Commencement Information

I52 Reg. 52 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Marginal Citations

M34 1995 c.46.

Procedure for offences by unincorporated bodies U.K.

53.—(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 M35 and Schedule 3 to the Magistrates' Courts Act 1980 M36 ;

(ii) section 18 of the Criminal Justice Act (Northern Ireland) 1945 M37 and Article 166 of, and Schedule 4 to, the Magistrates' Courts (Northern Ireland) Order 1981 M38 .

(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

I53 Reg. 53 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Marginal Citations

M35 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.

M36 1980 c.43. Amendments have been made to Schedule 3 that are not relevant to these Regulations.

M37 1945 c. 15 (N.I.).

M38 S.I. 1981/1675 (N.I. 26).

Time limit for proceedings for summary offences U.K.

54.—(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

I54 Reg. 54 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Trade enforcement: application of CEMA U.K.

55.—(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 M39 .

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

(a) Part 5 (Trade),

(b) regulation 38 (trade: licensing offences),

(c) regulation 46(6) (general trade licences: records), or

(d) regulation 47(5) (general trade licences: inspection of records).

(4) Section 138 of CEMA M40 (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 M41 , 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 M42 (legal proceedings).

Commencement Information

I55 Reg. 55 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Marginal Citations

M39 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).

M40 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 (N.I. 12); and S.I. 2007/288.

M41 “the customs and excise Acts” is defined in section 1 of CEMA.

M42 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 (c. 11), Schedule 4, paragraph 23(a); and S.I. 2014/834. Section 147 was amended by the Magistrates' Courts Act 1980 (c. 43), section 154 and Schedule 7, para. 176; the Criminal Justice Act 1982 (c. 48), Schedule 14, paragraph 42; the Finance Act 1989 (c. 26), section 16(2); and the Criminal Justice Act 2003 (c. 44), 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.

56.—(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 21(1) (export of military goods).

(2) Where this paragraph applies, the reference to 7 years in section 68(3)(b) of CEMA M43 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 military goods).

(4) Where this paragraph applies, the reference to 7 years in section 170(3)(b) of CEMA M44 is to be read as a reference to 10 years.

Commencement Information

I56 Reg. 56 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Marginal Citations

M43 The words “7 years” were inserted in section 68(3)(b) of CEMA by the Finance Act 1988, section 12.

M44 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 the Serious Organised Crime and Police Act 2005 U.K.

57.  Chapter 1 of Part 2 of the Serious Organised Crime and Police Act 2005 (investigatory powers) M45 applies to any offence under Part 3 (Finance) or regulation 37 (finance: licensing offences).

Commencement Information

I57 Reg. 57 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Marginal Citations

M45 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 15 and Schedule 8, paragraphs 157 and 159; the Criminal Finances Act 2017 (c.22), section 51(1); the Sanctions and Anti-Money Laundering Act 2018, section 59(4) and Schedule 3, paragraph 4; S.I. 2006/1629; and S.I. 2014/834.

Monetary penalties U.K.

58.  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 M46 —

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

(b) regulation 24(1)(b) (transfer of military technology);

(c) regulation 26(1) and (2) (financial services and funds relating to military goods and military technology);

(d) regulation 27(1)(f)(i) and (g) (brokering services relating to financial services and funds relating to military goods and military technology);

(e) regulation 28(1) (enabling or facilitating the conduct of armed hostilities).

Commencement Information

I58 Reg. 58 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Marginal Citations

M46 See section 143(4)(f) and (4A), as inserted by the Sanctions and Anti Money Laundering Act 2018, Schedule 3, paragraph 8(1) and (3).

PART 9 U.K. Maritime enforcement

Exercise of maritime enforcement powers U.K.

59.—(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) the prohibition in regulation 21(1) (exports of military goods);

(b) a prohibition in regulation 22(1) (supply and delivery of military goods);

(c) a prohibition in regulation 23(1)(a) or (b) (making of military goods and military technology available);

(d) a prohibition in regulation 24(1)(a) or (b) (transfer of military technology),

(e) a prohibition imposed by a condition of a trade licence in relation to a prohibition mentioned in any of sub-paragraphs (a) to (d).

(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 61 (power to stop, board, search etc.) and 62 (seizure power).

(5) This regulation is subject to regulation 63 (restrictions on exercise of maritime enforcement powers).

Commencement Information

I59 Reg. 59 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Maritime enforcement officers U.K.

60.—(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 M47 );

(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 M48 , 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 M49 ,

(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 M50 ;

(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 M51 , or a person appointed to act as a constable under provision made by virtue of section 16 of the Harbours Act 1964 M52 ;

(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) M53 ;

(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 M54 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

I60 Reg. 60 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Marginal Citations

M47 1987 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 Reform Act 2002 (c.30), section 79(3); and S.I. 2013/602.

M48 2012 asp.8.

M49 1996 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, paragraph 26.

M50 1847 c.27. Section 79 was amended by S.I. 2006/2167.

M51 2013 c.22.

M52 1964 c.40. Section 16 was amended by section 29(2) of the Wales Act 2017 (c.4); S.I. 1970/1681; and S.I. 1999/672. Other amendments have been made to section 16 that are not relevant to these Regulations.

M53 2009 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.

M54 2013 c.22.

Power to stop, board, search etc. U.K.

61.—(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 62 (seizure power), 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

I61 Reg. 61 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Seizure power U.K.

62.—(1) This regulation applies if a maritime enforcement officer is lawfully on a relevant ship (whether in exercise of the powers conferred by regulation 61 (power to stop, board, search etc.) 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 61(3)(a)(ii).

(3) The officer may use reasonable force, if necessary, in the exercise of any power conferred by this regulation.

Commencement Information

I62 Reg. 62 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Restrictions on exercise of maritime enforcement powers U.K.

63.—(1) The authority of the Secretary of State is required before any maritime enforcement power is exercised in reliance on regulation 59 (exercise of maritime enforcement powers) 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 59(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 M55 or a UN Security Council Resolution otherwise permits the exercise of the power in relation to the ship.

Commencement Information

I63 Reg. 63 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Marginal Citations

M55 Command 8941.

Interpretation of Part 9 U.K.

64.—(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 59(2)(a) to (e).

Commencement Information

I64 Reg. 64 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

PART 10 U.K. Supplementary and final provision

Notices U.K.

65.—(1) This regulation applies in relation to a notice required by regulation 36 (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

I65 Reg. 65 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Article 20 of the Export Control Order 2008 U.K.

66.  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

I66 Reg. 66 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Trade: overlapping offences U.K.

67.  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, 37 or 38 of that Order M56 , and

(b) any provision of Part 5 (Trade) or regulation 38 (trade: licensing offences), 46(6) or 47(5) (information offences in connection with general trade licences).

Commencement Information

I67 Reg. 67 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Marginal Citations

M56 Articles 37 and 38 are prospectively amended by S.I. 2019/137, para 4. Article 37 has been amended by the Export Control (Amendment) (No. 2) Order 2012 (S.I. 2012/1910), Schedule 1, para 11. Article 38 has been amended by the Export Control (Amendment) Order 2017 (S.I. 2017/85), article 2(7).

Revocations U.K.

68.—(1) Council Regulation (EU) No 747/2014 of 10 July 2014, concerning restrictive measures in view of the situation in Sudan and repealing Regulations (EC) No 131/2004 and (EC) No 1184/2005 is revoked.

(2) The Sudan (European Union Financial Sanctions) Regulations 2014 M57 are revoked.

(3) The Export Control (Sudan, South Sudan and Central African Republic Sanctions) Regulations 2014 M58 are revoked.

Commencement Information

I68 Reg. 68 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Marginal Citations

M57 S.I. 2014/1826 as amended by S.I. 2017/560; S.I. 2017/754; S.I. 2018/682, S.I. 2018/1149 and prospectively amended by S.I. 2018/1149 and S.I. 2019/380.

M58 S.I. 2014/3258 as amended by S.I. 2015/97; S.I. 2015/1546; S.I. 2019/1236; and prospectively amended by S.I. 2019/137; S.I. 2019/438; and S.I. 2020/616.

Amendments U.K.

69.  In the Schedule to the United Nations and European Union Financial Sanctions (Linking) Regulations 2017 M59 , omit the following row from the table—

“United Nations Security Council Resolution 1591 (2005)

Council Regulation (EU) No 747/2014 of 10th July 2014 concerning restrictive measures in view of the situation in Sudan, and repealing Regulations (EC) No. 131/2004 and (EC) No. 1184/2005.”

Commencement Information

I69 Reg. 69 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Marginal Citations

M59 S.I. 2017/478, to which there are amendments not relevant to these Regulations.

Transitional provision: Treasury licences U.K.

70.—(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 2014 Regulations,

(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 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 34(1) (Treasury licences).

(3) Any reference in an existing financial sanctions licence to the EU Sudan Regulation or the 2014 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 2014 Regulations, or

(b) the EU Sudan 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 2014 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 34(1) (Treasury licences).

(7) In paragraphs (3) and (4)—

(a) a reference to the 2014 Regulations is to be treated as including a reference to the Sudan (Asset-Freezing) Regulations 2012 M60 , the Sudan (UN Measures) Order 2005 M61 and the Sudan (UN Measures) Order 2006 M62 ,

(b) a reference to the EU Sudan Regulation is to be treated as including a reference to Council Regulation (EC) No 1184/2005 M63 and Council Regulation (EC) No 131/2004 M64 .

(8) In this regulation—

“the 2014 Regulations” means the Sudan (European Union Financial Sanctions) Regulations 2014;

“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

I70 Reg. 70 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Marginal Citations

M60 S.I. 2012/1507. These regulations were revoked and replaced by S.I. 2014/1826.

M61 S.I. 2005/1259. This Order was revoked by S.I. 2006/1454.

M62 S.I. 2006/1454. This Order was revoked by S.I. 2012/1507.

M63 OJ No. L 193, 23.7.2005, p.9 as repealed by the EU Sudan Regulation.

M64 OJ No. L 21, 28.1.2004, p.1 as repealed by the EU Sudan Regulation.

Transitional provision: trade licences U.K.

71.—(1) Paragraph (2) 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), and

(ii) which would (on and after the relevant date, and in the absence of paragraph (2)) be prohibited by Part 5 (Trade),

and such a licence or authorisation is referred to in this regulation as an “existing trade licence”.

(2) A licence is deemed to have been issued by the Secretary of State at the beginning of the relevant date under regulation 35 (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.

(3) Paragraphs (4) to (6) 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 the EU Sudan Regulation, and

(ii) which would (on and after the relevant date, and in the absence of paragraphs (4) to (6)) be prohibited by Part 5 (Trade),

and such a licence or authorisation is referred to in this regulation as an “existing trade sanctions licence”.

(4) 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 35.

(5) Any reference in an existing trade sanctions licence to a provision of the Export Control (Sudan, South Sudan and Central African Republic Sanctions) Regulations 2014 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).

(6) Any reference in an existing trade sanctions licence to a prohibition in the EU Sudan Regulation is to be treated on and after the relevant date as a reference to the corresponding prohibition in Part 5 (Trade).

(7) In paragraph (6) a reference to the EU Sudan Regulation is to be treated as including a reference to Council Regulation (EC) No 1184/2005 M65 and Council Regulation (EC) No 131/2004 M66 .

(8) 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

I71 Reg. 71 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Marginal Citations

M65 OJ No. L 193, 23.7.2005, p.9 as repealed by the EU Sudan Regulation.

M66 OJ No. L 21, 28.1.2004, p.1 as repealed by the EU Sudan Regulation.

Transitional provision: pending applications for trade licences U.K.

72.—(1) Paragraph (2) applies where—

(a) an application was made before the relevant date for a licence or authorisation under or pursuant to the Export Control Order 2008,

(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 including an application for a licence under regulation 35 (trade licences).

(3) Paragraph (4) applies where—

(a) an application was made before the relevant date for a licence or authorisation under the Export Control (Sudan, South Sudan and Central African Republic Sanctions) Regulations 2014 or the EU Sudan 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.

(4) The application is to be treated on and after the relevant date as an application for a licence under regulation 35.

(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.

Commencement Information

I72 Reg. 72 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Transitional provisions: prior obligations U.K.

73.—(1) Where—

(a) a person was named in Annex I to the EU Sudan 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 a reference to the original listing date.

(2) Where, immediately before the relevant date, a person was named by the Security Council or the Committee for the purposes of paragraph 3(c) of resolution 1591, 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 so named.

(3) The provisions referred to in paragraphs (1) and (2) are—

(a) regulation 31(5) (finance: exceptions from prohibitions), and

(b) paragraph 6(b)(i) and 8(a) of Schedule 2 (Treasury licences: purposes).

(4) In this regulation—

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

“original listing date” means—

(a)

where the person was named in Annex I to Council Regulation (EC) No 1184/2005 M67 immediately before the repeal of that Regulation, the date on which that person was named in Annex I of that Regulation;

(b)

otherwise, the date on which the person was named in Annex I of the EU Sudan Regulation;

“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

I73 Reg. 73 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Marginal Citations

M67 OJ No. L 193, 23.7.2005, p.9 as repealed by the EU Sudan Regulation.

Ahmad

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

I74 Sch. 1 para. 1 in force at 14.12.2020 by S.I. 2020/1514, reg. 15(1)

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

I75 Sch. 1 para. 2 in force at 14.12.2020 by S.I. 2020/1514, reg. 15(1)

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

I76 Sch. 1 para. 3 in force at 14.12.2020 by S.I. 2020/1514, reg. 15(1)

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

I77 Sch. 1 para. 4 in force at 14.12.2020 by S.I. 2020/1514, reg. 15(1)

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

I78 Sch. 1 para. 5 in force at 14.12.2020 by S.I. 2020/1514, reg. 15(1)

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

I79 Sch. 1 para. 6 in force at 14.12.2020 by S.I. 2020/1514, reg. 15(1)

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

I80 Sch. 1 para. 7 in force at 14.12.2020 by S.I. 2020/1514, reg. 15(1)

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

I81 Sch. 1 para. 8 in force at 14.12.2020 by S.I. 2020/1514, reg. 15(1)

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

I82 Sch. 1 para. 9 in force at 14.12.2020 by S.I. 2020/1514, reg. 15(1)

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

I83 Sch. 1 para. 10 in force at 14.12.2020 by S.I. 2020/1514, reg. 15(1)

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

I84 Sch. 1 para. 11 in force at 14.12.2020 by S.I. 2020/1514, reg. 15(1)

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

I85 Sch. 1 para. 12 in force at 14.12.2020 by S.I. 2020/1514, reg. 15(1)

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 M68 ,

(b) administration within the meaning of the Insolvency (Northern Ireland) Order 1989 M69 , 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

I86 Sch. 1 para. 13 in force at 14.12.2020 by S.I. 2020/1514, reg. 15(1)

Marginal Citations

M68 1986 c.45.

M69 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

I87 Sch. 1 para. 14 in force at 14.12.2020 by S.I. 2020/1514, reg. 15(1)

Regulation 34

SCHEDULE 2 U.K. Treasury licences: purposes

PART 1 U.K.

Interpretation U.K.

1.  In this Schedule—

“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 purpose of that regulation.

Commencement Information

I88 Sch. 2 para. 1 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

PART 2 U.K. Purposes

Basic needs U.K.

2.—(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) payment of insurance premiums;

(iii) 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.

Commencement Information

I89 Sch. 2 para. 2 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Legal services U.K.

3.  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

I90 Sch. 2 para. 3 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Maintenance of frozen funds and economic resources U.K.

4.  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

I91 Sch. 2 para. 4 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Extraordinary expenses U.K.

5.  To enable an extraordinary expense of a designated person to be met.

Commencement Information

I92 Sch. 2 para. 5 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Pre-existing judicial decisions etc. U.K.

6.  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

I93 Sch. 2 para. 6 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

PART 3 U.K. Purposes relating only to non-UN designated persons

Humanitarian assistance activities etc. U.K.

7.  To enable anything to be done in connection with the performance of any humanitarian assistance activity.

Commencement Information

I94 Sch. 2 para. 7 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Prior obligations U.K.

8.  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, and

(b) no payments are made to another designated person, whether directly or indirectly.

Commencement Information

I95 Sch. 2 para. 8 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Diplomatic missions U.K.

9.—(1) To enable anything to be done in order that the functions of a diplomatic mission or consular post in Sudan or of an international organisation enjoying immunities in accordance with international law may be carried out.

(2) In this paragraph—

“consular post” has the same meaning as in the Vienna Convention on Consular Relations done at Vienna on 24 April 1963 M70 , 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, are to be read in accordance with the Vienna Convention on Diplomatic Relations done at Vienna on 18 April 1961 M71 ;

Commencement Information

I96 Sch. 2 para. 9 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Marginal Citations

M70 United Nations Treaty Series, vol. 596, p. 261.

M71 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

I97 Sch. 2 para. 10 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

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 in relation to Sudan for the purposes of implementing many of the obligations that the United Kingdom has under UN Security Council Resolutions 1556 (2004), 1591 (2005), 1672 (2006) and 2035 (2012). They also have the purposes of promoting the peace, security and stability of Sudan, encouraging the resolution of the armed conflicts in Sudan and the stabilisation of Sudan, promoting respect for democracy, the rule of law and good governance in Sudan and other related purposes.

Following the United Kingdom's withdrawal from the European Union, these Regulations also replace the European Union sanctions regime in relation to the situation in Sudan, implemented via an EU Council Decision and Regulation.

The Regulations confer a power on the Secretary of State to designate persons who are, or have been, involved in activity which threatens the peace, stability or security of Sudan or in the commission of serious human rights violations or abuses in Sudan. Designated persons may be excluded from the United Kingdom and may be subject to financial sanctions, including having their funds and/or economic resources frozen. These Regulations also impose trade restrictions on military goods and technology.

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 imposed. Schedule 2 to these Regulations sets out the purposes pursuant to which the Treasury may issue such licences.

The Regulations make it a criminal offence to contravene, or circumvent, any of the prohibitions in these Regulations and prescribe the mode of trial and 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. The Regulations prescribe powers for the provision and sharing of information to enable the effective implementation and enforcement of the sanctions regime.

Council Regulation (EU) No 747/2014 of 10 July 2014 concerning restrictive measures in view of the situation in Sudan and repealing Regulations (EC) No 131/2004 and (EC) No 1184/2005 is revoked by these Regulations. The Sudan (European Union Financial Sanctions) Regulations 2014 (S.I. 2014/1826) and The Export Control (Sudan, South Sudan and Central African Republic Sanctions) Regulations 2014 (S.I. 2014/3258) are also revoked by these Regulations.

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 .