(1) Where a person's conduct in a relevant country would, in the absence of this regulation, contravene a prohibition in any of regulations 11 to 15 (asset-freeze etc.) , 16 (securities and money market instruments), 17 (loans and credit arrangements), 17A (corresponding banking relationships and processing payments) , 18 (investments in relation to non-government controlled Ukrainian territory) , 18A (provision of foreign reserve and asset management services) , 18B (investments in relation to Russia) and 18C (trust services) or Chapters 2 to 6 and Chapter 6B of Part 5 (Trade) (“the relevant prohibition”), the relevant prohibition is not contravened if the conduct is authorised by a licence or other authorisation which is issued—

(a) under the law of the relevant country, and

(b) for the purpose of disapplying a prohibition in that jurisdiction which corresponds to the relevant prohibition.

(2) In this regulation—

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

Treasury licences

Trade licences

Licences: general provisions

Finance: licensing offences

Trade: licensing offences

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

Part 8: supplementary

Correspondent banking relationships etc.

17A

(1) A UK credit or financial institution (“C”) (“the correspondent”) must not establish or continue a correspondent banking relationship with the following (“the respondent”)—

(a) a designated person (“D”),

(b) a UK credit or financial institution, which is owned or controlled directly or indirectly (within the meaning of regulation 7) by D, or

(c) a non-UK credit or financial institution, which is owned or controlled directly or indirectly (within the meaning of regulation 7) by D,

if C knows, or has reasonable cause to suspect, that the correspondent banking relationship is with a designated person.

(2) C must not process a ... payment to, from or via –

(a) D,

(b) a UK credit or financial institution, which is owned or controlled directly or indirectly (within the meaning of regulation 7) by D, or

(c) a non-UK credit or financial institution, which is owned or controlled directly or indirectly (within the meaning of regulation 7) by D,

if C knows, or has reasonable cause to suspect, that the ... payment is to, from or via such a person.

(3) Paragraphs (1) and (2) are subject to Part 7 (Exceptions and licences).

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

(5) For the purposes of this regulation, a reference to “processing” a payment—

(a) includes the clearing and settlement of a payment; but

(b) does not include the act of crediting a payment, for the first time, to C where that payment is credited to an account which is—

(i) in the name of C; and

(ii) not held on behalf of, or for the benefit of, a customer of C.

(6) In this regulation—

“correspondent banking relationship” means the provision of banking services by a correspondent to a respondent including providing a current or other liability account and related services, such as cash management, international funds transfers, cheque clearing, providing customers of the respondent with direct access to accounts with the correspondent (and vice versa) and providing foreign exchange services;

“designated person” means a person who is designated under regulation 5 (power to designate persons) for the purposes of this regulation;

“non-UK credit or financial institution” means—a person, other than an individual, which would satisfy the threshold conditions for permission under Part 4A of the Financial Services and Markets Act 2000 if it had its registered office (or if it does not have one, its head office) in the United Kingdom, oran undertaking, other than a UK credit or financial institution, which by way of business—operates a currency exchange office,transmits money (or any representation of monetary value) by any means, orcashes cheques that are made payable to customers;

“UK credit or financial institution” means—a person that has permission under Part 4A of the Financial Services and Markets Act 2000 (permission to carry on regulated activities), oran undertaking domiciled in the United Kingdom which by way of business—operates a currency exchange office,transmits money (or any representation of monetary value) by any means, orcashes cheques that are made payable to customers.

Investments in relation to Crimea

Provision of financial services relating to foreign exchange reserve and asset management

18A

(1) A person (“P”) must not provide financial services to a person mentioned in paragraph (2) where—

(a) the financial services are for the purpose of foreign exchange reserve and asset management; and

(b) P knows, or has reasonable cause to suspect, that the financial services are provided to such a person.

(2) The persons mentioned in this paragraph are—

(a) the Central Bank of the Russian Federation,

(b) the National Wealth Fund of the Russian Federation,

(d) a person owned or controlled directly or indirectly (within the meaning of regulation 7) by a person mentioned in sub-paragraphs (a) to (c), or

(e) a person acting on behalf of or at the direction of a person mentioned in sub-paragraphs (a) to (c).

(3) Paragraph (1) is subject to Part 7 (Exceptions and licences).

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

Interpretation of Part 3

19A

(1) In this Part—

“branch” means, in relation to a credit or financial institution, a place of business which forms a legally dependent part of that institution and which carries out all or some of the transactions inherent in the business of that institution;

“credit or financial institution” means a “UK credit or financial institution” or a “non-UK credit or financial institution;

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