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121 provisions
68 Finance: reporting obligations
(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 breached a prohibition or failed to comply with an obligation under any provision of Part 3 (Finance) or regulation 64 (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.
(4A) Where a person (“P”) knows, or has reasonable cause to suspect, that P holds funds or economic resources owned, held or controlled by a designated person, P must by no later than 30th November in each calendar year provide a report to the Treasury as to the nature and amount or quantity of those funds or economic resources held by P as of 30th September in that calendar year.
(4B) Where a report has been provided further to paragraph (4A) but as of 30th September in the following calendar year P no longer holds funds or economic resources owned, held or controlled by the designated person, P must by no later than 30th November in that calendar year report this to the Treasury.
(4C) For the purposes of paragraphs (4A) and (4B), 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 9) by the designated person.
(5) A relevant institution must inform the Treasury without delay if that institution—
(a) credits a frozen account in accordance with regulation 55(4) (finance: exceptions from prohibitions), or
(b) transfers funds from a frozen account in accordance with regulation 55(6).
(6) A person who fails to comply with a requirement in paragraph (1), (2) or (4) commits an offence.
(6A) A person commits an offence if that person, without reasonable excuse, fails to comply with a requirement in paragraph (4A) or (4B).
(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 55;
“relevant firm” is to be read in accordance with regulation 69;
“relevant institution” has the same meaning as it has in regulation 55.
68A Finance: reporting obligations for required payments
(1) A designated person must inform the Treasury without delay if they make a required payment.
(2) A person who makes a required payment on behalf of a designated person must inform the Treasury without delay that they have made the required payment.
(3) A person must inform the Treasury without delay if they receive a reimbursement payment.
(4) For the purposes of this regulation, references to a designated person are to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 9) by the designated person.
(5) In this regulation—
“designated person” has the meaning given in regulation 55A(8) (finance: exception from prohibitions for required payments);
“reimbursement payment” has the meaning given in regulation 55A(8);
“required payment” has the meaning given in regulation 55A(2).
(1) The following are relevant firms for the purposes of regulation 68 (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 activity);
(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), or
(ii) a local auditor within the meaning of section 4(1) of the Local Audit and Accountability Act 2014 (general requirements for audit);
(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);
(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;
(h) a cryptoasset exchange provider;
(i) a custodian wallet provider.
(j) a high value dealer;
(k) an art market participant;
(l) an insolvency practitioner;
(m) a firm or sole practitioner (“P”) that carries out, or whose employees carry out, letting agency work.
(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, 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) In paragraph (1), a “cryptoasset exchange provider” means a firm or sole practitioner that by way of business provides one or more of the following services, including where the firm or sole practitioner does so as creator or issuer of any of the cryptoassets involved—
(a) exchanging, or arranging or making arrangements with a view to the exchange of, cryptoassets for money or money for cryptoassets,
(b) exchanging, or arranging or making arrangements with a view to the exchange of, one cryptoasset for another, or
(c) operating a machine which utilises automated processes to exchange cryptoassets for money or money for cryptoassets.
(5) In paragraph (1), a “custodian wallet provider” means a firm or sole practitioner that by way of business provides services to safeguard, or to safeguard and administer—
(a) cryptoassets on behalf of its customers, or
(b) private cryptographic keys on behalf of its customers in order to hold, store and transfer cryptoassets.
(6) For the purposes of this regulation—
(a) “cryptoasset” means a cryptographically secured digital representation of value or contractual rights that uses a form of distributed ledger technology and can be transferred, stored or traded electronically;
(b) “money” means—
(i) money in sterling,
(ii) money in any other currency, or
(iii) money in any other medium of exchange,
but does not include a cryptoasset; and
(c) in sub-paragraphs (a) to (c) of paragraph (4), “cryptoasset” includes a right to, or interest in, the cryptoasset.
(6A) In paragraph (1), a “high value dealer” means a firm or sole trader that by way of business trades in goods (including an auctioneer dealing in goods), when the firm or sole trader makes or receives, in respect of any transaction, a payment or payments in cash of at least £10,000 in total, whether the transaction is executed in a single operation or in several operations which appear to be linked.
(6B) In paragraph (1), an “art market participant” means, subject to paragraph (6C), a firm or sole practitioner that is registered or required to register with the Commissioners as an art market participant under regulation 56(5) and (6) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.
(6C) A firm or sole practitioner is not an art market participant for the purposes of paragraph (6B) in relation to the sale or storage of a work of art which is created by, or is attributable to, a member of the firm or the sole practitioner.
(6D) For the purposes of this regulation, “work of art” means anything which, in accordance with section 21(6) to (6B) of the Value Added Tax Act 1994 (value of imported goods), is a work of art for the purposes of section 21(5)(a) of that Act.
(6E) In paragraph (1), an “insolvency practitioner” means a firm or individual who acts as an insolvency practitioner within the meaning of section 388 of the Insolvency Act 1986 or Article 3 of the Insolvency (Northern Ireland) Order 1989.
(6F) In paragraph (1), “letting agency work” means work—
(a) consisting of things done in response to instructions received from—
(i) a person (a “prospective landlord”) seeking to find another person to whom to let land for a term of a month or more, or
(ii) a person (a “prospective tenant”) seeking to find land to rent for a term of a month or more, and
(b) done—
(i) in relation to a prospective landlord, from the point that the prospective landlord instructs P, or
(ii) otherwise in the course of concluding an agreement for the letting of land for a term of a month or more.
(6G) For the purposes of paragraph (6F)—
“land” includes part of a building and part of any other structure.
“letting agency work” does not include the things listed in paragraph (6H) when done by, or by employees of, a firm or sole practitioner if neither the firm or sole practitioner, nor any of their employees, does anything else within paragraph (6F).
(6H) Those things are—
(a) publishing advertisements or disseminating information;
(b) providing a means by which a prospective landlord or a prospective tenant can, in response to an advertisement or dissemination of information, make direct contact with a prospective tenant or a prospective landlord;
(c) providing a means by which a prospective landlord and a prospective tenant can communicate directly with each other;
(d) the provision of legal or notarial services by a barrister, advocate, solicitor or other legal representative communications with whom may be the subject of a claim to professional privilege or, in Scotland, protected from disclosure in legal proceedings on grounds of confidentiality of communications.
(7) Paragraph (1)(a) and (b) is 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.
(8) For the purposes of regulation 68(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);
(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;
(da) in the case of a relevant firm within paragraph (1)(k)—
(i) in the course of trading, or acting as an intermediary in the sale or purchase of, works of art when the value of the transaction, or a series of linked transactions, amounts to £10,000 or more, or
(ii) in the course of storing works of art where the value of the works of art so stored for a person amounts to £10,000 or more;
(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.
(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 68 (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 64 (finance: licensing offences) or 68.
(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.
(1) A request under regulation 70 (finance: power 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).
(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 70 (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 70 or 71 (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 70 or 71.
(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.
73 Trade: application of information powers in CEMA
(1) Section 77A of CEMA 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 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, 3 or 4 of Part 6 (Trade) except the prohibition in regulation 28(1) or regulation 37(1) (export of restricted goods etc.), or
(b) the prohibition in regulation 44 (circumventing etc. prohibitions).
(1) This regulation applies in relation to a person (“P”) who does any act authorised by a general licence issued under regulation 62 (trade licences) (“the licence”).
(2) P must keep a register or record containing such details as may be necessary to allow the following information, where appropriate, 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.
(1) A person authorised by the Secretary of State or the Commissioners (an “official”) may at any reasonable hour enter premises notified under regulation 74(4) (general trade licences: records) for the purposes of monitoring compliance with, or detecting evasion of, regulation 74(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 74, 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.
(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 8 (Exceptions and licences), this Part or Part 11 (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 4 (Director disqualification sanctions), Part 6 (Trade) or Part 7 (Ships), or
(ii) any exception or licence under Part 8 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) the exercise of functions under these Regulations;
(b) any purpose stated in regulation 4;
(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 28(1) and 37(1) (export of restricted goods etc.), or
(iii) in relation to a monetary penalty under section 146 of the Policing and Crime Act 2017 (breach of financial sanctions legislation);
(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;
(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 8 includes a licence or authorisation which has effect or is treated as if it were a licence which had been issued under that Part.
(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,
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, or
in relation to Northern Ireland, a district council.
(1) A disclosure of information under regulation 76 (disclosure of information) or 77 (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 76 and 77 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 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);
“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 45A (prohibition on chartering or operating specified ships), 46(4) (prohibition on port entry), 47(4) (directions prohibiting port entry), 48(3) (movement of ships), or 64 (finance: licensing offences), is liable—
(a) on summary conviction in England and Wales, to imprisonment for a term not exceeding the general limit in a magistrates’ court or a fine (or both);
(b) on summary conviction in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum (or both);
(c) on summary conviction in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum (or both);
(d) on conviction on indictment, to imprisonment for a term not exceeding 7 years or a fine (or both).
(2) A person who commits an offence under any provision of Part 6 (Trade) is liable—
(a) on summary conviction in England and Wales, to imprisonment for a term not exceeding the general limit in a magistrates’ court or a fine (or both);
(b) on summary conviction in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum (or both);
(c) on summary conviction in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum (or both);
(d) on conviction on indictment, to imprisonment for a term not exceeding 10 years or a fine (or both).
(3) A person who commits an offence under regulation 11(6) or 13(6) (confidentiality), 65 (director disqualification: licensing offences), 66 (trade: licensing offences), 66A (ships: licensing offences), 74(6) (general trade licences: records) or 75(5) (general trade licences: inspection of records) is liable—
(a) on summary conviction in England and Wales, to imprisonment for a term not exceeding the general limit in a magistrates’ court or a fine (or both);
(b) on summary conviction in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum (or both);
(c) on summary conviction in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum (or both);
(d) on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine (or both).
(4) A person who commits an offence under regulation 47(6) (directions prohibiting port entry: confidentiality), 48(5) (movement of ships: confidentiality), 68(6) or 72 (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).
(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.
(1) Where an offence under regulation 11(6) or 13(6) (confidentiality), Part 3 (Finance), regulation 64 (finance: licensing offences) , regulation 66A (ships: licensing offences) or regulation 68(6) or 72 (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).
82 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 and Schedule 3 to the Magistrates’ Courts Act 1980;
(ii) section 18 of the Criminal Justice Act (Northern Ireland) 1945 and Article 166 of, and Schedule 4 to, the Magistrates’ Courts (Northern Ireland) Order 1981.
(4) A fine imposed on an unincorporated body on its conviction of an offence under these Regulations is to be paid out of the funds of the body.
83 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 (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.
(1) Where the Commissioners investigate or propose to investigate any matter with a view to determining—
(a) whether there are grounds for believing that a relevant offence has been committed, or
(b) whether a person should be prosecuted for such an offence,
the matter is to be treated as an assigned matter.
(2) In paragraph (1) “assigned matter” has the meaning given by section 1(1) of CEMA.
(3) In this regulation a “relevant offence” means an offence under—
(a) Part 6 (Trade),
(b) regulation 66 (trade: licensing offences),
(c) regulation 74(6) (general trade licences: records), or
(d) regulation 75(5) (general trade licences: inspection of records).
(4) The Commissioners may not investigate the suspected commission of a relevant offence listed in paragraphs (5) and (6), unless the suspected offence has been the subject of—
(a) a referral to the Commissioners by the Secretary of State, or
(b) a decision by the Commissioners to treat the suspected offence as if it had been referred to them under sub-paragraph (a).
(5) Paragraph (4) applies to the suspected commission of an offence under any of the following provisions—
(a) regulation 35(3) (provision of interception and monitoring services);
(b) regulation 44(2) (circumventing etc. prohibitions) insofar as it relates to the prohibition at regulation 35(1);
(c) regulation 43B(3) (technical assistance relating to ships);
(d) regulation 43C(4) (provision of services relating to specified ships);
(e) regulation 43D(4) (procurement of services relating to specified ships).
(6) Paragraph (4) also applies to the suspected commission of a relevant offence under any of regulations 66(1), 66(2), 74(6) and 75(5) insofar as—
(a) the suspected offence relates to a licence issued under regulation 62, and
(b) the activity authorised by that licence would, if no licence had been issued, amount to an offence specified in paragraph (5).
(7) Section 138 of CEMA (arrest of persons) applies to a person who has committed, or whom there are reasonable grounds to suspect of having committed, a relevant offence as it applies to a person who has committed, or whom there are reasonable grounds to suspect of having committed, an offence for which the person is liable to be arrested under the customs and excise Acts, but as if—
(a) any reference to an offence under, or for which a person is liable to be arrested under, the customs and excise Acts were to a relevant offence;
(b) in subsection (2), the reference to any person so liable were to a person who has committed, or whom there are reasonable grounds to suspect of having committed, a relevant offence.
(8) The provisions of CEMA mentioned in paragraph (9) 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.
(9) The provisions of CEMA are sections 145, 146, 147, 148(1), 150, 151, 152, 154 and 155 (legal proceedings).
86 Application of Chapter 1 of Part 2 of Serious Organised Crime and Police Act 2005
Chapter 1 of Part 2 of the Serious Organised Crime and Police Act 2005 (investigatory powers) applies to any offence under Part 3 (Finance) or regulation 64 (finance: licensing offences).
Each provision in Part 6 (Trade) which contains a prohibition imposed for a purpose mentioned in section 3(1) or (2) of the Act is to be regarded as not being financial sanctions legislation for the purposes of Part 8 of the Policing and Crime Act 2017.
(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) a prohibition in any of regulations 28 to 31 (trade prohibitions relating to restricted goods and restricted technology);
(b) a prohibition in any of regulations 37 to 40 (trade prohibitions relating to goods of strategic concern and technology of strategic concern);
(c) a prohibition imposed by a condition of a trade licence in relation to a prohibition mentioned in sub-paragraph (a) or (b).
(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 90 (power to stop, search, board etc.) and 91 (seizure power).
(5) This regulation is subject to regulation 92 (restrictions on exercise of maritime enforcement powers).
(1) The following persons are “maritime enforcement officers” for the purposes of this Part—
(a) a commissioned officer of any of His 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);
(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, 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,
(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;
(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, or a person appointed to act as a constable under provision made by virtue of section 16 of the Harbours Act 1964;
(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);
(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 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.
(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 91 (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.
(1) This regulation applies if a maritime enforcement officer is lawfully on a relevant ship (whether in exercise of the powers conferred by regulation 90 (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 90(3)(a)(ii).
(3) The officer may use reasonable force, if necessary, in the exercise of any power conferred by this regulation.
92 Restrictions on exercise of maritime enforcement powers
(1) The authority of the Secretary of State is required before any maritime enforcement power is exercised in reliance on regulation 88 (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 88(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 or a UN Security Council Resolution otherwise permits the exercise of the power in relation to the ship.
(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 88(2)(a) to (c).
(1) This regulation applies in relation to a notice required by regulation 63 (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.
(3A) The notice may be given to the person by electronic means.
(4) The notice may be given to the person by other 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”—
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
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.
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, 35, 37 or 38 of that Order, and
(b) any provision of Part 6 (Trade) or regulation 66 (trade: licensing offences), 74(6) or 75(5) (offences in connection with record-keeping).
(1) Paragraph (2) applies to a person who, immediately before the relevant date, was designated by the Secretary of State under regulation 5 (power to designate persons) of the 2019 Regulations for the purposes of—
(a) regulations 11 to 15 (asset-freeze etc.) of those Regulations, or
(b) regulation 17 (immigration) of those Regulations,
and such a designation is referred to in this regulation as “an existing designation”.
(2) An existing designation mentioned in paragraph (1)(a) has effect on and after the relevant date as if it had been made by the Secretary of State under regulation 5(1)(a) of these Regulations.
(3) An existing designation mentioned in paragraph (1)(b) has effect on and after the relevant date as if it had been made by the Secretary of State under regulation 5(1)(c) of these Regulations.
(1) Paragraphs (2) to (4) apply to a licence which—
(a) was issued by the Treasury under regulation 35(1) of the 2019 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 60(1) (Treasury licences).
(3) Any reference in an existing financial sanctions licence to the 2019 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 the 2019 Regulations 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 2019 Regulations was made before the relevant date,
(b) the application is for the authorisation of conduct which would (on an 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 60(1) (Treasury licences).
(1) Paragraphs (2) to (4) apply to a licence granted by the Secretary of State which—
(a) was issued by the Secretary of State under regulation 36 of the 2019 Regulations,
(b) was in effect immediately before the relevant date, and
(c) authorises an act which would (on and after the relevant date, and in the absence of paragraphs (2) to (4)) be prohibited under Part 6 (Trade),
and such a licence is referred to in this regulation as “an existing trade sanctions licence”.
(2) 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 62 (trade licences).
(3) Any reference in an existing trade sanctions licence to the 2019 Regulations is to be treated on and after the relevant date as a reference to these Regulations.
(4) Any reference in an existing trade sanctions licence to a prohibition in the 2019 Regulations is to be treated on and after the relevant date as a reference to the corresponding prohibition in Part 6 (Trade).
(5) Paragraph (6) applies where—
(a) an application for a licence, or for the variation of a licence, under the 2019 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 6, 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 62.
(1) This regulation applies to a person (“P”) who, immediately before the relevant date, was designated by the Secretary of State under regulation 5 (power to designate persons) of the 2019 Regulations for the purposes of—
(a) regulations 11 to 15 (asset-freeze etc.) of those Regulations, or
(b) regulation 17 (immigration) of those Regulations.
(2) Subject to paragraph (3), any reference in a provision mentioned in paragraph (4) to the date on which P became a designated person is a reference to the date on which P was designated by the Secretary of State under regulation 5 of the 2019 Regulations.
(3) Where P was named in Annex I of the EU Iran (Human Rights) Regulation immediately before IP completion day, any reference in a provision mentioned in paragraph (4) to the date on which P became a designated person is a reference to the date on which P was named in that Annex.
(4) The provisions referred to in paragraphs (2) and (3) are—
(a) regulation 55(5) (finance: exceptions from prohibitions), and
(b) paragraph 10(a) of Schedule 5 (Treasury licences: purposes).
(5) In this regulation—
“the EU Iran (Human Rights) Regulation” means Council Regulation (EU) No359/2011 of 12 April 2011 concerning restrictive measures directed against certain persons, entities and bodies in view of the situation in Iran, as it has effect in EU law.
In this Part—
“the 2019 Regulations” means the Iran (Sanctions) (Human Rights) (EU Exit) Regulations 2019;
“relevant date” means the date on which these Regulations come into force.
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.
SCHEDULE 2 Internal repression goods and internal repression technology
Regulation 24
Firearms and related goods
1 Firearms, ammunition and related accessories, as follows—
(a) firearms;
(b) ammunition specially designed for firearms;
(c) weapon-sights.
2 Simulators for training persons to use firearms.
3 Bombs and grenades.
Vehicles
4 (1) Subject to sub-paragraph (3), the following types of vehicles—
(a) vehicles equipped with a water cannon, specially designed or modified for the purpose of riot control;
(b) vehicles specially designed or modified to be electrified to repel boarders;
(c) vehicles specially designed or modified to remove barricades, including construction equipment with ballistic protection;
(d) vehicles specially designed for the transport or transfer of prisoners or detainees;
(e) vehicles specially designed to deploy mobile barriers.
(2) Components for the vehicles specified in sub-paragraph (1)(a) to (e) that have been designed for the purposes of riot control.
(3) Vehicles that might otherwise fall within sub-paragraph (1)(a) to (e) are not internal repression goods if they are specially designed for the purposes of fire-fighting.
(4) For the purposes of this paragraph, “vehicle” includes a trailer.
Explosive substances and related goods
5 (1) Subject to sub-paragraph (3), equipment and devices specially designed to initiate explosions by electrical or non-electrical means, including—
(a) firing sets;
(b) detonators;
(c) igniters;
(d) boosters;
(e) detonating cord.
(2) Subject to sub-paragraph (3), components that have been specially designed for any thing mentioned in sub-paragraph (1).
(3) Sub-paragraphs (1) and (2) do not apply to any thing that has been specially designed for a specific commercial use.
(4) For the purpose of sub-paragraph (3), a “specific commercial use” means the actuation or operation by explosive means of other equipment or devices the function of which is not the creation of explosions, including—
(a) car air-bag inflaters;
(b) electric-surge arresters;
(c) fire sprinkler actuators.
6 Linear cutting explosive charges.
7 The following explosives and related substances—
(a) amatol;
(b) nitrocellulose (containing more than 12.5 % nitrogen);
(c) nitroglycol;
(d) pentaerythritol tetranitrate (PETN);
(e) picryl chloride;
(f) 2,4,6-trinitrotoluene (TNT).
Other goods
8 (1) Subject to sub-paragraph (2), the following equipment designed for the protection of a person—
(a) body armour providing ballistic or stabbing protection or both;
(b) helmets providing ballistic or fragmentation protection, or both, including anti-riot helmets;
(c) anti-riot shields and ballistic shields.
(2) Sub-paragraph (1) does not apply to—
(a) any thing specially designed to protect persons for the following purposes—
(i) participation in competitive sport;
(ii) ensuring safety at work;
(b) any thing mentioned in sub-paragraph (1)(a) or (b) when accompanying a person for that person’s own protection.
9 Night vision equipment.
10 Thermal imaging equipment.
11 Image intensifier tubes.
12 Razor barbed wire.
13 The following types of knives—
(a) knives that are designed for use by military personnel (military knives);
(b) knives that are designed for use as a weapon for inflicting injury (combat knives);
(c) bayonets with blade lengths in excess of 10 cm.
Production equipment
14 Any equipment which is specially designed or modified for the development or for one or more of the production phases of any item mentioned in this Schedule.
Software and technology
15 Any software which is specially designed for the simulators mentioned in paragraph 2.
16 Any technology which is specially designed for the development, production or use of any item mentioned in this Schedule.
Interpretation
17 (1) In this Schedule, “firearm” means any portable barrelled weapon that expels, is designed to expel or may be converted to expel, a shot, bullet or projectile by the action of a combustible propellant.
(2) For the purposes of this Schedule, the following terms have the meaning given to them in the Dual-Use Regulation—
“development”;
“production”;
“software”;
“technology”;
“use”.
SCHEDULE 3 Interception and monitoring goods and interception and monitoring technology
Regulation 25
Interception and monitoring equipment
1 Any goods which can perform any of the following functions (whether individually or as part of a system)—
(a) deep packet inspection;
(b) network interception, including associated systems management and data retention functions;
(c) radio frequency monitoring, including associated processing or examination;
(d) network and satellite jamming;
(e) remote infection;
(f) speaker recognition, including associated processing functions;
(g) IMSI, MSISDN, IMEI and TMSI interception and monitoring;
(h) tactical SMS, GSM, GPS, GPRS, UMTS, CDMA, and PSTN interception and monitoring;
(i) DHCP, SMTP and GTP information interception and monitoring;
(j) pattern recognition and pattern profiling;
(k) remote forensics;
(l) semantic processing;
(m) WEP and WPA code breaking;
(n) interception of VoIP (including proprietary and standard protocols).
2 Any software which can perform any of the functions described in paragraph 1(a) to (n) (whether individually or as part of a system).
Other software and other technology
3 Any software or other technology which is specially designed for the development, production or use of any goods or software described in paragraph 1 or 2.
Interpretation
4 For the purposes of this Schedule, the following terms have the meaning given to them in the Dual-Use Regulation—
“development”;
“production”;
“software”;
“technology”;
“use”.
Acronyms and abbreviations used in this Schedule
5 The acronyms and abbreviations used in this Schedule have the following meaning—
ABBREVIATION/ ACRONYM | MEANING | ADDITIONAL INFORMATION
IMSI | International Mobile Subscriber Identity | This is a unique identification code for each mobile telephony device, integrated in the SIM card and which allows identification of that SIM, via GSM and UMTS networks.
MSISDN | Mobile Subscriber Integrated Services Digital Network Number | This is a number that uniquely identifies a subscription in a GSM or a UMTS mobile network. It is the telephone number to the SIM card in a mobile phone and therefore identifies a mobile subscriber as well as the IMSI.
IMEI | International Mobile Equipment Identity | This is a number, usually unique, to identify GSM, WCDMA and IDEN mobile phones as well as some satellite phones. It is usually found printed inside the battery compartment of the phone.
TMSI | Temporary Mobile Subscriber Identity
SMS | Short Message System
GSM | Global System for Mobile Communications
GPS | Global Positioning System
GPRS | General Packet Radio Service
UMTS | Universal Mobile Telecommunications System
CDMA | Code Division Multiple Access
PSTN | Public Switch Telephone Networks
DHCP | Dynamic Host Configuration Protocol
SMTP | Simple Mail Transfer Protocol
GTP | GPRS Tunnelling Protocol
WEP | Wired Equivalent Privacy
WPA | Wi-Fi Protected Access
VoIP | Voice over Internet Protocol
WCDMA | Wideband Code Division Multiple Access
IDEN | Integrated Digital Enhanced Network
Schedule 4 Goods of strategic concern and technology of strategic concern
Regulation 36
Part 1 General
Interpretation
1 (1) For the purposes of this Schedule, a thing “falls within” a commodity code if it is, or would be, classified under that commodity code, as set out in the Goods Classification Table.
(2) For the purposes of determining whether or not a thing is, or would be, “classified” in accordance with sub-paragraph (1), the rules of interpretation contained in the following have effect—
(a) Part Two (Goods Classification Table Rules of Interpretation) of the Tariff of the United Kingdom;
(b) notes to a section or chapter of the Goods Classification Table.
(3) For the purposes of this paragraph—
“commodity code” includes a code denoting a heading or sub-heading;
“the Goods Classification Table” means the table so named in Annex I in Part Three of the Tariff of the United Kingdom;
“the Tariff of the United Kingdom” means the document containing the legal classification and import rate for products being imported into the United Kingdom, entitled “The Tariff of the United Kingdom”, as revised or re-issued from time to time, including by any document published under regulations made under section 8(1) of the Taxation (Cross-border Trade) Act 2018 replacing the same in whole or in part.
2 For the purposes of this Schedule, the following terms have the meaning given to them in the Dual-Use Regulation—
“development”;
“GNSS”;
“LIDAR”;
“production”;
“technology”;
“use”.
Part 2 Items that are specified by commodity code
3 Any thing falling within a commodity code mentioned in column 1 of the following table.
(1) Commodity code | (2) Description
8407 10 | Spark-ignition reciprocating or rotary internal combustion piston engines for aircraft
8408 90 | Compression-ignition internal combustion piston engines
8409 10 | Parts suitable for use solely or principally with internal combustion piston engine for aircraft
8411 11 | Turbojets of a thrust not exceeding 25 kn
8411 12 | Turbojets of a thrust exceeding 25 kn
8411 21 | Turbopropellers of a power not exceeding 1100 kw
8411 22 | Turbopropellers of a power exceeding 1100 kw
8411 91 | Parts of turbojets and turbopropellers
8413 91 | Pumps for liquids, whether or not fitted with a measuring device; liquid elevators: Parts
8421 23 | Oil or petrol filters for internal combustion engines
8457 10 | Machining centres
8458 11 | Numerically controlled horizontal lathes
8458 91 | Other numerically controlled lathes
8459 61 | Numerically controlled milling machines
8466 93 | Parts and accessories suitable for use solely or principally with the machines of headings 8456 to 8461, not elsewhere specified
8471 30 | Portable digital automatic data processing machines, weighing not more than 10 kg, consisting of at least a central processing unit, a keyboard and a display
8471 41 | Other automatic data-processing machines
8471 50 | Processing units other than those of subheading 8471 41 or 8471 49, whether or not containing in the same housing one or two of the following types of unit: storage units, input units, output units
8471 80 | Other units of automatic data processing machines, not elsewhere specified
8473 30 | Parts and accessories of automatic data-processing machines or for other machines of heading 8471
8481 10 | Pressure-reducing valves
8482 10 | Ball bearings
8482 20 | Tapered roller bearings, including cone and tapered roller assemblies
8482 30 | Spherical roller bearings
8482 50 | Other cylindrical roller bearings, including cage and roller assemblies
8486 10 | Machines and apparatus for the manufacture of boules or wafers
8486 20 | Machines and apparatus for the manufacture of semiconductor devices or of electronic integrated circuits
8486 40 | Machines and apparatus for the manufacture or repair of masks and reticles; for assembling semiconductor devices or electronic integrated circuits; and for lifting, handling, loading or unloading of boules, wafers, semiconductor devices, electronic integrated circuits and flat panel displays
8501 | Electric motors and generators, excluding generating sets
8504 31 | Other transformers
8504 40 | Static convertors
8504 50 | Other inductors, excluding inductors for discharge lamps or tubes
8506 | Primary cells and primary batteries
8507 60 | Lithium-ion
8511 20 | Ignition magnetos; magneto-dynamos; magnetic flywheels
8511 80 | Electrical ignition or starting equipment of a kind used for spark-ignition or compression-ignition internal combustion engines (for example, ignition magnetos, magneto-dynamos, ignition coils, sparking plugs and glow plugs, starter motors); generators (for example, dynamos, alternators) and cut-outs of a kind used in conjunction with such engines: Other equipment
8517 61 | Base stations
8517 62 | Machines for the reception, conversion, and transmission or regeneration of voice, images or other data, including switching and routing apparatus
8517 69 | Other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network, not elsewhere specified
8517 71 | Parts of telephone sets, including smartphones and other telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528
8517 79 | Telephone sets, including smartphones and other telephones for cellular networks or for other wireless networks and of other apparatus for the transmission or reception of voice, images or other data: Other
8525 50 | Transmission apparatus for radio-broadcasting or television
8525 60 | Transmission apparatus incorporating reception apparatus
8525 83 | Night vision cameras
8525 89 | Cameras, visible or thermal, specially designed for unmanned aerial vehicles
8526 10 | Radar apparatus
8526 91 | Radio navigational aid apparatus
8526 92 | Radio remote control apparatus
8529 10 | Aerials and aerial reflectors of all kinds; parts suitable for use therewith
8529 90 | Other parts suitable for use solely or principally with the apparatus of headings 8524 to 8528, not elsewhere specified
8532 21 | Tantalum capacitors
8532 22 | Aluminium electrolytic capacitors
8532 24 | Ceramic dielectric multilayer capacitors
8534 | Printed circuits
8536 50 | Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits, for a voltage not exceeding 1,000 v: Other switches
8536 69 | Coaxial connectors; cylindrical multicontact connectors; rack and panel connectors; printed circuit connectors; ribbon or flat cable connectors; other
8536 90 | Other electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits, not elsewhere specified
8537 10 | Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity for a voltage not exceeding 1000 v
8538 90 | Electrical machinery and equipment and parts thereof; Parts suitable for use solely or principally with the apparatus of heading 8535, 8536 or 8537: Other
8541 10 | Diodes, other than photosensitive or light-emitting diodes (LED)
8541 21 | Transistors, other than photosensitive transistors with a dissipation rate of less than 1 w
8541 29 | Transistors, other than photosensitive transistors, not elsewhere specified
8541 30 | Thyristors, diacs and triacs, other than photosensitive devices
8541 49 | Photosensitive semiconductor devices, not elsewhere specified
8541 51 | Semiconductor-based transducers
8541 59 | Semiconductor devices, not elsewhere specified
8541 60 | Mounted piezo-electric crystals
8542 31 | Electronic integrated circuits: processors and controllers
8542 32 | Memories of electronic integrated circuits
8542 33 | Amplifiers of electronic integrated circuits
8542 39 | Other electronic integrated circuits, not elsewhere specified
8542 90 | Electronic integrated circuits: Parts
8543 20 | Signal generators
8543 70 | Other electrical machines and apparatus, having individual functions, not elsewhere specified in chapter 85
. . . | . . .
. . . | . . .
. . . | . . .
8546 90 | Electrical insulators: Of plastics
8548 | Electrical parts of machinery or apparatus, not elsewhere specified in chapter 85
8805 10 | Aircraft launching gear and parts thereof; deck-arrestor or similar gear and parts thereof
8806 91 | Unmanned aerial vehicles other than those designed for carrying passengers
8806 92
8806 93
8806 94
8806 99
8807 30 | Other parts of aeroplanes, helicopters or unmanned aircraft
9006 30 | Cameras specially designed for underwater use, for aerial survey or for medical or surgical examination of internal organs; comparison cameras for forensic or criminological purposes
9006 91 | Parts and accessories of photographic (other than cinematographic) cameras; photographic flashlight apparatus and flashbulbs other than discharge lamps of heading 8539
9013 10 | Telescopic sights for fitting to arms of lasers, other than laser diodes, and of other optical appliances and instruments, not elsewhere specified in chapter 90
9013 20 | Lasers, other than laser diodes
9013 80 | Other devices, appliances and instruments of lasers, other than laser diodes, and of other optical appliances and instruments, not elsewhere specified in chapter 90
9013 90 80 | Other parts and accessories of lasers, other than laser diodes, and of other optical appliances and instruments, not elsewhere specified in chapter 90
9014 20 | Instruments and appliances for aeronautical or space navigation, other than compasses
9014 80 | Other navigational instruments and appliances
9015 10 | Rangefinders
9015 80 | Surveying (including photogrammetrical surveying), hydrographic, oceanographic, hydrological, meteorological or geophysical instruments and appliances, excluding compasses; rangefinders: Other instruments and appliances
9015 90 | Surveying (including photogrammetrical surveying), hydrographic, oceanographic, hydrological, meteorological or geophysical instruments and appliances, excluding compasses; rangefinders: Parts and accessories
9025 80 | Hydrometers and similar floating instruments, thermometers, pyrometers, barometers, hygrometers and psychrometers, recording or not, and any combination of these instruments: Other instruments
9025 90 | Hydrometers and similar floating instruments, thermometers, pyrometers, barometers, hygrometers and psychrometers, recording or not, and any combination of these instruments: Parts and accessories
9026 20 | Electronic instruments and apparatus for measuring or checking pressure of liquids or gases, excluding regulators
9026 80 | Instruments and apparatus for measuring or checking the flow, level, pressure or other variables of liquids or gases (for example, flow meters, level gauges, manometers, heat meters), excluding instruments and apparatus of heading 9014, 9015, 9028 or 9032: Other instruments
9026 90 | Instruments and apparatus for measuring or checking the flow, level, pressure or other variables of liquids or gases (for example, flow meters, level gauges, manometers, heat meters), excluding instruments and apparatus of heading 9014, 9015, 9028 or 9032: Parts and accessories
9027 50 | Other instruments and apparatus using optical radiations (ultraviolet, visible, infrared)
9030 20 | Oscilloscopes and oscillographs
9030 32 | Multimeters, with a recording device
9030 39 | Other instruments and apparatus for measuring or checking voltage, current, resistance or power: Other, with a recording device
9030 82 | Oscilloscopes, spectrum analysers and other instruments and apparatus for measuring or checking electrical quantities: For measuring or checking semiconductor wafers or devices
9031 80 | Instruments, appliances and machines for measuring or checking, not elsewhere specified in chapter 90
. . . | . . .
. . . | . . .
9031 90 | Parts and accessories of measuring or checking instruments, appliances and machines, not elsewhere specified in chapter 90; profile projectors
9032 10 | Thermostats
9033 00 90 | Other parts and accessories (not elsewhere specified in chapter 90) for machines, appliances, instruments or apparatus of chapter 90
Part 3 Items that are specified by description
4 Equipment specially designed for satellite navigation equipment, including aerials and antennas suitable for the reception of GNSS signals.
5 Airborne laser rangefinder.
6 LIDAR systems.
7 Pitot tubes and air measurement sensors for unmanned aerial vehicles.
8 Engine fuel management systems and pressure transmitter for use in unmanned aerial vehicles.
9 Software programming devices for use with unmanned aerial vehicles.
10 Software defined radios designed or modified for use on unmanned aerial vehicles.
11 Single board computers for use in unmanned aerial vehicles.
12 Video encoding devices for use in unmanned aerial vehicles.
13 Technology, designed or specifically adapted for the test, development or production of equipment listed in Parts 2 and 3 of this Schedule.