The Libya (Sanctions) (EU Exit) Regulations 2020

• Citation: S.I. 2020/1665
• Sections: 150

Section 1 Citation and commencement

(1) These Regulations may be cited as the Libya (Sanctions) (EU Exit) Regulations 2020.

(2) The following provisions come into force on 30th December 2020—

(a) this regulation;

(b) regulation 2 (interpretation);

(c) regulation 4 (purposes);

(d) regulation 5 (power to designate persons);

(e) regulation 6 (criteria for designating a person);

(f) regulation 7 (meaning of “owned or controlled directly or indirectly”);

(g) regulation 8 (notification and publicity where designation power used);

(h) regulation 10 (designation of persons named by or under UN Security Council Resolutions);

(i) regulation 32 (interpretation of Part 5);

(j) Schedule 1 (rules for interpretation of regulation 7(2)).

(3) All other provisions come into force on IP completion day .

Section 2 Interpretation

In these Regulations—

“ the Act ” means the Sanctions and Anti-Money Laundering Act 2018;

“ arrangement ” includes any agreement, understanding, scheme, transaction or series of transactions, whether or not legally enforceable (but see paragraph 12 of Schedule 1 for the meaning of that term in that Schedule);

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

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

“ the Committee ” means the Committee of the Security Council established in accordance with paragraph 24 of resolution 1970;

“ conduct ” includes acts and omissions;

“ director disqualification licence ” means a licence under regulation 48A;

“ document ” includes information recorded in any form and, in relation to information recorded otherwise than in legible form, references to its production include producing a copy of the information in legible form;

“ the EU Libya Regulation ” means Council Regulation (EU) 2016/44 of 18 January 2016 concerning restrictive measures in view of the situation in Libya and repealing Regulation (EU) No 204/2011 , as it has effect in EU law;

a “ non-UN designated person ” means a person—

who is designated under regulation 5 (power to designate persons) for the purposes of regulations 12 to 16 (asset-freeze etc.), and

whose designation (in the opinion of the Secretary of State) is not required by paragraph 17 of resolution 1970 (read in accordance with regulation 4(4)) ;

“ port licence ” means a licence under regulation 50;

“ resolution 1970 ” means resolution 1970 (2011) adopted by the Security Council on 26 February 2011;

“ resolution 1973 ” means resolution 1973 (2011) adopted by the Security Council on 17 March 2011;

“ resolution 2009 ” means resolution 2009 (2011) adopted by the Security Council on 16 September 2011;

“ resolution 2095 ” means resolution 2095 (2013) adopted by the Security Council on 14 March 2013;

“ resolution 2146 ” means resolution 2146 (2014) adopted by the Security Council on 19 March 2014;

“ resolution 2174 ” means resolution 2174 (2014) adopted by the Security Council on 27 August 2014;

“ resolution 2213 ” means resolution 2213 (2015) adopted by the Security Council on 27 March 2015;

“ resolution 2362 ” means resolution 2362 (2017 adopted by the Security Council on 29 June 2017;

“ resolution 2441 ” means resolution 2441 (2018) adopted by the Security Council on 5 November 2018;

“ trade licence ” means a licence under regulation 49;

“ Treasury licence ” means a licence under regulation 48(1);

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

Section 3 Application of prohibitions and requirements outside the United Kingdom

(1) A United Kingdom person may contravene a relevant prohibition by conduct wholly or partly outside the United Kingdom.

(2) Any person may contravene a relevant prohibition or the prohibition under regulation 42(2)(b) (overflight of aircraft) by conduct in the territorial sea.

(3) In this regulation, a “ relevant prohibition ” means any prohibition imposed by—

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

(b) Part 3 (Finance),

(c) Part 5 (Trade),

(d) Part 6 (UN designated ships), except for regulation 36 (port access or entry for UN designated ships), or

(e) a condition of a Treasury licence, a trade licence or a port licence.

(4) A United Kingdom person may comply, or fail to comply, with a relevant requirement by conduct wholly or partly outside the United Kingdom.

(5) Any person may comply, or fail to comply, with a relevant requirement by conduct in the territorial sea.

(6) In this regulation, a “ relevant requirement ” means any requirement imposed—

(a) by or under Part 9 (Information and records), or by reason of a request made under a power conferred by that Part, or

(b) by a condition of a Treasury licence, a trade licence or a port licence.

(7) Nothing in this regulation is to be taken to prevent a relevant prohibition or a relevant requirement from applying to conduct (by any person) in the United Kingdom.

Section 4 Purposes

(1) The regulations contained in this instrument that are made under section 1 of the Act have the following purposes—

(a) compliance with the relevant UN obligations, and

(b) the additional purposes mentioned in paragraph (2).

(2) Those additional purposes are—

(a) promoting respect for human rights in Libya,

(b) promoting the peace, stability and security of Libya,

(c) promoting the successful completion of Libya's transition to a democratic, independent and united country, and

(d) preventing migrant smuggling and human trafficking taking place from Libya,

otherwise than by compliance with the relevant UN obligations.

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

(a) the obligation that the United Kingdom has by virtue of paragraph 17 of resolution 1970 (asset-freeze etc.) to take the measures required by that provision in respect of persons for the time being named for the purposes of that provision by the Security Council or the Committee;

(b) the obligations that the United Kingdom has by virtue of paragraph 17 of resolution 1970 in respect of persons—

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

(ii) owned or controlled by,

the persons for the time being named by the Security Council or the Committee for the purposes of paragraph 17 of resolution 1970;

(c) the obligations that the United Kingdom has by virtue of paragraphs 9, 10 and 12 of resolution 1970 (arms embargo etc.) as read with paragraph 13 of resolution 2009, paragraphs 9 and 10 of resolution 2095 and paragraph 8 of resolution 2174;

(d) the obligation that the United Kingdom has by virtue of paragraph 18 of resolution 1973 (in relation to the landing, taking off and overflying of certain aircraft);

(e) the obligations that the United Kingdom has by virtue of paragraph 10 of resolution 2146 (in relation to ships for the time being designated by the Committee for the purposes of that paragraph) .

(4) In paragraph (3)(a) and (b)—

(a) a reference to persons named by the Security Council or the Committee for the purposes of paragraph 17 of resolution 1970 includes persons named by virtue of paragraph 19 of resolution 1973;

(b) a reference to the obligations the United Kingdom has by virtue of paragraph 17 of resolution 1970 is to that provision as read with—

(i) paragraph 23 of resolution 1973,

(ii) paragraph 15 of resolution 2009,

(iii) paragraph 4 of resolution 2174,

(iv) paragraph 11 of resolution 2213,

(v) paragraph 11 of resolution 2362, and

(vi) paragraph 11 of resolution 2441.

Section 5 Power to designate persons

(1) The Secretary of State may designate persons by name in accordance with regulation 5A (conditions for the designation of persons by name) for the purposes of any of the following—

(a) regulations 12 to 16 (asset-freeze etc.);

(aa) regulation 21A (director disqualification sanctions);

(b) regulation 22 (immigration).

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

Section 5A Conditions for the designation of persons by name

(1) The Secretary of State may choose whether to designate a person under regulation 5 (power to designate persons) under—

(a) the standard procedure, or

(b) the urgent procedure.

(2) Paragraph (3) applies where the Secretary of State chooses to designate a person under regulation 5 under the standard procedure.

(3) The Secretary of State may not designate a person except where condition A is met.

(4) Condition A is that the Secretary of State has reasonable grounds to suspect that that person is an involved person.

(5) Paragraphs (6) to (8) apply where the Secretary of State chooses to designate a person under regulation 5 under the urgent procedure.

(6) The Secretary of State may designate a person where condition A is not met, but conditions B and C are met.

(7) The person ceases to be a designated person at the end of the period of 56 days beginning with the day following the day on which the person became a designated person unless, within that period, the Secretary of State certifies that—

(a) condition A is met, or

(b) conditions B and C continue to be met.

(8) Where the Secretary of State makes a certification under paragraph (7)(b), the designation ceases to have effect at the end of the period of 56 days beginning with the day immediately following the period mentioned in paragraph (7), unless within that period the Secretary of State certifies that condition A is met.

(9) Condition B is that relevant provision (whenever made) applies to, or in relation to, the person under the law of—

(a) the United States of America;

(b) the European Union;

(c) Australia;

(d) Canada.

(10) Condition C is that the Secretary of State considers that it is in the public interest to make designations under the urgent procedure.

(11) For the purposes of condition B, “relevant provision” is provision that the Secretary of State considers—

(a) corresponds, or is similar, to the type of sanction or sanctions in these Regulations, or

(b) is made for purposes corresponding, or similar, to any purpose of any type of sanction or sanctions in these Regulations.

(12) In this regulation, “ involved person ” has the meaning given in regulation 6 (designation criteria: meaning of “involved person”).

Section 6 Designation criteria: meaning of “involved person”

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) For the purposes of regulation 5A (conditions for the designation of persons by name) an “ involved person ” means a person who—

(a) is or has been involved in—

(i) the commission of a serious human rights violation or abuse in Libya;

(ii) the commission of a violation of international humanitarian law in Libya, including in particular attacking civilian populations or facilities in violation of international law;

(iii) activities carried out on behalf of the former regime of Muammar Qadhafi implementing or connected to the repressive policies of that regime;

(iv) any other activity which threatens the peace, stability and security of Libya or undermines its transition to a democratic, peaceful and independent country, including in particular—

(aa) attacking a port, airport, or other infrastructure, a foreign mission, or United Nations personnel, in Libya;

(bb) illicitly exploiting oil or any other natural resources in Libya for the purposes of providing support to armed groups or criminal networks;

(cc) threatening or coercing the Libyan National Oil Company or Libyan state financial institutions;

(dd) misappropriating Libyan state funds, or taking action that may lead to such misappropriation,

(b) is owned or controlled directly or indirectly (within the meaning of regulation 7) by a person who is or has been so involved,

(c) is acting on behalf of or at the direction of a person who is or has been so involved, or

(d) is a member of, or associated with, a person who is or has been so involved.

(3) Any reference in this regulation to being involved in an activity set out in paragraph (2)(a) includes being so involved in whatever way and wherever any actions constituting the involvement take place, and in particular includes—

(a) being responsible for, engaging in, providing support for, or promoting any such activity;

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

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

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

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

(4) For the purposes of this regulation, being “involved in” misappropriating Libyan state funds includes owning or controlling Libyan state funds which were misappropriated during the former regime of Muammar Qadhafi.

(5) In this regulation—

“ relevant provision ” means—

any provision of Part 3 (Finance), Part 5 (Trade), Part 6 (Trade, transport and finance measures related to UN designated ships), or Part 7 (Aircraft);

any provision of the law of a country other than the United Kingdom made for purposes corresponding to a purpose of any provision of Part 3 or Parts 5 to 7;

any provision of resolution 1970, resolution 1973 or resolution 2146;

“restricted goods” and “restricted technology” have the meanings given by Part 5.

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

Section 7 Meaning of “owned or controlled directly or indirectly”

(1) A person who is not an individual (“C”) is “owned or controlled directly or indirectly” by another person (“P”) if either of the following two conditions is met (or both are met).

(2) The first condition is that P—

(a) holds directly or indirectly more than 50% of the shares in C,

(b) holds directly or indirectly more than 50% of the voting rights in C, or

(c) holds the right, directly or indirectly, to appoint or remove a majority of the board of directors of C.

(3) Schedule 1 contains provision applying for the purpose of interpreting paragraph (2).

(4) The second condition is that it is reasonable, having regard to all the circumstances, to expect that P would (if P chose to) be able, in most cases or in significant respects, by whatever means and whether directly or indirectly, to achieve the result that affairs of C are conducted in accordance with P's wishes.

Section 8 Notification and publicity where designation power used

(1) Paragraph (2) applies where the Secretary of State—

(a) has made a designation under regulation 5 (power to designate persons), or

(b) has by virtue of section 22 of the Act varied or revoked a designation made under that regulation.

(2) The Secretary of State—

(a) must without delay take such steps as are reasonably practicable to inform the designated person of the designation, variation or revocation, and

(b) must take steps to publicise the designation, variation or revocation.

(3) The information given under paragraph (2)(a)—

(a) where the Secretary of State designates a person under the standard procedure, must include a statement of reasons;

(b) where the Secretary of State designates a person under the urgent procedure, must include a statement—

(i) that the designation is made under the urgent procedure,

(ii) identifying the relevant provision by reference to which the Secretary of State considers that condition B is met in relation to the person, and

(iii) setting out why the Secretary of State considers that condition C is met.

(3A) Where the Secretary of State designates a person under the urgent procedure, the Secretary of State must, after the end of the period mentioned in paragraph (7) of regulation 5A (conditions for the designation of persons by name) or, if the Secretary of State has made a certification under paragraph (7)(b) of that regulation, the period mentioned in paragraph (8) of that regulation, but otherwise without delay—

(a) in a case where the person ceases to be a designated person, take such steps as are reasonably practicable to inform the person that they have ceased to be a designated person, or

(b) in any other case, take such steps as are reasonably practicable to give the person a statement of reasons.

(4) In this regulation, a “ statement of reasons ” means a brief statement of the matters that the Secretary of State knows, or has reasonable grounds to suspect, in relation to the person—

(a) in the case of a designation under the standard procedure, which have led the Secretary of State to make the designation, and

(b) in the case of a designation under the urgent procedure, as a result of which the person does not cease to be a designated person at the end of the period mentioned in regulation 5A(7) or (8) (as the case may be).

(5) Where the Secretary of State considers that a person's designation is required by paragraph 17 of resolution 1970, the statement of reasons must include a statement that in the Secretary of State's opinion the designation is required by that paragraph.

(6) Matters that would otherwise be required by paragraph (4) or (5) to be included in a statement of reasons may be excluded from it where the Secretary of State considers that they should be excluded—

(a) in the interests of national security or international relations,

(b) for reasons connected with the prevention or detection of serious crime in the United Kingdom or elsewhere, or

(c) in the interests of justice.

(7) The steps taken under paragraph (2)(b) must—

(a) unless one or more of the restricted publicity conditions is met, be steps to publicise generally—

(i) the designation, variation or revocation, and

(ii) in the case of a designation, the statement of reasons;

(b) if one or more of those conditions is met, be steps to inform only such persons as the Secretary of State considers appropriate of the designation, variation or revocation and (in the case of a designation) of the contents of the statement of reasons.

(8) The “restricted publicity conditions” are as follows—

(a) the designation is of a person believed by the Secretary of State to be an individual under the age of 18;

(b) the Secretary of State considers that disclosure of the designation, variation or revocation should be restricted—

(i) in the interests of national security or international relations,

(ii) for reasons connected with the prevention or detection of serious crime in the United Kingdom or elsewhere, or

(iii) in the interests of justice.

(9) Paragraph (10) applies if—

(a) when a designation is made one or more of the restricted publicity conditions is met, but

(b) at any time when the designation has effect, it becomes the case that none of the restricted publicity conditions is met.

(10) The Secretary of State must—

(a) take such steps as are reasonably practicable to inform the designated person that none of the restricted publicity conditions is now met, and

(b) take steps to publicise generally the designation and the statement of reasons relating to it.

Section 9 Confidential information in certain cases where designation power used

(1) Where the Secretary of State in accordance with regulation 8(7)(b) informs only certain persons of a designation, variation or revocation and (in the case of a designation) of the contents of the statement of reasons, the Secretary of State may specify that any of that information is to be treated as confidential.

(2) A person (“P”) who—

(a) is provided with information that is to be treated as confidential in accordance with paragraph (1), or

(b) obtains such information,

must not, subject to paragraph (3), disclose it if P knows, or has reasonable cause to suspect, that the information is to be treated as confidential.

(3) The prohibition in paragraph (2) does not apply to any disclosure made by P with lawful authority.

(4) For this purpose information is disclosed with lawful authority only if and to the extent that—

(a) the disclosure is by, or is authorised by, the Secretary of State,

(b) the disclosure is by or with the consent of the person who is or was the subject of the designation,

(c) the disclosure is necessary to give effect to a requirement imposed under or by virtue of these Regulations or any other enactment, or

(d) the disclosure is required, under rules of court, tribunal rules or a court or tribunal order, for the purposes of legal proceedings of any description.

(5) This regulation does not prevent the disclosure of information that is already, or has previously been, available to the public from other sources.

(6) A person who contravenes the prohibition in paragraph (2) commits an offence.

(7) The High Court (in Scotland, the Court of Session) may, on the application of—

(a) the person who is the subject of the information, or

(b) the Secretary of State,

grant an injunction (in Scotland, an interdict) to prevent a breach of the prohibition in paragraph (2).

(8) In paragraph (4)(c), “ enactment ” has the meaning given by section 54(6) of the Act.

Section 10 Designation of persons named by or under UN Security Council Resolutions

(1) Any person falling within paragraph (2), other than the Libyan Investment Authority and the Libyan Africa Investment Portfolio, is a designated person for the purposes of regulations 12 to 16 (asset-freeze etc.) (whose purposes include compliance with the UN obligations mentioned in regulation 4(3)(a)) .

(2) A person falls within this paragraph if that person is—

(a) for the time being named by the Security Council or the Committee for the purposes of paragraph 17 of resolution 1970;

(b) for the time being named by the Security Council or the Committee for the purposes of paragraph 19 of resolution 1973.

(3) The Libyan Investment Authority and the Libyan Africa Investment Portfolio named in Annex II of resolution 1973 are designated persons for the purposes of regulations 18 to 20 (partial asset-freeze etc.) (whose purpose is compliance with the UN obligations mentioned in regulation 4(3)(a) and in particular regulation 4(4)(b)(ii)).

(4) Nothing in this regulation affects the power under regulation 5 to designate persons (in addition to those designated by this regulation) for the purposes of regulations 12 to 16.

Section 11 Meaning of “designated person” in Chapter 1

In this Chapter a “ designated person ” means—

(a) a person who is designated under regulation 5 for the purposes of regulations 12 to 16 (asset-freeze etc.), or

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

Section 12 Asset-freeze in relation to designated persons

(1) A person (“P”) must not deal with funds or economic resources owned, held or controlled by a designated person if P knows, or has reasonable cause to suspect, that P is dealing with such funds or economic resources.

(2) Paragraph (1) is subject to Part 8 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence.

(4) For the purposes of paragraph (1), a person “deals with” funds if the person—

(a) uses, alters, moves, transfers or allows access to the funds,

(b) deals with the funds in any other way that would result in any change in volume, amount, location, ownership, possession, character or destination, or

(c) makes any other change, including portfolio management, that would enable use of the funds.

(5) For the purposes of paragraph (1), a person “deals with” economic resources if the person—

(a) exchanges the economic resources for funds, goods or services, or

(b) uses the economic resources in exchange for funds, goods or services (whether by pledging them as security or otherwise).

(6) The reference in paragraph (1) to funds or economic resources that are “owned, held or controlled” by a person includes, in particular, a reference to—

(a) funds or economic resources in which the person has any legal or equitable interest, regardless of whether the interest is held jointly with any other person and regardless of whether any other person holds an interest in the funds or economic resources;

(b) any tangible property (other than real property), or bearer security, that is comprised in funds or economic resources and is in the possession of the person.

(7) For the purposes of paragraph (1), funds or economic resources are to be treated as owned, held or controlled by a designated person if they are owned, held or controlled by a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.

(8) For the avoidance of doubt, the reference in paragraph (1) to a designated person includes P if P is a designated person.

Section 13 Making funds available to designated persons

(1) A person (“P”) must not make funds available directly or indirectly to a designated person if P knows, or has reasonable cause to suspect, that P is making the funds so available.

(2) Paragraph (1) is subject to Part 8 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence.

(4) The reference in paragraph (1) to making funds available indirectly to a designated person includes, in particular, a reference to making them available to a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.

Section 14 Making funds available for benefit of designated persons

(1) A person (“P”) must not make funds available to any person for the benefit of a designated person if P knows, or has reasonable cause to suspect, that P is making the funds so available.

(2) Paragraph (1) is subject to Part 8 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence.

(3A) The reference in paragraph (1) to making funds available to any person for the benefit of a designated person includes making funds available for the benefit of a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person (and references to designated person in paragraph (4) are to be read accordingly).

(4) For the purposes of this regulation—

(a) funds are made available for the benefit of a designated person only if that person thereby obtains, or is able to obtain, a significant financial benefit, and

(b) “ financial benefit ” includes the discharge (or partial discharge) of a financial obligation for which the designated person is wholly or partly responsible.

Section 15 Making economic resources available to designated persons

(1) A person (“P”) must not make economic resources available directly or indirectly to a designated person if P knows, or has reasonable cause to suspect—

(a) that P is making the economic resources so available, and

(b) that the designated person would be likely to exchange the economic resources for, or use them in exchange for, funds, goods or services.

(2) Paragraph (1) is subject to Part 8 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence.

(4) The reference in paragraph (1) to making economic resources available indirectly to a designated person includes, in particular, a reference to making them available to a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.

Section 16 Making economic resources available for benefit of designated persons

(1) A person (“P”) must not make economic resources available to any person for the benefit of a designated person if P knows, or has reasonable cause to suspect, that P is making the economic resources so available.

(2) Paragraph (1) is subject to Part 8 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence.

(3A) The reference in paragraph (1) to making economic resources available to any person for the benefit of a designated person includes making economic resources available for the benefit of a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person (and references to designated person in paragraph (4) are to be read accordingly).

(4) For the purposes of paragraph (1)—

(a) economic resources are made available for the benefit of a designated person only if that person thereby obtains, or is able to obtain, a significant financial benefit, and

(b) “ financial benefit ” includes the discharge (or partial discharge) of a financial obligation for which the designated person is wholly or partly responsible.

Section 17 Meaning of “designated person” in Chapter 2

In this Chapter a “ designated person ” means a person who is a designated person for the purposes of regulation 18 to 20 (partial asset-freeze etc.) by reason of regulation 10(3).

Section 18 Partial asset-freeze in relation to designated persons

(1) A person (“P”) must not deal with relevant funds or economic resources owned, held or controlled by a designated person if P knows, or has reasonable cause to suspect, that P is dealing with such funds or economic resources.

(2) Paragraph (1) is subject to Part 8 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence.

(4) For the purposes of paragraph (1), “relevant funds or economic resources” are—

(a) funds or economic resources located outside Libya immediately before 17 September 2011,

(b) funds credited on or after 17 September 2011 to a relevant account in discharge (or partial discharge) of an obligation which arose before the date on which the person became a designated person, and

(c) any interest or other earnings on the funds referred to in sub-paragraphs (a) and (b) credited on or after 17 September 2011 to a relevant account.

(5) For the purposes of paragraph (1), a person “deals with” funds if the person—

(a) uses, alters, moves, transfers or allows access to the funds,

(b) deals with the funds in any other way that would result in any change in volume, amount, location, ownership, possession, character or destination, or

(c) makes any other change, including portfolio management, that would enable use of the funds.

(6) For the purposes of paragraph (1), a person “deals with” economic resources if the person—

(a) exchanges the economic resources for funds, goods or services, or

(b) uses the economic resources in exchange for funds, goods or services (whether by pledging them as security or otherwise).

(7) The reference in paragraph (1) to funds or economic resources that are “owned, held or controlled” by a person—

(a) includes, in particular, a reference to—

(i) funds or economic resources in which the person has any legal or equitable interest, regardless of whether the interest is held jointly with any other person and regardless of whether any other person holds an interest in the funds or economic resources;

(ii) any tangible property (other than real property), or bearer security, that is comprised in funds or economic resources and is in the possession of the person;

(b) does not include funds or economic resources owned, held or controlled by a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.

(8) In this regulation—

“ relevant account ” means an account with a relevant institution which is held or controlled (directly or indirectly) by a designated person;

“relevant institution” has the same meaning that it has in regulation 43 (finance: exceptions from prohibitions).

(9) For the avoidance of doubt the reference to a designated person in paragraph (4), and in the definition of “relevant account” in paragraph (8), includes P if P is a designated person.

Section 19 Making funds available to designated persons

(1) A person (“P”) must not make relevant funds available directly or indirectly to a designated person if P knows, or has reasonable cause to suspect, that P is making the funds so available.

(2) Paragraph (1) is subject to Part 8 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence.

(4) For the purposes of paragraph (1), “relevant funds” are—

(a) interest or other earnings due on funds held in a relevant account (within the meaning of regulation 18) which are frozen by virtue of regulation 18(1), and

(b) funds due to a designated person by virtue of an obligation which arose prior to the date on which the person became a designated person.

(5) The reference in paragraph (1) to making funds available indirectly to a designated person includes, in particular, a reference to making them available to a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.

Section 20 Making funds available for benefit of designated persons

(1) A person (“P”) must not make relevant funds available to any person for the benefit of a designated person if P knows, or has reasonable cause to suspect, that P is making the funds so available.

(2) Paragraph (1) is subject to Part 8 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence.

(4) In paragraph (1), “ relevant funds ” has the same meaning as in regulation 19 (making funds available to designated persons).

(5) For the purposes of paragraph (1)—

(a) funds are made available for the benefit of a designated person only if that person thereby obtains, or is able to obtain, a significant financial benefit, and

(b) “ financial benefit ” includes the discharge (or partial discharge) of a financial obligation for which the designated person is wholly or partly responsible.

Section 21 Circumventing etc. prohibitions

(1) A person must not intentionally participate in activities knowing that the object or effect of them is, whether directly or indirectly—

(a) to circumvent any of the prohibitions in regulations 12 to 16 (asset-freeze etc.) or regulations 18 to 20 (partial asset-freeze etc.), or

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

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

Section 21A Director disqualification sanctions

A person who is designated under regulation 5 (power to designate persons) for the purposes of this regulation is a person subject to director disqualification sanctions for the purposes of—

(a) section 11A of the Company Directors Disqualification Act 1986, and

(b) Article 15A of the Company Directors Disqualification (Northern Ireland) Order 2002.

Section 22 Immigration

A person who is designated under regulation 5 (power to designate persons) for the purposes of this regulation is an excluded person for the purposes of section 8B of the Immigration Act 1971 .

Section 23 Export of restricted goods

(1) The export of restricted goods to, or for use in, Libya is prohibited.

(2) Paragraph (1) is subject to Part 8 (Exceptions and licences).

Section 24 Import of arms and related materiel and internal repression goods

(1) The import of the following goods which are consigned from Libya is prohibited—

(a) arms and related materiel;

(b) internal repression goods.

(2) The import of goods mentioned in paragraph (1) which originate in Libya, is prohibited.

(3) Paragraphs (1) and (2) are subject to Part 8 (Exceptions and licences).

Section 25 Supply and delivery of certain goods

(1) A person must not—

(a) directly or indirectly supply or deliver restricted goods from a third country to a place in Libya;

(b) directly or indirectly supply or deliver military goods or internal repression goods from a place in Libya to a third country.

(2) Paragraph (1) is subject to Part 8 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but —

(a) it is a defence for a person charged with the offence of contravening paragraph (1)(a) to show that the person did not know and had no reasonable cause to suspect that the goods were destined (or ultimately destined) for Libya.

(b) it is a defence for a person charged with the offence of contravening paragraph (1)(b) to show that the person did not know and had no reasonable cause to suspect that the supply or delivery was from a place in Libya, whether directly or indirectly.

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

Section 26 Making available or acquiring certain goods and technology

(1) A person must not—

(a) directly or indirectly make restricted goods or restricted technology available to a person connected with Libya;

(b) directly or indirectly make restricted goods or restricted technology available for use in Libya;

(c) directly or indirectly acquire military goods, internal repression goods or restricted technology from a person connected with Libya;

(d) directly or indirectly acquire military goods, internal repression goods or restricted technology which originate in Libya;

(e) directly or indirectly acquire military goods, internal repression goods or restricted technology located in Libya.

(2) Paragraph (1) is subject to Part 8 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but—

(a) it is a defence for a person charged with the offence of contravening paragraph (1)(a) or (c) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Libya;

(b) it is a defence for a person charged with the offence of contravening paragraph (1)(b) to show that the person did not know and had no reasonable cause to suspect that the goods or technology were for use in Libya;

(c) it is a defence for a person charged with the offence of contravening paragraph (1)(d) to show that the person did not know and had no reasonable cause to suspect that the goods or technology originated in Libya;

(d) it is a defence for a person charged with the offence of contravening paragraph (1)(e) to show that the person did not know and had no reasonable cause to suspect that the goods or technology were located in Libya.

Section 27 Transfer of restricted technology

(1) A person must not—

(a) transfer restricted technology to a place in Libya;

(b) transfer restricted technology to a person connected with Libya;

(c) transfer restricted technology to persons outside the United Kingdom or to a place outside the United Kingdom, where the transfer is from a place in Libya.

(2) Paragraph (1) is subject to Part 8 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but—

(a) it is a defence for a person charged with the offence of contravening paragraph (1)(a) to show that the person did not know and had no reasonable cause to suspect that the transfer was to a place in Libya;

(b) it is a defence for a person charged with the offence of contravening paragraph (1)(b) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Libya;

(c) it is a defence for a person charged with the offence of contravening paragraph (1)(c) to show that the person did not know and had no reasonable cause to suspect that the transfer was from a place in Libya.

Section 28 Technical assistance relating to restricted goods and restricted technology

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

(a) to a person connected with Libya, or

(b) for use in Libya.

(2) Paragraph (1) is subject to Part 8 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but—

(a) it is a defence for a person charged with the offence of contravening paragraph (1)(a) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Libya;

(b) it is a defence for a person charged with the offence of contravening paragraph (1)(b) to show that the person did not know and had no reasonable cause to suspect that the goods or technology were for use in Libya.

Section 29 Financial services and funds relating to restricted goods and restricted technology

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

(a) the export of restricted goods,

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

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

(d) the transfer of restricted technology, or

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

(2) A person must not directly or indirectly make funds available to a person connected with Libya in pursuance of or in connection with an arrangement mentioned in paragraph (1).

(3) A person must not directly or indirectly provide financial services or funds in pursuance of or in connection with an arrangement whose object or effect is—

(a) the export of restricted goods to, or for use in, Libya,

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

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

(i) to a person connected with Libya, or

(ii) for use in Libya,

(d) the transfer of restricted technology—

(i) to a person connected with Libya, or

(ii) to a place in Libya, or

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

(i) to a person connected with Libya, or

(ii) for use in Libya.

(4) Paragraphs (1) to (3) are subject to Part 8 (Exceptions and licences).

(5) A person who contravenes a prohibition in any of paragraphs (1) to (3) commits an offence, but—

(a) it is a defence for a person charged with the offence of contravening paragraph (1) or (2) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Libya;

(b) it is a defence for a person charged with the offence of contravening a prohibition in paragraph (3) to show that the person did not know and had no reasonable cause to suspect that the financial services or funds (as the case may be) were provided in pursuance of or in connection with an arrangement mentioned in that paragraph.

Section 30 Brokering services: non-UK activity relating to restricted goods and restricted technology

(1) A person must not directly or indirectly provide brokering services in relation to an arrangement (“arrangement A”) whose object or effect is—

(a) the direct or indirect supply or delivery of restricted goods from a third country to a place in Libya,

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

(i) to a person connected with Libya, or

(ii) to a place in Libya,

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

(i) to a person connected with Libya, or

(ii) to a place in Libya,

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

(i) to a person connected with Libya, or

(ii) to a place in Libya,

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

(i) to a person connected with Libya, or

(ii) for use in Libya,

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

(i) to a person connected with Libya, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 29(1), or

(ii) where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 29(3),

(g) directly or indirectly making funds available, in a non-UK country, to a person connected with Libya, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 29(1), or

(h) the direct or indirect provision of funds from a non-UK country, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 29(3).

(2) Paragraph (1) is subject to Part 8 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with that offence to show that the person did not know and had no reasonable cause to suspect that the brokering services were provided in relation to an arrangement mentioned in that paragraph.

(4) In this regulation—

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

“ third country ” means—

for the purposes of paragraph (1)(a) and (b), a country that is not the United Kingdom, the Isle of Man or Libya,

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

Section 31 Enabling or facilitating the conduct of armed hostilities

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

(a) technical assistance,

(b) armed personnel,

(c) financial services or funds, or

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

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

(2) Paragraph (1) is subject to Part 8 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with that offence to show that the person did not know and had no reasonable cause to suspect that the provision as mentioned in paragraph (1) would enable or facilitate the conduct of armed hostilities in Libya.

(4) In this regulation—

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

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

(5) Nothing in this regulation is to be taken to limit the meaning of any of the prohibitions contained in Chapter 1.

Section 32 Interpretation of this Part

(1) In this Part—

“ arms and related materiel ” means—

military goods, and

any thing which is, or would be, classified under chapter 93 of the Goods Classification Table, other than military goods;

“ brokering service ” means any service to secure, or otherwise in relation to, an arrangement, including but not limited to—

the selection or introduction of persons as parties or potential parties to the arrangement,

the negotiation of the arrangement,

the facilitation of anything that enables the arrangement to be entered into, and

the provision of any assistance that in any way promotes or facilitates the arrangement;

“ the Goods Classification Table ” has the same meaning as it has in paragraph 1(3) in Part 1 of Schedule 3;

“ goods which could be used for migrant smuggling and human trafficking ” has the meaning given in paragraph 2 of Schedule 3;

“ internal repression goods ” means—

any thing specified in Schedule 2, other than—

any thing which is internal repression technology, or

any thing for the time being specified in—

Schedule 2 to the Export Control Order 2008 , or

Annex Ⅰ of Council Regulation (EC) No 428/2009 of 5 May 2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items, and

any tangible storage medium on which internal repression technology is recorded or from which it can be derived;

“ internal repression technology ” means any thing which is described in Schedule 2 as software or technology, within the meaning of that Schedule;

“ military goods ” means—

any thing for the time being specified in Schedule 2 to the Export Control Order 2008, other than any thing which is military technology, and

any tangible storage medium on which military technology is recorded or from which it can be derived;

“ military technology ” means any thing for the time being specified in Schedule 2 to the Export Control Order 2008 which is described as software or technology;

“ restricted goods ” means—

goods which could be used for migrant smuggling and human trafficking,

internal repression goods, and

military goods;

“ restricted technology ” means—

internal repression technology, and

military technology;

“ technical assistance ”, in relation to goods or technology, means—

technical support relating to the repair, development, production, assembly, testing, use or maintenance of the goods or technology, or

any other technical service relating to the goods or technology;

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

(2) For the purpose of the definition of “arms and related materiel” in paragraph (1), paragraph 1(2) of Schedule 3 (rules of interpretation for the purpose of determining whether or not a thing is “classified”) applies.

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

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

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

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

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

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

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

Section 33 Circumventing etc. prohibitions

(1) A person must not intentionally participate in activities knowing that the object or effect of them is, whether directly or indirectly—

(a) to circumvent any of the prohibitions in Chapter 1 or 2 of this Part, or

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

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

Section 34 Defences

(1) Paragraph (2) applies where a person relies on a defence under Chapter 1 or 2 of this Part.

(2) If evidence is adduced which is sufficient to raise an issue with respect to the defence, the court must assume that the defence is satisfied unless the prosecution proves beyond reasonable doubt that it is not.

Section 35 Transporting etc. Libyan oil in relation to UN designated ships

(1) A person must not cause or permit a designated ship—

(a) to transport Libyan oil, or

(b) to have Libyan oil loaded onto or discharged from it.

(2) Paragraph (1) is subject to Part 8 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with that offence to show that the person did not know and had no reasonable cause to suspect that the ship was a designated ship.

(4) For the purposes of paragraph (1), a “ designated ship ” means a ship for the time being designated by the Committee for the purpose of paragraph 10(a) of resolution 2146.

Section 36 Port access or entry for UN designated ships

(1) A person must not provide a designated ship with access to a port in the United Kingdom, if the person knows, or has reasonable cause to suspect, that the ship is a designated ship.

(2) The master or pilot of a designated ship must not cause or permit that ship to enter any port in the United Kingdom if the master or pilot knows, or has reasonable cause to suspect, that the ship is a designated ship.

(3) Paragraphs (1) and (2) are subject to Part 8 (Exceptions and licences).

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

(5) In paragraphs (1) and (2), “ designated ship ” means a ship for the time being designated by the Committee for the purpose of paragraph 10(b) of resolution 2146.

Section 37 Bunkering or ship supply services

(1) A person must not provide bunkering or ship supply services relating to a designated ship.

(2) Paragraph (1) is subject to Part 8 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with that offence to show that the person did not know and had no reasonable cause to suspect that the ship was a designated ship.

(4) In this regulation—

“ bunkering or ship supply services ” includes—

the supply of goods for use in a ship including fuel and spare parts, whether or not for immediate use, and

any other servicing of a ship;

“ designated ship ” means a ship for the time being designated by the Committee for the purpose of paragraph 10(c) of resolution 2146.

Section 38 Financial transactions in relation to Libyan oil aboard UN designated ships

(1) A person must not enter into any financial transaction relating to Libyan oil aboard a designated ship.

(2) Paragraph (1) is subject to Part 8 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with that offence to show that the person did not know and had no reasonable cause to suspect that the ship was a designated ship.

(4) In this regulation—

“ designated ship ” means a ship for the time being designated by the Committee for the purpose of paragraph 10(d) of resolution 2146; a “financial transaction relating to Libyan oil”—

includes its purchase or sale, its use as credit and the taking out of transport insurance in respect of it;

does not include the payment or receipt of any fees pursuant to the entry into port of a ship carrying that oil.

Section 39 Circumventing etc. prohibitions

(1) A person must not intentionally participate in activities knowing that the object or effect of them is, whether directly or indirectly—

(a) to circumvent a prohibition in regulation 35 (transporting etc. Libyan oil in relation to UN designated ships) or 37 (bunkering or ship supply services), or

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

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

(3) A person must not intentionally participate in activities knowing that the object or effect of them is, whether directly or indirectly—

(a) to circumvent the prohibition in regulation 38 (financial transactions in relation to Libyan oil aboard UN designated ships), or

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

(4) A person who contravenes a prohibition in paragraph (3) commits an offence.

Section 40 Defences

(1) Paragraph (2) applies where a person relies on a defence under this Part.

(2) If evidence is adduced which is sufficient to raise an issue with respect to the defence, the court must assume that the defence is satisfied unless the prosecution proves beyond reasonable doubt that it is not.

Section 41 Interpretation of Part 6

(1) In this Part, “ Libyan oil ” means petroleum, including crude oil and refined petroleum products, originating from Libya.

(2) For the purposes of paragraph (1)—

“ crude oil ” means anything which falls within the commodity code 2709;

“ refined petroleum products ” means anything which falls within any of the following commodity codes—

2710;

2712;

2713.

(3) For the purposes of paragraph (2), whether or not a thing “falls within” any of the “commodity codes” specified in that paragraph is to be determined in accordance with paragraph 1 in Part 1 of Schedule 3.

(4) In regulations 35, 37 and 38 (transporting etc. Libyan oil in relation to UN designated ships, bunkering or ship supply services, and financial transactions in relation to Libyan oil aboard UN designated ships), “ ship ” includes every description of vessel (including a hovercraft) used in navigation.

(5) In regulation 36 (port access or entry for UN designated ships), “ ship ” includes every description of vessel (including a hovercraft) used in navigation, except the naval, military or air-force ships of any country.

(6) Any other expression used in this Part and in section 7 of the Act (shipping sanctions) has the same meaning in this Part as it has in that section.

Section 42 Movement of aircraft

(1) Paragraph (2) applies where an aircraft is being used to transport military goods or armed personnel (or both) to any place in Libya (directly or indirectly).

(2) The operator or pilot in command of an aircraft to which this paragraph applies must not cause or permit the aircraft to—

(a) take off from the United Kingdom,

(b) overfly the United Kingdom, or

(c) land in the United Kingdom.

(3) Where air traffic control knows or has reasonable grounds to suspect that an aircraft approaching UK airspace or which has already entered UK airspace is being used to transport military goods or armed personnel (or both) to any place in Libya (directly or indirectly), air traffic control must—

(a) refuse permission for the aircraft to enter UK airspace or to overfly the United Kingdom;

(b) require the aircraft to leave UK airspace.

(4) Air traffic control may issue instructions to the aircraft in connection with a refusal or requirement under paragraph (3).

(5) Instructions issued to an aircraft pursuant to paragraph (4) may permit incursion into UK airspace by the aircraft only where it is necessary to do so in order to enable the aircraft to comply safely with an instruction to leave UK airspace.

(6) Where an airport operator knows or has reasonable grounds to suspect that an aircraft at or approaching an airport is being used to transport military goods or armed personnel (or both) to any place in Libya (directly or indirectly) the airport operator must (as the case may be)—

(a) not permit the aircraft to take off from the airport;

(b) refuse permission to the aircraft to land at the airport.

(7) Paragraphs (2) to (6) are subject to Part 8 (Exceptions and licences).

(8) A person who contravenes a prohibition in paragraph (2) or (6) or fails to comply with a requirement in paragraph (6) commits an offence.

(9) It is a defence for a person charged with the offence of breaching the prohibition in paragraph (2) to show that the person did not know and had no reasonable cause to suspect that the aircraft was being used to transport military goods or armed personnel to any place in Libya.

(10) For the purposes of this regulation, an aircraft is being used to “transport” military goods if the aircraft contains military goods which have been, or are being, dealt with in contravention of a prohibition—

(a) in regulation 23 or 25 (trade prohibitions relating to restricted goods), or

(b) imposed by a condition of a trade licence in relation to a prohibition mentioned in sub-paragraph (a).

(11) In this regulation, “ UK airspace ” means the airspace above the United Kingdom (and includes the airspace above the territorial sea of the United Kingdom).

(12) Any expression used in this regulation and in section 6 of the Act (aircraft sanctions) has the same meaning in this regulation as it has in that section.

Section 43 Finance: exceptions from prohibitions

(1) The prohibitions in regulation 12 and 18 (asset-freeze and partial asset-freeze in relation to designated persons) are not contravened by an independent person (“P”) transferring to another person a legal or equitable interest in funds or economic resources where, immediately before the transfer, the interest—

(a) is held by P, and

(b) is not held jointly with the designated person.

(2) In paragraph (1) “ independent person ” means a person who—

(a) is not the designated person, and

(b) is not owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.

(3) The prohibitions in regulations 12 to 14 (asset-freeze in relation to, and making funds available to or for the benefit of, designated persons) and 18 to 20 (partial-asset freeze in relation to, and making funds available to, or for the benefit of, designated persons) are not contravened by a relevant institution crediting a frozen account or a relevant account with interest or other earnings due on the account.

(4) The prohibitions in regulations 13 and 14 (making funds available to, or for the benefit of, designated persons) and 19 and 20 (making funds available to, or for the benefit of, designated persons in connection with a partial asset-freeze) are not contravened by a relevant institution crediting a frozen account or a relevant account where it receives funds transferred to that institution for crediting to that account.

(5) The prohibitions in regulations 13, 14, 19 and 20 are not contravened by the transfer of funds to a relevant institution for crediting to an account held or controlled (directly or indirectly) by a designated person, where those funds are transferred in discharge (or partial discharge) of an obligation which arose before the date on which the person became a designated person.

(6) The prohibitions in regulations 12 to 14, and regulations 18 to 20, are not contravened in relation to a designated person (“P”) by a transfer of funds from account A to account B, where—

(a) account A is with a relevant institution which carries on an excluded activity within the meaning of section 142D of the Financial Services and Markets Act 2000 ,

(b) account B is with a ring-fenced body within the meaning of section 142A of the Financial Services and Markets Act 2000 , and

(c) accounts A and B are held or controlled (directly or indirectly) by P.

(7) In this regulation—

“ designated person ” means a designated person within the meaning of regulation 11 or 17;

“ frozen account ” means an account with a relevant institution which is held or controlled (directly or indirectly) by a designated person within the meaning of regulation 11;

“ relevant account ” means an account with a relevant institution which is held or controlled (directly or indirectly) by a designated person within the meaning of regulation 17;

“ relevant institution ” means a person that has permission under Part 4A of the Financial Services and Markets Act 2000 (permission to carry on regulated activity).

(8) The definition of “relevant institution” in paragraph (7) is to be read with section 22 of the Financial Services and Markets Act 2000 , any relevant order under that section and Schedule 2 to that Act .

(9) For the purposes of paragraphs (1)(b), (5) and (6) and the definition of “frozen account” in paragraph (7), references to a designated person, in so far as they relate to a designated person within the meaning of regulation 11, are to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.

(10) When determining for the purposes of paragraph (5) when a person (“ C ”) who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person (“ D ”) became a designated person, C is to be treated as having become a designated person at the same time as D.

Section 43A Finance: humanitarian exception

(1) The prohibitions in regulations 12 to 16 (asset-freeze etc.) and 18 to 20 (partial asset-freeze etc.) are not contravened by a person (“ P ”) carrying out a relevant activity which is necessary—

(a) to ensure the timely delivery of humanitarian assistance, or

(b) to support other activities that support basic human needs,

where Conditions A and B are met.

(2) Condition A is that the humanitarian assistance or other activities mentioned in paragraph (1) are carried out by—

(a) the United Nations, including its—

(i) programmes and funds,

(ii) other entities and bodies, and

(iii) specialised agencies and related organisations,

(b) international organisations,

(c) humanitarian organisations having observer status with the United Nations General Assembly and members of those humanitarian organisations,

(d) bilaterally or multilaterally funded non-governmental organisations participating in the United Nations Humanitarian Response Plans, Refugee Response Plans, other United Nations appeals, or humanitarian clusters coordinated by the United Nations Office for the Coordination of Humanitarian Affairs,

(e) any grantee, subsidiary, or implementing partner of any organisation falling within sub-paragraphs (a) to (d) while and to the extent that they are acting in those capacities,

(f) any other persons authorised by the Committee for the purposes of resolution 2664.

(3) Condition B is that P believes that carrying out the relevant activity is so necessary and there is no reasonable cause for P to suspect otherwise.

(4) For the purposes of this regulation—

“ relevant activity ” means any activity which would, in the absence of this regulation, contravene the prohibitions in regulations 12 to 16 or 18 to 20;

“ resolution 2664 ” means resolution 2664 (2022) adopted by the Security Council on 9th December 2022.

Section 43ZA Finance: exception from prohibitions for required payments

(1) This regulation applies to required payments within the meaning of paragraph (2).

(2) A required payment is a payment which—

(a) a non-UN designated person is required to make under or by virtue of any enactment to—

(i) the registrar of companies,

(ii) the Commissioners,

(iii) the Welsh Revenue Authority,

(iv) Revenue Scotland,

(v) the Financial Conduct Authority,

(vi) the Secretary of State,

(vii) the Welsh Ministers,

(viii) the Department of Finance in Northern Ireland, or

(ix) a local authority, and

(b) is not an excluded payment.

(3) The prohibitions in regulations 12 (asset-freeze in relation to designated persons) and 14 (making funds available for benefit of designated persons) are not contravened by a person making a required payment.

(4) Where a required payment is made by a person other than a non-UN designated person, the prohibition in regulation 12 is not contravened by the non-UN designated person making a reimbursement payment to that person.

(5) The reference in paragraph (3) to a person making a required payment—

(a) does not include a UN designated person, and

(b) only includes a non-UN designated person where they are making a required payment on their own behalf.

(6) The following payments are to be treated as payments which a non-UN designated person is required to make under or by virtue of an enactment for the purposes of this regulation, where made by a non-UN designated person on their own behalf or by a person, other than a designated person, on behalf of a non-UN designated person—

(a) a payment to the Financial Conduct Authority of a levy imposed by the scheme manager of the Financial Services Compensation Scheme by virtue of section 213 of the Financial Services and Markets Act 2000 (the compensation scheme);

(b) a payment to the Financial Conduct Authority which is collected by that Authority on behalf of the Financial Reporting Council Limited.

(7) For the purposes of this regulation—

(a) references to a non-UN designated person are to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the non-UN designated person,

(b) the reference in paragraph (5) to a UN designated person, in so far as it relates to a designated person within the meaning of regulation 11, is to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the UN designated person, and

(c) the reference in paragraph (6) to a designated person, in so far as it relates to a designated person within the meaning of regulation 11, is to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.

(8) In this regulation—

“ BID levy ” means a levy that is imposed on those persons who are, in respect of particular business improvement district proposals, entitled to vote in accordance with section 39(3) of the Planning etc. (Scotland) Act 2006;

“ business improvement district ” has the meaning given in section 33 of the Planning etc. (Scotland) Act 2006;

“ designated person ” means a designated person within the meaning of regulation 11 (meaning of “ designated person ” in Chapter 1) or 17 (meaning of “ designated person ” in Chapter 2);

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

“ excluded payment ” means, in relation to—

the registrar of companies, a payment of fees for—

the incorporation of a firm;

the restoration of a firm to a register which is administered by the registrar;

the Financial Conduct Authority, a payment of fees for—

an application for permission from, authorisation by, registration with or recognition from the Financial Conduct Authority which relates to the carrying on of any activity falling within any function of the Financial Conduct Authority;

an application for a variation of such permission, authorisation, registration or recognition;

an application for listing or for eligibility for listing;

an application for review or approval of a document relating to listing;

an application for approval as a sponsor or primary information provider;

an application for review or approval of—

a document under rules made by the Financial Conduct Authority by virtue of Part 3 of the Public Offers and Admissions to Trading Regulations 2024;

listing particulars under section 79 of the Financial Services and Markets Act 2000 or supplementary listing particulars under section 81 of that Act;

the Secretary of State or the Welsh Ministers, a payment that a non-UN designated person is required to make under or by virtue of an enactment other than a payment under or by virtue of Part 3 of the Local Government Finance Act 1988;

the Department of Finance in Northern Ireland, a payment that a non-UN designated person is required to make under or by virtue of an enactment other than a payment under or by virtue of Part 2 of the Rates (Northern Ireland) Order 1977;

a local authority, a payment that a non-UN designated person is required to make under or by virtue of an enactment other than a payment under or by virtue of—

Part 1 of the Local Government (Scotland) Act 1975;

Part 3 of the Local Government Finance Act 1988;

Parts 1 and 2 of the Local Government Finance Act 1992;

Part 4 of the Local Government Act 2003;

Part 9 of the Planning etc. (Scotland) Act 2006;

the Business Rate Supplements Act 2009;

the Business Improvement Districts Act (Northern Ireland) 2013;

“ firm ” has the meaning given in section 1173(1) of the Companies Act 2006;

“ listing ” means being included in the official list maintained by the Financial Conduct Authority in accordance with Part 6 of the Financial Services and Markets Act 2000;

“ local authority ” means—

in relation to England—

a district council;

a county council for any area for which there is no 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;

in relation to Wales, a county council or a county borough council;

in relation to Scotland, a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994;

“ primary information provider ” has the meaning given in section 89P(2) of the Financial Services and Markets Act 2000;

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“ registrar of companies ” has the meaning given in section 1060 of the Companies Act 2006 (the registrar);

“ reimbursement payment ” means a repayment from the non-UN designated person to the person who made a required payment which is of the same amount as that required payment;

“ scheme manager ” has the meaning given in section 212 of the Financial Services and Markets Act 2000;

“ sponsor ” has the meaning given in section 88(2) of the Financial Services and Markets Act 2000;

“ UN designated person ” means—

a person who is a designated person for the purposes of regulations 12 to 16 or regulations 18 to 20 by reason of regulation 10 (designation of persons named by or under UN Security Council resolutions), or

a person who is designated under regulation 5 (power to designate persons) for the purposes of regulations 12 to 16 and whose designation is (in the opinion of the Secretary of State) required by paragraph 17 of resolution 1970 (read in accordance with regulation 4(4)).

Section 43ZB Finance: exceptions relating to payment of Treasury debt

(1) The prohibitions in regulations 12 to 14 (asset-freeze in relation to, and making funds available to, or for the benefit of, designated persons) and regulations 18 to 20 (partial asset-freeze and making funds available to or for benefit of designated persons) are not contravened by any act done by a person to transfer funds to—

(a) a UN designated person (“ D ”) in order to satisfy an obligation owed by the Treasury to D in respect of Treasury debt where the conditions in paragraph (2) are met; or

(b) a person (“ B ”) in respect of Treasury debt where the effect of the transfer is to make funds available to or for the benefit of D and the conditions in paragraph (3) are met.

(2) The person (“ P ”) making the transfer of funds to D knows or has reasonable cause to suspect that the obligation referred to in paragraph (1) arose before the date on which D was designated and P takes reasonable steps to satisfy itself that the funds to be transferred to D are credited to a specified account.

(3) The person (“ P ”) making the transfer of funds to B knows or has reasonable cause to suspect that the effect of such a transfer will be to enable the satisfaction of an obligation of any person to D in respect of Treasury debt and P takes reasonable steps to satisfy itself that such obligation arose before the date on which D was designated and the funds to be transferred to D are ultimately credited to a specified account.

(4) The prohibitions in regulations 12 to 14 and regulations 18 to 20 are not contravened by any act done by a person (where that person is not P in paragraph (2) or (3)) to enable a transfer of funds to any person in respect of Treasury debt—

(a) in order to satisfy an obligation owed by the Treasury to D, or

(b) where the effect of the transfer will be to enable the satisfaction of an obligation of any person to D in respect of Treasury debt.

(5) For the purposes of this regulation, references to a UN designated person, in so far as they relate to a designated person within the meaning of regulation 11 or 17, are to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the UN designated person.

(6) In this regulation—

“ corresponding non-UK country ” means a non-UK country whose laws contain relevant—

prohibitions and exceptions corresponding to regulations 12 to 14, 18 to 20 and regulation 43 (finance: exceptions from prohibitions); and

grounds for licences to be issued that correspond to the purposes in Schedule 4 (Treasury licences: purposes);

“ frozen account ” has the meaning given in regulation 43(7);

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

“ non-UK relevant institution ” means—

a person, other than an individual, which would satisfy the threshold conditions for permission under Part 4A of the Financial Services and Markets Act 2000 if it had its registered office (or if it does not have one, its head office) in the United Kingdom, or

an undertaking which by way of business—

operates a currency exchange office,

transmits money (or any representation of monetary value) by any means, or

cashes cheques that are made payable to customers;

“ recognised CSD ” has the meaning given in section 285(1)(e) of the Financial Services and Markets Act 2000;

“ relevant account ” has the meaning given in regulation 43(7);

“ relevant money market instrument ” means an instrument of a kind normally dealt in on the money market, such as treasury bills, certificates of deposit and commercial papers, excluding instruments of payment;

“ relevant transferable security ” means a security, negotiable on the capital market, of any of the following kinds, but excluding instruments of payment—

shares in companies and other securities equivalent to shares in companies, partnerships or other entities, and depositary receipts in respect of shares;

bonds or other forms of securitised debt, including depositary receipts in respect of such securities;

any other securities giving the right to purchase or sell any security of a kind mentioned in paragraph (a) or (b);

“ specified account ” means—

a frozen account or a relevant account of a person;

an account held by or for the benefit of a person with a recognised CSD;

an account held by or for the benefit of a person with a non-UK relevant institution in a corresponding non-UK country; or

an account held by or for the benefit of a person with a third country CSD in a corresponding non-UK country—

where the person referred to in (a) to (d) above is also D in paragraph (2) or (3);

“ third country CSD ” has the meaning given in section 285(1)(g) of the Financial Services and Markets Act 2000;

“ Treasury debt ” means any relevant transferable security, relevant money market instrument, loan or credit entered into or issued by, or on behalf of the Treasury in respect of funds borrowed by or on behalf of the Treasury;

“ UN designated person ” has the meaning given in regulation 43ZA(8).

Section 44 Port access or entry for UN designated ships: exception from prohibitions

(1) The prohibition in regulation 36(1) (port access or entry for UN designated ships) is not contravened by providing a ship with access to a port if the access is needed by the ship in a case of emergency.

(2) The prohibition in regulation 36(2) is not contravened by the entry into port of a ship if the entry is needed by the ship in a case of emergency.

Section 45 Aircraft: exceptions

(1) The prohibition in regulation 42(2)(c) (movement of aircraft) is not contravened by the landing of an aircraft in the United Kingdom if failing to land would endanger the lives of persons on board or the safety of the aircraft.

(2) The prohibition in regulation 42(2)(b) is not contravened by the flight of an aircraft in UK airspace preparatory to a landing as mentioned in paragraph (1).

(3) A prohibition or requirement in regulations 42(3) to (6) is not contravened by conduct necessary to—

(a) avoid endangering the lives of persons on board or the safety of the aircraft,

(b) protect the safety of another aircraft, or

(c) protect the safety of persons on the ground.

(4) In paragraph (2) “ UK airspace ” has the same meaning as in regulation 42(11).