SCHEDULES

SCHEDULE 2Treasury licences: purposes

Regulation 34

PART 1

Interpretation

1.

F1(1)

In this Schedule—

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

F2“frozen account” has the meaning given in regulation 31(7);

“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.

F3(2)

For the purposes of this Schedule, references to a designated person are to be read as including a person (“C”) who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person (“P”).

(3)

When determining for the purposes of paragraph 6A or 8 when C became a designated person, C is to be treated as having become a designated person at the same time as P.

PART 2Purposes

Basic needs

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.

Legal services

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.

Maintenance of frozen funds and economic resources

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.

Extraordinary expenses

5.

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

Pre-existing judicial decisions etc.

F46.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F5Part 2APurposes relating only to UN designated persons

Pre-existing judicial decisions etc.

6A.

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.

PART 3Purposes relating only to non-UN designated persons

Humanitarian assistance activities etc.

7.

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

Prior obligations

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.

Diplomatic missions

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 M1, 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 M2;

Annotations:
Commencement Information

I8Sch. 2 para. 9 in force at 31.12.2020 by S.I. 2020/1514, reg. 15(2)

Marginal Citations

M1United Nations Treaty Series, vol. 596, p. 261.

M2United Nations Treaty Series, vol. 500, p. 95.

Extraordinary situation

10.

To enable anything to be done to deal with an extraordinary situation.

F6Insolvency

11.

(1)

To enable anything to be done in connection with—

(a)

any insolvency and restructuring proceedings relating to an insolvent person,

(b)

any other relevant proceedings relating to a person other than an individual, or

(c)

proceedings under the insolvency law of a country other than the United Kingdom that correspond to the proceedings in paragraph (a) or (b),

provided that any payments made directly or indirectly to a designated person are credited to a frozen account.

(2)

In this paragraph—

“enactment” has the meaning given in section 54(6) of the Act;

“insolvency and restructuring proceedings” includes—

(a)

the regimes and proceedings set out in Parts A1 to 6 of the Insolvency Act 1986, Parts 1A to 7 of the Insolvency (Northern Ireland) Order 1989 and so much of Part 1 of that Order as applies for the purposes of those Parts, but excluding—

  1. (i)

    proceedings under Chapter 3 of Part 4 (members’ voluntary winding up) of the Insolvency Act 1986, and

  2. (ii)

    proceedings under Chapter 3 of Part 5 (members’ voluntary winding up) of the Insolvency (Northern Ireland) Order 1989;

(b)

arrangements and reconstructions under Part 26 of the Companies Act 2006;

(c)

arrangements and reconstructions for companies in financial difficulty under Part 26A of the Companies Act 2006;

(d)

the proceedings and arrangements set out in the Bankruptcy (Scotland) Act 2016;

“insolvent person” means a person (“P”), other than an individual, where—

(a)

P is unable to pay its debts as they fall due, or

(b)

the value of P’s assets is less than the amount of its liabilities, taking into account its contingent and prospective liabilities;

“other relevant proceedings” means—

(a)

the regimes and proceedings set out in—

  1. (i)

    sections 367 and 377A to 377J of, or Schedule 19C to, the Financial Services and Markets Act 2000;

  2. (ii)

    the Insurers (Reorganisation and Winding Up) (Lloyd’s) Regulations 2005;

  3. (iii)

    Parts 1 to 3 of the Banking Act 2009 (including Parts 2 and 3 as applied to building societies by section 90C of the Building Societies Act 1986);

  4. (iv)

    the Investment Bank Special Administration Regulations 2011;

  5. (v)

    Part 6 of the Financial Services (Banking Reform) Act 2013;

  6. (vi)

    the Payment and Electronic Money Institution Insolvency Regulations 2021;

  7. (vii)

    Schedule 11 to the Financial Services and Markets Act 2023;

(b)

proceedings under any other special administration regime;

“special administration regime” means provision made by an enactment for an insolvency procedure that—

(a)

is similar or corresponds to the ordinary administration procedure provided for by Schedule B1 to the Insolvency Act 1986 or Schedule B1 to the Insolvency (Northern Ireland) Order 1989, and

(b)

provides for the administrator to have one or more special objectives instead of or in addition to the objectives of ordinary administration.

F6Judicial decisions etc.

12.

To enable the implementation or satisfaction (in whole or in part) of a judicial, administrative or arbitral decision or lien which is enforceable in the United Kingdom (the “judicial decision”), provided that—

(a)

where funds or economic resources are made available to a designated person, they are credited to a frozen account or otherwise frozen by virtue of regulation 12;

(b)

where funds or economic resources are made available by a person (including a designated person) to a designated person to enable the implementation or satisfaction of the judicial decision, no other designated person benefits, directly or indirectly.