Part 3Finance
Making funds available for benefit of designated persons10.
(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 5 (Exceptions and licences).
(3)
A person who contravenes the prohibition in paragraph (1) commits an offence.
F1(3A)
The reference in paragraph (1) to making funds available to any person for the benefit of a designated person includes making funds available for the benefit of a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person (and references to designated person in paragraph (4) are to be read accordingly).
(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.