Legalize / United Kingdom / Statutory-Instrument

The Democratic People’s Republic of Korea (Sanctions) (EU Exit) Regulations 2019

Type Statutory-Instrument

Publication 2019-03-05

Last updated 2026-01-19

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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(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 originated in the DPRK;

(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 goods were located in the DPRK.

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

(a) it is a defence for a person charged with the offence of contravening paragraph (3)(a) to show that the person did not know and had no reasonable cause to suspect that the person was connected with the DPRK;

(b) it is a defence for a person charged with the offence of contravening paragraph (3)(b) to show that the person did not know and had no reasonable cause to suspect that the fishing rights were exercisable in DPRK waters.

(7) In this regulation—

“DPRK waters” means the territorial sea and inland waters of the DPRK;

“fishing rights” includes any right to—catch fish; orharvest molluscs, crustaceans or other aquatic invertebrates.

Bank notes and coinage

51

(1) The export of bank notes or coinage to or for the benefit of the Central Bank of the DPRK is prohibited.

(2) A person must not directly or indirectly—

(a) supply or deliver bank notes or coinage from a third country to or for the benefit of the Central Bank of the DPRK;

(b) make bank notes or coinage available to or for the benefit of the Central Bank of the DPRK.

(3) Paragraphs (1) and (2) are subject to Part 9 (Exceptions and licences).

(4) A person who contravenes a prohibition in paragraph (2) commits an offence, but—

(a) it is a defence for a person charged with the offence of contravening paragraph (2)(a) (“P”) to show that P did not know and had no reasonable cause to suspect that the person to whom, or for whose benefit, the bank notes or coinage were supplied or delivered was the Central Bank of the DPRK;

(b) it is a defence for a person charged with the offence of contravening paragraph (2)(b) (“P”) to show that P did not know and had no reasonable cause to suspect that the person to whom or for whose benefit the bank notes or coinage were made available was the Central Bank of the DPRK.

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

Gold, precious metals or diamonds

52

(1) The export of gold, precious metals or diamonds to a DPRK Government person is prohibited.

(2) The import of gold, precious metals or diamonds consigned from a DPRK Government person is prohibited.

(3) A person must not directly or indirectly—

(a) supply or deliver gold, precious metals or diamonds from a third country to a DPRK Government person;

(b) make gold, precious metals or diamonds available to a DPRK Government person;

(d) acquire gold, precious metals or diamonds from a DPRK Government person.

(4) Paragraphs (1) to (3) are subject to Part 9 (Exceptions and licences).

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

(6) In this regulation—

“non-UK country” means a country that is not the United Kingdom or the Isle of Man;

“third country” means a country that is not the United Kingdom, the Isle of Man or the DPRK.

Technical assistance relating to gold, precious metals or diamonds

53

(1) A person must not directly or indirectly provide technical assistance relating to gold, precious metals or diamonds to a DPRK Government person.

(2) Paragraph (1) is subject to Part 9 (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 (“P”) to show that P did not know and had no reasonable cause to suspect that the person was a DPRK Government person.

Financial services and funds relating to gold, precious metals or diamonds

54

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

(a) the export of gold, precious metals or diamonds,

(b) the import of gold, precious metals or diamonds,

(d) directly or indirectly making gold, precious metals or diamonds available to a person.

(2) A person must not directly or indirectly make funds available to a DPRK Government person 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 gold, precious metals or diamonds to a DPRK Government person,

(b) the import of gold, precious metals or diamonds consigned from a DPRK Government person,

(c) the direct or indirect supply or delivery of gold, precious metals or diamonds to a DPRK Government person or from a DPRK Government person,

(d) directly or indirectly making gold, precious metals or diamonds available to a DPRK Government person, or

(e) the direct or indirect acquisition of gold, precious metals or diamonds from a DPRK Government person.

(4) Paragraphs (1), (2) and (3) are subject to Part 9 (Exceptions and licences).

(5) A person who contravenes a prohibition in paragraph (1) or (2) commits an offence, but it is a defence for a person charged with an offence of contravening either of those paragraphs (“P”) to show that P did not know and had no reasonable cause to suspect that the person was a DPRK Government person.

(6) A person who contravenes the prohibition in paragraph (3) 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 financial services or funds (as the case may be) were provided in pursuance of or in connection with an arrangement mentioned in that paragraph.

Brokering services: non-UK activity relating to gold, precious metals or diamonds

55

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

(a) the direct or indirect supply or delivery of gold, precious metals or diamonds from a non-UK country to a different non-UK country,

(b) directly or indirectly making gold, precious metals or diamonds available in a non-UK country for supply or delivery to a different non-UK country,

(c) the direct or indirect acquisition, in a non-UK country, of gold, precious metals or diamonds, for supply or delivery to a different non-UK country,

(d) the direct or indirect procurement from a non-UK country of technical assistance relating to gold, precious metals or diamonds,

(e) the direct or indirect procurement of financial services 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 54(1), or

(f) 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 54(1).

(2) 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 gold, precious metals or diamonds from a third country to a DPRK Government person,

(b) the direct or indirect supply or delivery of gold, precious metals or diamonds from a DPRK Government person to a place in a third country,

(c) directly or indirectly making gold, precious metals or diamonds available in a third country for direct or indirect supply or delivery to a DPRK Government person, or

(d) the direct or indirect acquisition in a third country of gold, precious metals or diamonds from a DPRK Government person.

(3) Paragraphs (1) and (2) are subject to Part 9 (Exceptions and licences).

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

(5) A person who contravenes a prohibition in paragraph (2) 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.

(6) In this regulation—

“non-UK country” means—for the purposes of paragraph (1)(a), (b) and (c), a country that is not the United Kingdom or the Isle of Man,for the purposes of any other provision of this regulation, a country that is not the United Kingdom;

“third country” means a country that is not the United Kingdom, the Isle of Man or the DPRK.

Mining, manufacturing and computer services

56

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

(a) services incidental to mining to a person connected with the DPRK;

(b) services incidental to mining where the mining is carried on in the DPRK;

(c) services incidental to manufacturing in the chemical, mining and refining industry to a person connected with the DPRK;

(d) services incidental to manufacturing in the chemical, mining and refining industry where the manufacturing is carried on in the DPRK;

(e) computer and related services to or for the benefit of a person connected with the DPRK.

(2) Paragraph (1) is subject to Part 9 (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 an offence of contravening paragraph (1)(a), (c) or (e) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with the DPRK;

(b) it is a defence for a person charged with an offence of contravening paragraph (1)(b) or (d) to show that the person did not know and had no reasonable cause to suspect that the mining or manufacturing (as the case may be) was carried on in the DPRK.

(4) In this regulation, the following terms are to be read in accordance with Annex XII of Council Regulation (EU) No 2017/1509 of 30 August 2017 concerning restrictive measures against the Democratic People's Republic of Korea and repealing Regulation (EC) No 329/2007, as it has effect immediately before IP completion day —

“services incidental to mining”;

“services incidental to manufacturing in the chemical, mining and refining industry”;

“computer and related services”.

Financial support for trade

57

(1) A person must not provide financial services or funds for the purpose of trade with the DPRK.

(2) The prohibition in paragraph (1) does not apply to any provision of financial services or funds prohibited by Chapter 1 of this Part or in any other regulation in this Chapter.

(3) Paragraph (1) is subject to Part 9 (Exceptions and licences).

(4) 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 financial services or funds provided (as the case may be) were for the purpose of trade with the DPRK.

CHAPTER 3 — Services relating to ships and aircraft

Leasing or chartering of ships and aircraft

58

(1) A person must not lease or charter a ship or an aircraft to—

(a) a designated person,

(b) a person acting on behalf of or at the direction of a designated person,

(c) a person, other than an individual, which is owned or controlled directly or indirectly (within the meaning of regulation 7) by a designated person, or

(d) a person connected with the DPRK.

(2) Paragraph (1) is subject to Part 9 (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 a designated person;

(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 acting on behalf of or at the direction of a designated person;

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

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

(4) In this regulation a “designated person” means—

(a) a person who is designated under regulation 5 for the purposes of this regulation and regulation 59 (crew services), or

(b) a person who is a designated person for the purposes of this regulation and regulation 59 by reason of regulation 10.

Crew services for ships and aircraft

59

(1) A person must not provide crew services to—

(a) a designated person,

(b) a person acting on behalf of or at the direction of a designated person,

(c) a person, other than an individual, which is owned or controlled directly or indirectly (within the meaning of regulation 7) by a designated person, or

(d) a person connected with the DPRK.

(2) A person must not procure crew services from a person connected with the DPRK.

(3) Paragraphs (1) and (2) are subject to Part 9 (Exceptions and licences).

(4) A person who contravenes a prohibition in paragraph (1) or (2) 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 a designated person;

(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 acting on behalf of or at the direction of a designated person;

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

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

(5) In this regulation “crew services” means services associated with the manning of a ship or aircraft or the provision of a crew or members of a crew for a ship or aircraft.

(6) In this regulation a “designated person” means—

(a) a person who is designated under regulation 5 for the purposes of regulation 58 (leasing or chartering of ships and aircraft) and this regulation, or

(b) a person who is a designated person for the purposes of regulation 58 and this regulation by reason of regulation 10.

Ship classification services

60

(1) A person must not provide classification services relating to —

(a) a specified ship,

(b) a ship registered in the DPRK, or

(2) Paragraph (1) is subject to Part 9 (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 specified ship, a ship registered in the DPRK or (as the case may be) a ship flying the flag of the DPRK.

(4) In this regulation—

“classification services” means any services supplied for or in connection with the classification or certification of a ship, including—the production and application of classification rules or technical specification concerning the design, construction, equipment or maintenance of ships and shipboard management systems;surveys and inspections in accordance with classification rules and procedures;the assignment of a class notation;the delivery, endorsement or renewal of certificates of compliance with classification rules or specifications;

“specified ship” means a ship specified by the Secretary of State under regulation 11(1) or (2).

Ship supply services

61

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

(2) Paragraph (1) is subject to Part 9 (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 specified 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; andany other servicing of a ship;

“specified ship” means a ship specified by the Secretary of State under regulation 11(1) or (2).

CHAPTER 4 — Interpretation and further provision

Circumventing etc. prohibitions

62

(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, 2 or 3 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.

Defences

63

(1) Paragraph (2) applies where a person relies on a defence under Chapter 1, 2 or 3 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.

Interpretation of Part 6

64

(1) In this Part—

“aircraft” includes unmanned aircraft and aircraft capable of spaceflight activities.

“aviation fuel” means any thing listed in Annex III of Regulation 2017/1509;

“bank notes or coinage” means newly printed or unissued DPRK-denominated bank notes or minted coinage;

“coal, iron and iron ore” means any thing listed in Annex V of Regulation 2017/1509;

“condensates and natural gas liquids” means any thing listed in Annex XIc of Regulation 2017/1509;

“copper, nickel, silver and zinc” means any thing listed in Annex VII of Regulation 2017/1509;

“crude oil” means any thing listed in Annex XIe of Regulation 2017/1509;

“DPRK Government person” means—the Government of the DPRK or any member of that Government,the Central Bank of the DPRK,a person acting on behalf of or at the direction of a person falling within paragraph (a) or (b), ora person, other than an individual, which is owned or controlled directly or indirectly (within the meaning of regulation 7) by a person falling within paragraph (a) or (b);

“dual-use goods” means—any thing for the time being specified in Annex I of the Dual-Use Regulation, other than any thing which is dual-use technology, andany tangible storage medium on which dual-use technology is recorded or from which it can be derived;

“dual-use technology” means any thing for the time being specified in Annex I of the Dual-Use Regulation which is described as software or technology;

“earth and stone” means any thing listed in Annex XIi of Regulation 2017/1509;

“food and agricultural products” means any thing listed in Annex XIg of Regulation 2017/1509;

“gold ores and concentrates, titanium ore, vanadium ore and rare-earth minerals” means any thing listed in Annex IV of Regulation 2017/1509;

“gold, precious metals or diamonds” means any thing listed in Annex IX of Regulation 2017/1509;

“helicopters and vessels” means any thing listed in Annex XI of Regulation 2017/1509;

“industrial machinery, vehicles, iron, steel and other metals” means any thing listed in Part A of Annex XIl of Regulation 2017/1509;

“lead and lead ore” means any thing listed in Annex XIb of Regulation 2017/1509;

“luxury goods” means any thing listed in Annex VIII of Regulation 2017/1509;

“machinery and electrical equipment” means any thing listed in Annex XIh of Regulation 2017/1509;

“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, andany 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;

“other arms- and WMD-related goods” means—any thing specified in an other arms- and WMD-related list, other than any thing which is other arms- and WMD-related technology, andany tangible storage medium on which other arms- and WMD-related technology is recorded or from which it can be derived;

“other arms- and WMD-related list” means—Schedule 2 to these Regulations,any of the following, as amended from time to time—Annex III of resolution 2321,the Annex of S/2016/308 (list approved by the Committee pursuant to paragraph 25 of resolution 2270),the Annex of S/2017/728 (list approved by the Committee pursuant to paragraph 4 of resolution 2371),the Annex of S/2017/760 (list approved by the Committee pursuant to paragraph 5 of resolution 2371),the Annex of S/2017/822 (list approved by the Committee pursuant to paragraph 4 of resolution 2375),the Annex of S/2017/829 (list approved by the Committee pursuant to paragraph 5 of resolution 2375), andany other list approved by the Committee from time to time pursuant to a paragraph of a UN Security Council Resolution mentioned in any of sub-paragraphs (ii) to (vi) of paragraph (b);

“other arms- and WMD-related technology” means any thing specified in an other arms- and WMD-related list which is described as software or technology (but see paragraph (2));

“petroleum products” means any thing listed in Annex VI of Regulation 2017/1509;

“refined petroleum products” means any thing listed in Annex XId of Regulation 2017/1509;

“Regulation 2017/1509” means Council Regulation (EU) No 2017/1509 of 30 August 2017 concerning restrictive measures against the Democratic People's Republic of Korea and repealing Regulation (EC) No 329/2007, as it has effect immediately before IP completion day;

“restricted goods” means—military goods,dual-use goods, andother arms- and WMD-related goods;

“restricted technology” means—military technology,dual-use technology, andother arms- and WMD-related technology;

“seafood” means any thing listed in Annex XIa of Regulation 2017/1509;

“ship” includes every description of vessel (including a hovercraft) used in navigation;

“statues” means any thing listed in Annex X of Regulation 2017/1509;

“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, orany other technical service relating to the goods or technology;

“textiles” means any thing listed in Annex XIf of Regulation 2017/1509;

“transfer” has the meaning given in paragraph 37 of Schedule 1 to the Act;

“vessels” means any thing listed in Annex XIk of Regulation 2017/1509;

“wood” means any thing listed in Annex XIj of Regulation 2017/1509.

(2) The definition of “other arms- and WMD-related technology” does not include technology which is—

(a) in the public domain;

(b) basic scientific research;

(d) the minimum necessary for the installation, operation, maintenance and repair of any goods which are not prohibited goods.

(3) In paragraph (2)—

(a) “prohibited goods” means goods dealt with in contravention of a prohibition—

(i) in any of regulations 35 to 38 (trade sanctions relating to restricted goods),

(ii) in any of regulations 43 to 52 (trade sanctions relating to goods other than restricted goods), or

(iii) imposed by a condition of a trade licence in relation to a prohibition mentioned in paragraph (i) or (ii).

(b) the following terms have the meaning given to them in the Dual-Use Regulation—

“basic scientific research”;

“in the public domain”.

(4) For the purposes of regulations 42 and 55 (brokering services: non-UK activity relating to restricted goods, restricted technology, gold, precious metals or diamonds), the definition of “country” in section 62(1) of the Act does not apply.

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

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

PART 7 — Aircraft

Movement of aircraft

65

(1) A DPRK aircraft must not, otherwise than for the purposes of operations in respect of which a permission is required under article 250 or 252 of the ANO—

(a) overfly the United Kingdom, or

(b) land in the United Kingdom.

(2) Paragraph (1) is subject to Part 9 (Exceptions and licences).

(3) The Secretary of State may direct the CAA to—

(a) refuse permission under article 250 of the ANO in respect of a DPRK aircraft;

(b) refuse permission under article 252 of the ANO in respect of a DPRK aircraft;

(d) revoke any permission granted under article 252 of the ANO in respect of a DPRK aircraft.

(4) Air traffic control may direct the operator or pilot in command of a DPRK aircraft—

(a) not to enter the airspace over the United Kingdom;

(b) to leave the airspace over the United Kingdom by a specified route.

(5) The Secretary of State may direct air traffic control to give a direction under paragraph (4).

(6) An airport operator may direct the operator or pilot in command of a DPRK aircraft—

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

(b) to take off, or to require the aircraft to take off, from an airport;

(7) The Secretary of State may direct an airport operator to give a direction under paragraph (6).

(8) An airport operator giving a direction under paragraph (6)(a) must take such steps as are reasonably practicable to detain the aircraft.

(9) The Secretary of State may direct an airport operator to secure the detention of a DPRK aircraft at an airport.

(10) The Secretary of State may direct an airport operator to secure the movement of a DPRK aircraft to a specified airport.

Directions under regulation 65: supplementary

66

(1) Where a direction is given under regulation 65(3)(c) or (d)—

(a) to the extent that the direction conflicts with the requirements of article 255 of the ANO (revocation etc. of permissions), those requirements are to be disregarded, and

(b) article 255(4) of the ANO does not apply in relation to the revocation which is the subject of the direction.

(2) Where a direction is given under regulation 65 which conflicts with a permission under article 250 or 252 of the ANO, the permission is to be disregarded.

(3) In so far as a direction under regulation 65 conflicts with the requirements of section 93 of the Transport Act 2000 or of an order under section 94 of that Act, the direction is to be disregarded.

(4) In so far as a direction under regulation 65 conflicts with the requirements of an enactment other than section 93 of the Transport Act 2000 or an order under section 94 of that Act, the requirements are to be disregarded.

(5) The Secretary of State may notify a person that the existence, any part of the content of a direction under regulation 65, or anything done under the direction, is to be treated as confidential.

(6) A person must not disclose any information if the Secretary of State notifies that person under paragraph (5) that the information is to be treated as confidential.

Offences

67

(1) If a prohibition in regulation 65(1) is contravened by the flight or landing of a DPRK aircraft, the operator and pilot in command of the aircraft commit an offence.

(2) It is an offence for an airport operator to fail, without reasonable excuse, to comply with a direction given by the Secretary of State under regulation 65(7), (9) or (10).

(3) It is an offence for a person to whom a direction is given under regulation 65(4) (direction by air traffic control to operator or pilot of DPRK aircraft) to fail to comply with the direction.

(4) It is an offence for a person to whom a direction is given under regulation 65(6) (direction by airport operator to operator or pilot of DPRK aircraft) to fail to comply with the direction.

(5) A person who contravenes the prohibition in regulation 66(6) (disclosure of direction) commits an offence.

Interpretation of Part 7

68

(1) In this Part—

“air traffic control” means a person who holds a licence under Chapter 1 of Part 1 of the Transport Act 2000 (air traffic services);

“the ANO” means the Air Navigation Order 2016 ;

“beneficial interest” means any beneficial interest, however arising (whether held by trustee or nominee or arising under a contract or otherwise), other than an interest held by any person as mortgagee;

“DPRK aircraft” means an aircraft—owned, chartered or operated by a person connected with the DPRK,registered in the DPRK, ororiginating from the DPRK;

“specified” means specified in a direction under regulation 65.

(2) For the purposes of paragraph (a) of the definition of “DPRK aircraft”, an aircraft is “owned” by a person if—

(a) the legal title to the aircraft, or to any share in the aircraft, is vested in the person, or

(b) the person has a beneficial interest in the aircraft or in any share in the aircraft,

and the reference to a legal title or other interest includes one held jointly with any other person or persons.

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

PART 8 — Ships

Ownership etc. of DPRK ships

69

(1) A person must not own, control, charter or operate a DPRK ship.

(2) Paragraph (1) is subject to Part 9 (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—

(a) the ship was not a DPRK ship at the time that the person first owned, controlled, chartered or operated it, and

(b) as soon as possible after the ship became a DPRK ship, the person took all reasonably practicable steps to relinquish their interest in, or cease their use of, the ship.

(4) In this regulation, a “DPRK ship” means—

(a) a ship registered in the DPRK, or

(b) a ship flying the flag of the DPRK.

Dealing with UN-designated ships subject to asset-freeze

70

(1) A person must not deal with a UN-designated ship subject to an asset-freeze if the person knows, or has reasonable cause to suspect, that the person is dealing with such a ship.

(2) Paragraph (1) is subject to Part 9 (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 a ship if the person is a party to any arrangement the object or effect of which is—

(a) the sale, leasing or exchange of the ship or any interest in the ship, or

(b) the use of the ship, or any interest in the ship, in exchange for funds, goods or services (whether by the pledge of the ship, or any interest in the ship, as security or otherwise).

(5) In this regulation a “UN-designated ship subject to an asset-freeze” means a ship designated by the Security Council or the Committee for the purposes of the provisions listed in paragraph (6) as a ship in respect of which the measures required by paragraph 8(d) of resolution 1718 (asset-freeze etc.) are to be taken.

(6) The provisions referred to in paragraph (5) are—

(a) paragraph 12(d) of resolution 2321;

(b) paragraph 8 of resolution 2375.

Prohibition on port entry

71

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

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

(3) Paragraphs (1) and (2) are subject to Part 9 (Exceptions and licences) (see, in particular, regulation 86).

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

(5) Paragraphs (1) and (2) apply to—

(a) a ship owned, controlled, chartered or operated by designated persons,

(b) a ship owned, controlled, chartered or operated by persons connected with the DPRK,

(d) a ship registered in the DPRK,

(e) a ship flying the flag of the DPRK, or

(f) a ship for the time being designated by the Security Council or the Committee as a ship in respect of which a UN Security Council Resolution provides for port entry to be prohibited.

(6) In paragraph (5) a “designated person” means—

(a) a person who is designated under regulation 5 for the purposes of this regulation and regulation 73 (movement of ships), or

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

Directions prohibiting port entry

72

(1) A port barring direction may be given to the master or pilot of—

(a) a ship originating from the DPRK, or

(b) a specified ship.

(2) A port barring direction may be given by—

(a) the Secretary of State, or

(b) a harbour authority.

(3) The Secretary of State may direct a harbour authority to take such steps as are reasonably practicable to secure that a ship mentioned in paragraph (1) does not enter a port or ports specified in the direction, or any port.

(4) It is an offence for a person to whom a direction is given under this regulation to fail to comply with the direction.

(5) The Secretary of State may notify a person that the existence of a port barring direction, any part of the content of the direction, or anything done under the direction, is to be treated as confidential.

(6) It is an offence for a person to disclose information if the Secretary of State has notified that person under paragraph (5) that the information is to be treated as confidential.

(7) In this regulation, a “port barring direction” means a direction prohibiting a ship from entering a port or ports specified in the direction, or any port.

Movement of ships

73

(1) A port entry direction or a movement direction may be given to the master or pilot of—

(a) a ship owned, controlled, chartered or operated by designated persons,

(b) a ship owned, controlled, chartered or operated by persons connected with the DPRK,

(d) a ship flying the flag of the DPRK,

(e) a ship originating from the DPRK, or

(f) a specified ship.

(2) A port entry direction or a movement direction under paragraph (1) may be given by—

(a) the Secretary of State, or

(b) a harbour authority.

(3) The Secretary of State may direct a harbour authority to take such steps as are reasonably practicable to secure that a ship mentioned in paragraph (1)—

(a) proceeds to or enters a port specified in the direction,

(b) leaves a port specified in the direction,

(d) remains where it is.

(4) A port entry direction may be given to the master or pilot of—

(a) a UN-designated ship required to enter port, or

(b) a UN-designated ship barred from port entry.

(5) A direction under paragraph (4) may be given by—

(a) the Secretary of State, or

(b) a harbour authority.

(6) The Secretary of State may direct a harbour authority to take such steps as are reasonably practicable to secure that a ship mentioned in paragraph (4) proceeds to or enters a port specified in the direction.

(7) It is an offence for a person to whom a direction is given under this regulation to fail to comply with the direction.

(8) The Secretary of State may notify a person that the existence of a port entry direction or a movement direction, any part of the content of the direction, or anything done under the direction, is to be treated as confidential.

(9) It is an offence for a person to disclose information if the Secretary of State has notified that person under paragraph (8) that the information is to be treated as confidential.

(10) In this regulation—

a “designated person” means a person who is designated under regulation 5 for the purposes of regulation 71 (prohibition on port entry) and this regulation; a “movement direction” means a direction requiring a ship—to leave a port specified in the direction,to proceed to a place specified in the direction, orto remain where it is;

a “port entry direction” means a direction requiring a ship to proceed to or enter a port specified in the direction;

a “UN-designated ship barred from port entry” means a ship for the time being designated by the Security Council or the Committee as a ship in respect of which a UN Security Council Resolution provides for port entry to be prohibited;

a “UN-designated ship required to enter port” means a ship for the time being designated by the Security Council or the Committee as a ship in respect of which a UN Security Council Resolution provides for direction to a port.

DPRK ships: transfers of goods

74

(1) A person must not transfer any goods—

(a) from a ship to a DPRK ship, or

(b) from a DPRK ship to another ship,

if the goods originated in, or are destined for, the DPRK.

(2) Paragraph (1) is subject to Part 9 (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—

(a) the goods originated in, or were destined for, the DPRK, or

(b) the ship was a DPRK ship.

(4) In this regulation, a “DPRK ship” means—

(a) a ship registered in the DPRK, or

(b) a ship flying the flag of the DPRK.

(5) For the purposes of this regulation—

(a) a reference to goods which “originate” in the DPRK includes a reference to goods which are manufactured or produced in the DPRK, and

(b) a reference to goods which are “destined” for the DPRK includes a reference to goods which are ultimately destined for the DPRK.

Detention of ships

75

(1) A detention direction may be given to the master of a ship to which this paragraph applies by—

(a) the Secretary of State, or

(b) a harbour authority.

(2) The Secretary of State may direct a harbour authority to give a detention direction to the master of a ship to which this paragraph applies.

(3) A “detention direction” means a direction requiring the detention of a ship at a port or anchorage.

(4) A detention direction given in relation to a ship—

(a) must be in writing,

(b) must be delivered to the master of the ship by the person who detains the ship,

(d) must state that—

(i) it is given under this regulation, and

(ii) any requirements imposed by the direction must be complied with.

(5) Paragraph (6) applies if—

(a) the ship is not a British ship, and

(b) there is in the United Kingdom a consular officer for the country to which the ship belongs.

(6) A copy of the detention direction must be sent as soon as practicable to the nearest consular officer for the country to which the ship belongs.

(7) Section 284(1), (2), (2A), (2B), (3) and (8) of the Merchant Shipping Act 1995 (enforcement of detention of ships) applies in the case of detention under a detention direction as it applies in the case of detention authorised or ordered by that Act, but as if—

(a) any reference in that section to a notice of detention were to the detention direction, and

(b) the reference in subsection (2A) of that section to a direction given under subsection (1A)(a) of that section were to any requirement imposed by the detention direction.

(8) Paragraphs (1) and (2) apply to the following when at a port or anchorage—

(a) a specified ship;

(b) a ship for the time being designated by the Security Council or the Committee as a ship in respect of which the measures required by paragraph 8(d) of resolution 1718 (asset-freeze etc.) are to be taken.

(9) In this regulation, “consular officer”, in relation to a foreign country, means the officer recognised by Her Majesty as a consular officer of that foreign country.

Registration etc. of ships in the DPRK

76

(1) A person must not register a ship in the DPRK.

(2) A person must not obtain authorisation for a ship to fly the flag of the DPRK.

(3) Paragraphs (1) and (2) are subject to Part 9 (Exceptions and licences).

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

Registration of ships in the United Kingdom

77

(1) The Registrar must refuse to register a ship if, on the basis of the information given to the Registrar by the Secretary of State or accompanying the application for registration, the ship appears to the Registrar to be a DPRK ship.

(2) The Registrar must refuse to register—

(a) a specified ship;

(b) a ship de-registered by a country other than the United Kingdom.

(3) The Secretary of State may direct the Registrar to terminate the registration of—

(a) a DPRK ship,

(b) a specified ship,

(c) a ship for the time being designated by the Security Council or the Committee as a ship in respect of which a UN Security Council Resolution provides for de-registration or de-flagging, or

(d) a ship de-registered by a country other than the United Kingdom.

(4) For the purposes of this regulation, a ship is a “DPRK ship” if—

(a) the legal title to the ship, or to any share in the ship, is vested in a person connected with the DPRK;

(b) a person connected with the DPRK has a beneficial interest in the ship or in any share in the ship; or

(5) In this regulation, “bareboat charter terms” has the meaning given by section 17(11) of the Merchant Shipping Act 1995.

(6) For the purposes of this regulation—

(a) any reference to registering a ship is to registering the ship in the register of British ships maintained by the Registrar;

(b) a ship is “de-registered by a country other than the United Kingdom” if, in compliance with paragraph 12 of resolution 2397 (de-registration of ships involved in breaches of sanctions), the entry relating to the ship has been removed from a register of ships maintained in a country other than the United Kingdom.

Circumventing etc. prohibitions

78

(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—

(i) the prohibition in regulation 70 (dealing with UN-designated ships subject to asset-freeze), or

(ii) the prohibition in regulation 74 (DPRK ships: transfers of goods), 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.

Defences

79

(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.

Interpretation of Part 8

80

(1) For the purposes of this Part—

(a) a ship is “owned” by a person if—

(i) the legal title to the ship, or to any share in the ship, is vested in the person, or

(ii) the person has a beneficial interest in the ship or in any share in the ship;

(b) a ship is “controlled” by a person who is able to take decisions about its operation, including (but not limited to) decisions about the route the ship may take and the appointment of master or crew;

(c) a ship is “crewed by persons connected with the DPRK” if any member of the ship's crew is a person connected with the DPRK.

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

(a) a person is a member of a ship's crew if the person is employed or engaged in the working or service of the ship (whether paid or not), and

(b) the master of the ship, but not the pilot, is a member of the crew.

(3) Any reference in this Part to a legal title or other interest includes one held jointly with any other person or persons.

(4) In this Part—

“beneficial interest” means any beneficial interest, however arising (whether held by trustee or nominee or arising under a contract or otherwise), other than an interest held by any person as mortgagee;

“specified ship” means a ship specified by the Secretary of State under regulation 11(1).

(5) Any 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.

PART 9 — Exceptions and licences

Asset-freeze etc.: exceptions from prohibitions

81

(1) The prohibition in regulation 13 (asset-freeze in relation to designated persons) is 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 13 to 15 (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 with interest or other earnings due on the account.

(4) The prohibitions in regulations 14 and 15 (making funds available to, or for the benefit of, designated persons) are not contravened by a relevant institution crediting a frozen account where it receives funds transferred to that institution for crediting to that account.

(5) The prohibitions in regulations 14 and 15 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 13 to 15 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

(7) The prohibitions in regulations 13 to 17 (asset-freeze etc.) do not apply to—

(a) a transaction with the Foreign Trade Bank of the Democratic People's Republic of Korea at any time when that bank is a designated person, or

(b) a transaction with the Korean National Insurance Company at any time when that company is a designated person,

if the transaction is solely for an exempt purpose.

(8) For the purposes of paragraph (7), a transaction is for an exempt purpose if it is solely for the purposes of—

(a) the operation of a diplomatic mission or consular post in the DPRK, or

(b) any humanitarian assistance activities that are undertaken by, or in co-ordination with, the United Nations.

(9) Where a person—

(a) is designated under regulation 5 for the purposes of regulations 13 to 17, and

(b) is a person whose designation is required by paragraph 32 of resolution 2270 (certain entities etc. of the Government of the DPRK or the Worker's Party of Korea),

the prohibitions in regulations 13 to 17 do not apply to anything done in relation to that person which is necessary for the operation of any of the DPRK's missions.

(10) In paragraph (9) “the DPRK's missions” means—

(a) missions of the DPRK to the United Nations and its specialised agencies and related organisations, and

(b) other diplomatic missions and consular posts of the DPRK.

(11) In this regulation—

“designated person” has the same meaning as it has in Part 4 (Finance);

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

“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).

(12) The definition of “relevant institution” in paragraph (11) 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.

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

(14) 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.

Land: exceptions from prohibitions

82

(1) The prohibition in regulation 57A(1)(a) (leasing or making available of land) is not contravened by the leasing or otherwise making available of land for the operation of a diplomatic mission or consular post.

(2) The prohibition in regulation 57A(1)(c) (activities linked to the use of land) does not apply to the provision of goods or services which—

(a) are necessary for the operation of a diplomatic mission or consular post, and

(b) cannot be used to generate income or profit directly or indirectly for the Government of the DPRK.

Transfers of funds: exceptions from prohibitions

83

(1) The prohibitions in regulation 28 (transfers of funds etc.) are not contravened by a person making or receiving a transfer of funds which—

(a) relates to a transaction mentioned in paragraph (2), and

(b) is of a value of £13,000 or less.

(2) The transactions are—

(a) a transaction relating to foodstuffs, healthcare or medical equipment;

(b) a transaction for agricultural or humanitarian purposes;

(c) a transaction which by virtue of this Part or a licence under this Part, does not contravene a prohibition in these Regulations;

(d) a transaction which relates to an activity which is mentioned in Part 6, and which is neither prohibited by that Part nor relates to anything prohibited by that Part;

(e) a transaction which is for the official purposes of a diplomatic or consular mission of the DPRK;

(f) transactions required exclusively for the implementation of projects which are funded by any part of the Government of the United Kingdom which are for—

(i) development purposes directly addressing the needs of the civilian population of the DPRK, or

(ii) the promotion of denuclearisation of the DPRK.

(3) The prohibitions in regulation 28 are not contravened by a person making or receiving a transfer of funds which—

(a) relates to a transaction regarding a personal remittance, and

(b) is of a value of £4,000 or less.

(4) The prohibitions in regulation 28 are not contravened by a person making or receiving a transfer of funds or by a UK credit or financial institution carrying out any other transaction which is necessary for the official purposes of a diplomatic mission or consular post in the DPRK or an international organisation enjoying immunities in the DPRK in accordance with international law.

(5) In this regulation—

(a) a reference to an amount in pounds sterling includes a reference to the equivalent amount in another currency;

(b) a reference to a transfer of funds of a particular amount includes a transfer executed in several linked operations which appear to be linked, as well as a transfer executed in a single operation; and

Trade: exceptions from prohibitions

84

(1) The prohibitions in regulations 45(1)(a), 46(1) and 47(1) are not contravened by the export, supply, delivery or making available of aviation fuel—

(a) in a third country, and

(b) exclusively for use—

(i) in a civilian passenger aircraft, and

(ii) for consumption by that aircraft in a flight to the DPRK from a place outside the DPRK, or the return flight from the DPRK to its airport of origin.

(2) The prohibition in regulation 45(1)(f) and the prohibitions in regulations 46(1), 47(1), 48(1) and (2), 49(1) and 50(1) in respect of luxury goods are not contravened by the import, export, supply, delivery, making available or acquisition of—

(a) the personal effects of a person travelling to or from the DPRK;

(b) goods of a non-commercial nature for the personal use of a person travelling to or from the DPRK and contained in that person's luggage;

(c) goods which are necessary for the official purposes of a diplomatic mission or consular post in the DPRK, or of an international organisation enjoying immunities in the DPRK in accordance with international law;

(d) the personal effects of a member of a diplomatic mission or consular post in the DPRK.

(3) The prohibition in regulation 56(1)(e) (provision of computer and related services) is not contravened by the provision of computer and related services —

(a) exclusively for the official purposes of a diplomatic mission or consular post in the DPRK, or of an international organisation enjoying immunities in the DPRK in accordance with international law;

(b) provided by persons that receive funding from any part of the Government of the United Kingdom to provide those services for—

(i) development purposes directly addressing the needs of the civilian population of the DPRK, or

(ii) the promotion of denuclearisation of the DPRK.

(4) The prohibition in regulation 61(1) is not contravened by the provision of bunkering or ship supply services where a failure to do so would endanger the lives of persons on board a ship.

(5) In this regulation—

(a) the following terms have the same meaning as they have in Part 6—

“aviation fuel”;

“bunkering or ship supply services”;

“luxury goods”;

“computer and related services”;

(b) “third country” means a country that is not the United Kingdom, the Isle of Man or the DPRK.

Aircraft: exceptions from prohibition

85

(1) The prohibition in regulation 65(1)(b) is not contravened by the landing of a DPRK 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 65(1)(a) is not contravened by the flight of a DPRK aircraft in the airspace over the United Kingdom preparatory to a landing as mentioned in paragraph (1).

(3) In this regulation, “DPRK aircraft” has the same meaning as it has in Part 7 (Aircraft).

Ships: exceptions from prohibitions on port entry

86

(1) The prohibition in regulation 71(1) is not contravened by providing a ship with access to a port if—

(a) a port entry direction has been given in relation to the ship under regulation 73 (movement of ships), or

(b) the access is needed by the ship in a case of emergency.

(2) The prohibition in regulation 71(2) is not contravened by the entry into port of a ship if—

(a) a port entry direction has been given in relation to the ship under regulation 73, or

(b) the entry is needed by the ship in a case of emergency.

Exception for acts done for purposes of national security or prevention of serious crime

87

(1) Where an act would, in the absence of this paragraph, be prohibited by regulation 9(2) (confidentiality) or 101(2) (proliferation financing) or any prohibition in Part 4 (Finance), 6 (Trade), 7 (Aircraft) or 8 (Ships), that prohibition does not apply to the act if the act is one which a responsible officer has determined would be in the interests of—

(a) national security, or

(b) the prevention or detection of serious crime in the United Kingdom or elsewhere.

(2) Where, in the absence of this paragraph, a thing would be required to be done under or by virtue of a provision of Chapter 2 of Part 4 (Investment, financial services and financial markets), Part 7 (Aircraft), 8 (Ships), 10 (Information) or 12 (Maritime enforcement), that requirement does not apply if a responsible officer has determined that not doing the thing in question would be in the interests of—

(a) national security, or

(b) the prevention or detection of serious crime in the United Kingdom or elsewhere.

(3) In this regulation “responsible officer” means a person in the service of the Crown or holding office under the Crown, acting in the course of that person's duty.

(4) Nothing in this regulation affects the application of a prohibition or requirement in a case where it would be incompatible with a UN obligation for the prohibition or requirement not to apply.

Treasury licences

88

(1) The prohibitions in regulations 13 to 17 (asset-freeze etc.), regulation 70 (dealing with UN-designated ships subject to asset-freeze) and in the financial services provisions do not apply to anything done under the authority of a licence issued by the Treasury under this paragraph.

(2) Paragraphs (3) and (4) apply to the issuing of a licence which authorises acts which would otherwise be prohibited by regulations 13 to 17.

(3) The Treasury may issue a licence which authorises acts by a particular person in relation to a non-UN designated person only where the Treasury consider that it is appropriate to issue the licence for a purpose set out in Part 1 or 2 of Schedule 3.

(4) The Treasury may issue a licence which authorises acts in relation to a UN designated person only where the Treasury consider that it is appropriate to issue the licence for a purpose set out in Part 1 or 1A of Schedule 3.

(5) The Treasury may issue a licence which authorises acts which would otherwise be prohibited by regulation 28 only where it considers it appropriate in the following circumstances—

(a) for a transfer of funds of a value over £13,000, which relates to a transaction mentioned in regulation 83(2),

(b) for a transfer of funds of a value over £4,000, which relates to a transaction regarding a personal remittance, or

(i) any humanitarian assistance activity, or

(ii) any activity whose purpose is consistent with the objectives of resolution 1718, 1874, 2087, 2094, 2270, 2321, 2356, 2371, 2375 or 2397.

(6) In paragraph (1) “the financial services provisions” means regulations 18, 20 to 22 and 24 to 30, excluding regulation 26(7).

(7) In paragraph (4) “UN designated person” means—

(a) a person who is a designated person for the purposes of regulations 13 to 17 by reason of regulation 10 (designation of persons named by or under UN Security Council Resolutions), or

(b) a person who is designated under regulation 5 (power to designate persons) for the purposes of regulations 13 to 17 and whose designation is (in the opinion of the Secretary of State) required by paragraph 32 of resolution 2270 or a provision mentioned in regulation 4(4).

(8) The reference in paragraph (3) to a non-UN designated person is 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.

(9) The reference in paragraph (4) to a UN designated person 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.

Treasury directions

89

The requirements in regulations 19 (severance of existing financial relationships), 23 (closure of representative offices) and 26(7) (closure of joint venture or co-operative entity) have effect subject to any exceptions specified in a direction issued by the Treasury under this regulation.

Trade licences

90

The prohibitions in Chapters 1, 2 and 3 of Part 6 (Trade) do not apply to anything done under the authority of a licence issued by the Secretary of State under this regulation.

Aircraft licences

91

The prohibition in regulation 65(1) does not apply to anything done under the authority of a licence issued by the Secretary of State under this regulation.

Ship licences

92

(1) The prohibitions in the regulations mentioned in paragraph (2) do not apply to anything done under the authority of a licence issued by the Secretary of State under this regulation.

(2) The regulations are—

(a) regulation 69 (ownership etc. of DPRK ships),

(b) regulation 74 (DPRK ships: transfers of goods), and

Licences: general provisions

93

(1) This regulation applies in relation to Treasury licences, director disqualification licences, trade licences and transport licences.

(2) A licence must specify the acts authorised by it.

(3) A licence may be general or may authorise acts by a particular person or persons of a particular description.

(4) A licence may—

(a) contain conditions;

(b) be of indefinite duration or a defined duration.

(5) A person who issues a licence may vary, revoke or suspend it at any time.

(6) A person who , on the application of a person (“P”), issues a licence which authorises acts by a particular person , or varies, revokes or suspends that licence, must give written notice to P of the issue, variation, revocation or suspension of the licence.

(7) A person who issues, varies, revokes or suspends a general licence or a licence which authorises acts by persons of a particular description must take such steps as that person considers appropriate to publicise the issue, variation, revocation or suspension of the licence.

Treasury directions: general provisions

94

(1) This regulation applies in relation to Treasury directions.

(2) A direction may be general or may except conduct by a particular person or persons of a particular description.

(3) A direction may—

(a) contain conditions;

(b) be of indefinite duration or a defined duration.

(4) The Treasury may vary, revoke or suspend a direction at any time.

(5) On the issue, variation, revocation or suspension of a direction, the Treasury must—

(a) in the case of a direction which excepts conduct by a particular person, give written notice to that person of the issue, variation, revocation or suspension of the direction;

(b) in the case of a general direction or a direction which excepts conduct by persons of a particular description, take such steps as the Treasury consider appropriate to publicise the issue, variation, revocation or suspension of the direction.

Finance: licensing offences

95

(1) A person (“P”) commits an offence if P knowingly or recklessly—

(a) provides information that is false in a material respect, or

(b) provides or produces a document that is not what it purports to be,

for the purpose of obtaining a Treasury licence or Treasury direction (whether for P or anyone else).

(2) A person who purports to act under the authority of a Treasury licence, or who is excepted from a requirement by a Treasury direction, but who fails to comply with any condition of the licence or direction commits an offence.

Trade: licensing offences

96

(1) A person (“P”) commits an offence if P knowingly or recklessly—

(a) provides information that is false in a material respect, or

(b) provides or produces a document that is not what it purports to be,

for the purpose of obtaining a trade licence (whether for P or anyone else).

(2) A person who purports to act under the authority of a trade licence but who fails to comply with any condition of the licence commits an offence.

(3) A licence in respect of which an offence under paragraph (1) has been committed is to be treated as void from the time at which it was issued.

Ships and aircraft: licensing offences

97

(1) A person (“P”) commits an offence if P knowingly or recklessly—

(a) provides information that is false in a material respect, or

(b) provides or produces a document that is not what it purports to be,

for the purpose of obtaining a transport licence (whether for P or anyone else).

(2) A person who purports to act under the authority of a transport licence but who fails to comply with any condition of the licence commits an offence.

(3) A licence in respect of which an offence under paragraph (1) has been committed is to be treated as void from the time at which it was issued.

Section 8B(1) to (3) of Immigration Act 1971: directions

98

(1) The Secretary of State may direct that, in relation to any person within regulation 34 whose name is specified, or who is of a specified description, section 8B(1) and (2) of the Immigration Act 1971, or section 8B(3) of that Act, have effect subject to specified exceptions.

(2) A direction under this regulation—

(a) may contain conditions;

(b) must be of a defined duration (and that duration may be expressed in any way, including, for example, being expressed in a way such that the direction ceases to have effect on, or within a specified period after, the occurrence of a specified event).

(3) The Secretary of State may vary, revoke or suspend a direction under this regulation at any time.

(4) On the issue, variation, revocation or suspension of a direction under this regulation, the Secretary of State may take such steps as the Secretary of State considers appropriate to publicise the issue, variation, revocation or suspension of the direction.

(5) In this regulation “specified” means specified in a direction under this regulation.

PART 10 — Information and records

Finance: reporting obligations

99

(1) A relevant firm must inform the Treasury as soon as practicable if—

(a) it knows, or has reasonable cause to suspect, that a person—

(i) is a designated person, or

(ii) has breached a prohibition or failed to comply with an obligation under any provision of Part 4 (Finance), regulation 70 (dealing with UN-designated ships subject to asset-freeze) or 95 (finance: licensing offences), and

(b) the information or other matter on which the knowledge or cause for suspicion is based came to it in the course of carrying on its business.

(2) Where a relevant firm informs the Treasury under paragraph (1), it must state—

(a) the information or other matter on which the knowledge or suspicion is based, and

(b) any information it holds about the person by which the person can be identified.

(3) Paragraph (4) applies if—

(a) a relevant firm informs the Treasury under paragraph (1) that it knows, or has reasonable cause to suspect, that a person is a designated person, and

(b) that person is a customer of the relevant firm.

(4) The relevant firm must also state the nature and amount or quantity of any funds or economic resources held by it for the customer at the time when it first had the knowledge or suspicion.

(4A) Where a person (“P”) knows, or has reasonable cause to suspect, that P holds funds or economic resources owned, held or controlled by a designated person, P must by no later than 30th November in each calendar year provide a report to the Treasury as to the nature and amount or quantity of those funds or economic resources held by P as of 30th September in that calendar year.

(4B) Where a report has been provided further to paragraph (4A) but as of 30th September in the following calendar year P no longer holds funds or economic resources owned, held or controlled by the designated person, P must by no later than 30th November in that calendar year report this to the Treasury.

(4C) For the purposes of paragraphs (4A) and (4B), funds or economic resources are to be treated as owned, held or controlled by a designated person if they are owned, held or controlled by a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.

(5) A relevant institution must inform the Treasury without delay if that institution—

(a) credits a frozen account in accordance with regulation 81(4) (asset-freeze etc.: exceptions from prohibitions), or

(b) transfers funds from a frozen account in accordance with regulation 81(6).

(6) A person who fails to comply with a requirement in paragraph (1), (2) or (4) commits an offence.

(6A) A person commits an offence if that person, without reasonable excuse, fails to comply with a requirement in paragraph (4A) or (4B).

(7) In this regulation—

“designated person” has the same meaning as it has in Part 4;

“frozen account” has the same meaning as it has in regulation 81;

“relevant firm” is to be read in accordance with regulation 100;

“relevant institution” has the same meaning as it has in regulation 81.

“Relevant firm”

100

(1) The following are relevant firms for the purposes of regulations 99 and 101—

(a) a person that has permission under Part 4A of the Financial Services and Markets Act 2000 (permission to carry on regulated activity);

(b) an undertaking that by way of business—

(i) operates a currency exchange office,

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

(iii) cashes cheques that are made payable to customers;

(i) a statutory auditor within the meaning of Part 42 of the Companies Act 2006 (statutory auditors), or

(ii) a local auditor within the meaning of section 4(1) of the Local Audit and Accountability Act 2014 (general requirements for audit) ;

(d) a firm or sole practitioner that provides to other persons, by way of business—

(i) accountancy services,

(ii) legal or notarial services,

(iii) advice about tax affairs, or

(iv) trust or company services within the meaning of paragraph (2);

(e) a firm or sole practitioner that carries out, or whose employees carry out, estate agency work;

(f) the holder of a casino operating licence within the meaning given by section 65(2)(a) of the Gambling Act 2005 (nature of a licence) ;

(g) a person engaged in the business of making, supplying, selling (including selling by auction) or exchanging—

(i) articles made from gold, silver, platinum or palladium, or

(ii) precious stones or pearls.

(h) a cryptoasset exchange provider;

(i) a custodian wallet provider;

(j) a high value dealer;

(k) an art market participant;

(l) an insolvency practitioner;

(m) a firm or sole practitioner (“P”) that carries out, or whose employees carry out, letting agency work.

(2) In paragraph (1) “trust or company services” means any of the following services—

(a) forming companies or other legal persons;

(b) acting, or arranging for another person to act—

(i) as a director or secretary of a company,

(ii) as a partner of a partnership, or

(iii) in a similar capacity in relation to other legal persons;

(c) providing a registered office, business address, correspondence or administrative address or other related services for a company, partnership or any other legal person or arrangement;

(d) acting, or arranging for another person to act, as—

(i) a trustee of an express trust or similar legal arrangement, or

(ii) a nominee shareholder for a person.

(3) In paragraph (1)—

“estate agency work” is to be read in accordance with section 1 of the Estate Agents Act 1979 , but as if references in that section to disposing of or acquiring an interest in land included (despite anything in section 2 of that Act) references to disposing of or acquiring an estate or interest in land outside the United Kingdom where that estate or interest is capable of being owned or held as a separate interest;

“firm” means any entity that, whether or not a legal person, is not an individual, and includes a body corporate and a partnership or other unincorporated body.

(3A) In paragraph (1), a “cryptoasset exchange provider” means a firm or sole practitioner that by way of business provides one or more of the following services, including where the firm or sole practitioner does so as creator or issuer of any of the cryptoassets involved—

(a) exchanging, or arranging or making arrangements with a view to the exchange of, cryptoassets for money or money for cryptoassets,

(b) exchanging, or arranging or making arrangements with a view to the exchange of, one cryptoasset for another, or

(3B) In paragraph (1), a “custodian wallet provider” means a firm or sole practitioner that by way of business provides services to safeguard, or to safeguard and administer—

(a) cryptoassets on behalf of its customers, or

(b) private cryptographic keys on behalf of its customers in order to hold, store and transfer cryptoassets.

(3C) For the purposes of this regulation—

(a) “cryptoasset” means a cryptographically secured digital representation of value or contractual rights that uses a form of distributed ledger technology and can be transferred, stored or traded electronically;

(b) “money” means—

(i) money in sterling,

(ii) money in any other currency, or

(iii) money in any other medium of exchange,

but does not include a cryptoasset; and

(c) in sub-paragraphs (a) to (c) of paragraph (3A), “cryptoasset” includes a right to, or interest in, the cryptoasset.

(3D) In paragraph (1), a “high value dealer” means a firm or sole trader that by way of business trades in goods (including an auctioneer dealing in goods), when the firm or sole trader makes or receives, in respect of any transaction, a payment or payments in cash of at least 10,000 euros in total, whether the transaction is executed in a single operation or in several operations which appear to be linked.

(3E) In paragraph (1), an “art market participant” means, subject to paragraph (3F), a firm or sole practitioner that is registered or required to register with the Commissioners as an art market participant under regulation 56(5) and (6) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.

(3F) A firm or sole practitioner is not an art market participant for the purposes of paragraph (3E) in relation to the sale or storage of a work of art which is created by, or is attributable to, a member of the firm or the sole practitioner.

(3G) For the purposes of this regulation, “work of art” means anything which, in accordance with section 21(6) to (6B) of the Value Added Tax Act 1994 (value of imported goods), is a work of art for the purposes of section 21(5)(a) of that Act.

(3H) In paragraph (1), an “insolvency practitioner” means a firm or individual who acts as an insolvency practitioner within the meaning of section 388 of the Insolvency Act 1986 or Article 3 of the Insolvency (Northern Ireland) Order 1989.

(3I) In paragraph (1), “letting agency work” means work—

(a) consisting of things done in response to instructions received from—

(i) a person (a “prospective landlord”) seeking to find another person to whom to let land for a term of a month or more, or

(ii) a person (a “prospective tenant”) seeking to find land to rent for a term of a month or more, and

(b) done—

(i) in relation to a prospective landlord, from the point that the prospective landlord instructs P, or

(ii) otherwise in the course of concluding an agreement for the letting of land for a term of a month or more.

(3J) For the purposes of paragraph (3I)—

“land” includes part of a building and part of any other structure;

“letting agency work” does not include the things listed in paragraph (3K) when done by, or by employees of, a firm or sole practitioner if neither the firm or sole practitioner, nor any of their employees, does anything else within paragraph (3I).

(3K) Those things are—

(a) publishing advertisements or disseminating information;

(b) providing a means by which a prospective landlord or a prospective tenant can, in response to an advertisement or dissemination of information, make direct contact with a prospective tenant or a prospective landlord;

(d) the provision of legal or notarial services by a barrister, advocate, solicitor or other legal representative communications with whom may be the subject of a claim to professional privilege or, in Scotland, protected from disclosure in legal proceedings on grounds of confidentiality of communications.

(4) Paragraph (1)(a) and (b) is to be read with section 22 of the Financial Services and Markets Act 2000, any relevant order under that section and Schedule 2 to that Act.

(5) For the purposes of regulation 99(1), information or another matter comes to a relevant firm “in the course of carrying on its business” if the information or other matter comes to the firm—

(a) in the case of a relevant firm within paragraph (1)(a), in the course of carrying on an activity in respect of which the permission mentioned in that provision is required;

(b) in the case of a relevant firm within paragraph (1)(c)(i), in the course of carrying out statutory audit work within the meaning of section 1210 of the Companies Act 2006 (meaning of “statutory auditor”) ;

(c) in the case of a relevant firm within paragraph (1)(c)(ii), in the course of carrying out an audit required by the Local Audit and Accountability Act 2014;

(d) in the case of a relevant firm within paragraph (1)(f), in the course of carrying on an activity in respect of which the licence mentioned in that provision is required;

(da) in the case of a relevant firm within paragraph (1)(k)—

(i) in the course of trading, or acting as an intermediary in the sale or purchase of, works of art when the value of the transaction, or a series of linked transactions, amounts to 10,000 euros or more, or

(ii) in the course of storing works of art where the value of the works of art so stored for a person amounts to 10,000 euros or more;

(e) in the case of a relevant firm within any other provision of paragraph (1), in the course of carrying on an activity mentioned in that provision.

Proliferation financing

101

(1) A relevant firm must inform the National Crime Agency without delay if-—

(a) it knows or has reasonable cause to suspect, that a person is providing proliferation financing, and

(b) the information or other matter on which the knowledge or cause for suspicion is based came to it in the course of carrying on its business with a person falling within regulation 18(2).

(2) Where paragraph (1) applies, the relevant firm must not carry out any activity related to the proliferation financing or suspected proliferation financing (including, in particular, any transfer of funds or clearing of funds) until it has complied with the requirement in paragraph (1) and instructions provided by the Treasury or the Commissioners.

(3) A reference in this regulation to information or any other matter which comes to a person in the course of carrying on its business is to be read in accordance with regulation 100(5).

(4) A person who fails to comply with the requirement in paragraph (1) or who contravenes the prohibition in paragraph (2) commits an offence.

(5) In this regulation—

“proliferation financing” means making available funds that could contribute to any of the DPRK's banned programmes;

“relevant firm” is to be read in accordance with regulation 100.

Finance: powers to request information

102

(1) The Treasury may request a designated person to provide information about—

(a) funds or economic resources owned, held or controlled by or on behalf of the designated person, or

(b) any disposal of such funds or economic resources.

(2) The Treasury may request a designated person to provide such information as the Treasury may reasonably require about expenditure—

(a) by the designated person, or

(b) for the benefit of the designated person.

(3) For the purposes of paragraph (2), expenditure for the benefit of a designated person includes expenditure on the discharge (or partial discharge) of a financial obligation for which the designated person is wholly or partly responsible.

(4) The power in paragraph (1) or (2) is exercisable only where the Treasury believe that it is necessary for the purpose of monitoring compliance with or detecting evasion of any provision of Part 4 (Finance).

(5) The Treasury may request—

(a) a person acting under a Treasury licence to provide information about—

(i) funds or economic resources dealt with under the licence,

(ii) funds, economic resources or financial services made available under the licence, or

(iii) any matter to which a licence relates, where that licence authorises an act that would otherwise be prohibited under Chapter 2 of Part 4, including but not limited to a transfer of funds made or received under the licence, or a transaction entered into or participated in under the licence;

(b) a person excepted from a requirement by a Treasury direction to provide information about—

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