Terrorist Asset-Freezing etc. Act 2010

Part 1 — Terrorist Asset-Freezing

CHAPTER 1 — Designated persons

Introductory

Meaning of “designated person”

1

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Final designations

Treasury’s power to make final designation

2

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Notification of final designation

3

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Duration of final designation

4

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Variation or revocation of final designation

5

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Interim designations

Treasury’s power to make interim designation

6

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Notification of interim designation

7

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Duration of interim designation

8

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Variation or revocation of interim designation

9

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Confidential information

Confidential information

10

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CHAPTER 2 — Prohibitions in relation to designated persons

Prohibitions

Freezing of funds and economic resources

11

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Making funds or financial services available to designated person

12

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Making funds or financial services available for benefit of designated person

13

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Making economic resources available to designated person

14

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Making economic resources available for benefit of designated person

15

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Exceptions and licences

Exceptions

16

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Licences

17

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Circumventing prohibitions etc.

Circumventing prohibitions etc.

18

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CHAPTER 3 — Information

Information for Treasury

Reporting obligations of relevant institutions

19

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Powers to request information

20

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Production of documents

21

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Failure to comply with request for information

22

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Disclosure of information by Treasury

General power to disclose information

23

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Other

Co-operation with UK or international investigations

24

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Application of provisions

25

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CHAPTER 4 — Supplementary provisions

Supervision of exercise of powers

Appeal to the court in relation to designations

26

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Review of other decisions by the court

27

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Appeals and reviews: supplementary

28

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Initial exercise of powers to make rules of court

29

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Treasury report on operation of Part 1

30

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Independent review of operation of Part 1

31

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Offences

Penalties

32

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Extra-territorial application of offences

33

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Liability of officers of body corporate etc.

34

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Jurisdiction to try offences

35

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Time limit for proceedings for summary offences

36

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Consent to prosecution

37

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Procedure for offences by unincorporated bodies

38

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Interpretation

Meaning of “funds” and “economic resources”

39

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Meaning of “financial services”

40

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Meaning of “relevant institution”

41

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Interpretation: general

42

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Miscellaneous

Service of notices

43

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Crown application

44

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Consequential amendments, repeals and revocations

45

• (1) Part 1 of Schedule 1 (which contains amendments consequential on this Part) has effect.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Transitional provisions and savings

46

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Power to repeal Part

47

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Part 2 — Terrorist financing, money laundering etc.

Directions in particular cases

Directions to branches of credit institutions and financial institutions

48

• (1) In paragraph 5 of Schedule 7 to the Counter-Terrorism Act 2008 (directions in relation to terrorist financing and money laundering etc: meaning of “credit institution” and “financial institution”)—

• (a) for sub-paragraph (1) substitute—

(1) Credit institution” means a credit institution, as defined in Article 4(1)(a) of the banking consolidation directive, when it accepts deposits or other repayable funds from the public or grants credits for its own account (within the meaning of that directive).

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• (b) after sub-paragraph (2)(b) insert—

(ba) a person equivalent to an insurance company within paragraph (b) whose head office is located in a non-EEA state, when carrying out activities of the kind mentioned in paragraph (b);

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• (c) omit sub-paragraph (2)(f), and

• (d) after sub-paragraph (2) insert—

(3) The fact that an institution's head office is located in a non-EEA state does not prevent it from being a credit institution or a financial institution for the purposes of this Schedule.

• (2) In paragraph 9 of that Schedule (requirements that may be imposed by a direction), after sub-paragraph (5) insert—

(5A) Descriptions of transactions or business relationships for the purposes of sub-paragraph (5)(b) may, in particular, include transactions or business relationships of a particular branch (or description of branch) of a relevant person.

Directions in relation to subsidiaries

49

• (1) Paragraph 9 of Schedule 7 to the Counter-Terrorism Act 2008 (requirements that may be imposed by a direction) is amended as follows.

• (2) In sub-paragraph (1), after paragraph (c), insert—

(d) a company that is a subsidiary of a company within paragraph (a) or (c).

• (3) After sub-paragraph (6) insert—

(7) In this paragraph “subsidiary” has the meaning given by section 1159 of the Companies Act 2006 (and “company” has the same meaning as in that section).

General directions and other requirements

Circumventing requirements of Schedule 7 directions

50

• (1) Schedule 7 to the Counter-Terrorism Act 2008 is amended as follows.

• (2) After paragraph 25 (civil penalties for failure to comply with requirements) insert—

(25A) (1) An enforcement authority may impose a penalty of such amount as it considers appropriate on a relevant person who has intentionally participated in activities knowing that the object or effect of them was (whether directly or indirectly) to circumvent a requirement imposed by a direction under this Schedule. (2) In sub-paragraph (1) “appropriate” means effective, proportionate and dissuasive. (3) A person on whom a penalty is imposed under this paragraph is not liable to be proceeded against for an offence under paragraph 30A in respect of participation in the same activities.

• (3) After paragraph 30 (offence of failing to comply with requirements) insert—

(30A) (1) A relevant person who intentionally participates in activities knowing that the object or effect of them is (whether directly or indirectly) to circumvent a requirement imposed by a direction under this Schedule commits an offence. (2) A person guilty of an offence under this paragraph is liable— (a) on summary conviction, to a fine not exceeding the statutory maximum; (b) on conviction on indictment, to imprisonment for a term not exceeding two years or a fine or both. (3) A person who is convicted of an offence under this paragraph is not liable to a penalty under paragraph 25A in respect of participation in the same activities.

Minor amendments and repeals

Northern Ireland credit unions

51

• (1) In paragraph 18(1) of Schedule 7 to the Counter-Terrorism Act 2008 (Department of Enterprise, Trade and Investment in Northern Ireland to be the enforcement authority for credit unions in Northern Ireland)—

• (a) at the end of paragraph (b) insert “ or ”, and

• (b) omit paragraph (d) and the word “or” before it.

• (2) In paragraph 39(2) of that Schedule (Department of Enterprise, Trade and Investment in Northern Ireland to be the supervisory authority for credit unions in Northern Ireland), omit paragraph (d).

Consequential amendments and repeals

52

• (1) Part 2 of Schedule 1 (which contains amendments consequential on this Part) has effect.

• (2) Part 2 of Schedule 2 (which contains repeals consequential on this Part) has effect.

Part 3 — Final provisions

Extent etc.

Extent

53

• (1) Subject as follows, this Act extends to England and Wales, Scotland and Northern Ireland.

• (2) Sections 54 and 56 (and this section and section 55 so far as relating to sections 54 and 56) also extend to the Channel Islands, the Isle of Man and the British overseas territories.

• (3) The amendments made by section 28(1) (amendment of Senior Courts Act 1981) and paragraph 5 of Schedule 1 (amendment of civil procedure rules: England and Wales) extend to England and Wales only.

• (4) The amendments made by paragraphs 1 to 4 of Schedule 1 (amendments of rules of the Court of Judicature (Northern Ireland)) extend to Northern Ireland only.

Channel Islands, Isle of Man and British overseas territories

54

• (1) Her Majesty may by Order in Council provide for any of the provisions of Part 1 (including Part 1 of Schedules 1 and 2) to extend, with or without modifications, to any of the Channel Islands, the Isle of Man or any British overseas territory.

• (2) Sections 1 and 3 of the Terrorist Asset-Freezing (Temporary Provisions) Act 2010, so far as they have effect as part of the law of Guernsey, Jersey, the Isle of Man and the territories listed in Schedule 1 to the Terrorism (United Nations Measures) (Overseas Territories) Order 2001 (S.I. 2001/3366), have effect as if the reference in section 1(1) of that Act to 31 December 2010 were a reference to 31 March 2011.

Commencement and short title

Commencement

55

• (1) Subject to subsection (2), Parts 1 and 2 (including Schedules 1 and 2) come into force on the day following that on which this Act is passed.

• (2) Section 51 (and section 52, and Part 2 of Schedules 1 and 2, so far as relating to section 51) come into force on such day as the Treasury may by order made by statutory instrument appoint.

• (3) An order under subsection (2) may include such transitional, transitory or saving provision as the Treasury consider appropriate.

• (4) This Part comes into force on the day on which this Act is passed.

Short title

56

This Act may be cited as the Terrorist Asset-Freezing etc. Act 2010.

SCHEDULE 1

Part 1 — Terrorist asset-freezing

Rules of the Court of Judicature (Northern Ireland) 1980 (S.R. 1980 No.346)

1

The Rules of the Court of Judicature (Northern Ireland) 1980 are amended as follows.

2

In the Arrangement of Orders, in the entry relating to Order 116B, after “2008” insert “ and Part 1 of the Terrorist Asset-Freezing etc. Act 2010 ”.

3

In Order 1, after rule 11(l) insert—

(la) proceedings on an application under section 27 of the Terrorist Asset-Freezing etc. Act 2010, or on a claim arising from any matter to which such an application relates;”.

4

In Order 116B—

• (a) in the title of the Order, at the end insert “ and Part 1 of the Terrorist Asset-Freezing etc. Act 2010 ”,

• (b) in rule 1(2)(a), after “the”, in the first place in which it appears, insert “ 2008 ”,

• (c) after rule 1(2)(a) insert—

(aa) the 2010 Act” means the Terrorist Asset-Freezing etc. Act 2010;

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• (d) in rule 1(2)(b), after “the” insert “ 2008 Act or section 27 of the 2010 ”,

• (e) in rule 1(2)(c) for “has the same meaning as in section 65 of the Act” substitute

means— (i) financial restrictions proceedings within the meaning of section 65 of the 2008 Act; and (ii) proceedings in the High Court on an application under section 27 of the 2010 Act, or on a claim arising from any matter to which such an application relates

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• (f) in rule 1(2)(h), for “Act” substitute “ 2008 Act (including that section as applied by section 28(4) of the 2010 Act) ”,

• (g) in rule 4(3)(a)(ii), after “the”, in the first place in which it appears, insert “ 2008 ”,

• (h) in rule 5(1) after “2008”, insert “ , or section 27 of the Terrorist Asset-Freezing etc. Act 2010, as the case may be, ”,

• (i) in rule 36(1), after “the” insert “ 2008 ”, and

• (j) in rule 36(2), after “the” in the second place in which it appears, insert “ 2008 ”.

Civil Procedure Rules 1998 (S.I. 1998/3132)

5

In Part 79 of the Civil Procedure Rules 1998 (proceedings under the Counter-Terrorism Act 2008)—

• (a) in the title of Part 79, at the end insert “ and Part 1 of the Terrorist Asset-Freezing etc. Act 2010 ”,

• (b) in rule 79.1(2)(a), after “the”, in the first place in which it appears, insert “ 2008 ”,

• (c) after rule 79.1(2)(a) insert—

(aa) the 2010 Act” means the Terrorist Asset-Freezing etc. Act 2010;

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• (d) in rule 79.1(2)(b), after “the” insert “ 2008 Act or section 27 of the 2010 ”,

• (e) in rule 79.1(2)(c) for “has the same meaning as in section 65 of the Act” substitute

means— (i) financial restrictions proceedings within the meaning of section 65 of the 2008 Act; and (ii) proceedings in the High Court on an application under section 27 of the 2010 Act, or on a claim arising from any matter to which such an application relates

,

• (f) in rule 79.1(2)(h), for “Act” substitute “ 2008 Act (including that section as applied by section 28(4) of the 2010 Act) ”,

• (g) in rule 79.6(3)(a)(ii), after “the”, in the first place in which it appears, insert “ 2008 ”,

• (h) in rule 79.31(1), after “the” insert “ 2008 ”, and

• (i) in rule 79.31(2), after “the” in the second place in which it appears, insert “ 2008 ”.

Money Laundering Regulations 2007 (S.I. 2007/2157)

6

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Transfer of Funds (Information on the Payer) Regulations 2007 (S.I. 2007/3298)

7

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Payment Services Regulations 2009 (S.I. 2009/209)

8

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Part 2 — Terrorist financing, money laundering etc.

Amendment relating to section 48: branches

9

In paragraph 46 of Schedule 7 to the Counter-Terrorism Act 2008 (terrorist financing and money laundering etc: index of defined expressions), in the table—

• (a) in the entry for “credit institution”, after “5(1)” insert “ and (3) ”, and

• (b) in the entry for “financial institution”, after “5(2)” insert “ and (3) ”.

Amendments relating to section 50: circumvention

10

• (1) In paragraph 26(1) of Schedule 7 to the Counter-Terrorism Act 2008 (imposition of penalty by HMRC) after “25” insert “ or 25A ”.

• (2) In paragraph 27 of that Schedule (imposition of penalty by other enforcement authority)—

• (a) in sub-paragraph (1) after “25” insert “ or 25A ”, and

• (b) in sub-paragraph (3) after “25” insert “ or (as the case may be) 25A ”.

• (3) In paragraph 29(1) of that Schedule (payment and recovery of civil penalties) after “25” insert “ or 25A ”.

• (4) In paragraph 41(2) of that Schedule (application of civil penalties by Financial Services Authority) after “25” insert “ or 25A ”.

Amendments relating to section 51: Northern Ireland credit unions

11

• (1) In paragraph 18(2) of Schedule 7 to the Counter-Terrorism Act 2008 (definition of “enforcement officer”) omit paragraph (d) (but not the word “or” at the end of the paragraph).

• (2) In paragraph 18(3)(b) of that Schedule (definition of “local enforcement officer” in Northern Ireland) for “DETINI” substitute “ the Department of Enterprise, Trade and Investment in Northern Ireland (“DETINI”) ”.

• (3) In paragraph 27(1) of that Schedule (imposition of penalty by enforcement authority) for “, the OFT or DETINI” substitute “ or the OFT ”.

• (4) In paragraph 28 of that Schedule (appeal against imposition of certain civil penalties)—

• (a) omit sub-paragraph (2), and

• (b) in sub-paragraph (3) omit “or court”.

• (5) In paragraph 46 of that Schedule (index of defined expressions), in the entry for DETINI, for “paragraph 18(1)(d)” substitute “ paragraph 18(3)(b) ”.

SCHEDULE 2

Part 1 — Terrorist asset-freezing

Part 2 — Terrorist financing, money laundering etc.

Directions to branches of credit institutions and financial institutions

Initial exercise of powers to make rules of court

Treasury report on operation of Part 1

Power to repeal Part

Directions to branches of credit institutions and financial institutions

Directions to branches of credit institutions and financial institutions

Consequential amendments and repeals

Extent

Extent

Rules of the Court of Judicature (Northern Ireland) 1980 (S.R. 1980 No.346)

Civil Procedure Rules 1998 (S.I. 1998/3132)

Money Laundering Regulations 2007 (S.I. 2007/2157)

Transfer of Funds (Information on the Payer) Regulations 2007 (S.I. 2007/3298)

Payment Services Regulations 2009 (S.I. 2009/209)

Amendment relating to section 48: branches

Amendments relating to section 50: circumvention

Amendments relating to section 51: Northern Ireland credit unions

Editorial notes

[^c2109181]: Sch. 2 Pt. 2 partly in force; Sch. 2 Pt. 2 in force for specified purposes at 17.12.2010, see s. 55(1)(2)

[^key-76b467757a616e39b7c679274ddac967]: Pt. 1 extended (Isle of Man) (with modifications) (17.3.2011) by The Terrorist Asset-Freezing etc. Act 2010 (Isle of Man) Order 2011 (S.I. 2011/749), arts. 1, 2, Schs.

[^key-13803316c38caa3220e7cb3ddb921eb1]: Pt. 1 extended (with modifications) (31.3.2011) by The Terrorist Asset-Freezing etc. Act 2010 (Overseas Territories) Order 2011 (S.I. 2011/750), arts. 1, 2, 3, Schs. 1-3 (as amended by S.I. 2013/534, reg. 1, Sch. para. 12(4))

[^key-7e4f83f11af283b9bffa1e0195ebccfb]: Pt. 1 extended (Guernsey) (with modifications) (8.4.2011, with effect in accordance with art. 4 of the commencing S.I.) by The Terrorist Asset-Freezing etc. Act 2010 (Guernsey) Order 2011 (S.I. 2011/1082), arts. 1(2), 3, 4, Schs.

[^key-79b97dc8dc5909b86920732f303a5083]: S. 51 in force at 31.3.2012 by S.I. 2011/2835, art. 2(a)

[^key-a2976b0ce257f3f878dd749e58f37ac7]: S. 52 in force at 31.3.2012 in so far as not already in force by S.I. 2011/2835, art. 2(b)

[^key-9df7a419a9673285df82b37e1bca8819]: Sch. 1 para. 11 in force at 31.3.2012 by S.I. 2011/2835, art. 2(c)

[^key-ddc36e6482868014a4bf75d4bbe79287]: Sch. 2 Pt. 2 in force at 31.3.2012 by S.I. 2011/2835, art. 2(d)

[^key-3bf4aa7336ffa240594c4d067177828e]: Pt. 1 amendment to earlier affecting provision SI 2011/750 art. 2 3 Sch. 1-3 (1.4.2013) by The Legal Aid, Sentencing and Punishment of Offenders Act 2012 (Consequential, Transitional and Saving Provisions) Regulations 2013 (S.I. 2013/534), reg. 1, Sch. para. 12(4)

[^key-ce3f1b6fdcfefdfe0cf585b0db8536bf]: Pt. 1 amendment to earlier affecting provision SI 2011/750, arts. 2, 3, Schs. 1-3 (8.3.2017) by The Terrorist Asset-Freezing etc. Act 2010 (Overseas Territories) (Amendment) Order 2017 (S.I. 2017/157), arts. 1(1), 3-5

[^key-407e48bdec5eca73a28ec2905f8408c5]: Pt. 1 repealed (except s. 45(1) for specified purposes and Sch. 1 paras. 1-5) (31.12.2020) by Sanctions and Anti-Money Laundering Act 2018 (c. 13), ss. 59(1), 64(2) (with ss. 52(3), 53, 58, 59(2)(3)); S.I. 2020/1535, reg. 3(b)

[^key-e3f8a7503ecf4fceb94e9f9b7e2162a0]: Sch. 1 paras. 6-8 repealed (31.12.2020) by Sanctions and Anti-Money Laundering Act 2018 (c. 13), ss. 59(1), 64(2) (with ss. 52(3), 53, 58, 59(2)(3)); S.I. 2020/1535, reg. 3(b)

[^key-27ec6b67f95799c8b5c8b61c6657463e]: Sch. 2 Pt. 1 repealed (31.12.2020) by Sanctions and Anti-Money Laundering Act 2018 (c. 13), ss. 59(1), 64(2) (with ss. 52(3), 53, 58, 59(2)(3)); S.I. 2020/1535, reg. 3(b)

Treasury's power to make final designation

Treasury report on operation of Part 1

Extent

Northern Ireland credit unions

Northern Ireland credit unions

Consequential amendments and repeals