(1) A relevant public authority may disclose information to the Treasury if the disclosure is made for the purpose of enabling or assisting the Treasury to discharge any of its functions in connection with any sanctions regulations contained in these Regulations.
(2) In this regulation—
“relevant public authority” means—
any person holding or acting in any office under or in the service of—
the Crown in right of the Government of the United Kingdom,
the Crown in right of the Scottish Government, the Northern Ireland Executive or the Welsh Government,
any local authority,
any police officer,
the Financial Conduct Authority, the Prudential Regulation Authority, the Bank of England or any other regulatory body in the United Kingdom, or
any other person exercising functions of a public nature;
“local authority” means—
in relation to England—
a county council,
a district council,
a London Borough council,
the Common Council of the City of London in its capacity as a local authority,
the Council of the Isles of Scilly, or
an eligible parish council within the meaning of section 1(2) of the Local Government Act 2000 (meaning of “local authority” in Part 1),
in relation to Wales, a county council, a county borough council or a community council,
in relation to Scotland, a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 (constitution of councils), or
in relation to Northern Ireland, a district council.
(1) A disclosure of information under regulation 39 (disclosure of information) or 40 (finance: disclosure to the Treasury) does not breach any restriction on such disclosure imposed by statute or otherwise.
(2) But nothing in those regulations 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.
(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) Regulations 39 and 40 do not limit the circumstances in which information may be disclosed apart from those regulations.
(5) Nothing in this Part limits any conditions which may be contained in a Treasury 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 (terms relating to the processing of personal data));
“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.
(1) A person who commits an offence under any provision of Part 3 (finance) or regulation 30 (finance: licensing offences) is liable—
(a) on summary conviction in England and Wales, to imprisonment for a term not exceeding the general limit in a magistrates’ court or a fine (or both);
(b) on summary conviction in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum (or both);
(c) on summary conviction in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum (or both);
(d) on conviction on indictment, to imprisonment for a term not exceeding 7 years or a fine (or both).
(2) A person who commits an offence under regulation 12(6) (confidentiality) or 31 (director disqualification: licensing offences) is liable—
(a) on summary conviction in England and Wales, to imprisonment for a term not exceeding the general limit in a magistrates’ court or a fine (or both);
(b) on summary conviction in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum (or both);
(c) on summary conviction in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum (or both);
(d) on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine (or both).
(3) A person who commits an offence under regulation 33(9) or (10) (finance: reporting obligations) or 38 (finance: information offences) 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).
(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.
(1) Wherever an offence under these Regulations is committed (whether in the United Kingdom or 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.
(2) In the application of paragraph (1) to Scotland, where an offence is committed outside the United Kingdom 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.
(3) In paragraph (2) “sheriff court district” is to be read in accordance with the Criminal Procedure (Scotland) Act 1995 (see section 307(1) of that Act (interpretation)).
45 Procedure for offences by unincorporated bodies
(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 (procedure on charge of offence against corporation) and Schedule 3 to the Magistrates’ Courts Act 1980 (corporations);
(ii) section 18 of the Criminal Justice Act (Northern Ireland) 1945 (procedure on charge) and Article 166 of, and Schedule 4 to, the Magistrates' Courts (Northern Ireland) Order 1981 (corporations).
(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.
46 Time limit for proceedings for summary offences
(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 (time limit for certain offences) 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.
47 Application of Chapter 1 of Part 2 of the Serious Organised Crime and Police Act 2005
Chapter 1 of Part 2 of the Serious Organised Crime and Police Act 2005 (investigatory powers of DPP, etc.) applies to any offence under Part 3 (finance) or regulation 30 (finance: licensing offences).
Schedule 1 Rules for interpretation of regulation 9(2)
Regulation 9(3)
Application of Schedule
1 (1) The rules set out in the following paragraphs of this Schedule apply for the purpose of interpreting regulation 9(2).
(2) They also apply for the purpose of interpreting this Schedule.
Joint interests
2 If two or more persons each hold a share or right jointly, each of them is treated as holding that share or right.
Joint arrangements
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.
Calculating shareholdings
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.
Voting rights
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.
6 In applying regulation 9(2) and this Schedule, the voting rights in a person are to be reduced by any rights held by the person itself.
Rights to appoint or remove members of the board
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.
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.
Shares or rights held “indirectly”
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.
Shares held by nominees
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).
Rights treated as held by person who controls their exercise
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.
12 “Arrangement” includes—
(a) any scheme, agreement or understanding, whether or not it is legally enforceable, and
(b) any convention, custom or practice of any kind.
Rights exercisable only in certain circumstances etc.
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,
(b) administration within the meaning of the Insolvency (Northern Ireland) Order 1989, 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.
Rights attached to shares held by way of security
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.
Regulation 26(2)
Interpretation
1 (1) In this Schedule—
“designated person” has the same meaning as it has in Part 3 (finance);
“frozen account” has the meaning given in regulation 22(7) (finance: exceptions from prohibitions);
“frozen funds or economic resources” means funds or economic resources frozen by virtue of regulation 14 (asset-freeze in relation to designated persons) ....
(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 9) by the designated person (“P”).
(3) When determining for the purposes of paragraph 8 when C became a designated person, C is to be treated as having become a designated person at the same time as P.
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—
the wife or husband of the designated person;
the civil partner of the designated person;
any parent or other ascendant of the designated person;
any child or other descendant of the designated person;
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.
Judicial decisions etc.
6 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 14 (asset-freeze in relation to designated persons);
(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.
Extraordinary situation
7 To enable anything to be done to deal with an extraordinary situation.
Prior obligations
8 To enable the satisfaction of an obligation of a designated 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 etc.
9 (1) To enable anything to be done in order that the functions of a diplomatic mission or consular post, 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, 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.
Humanitarian assistance activity
10 (1) To enable anything to be done in connection with the performance of any humanitarian assistance activity.
(2) In sub-paragraph (1), “humanitarian assistance activity” includes the work of international and non-governmental organisations carrying out relief activities for the benefit of the civilian population of a country.
Insolvency
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 (regulations: general);
“insolvency and restructuring proceedings” includes—
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—
proceedings under Chapter 3 of Part 4 of the Insolvency Act 1986 (members’ voluntary winding up), and
proceedings under Chapter 3 of Part 5 of the Insolvency (Northern Ireland) Order 1989 (members’ voluntary winding up);
arrangements and reconstructions under Part 26 of the Companies Act 2006;
arrangements and reconstructions for companies in financial difficulty under Part 26A of the Companies Act 2006;
the proceedings and arrangements set out in the Bankruptcy (Scotland) Act 2016;
“insolvent person” means a person (“P”), other than an individual, where—
P is unable to pay its debts as they fall due, or
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—
the regimes and proceedings set out in—
sections 367 and 377A to 377J of, or Schedule 19C to, the Financial Services and Markets Act 2000;
the Insurers (Reorganisation and Winding Up) (Lloyd’s) Regulations 2005;
Parts 1 (special resolution regime) to 3 of the Banking Act 2009 (including Parts 2 (bank insolvency) and 3 (bank administration) as applied to building societies by section 90C of the Building Societies Act 1986 (application of bank insolvency and administration legislation to building societies));
the Investment Bank Special Administration Regulations 2011;
Part 6 of the Financial Services (Banking Reform) Act 2013 (special administration for operators of certain infrastructure systems);
the Payment and Electronic Money Institution Insolvency Regulations 2021;
Schedule 11 to the Financial Services and Markets Act 2023 (central counterparties);
proceedings under any other special administration regime;
“special administration regime” means provision made by an enactment for an insolvency procedure that—
is similar or corresponds to the ordinary administration procedure provided for by Schedule B1 to the Insolvency Act 1986 (administration) or Schedule B1 to the Insolvency (Northern Ireland) Order 1989 (administration), and
provides for the administrator to have one or more special objectives instead of or in addition to the objectives of ordinary administration.
Designated money service businesses
12 (1) To enable a registered money service business which is a designated person to make a repayment, provided that—
(a) no payments are made to a designated person, whether directly or indirectly,
(b) the original payment did not contravene the prohibitions in regulations 14 to 18 (asset freeze etc.), and
(c) the repayment would not be contrary to the interests of the prevention or detection of serious crime in the United Kingdom or elsewhere.
(2) In sub-paragraph (1)—-
“money service business” has the same meaning as it has in regulation 3 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (general interpretation);
“original payment” means a payment from a person who is not a designated person (“P”) to the registered money service business which was made before the registered money service business became a designated person;
“registered money service business” means a money service business included in a register provided for by regulation 54 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (duty to maintain registers of certain relevant persons);
“repayment” means a payment from the registered money service business to P which is of the same amount as the original payment.