Legalize / United Kingdom / Statutory-Instrument

The Russia (Sanctions) (EU Exit) Regulations 2019

Type Statutory-Instrument

Publication 2019-04-10

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) directly or indirectly make infrastructure-related goods available for use in non-government controlled Ukrainian territory.

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

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

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

(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 were for use in non-government controlled Ukrainian territory.

51

(1) A person must not directly or indirectly provide technical assistance relating to infrastructure-related goods—

(a) to a person connected with non-government controlled Ukrainian territory, or

(b) for use in non-government controlled Ukrainian territory.

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

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

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

(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 were for use in non-government controlled Ukrainian territory.

52

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

(a) the export of infrastructure-related goods,

(b) the direct or indirect supply or delivery of infrastructure-related goods,

(d) the direct or indirect provision of technical assistance relating to infrastructure-related goods.

(2) A person must not directly or indirectly make funds available to a person connected with non-government controlled Ukrainian territory 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 import of goods which originate in non-government controlled Ukrainian territory;

(b) the export of infrastructure-related goods to, or for use in, non-government controlled Ukrainian territory,

(c) the direct or indirect supply or delivery of infrastructure-related goods to a place in non-government controlled Ukrainian territory,

(d) directly or indirectly making infrastructure-related goods available—

(i) to a person connected with non-government controlled Ukrainian territory, or

(ii) for use in non-government controlled Ukrainian territory,

(e) the direct or indirect provision of technical assistance relating to infrastructure-related goods—

(i) to a person connected with non-government controlled Ukrainian territory, or

(ii) for use in non-government controlled Ukrainian territory.

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

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

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

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

53

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

(a) the import of goods which originate in non-government controlled Ukrainian territory;

(b) the direct or indirect supply or delivery of infrastructure-related goods from a third country to a place in non-government controlled Ukrainian territory,

(c) directly or indirectly making infrastructure-related goods available in a third country for direct or indirect supply or delivery—

(i) to a person connected with non-government controlled Ukrainian territory, or

(ii) to a place in non-government controlled Ukrainian territory,

(d) the direct or indirect provision, in a non-UK country, of technical assistance relating to infrastructure-related goods—

(i) to a person connected with non-government controlled Ukrainian territory, or

(ii) for use in non-government controlled Ukrainian territory,

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

(i) to a person connected with non-government controlled Ukrainian territory, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 52(1), or

(ii) where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 52(3) in relation to infrastructure-related goods,

(f) directly or indirectly making funds available, in a non-UK country, to a person connected with non-government controlled Ukrainian territory, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 52(1), or

(g) 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 52(3) in relation to infrastructure-related goods.

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

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

(4) In this regulation—

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

“third country” means a country that is not the United Kingdom, the Isle of Man or non-government controlled Ukrainian territory.

CHAPTER 6 — Other services relating to non-government controlled Ukrainian territory

Prohibition on providing certain services relating to non-government controlled Ukrainian territory

54

(1) A person must not provide—

(a) services relating to a relevant infrastructure sector in non-government controlled Ukrainian territory; or

(b) services relating to tourism in non-government controlled Ukrainian territory.

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

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

(a) it is a defence for a person charged with the offence in paragraph (1)(a) (“P”) to show that P did not know and had no reasonable cause to suspect that P was providing services relating to a relevant infrastructure sector in non-government controlled Ukrainian territory;

(b) it is a defence for a person charged with the offence in paragraph (1)(b) (“P”) to show that P did not know and had no reasonable cause to suspect that P was providing services relating to tourism in non-government controlled Ukrainian territory.

(4) In this regulation—

“services relating to a relevant infrastructure sector in non-government controlled Ukrainian territory” means technical assistance, brokering, construction or engineering services directly relating to infrastructure in non-government controlled Ukrainian territory in any of the following sectors—transport;telecommunications;energy;the prospection, exploration and production of oil, gas and mineral resources;

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

CHAPTER 7 — Further provision

Circumventing etc. prohibitions

55

(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 Chapters 2 to 6 and Chapter 6B 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

56

(1) Paragraph (2) applies where a person relies on a defence under any of Chapters 2 to 6 and Chapter 6B 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.

PART 6 — Ships

Movement of ships

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(1) The Secretary of State may give a Crimean ports direction, a Donetsk ports direction or a Kherson and Zaporizhzhia ports direction to a master or pilot of a British ship which is a cruise ship.

(2) In this regulation, a “Crimean ports direction” is a direction prohibiting a ship from entering a port or any ports located in Crimea.

(2A) In this regulation, a “Donetsk ports direction” is a direction prohibiting a ship from entering a port or any ports located in the non-government controlled areas of the Donetsk and Luhansk oblasts.

(2B) In this regulation, a “Kherson and Zaporizhzhia ports direction” is a direction prohibiting a ship from entering a port or any ports located in non-government controlled areas of the Kherson and Zaporizhzhia oblasts.

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

(4) A Crimean ports direction, a Donetsk ports direction or a Kherson and Zaporizhzhia ports direction—

(a) may be given to any master or pilot of a British ship which is a cruise ship, or to masters and pilots of British ships which are cruise ships generally;

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

(5) The Secretary of State may vary, revoke or suspend a Crimean ports direction, a Donetsk ports direction or a Kherson and Zaporizhzhia ports direction at any time.

(6) In this regulation, “cruise ship” means a ship providing cruise services.

(7) 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 7 — Exceptions and licences

Asset-freeze etc.: exceptions from prohibitions

58

(1) The prohibition in regulation 11 (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 11 to 13 (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 12 and 13 (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 12 and 13 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 11 to 13 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) In this regulation—

“designated person” has the same meaning as it has in Chapter 1 Part 3 (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).

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

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

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

Exceptions relating to loans and credit arrangements

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(1) The prohibitions in regulation 17 (loans and credit arrangements) are not contravened by the grant of—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) a relevant loan that has a specific and documented objective of making emergency funds available to meet applicable solvency or liquidity criteria for a relevant subsidiary;

(i) in the case of a category 1 loan, 15th September 2014;

(ii) in the case of a category 2 loan, a category 3 loan or a category 4 loan, 1st March 2022;

(iii) in the case of a category 5 loan, 29th October 2022;

(iv) in the case of a category 6 loan, 16th December 2022;

where the conditions in paragraph (2) are met.

(2) The conditions referred to in paragraph (1)(c) are that—

(a) all the terms and conditions of such drawdowns or disbursements—

(i) were agreed before—

(aa) in the case of a category 1 loan, 15th September 2014;

(bb) in the case of a category 2 loan, a category 3 loan or a category 4 loan, 1st March 2022;

(cc) in the case of a category 5 loan, 29th October 2022;

(dd) in the case of a category 6 loan, 16th December 2022;

(ii) have not been modified on or after that date; and

(b) a contractual maturity date has been fixed for the repayment in full of all funds made available and for the cancellation of all the rights and obligations under the arrangement.

(3) In this regulation—

“category 1 loan” has the meaning given to it in regulation 17;

“category 2 loan” has the meaning given to it in regulation 17;

“category 3 loan” has the meaning given to it in regulation 17;

“category 4 loan” has the meaning given to it in regulation 17;

“category 5 loan” has the meaning given to it in regulation 17;

“category 6 loan” has the meaning given to it in regulation 17;

“relevant loan” has the meaning given to it in regulation 17;

“relevant subsidiary” means a person, other than an individual, which is—incorporated or constituted under the law of any part of the United Kingdom, and owned (within the meaning of regulation 16(7)) by a person, other than an individual, that is connected with Russia.

Exceptions relating to investments in relation to Crimea

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(1) The prohibitions in regulation 18 (investments in relation to non-government controlled Ukrainian territory) are not contravened by any act done by a person (“P”) in satisfaction of an obligation of P arising under a contract concluded before the relevant date, or an ancillary contract necessary for the satisfaction of such a contract, provided that P has notified the Treasury no later than the day five working days before the day on which the act is carried out.

(2) The prohibitions in regulation 18 are not contravened by activities carried on by a person with entities outside non-government controlled Ukrainian territory where the related investment is not destined for an entity in non-government controlled Ukrainian territory.

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

(a) in the case of investments in relation to Crimea, 20th December 2014;

(b) in the case of investments in relation to non-government controlled areas of the Donetsk and Luhansk oblasts, 23rd February 2022.

(c) in the case of investments in relation to non-government controlled areas of the Kherson and Zaporizhzhia oblasts, 20th June 2023.

Trade: exception for emergencies in certain cases

61

(1) The prohibitions specified in paragraph (1A) are not contravened by any act done by a person (“P”), where P provides justification to the Secretary of State within the relevant period that the act is an act dealing with an emergency.

(1A) Paragraph (1) applies to the prohibitions—

(a) in regulations 40 to 46 (prohibitions relating to energy-related goods etc.) and regulations 48 to 54 (prohibitions relating to infrastructure in non-government controlled Ukrainian territory etc.);

(b) in regulations 22 (export of restricted goods), 24(1)(a), (supply and delivery of restricted goods), 25(1)(a) and (b) (making available of restricted goods and restricted technology), 26(1)(a) and (b) (transfer of restricted technology), and 27 to 29 (technical assistance, financial services etc. and brokering services) so far as they apply to critical-industry goods, aviation and space goods, oil refining goods, critical-industry technology , aviation and space technology or oil refining technology;

(c) in regulation 29A (insurance and reinsurance services relating to aviation and space goods and aviation and space technology).

(d) in Chapter 4H (G7 dependency and further goods etc.);

(da) in Chapter 4M (Russia’s vulnerable goods etc.);

(db) in Chapter 4N (sectoral software and technology);

(e) in regulation 54C (Professional and business services)

(f) in regulation 54D (legal advisory services).

(1B) The prohibitions specified in regulations 46Z9B to 46Z9D (maritime transportation of certain oil and oil products) are not contravened by any act done by a person (“P”), where P provides justification to the Treasury within the relevant period that the act is an act dealing with an emergency.

(2) In this regulation—

“an act dealing with an emergency” means an act assisting with the urgent prevention or mitigation of an event likely to have a serious and significant impact on human health or safety, infrastructure or the environment;

“aviation and space goods” has the meaning given in regulation 21 (interpretation of Part 5);

“aviation and space technology” has the meaning given in regulation 21 (interpretation of Part 5);

“critical-industry goods” has the meaning given in regulation 21 (interpretation of Part 5);

“critical-industry technology” has the meaning given in regulation 21 (interpretation of Part 5);

“oil refining goods” has the meaning given in regulation 21 (interpretation of Part 5);

“oil refining technology” has the meaning given in regulation 21 (interpretation of Part 5);

“relevant period”, in relation to an act, means the period of 5 working days beginning with the day on which the act is done.

Exception relating to trade restrictions in relation to Crimea

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(1) A prohibition in Chapter 2 of Part 5 in so far as it is applied to non-government controlled Ukrainian territory by regulation 53A or Chapter 2A of Part 5 (goods and technology relating to non-government controlled Ukrainian territory), regulation 47 (imports from non-government controlled Ukrainian territory) or regulation 52(3)(a) (financial services and funds in relation to imports from non-government controlled Ukrainian territory) is not contravened by any action in relation to goods which—

(a) originate in non-government controlled Ukrainian territory, and

(b) are the subject of a certificate of origin.

(2) In this regulation a “certificate of origin” means a document issued by the Government of Ukraine or a person acting on behalf of the Government of Ukraine confirming that the goods originate in Ukraine.

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

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(1) Where an act would, in the absence of this paragraph, be prohibited by regulation 9(2) or 9B(2) (confidentiality) or any prohibition in Part 3 (Finance) or 5 (Trade), or under or by virtue of Part 6 (Ships) or Part 6A (Aircraft) 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 Part 8 (Information and records) or Part 10 (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.

Treasury licences

64

(1) The prohibitions in 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) , 18C (trust services) and 46Z9B to 46Z9D (maritime transportation of certain oil and oil products) do not apply to anything done under the authority of a licence issued by the Treasury under this paragraph.

(1A) Without prejudice to the generality of the powers conferred by paragraph (1), a licence issued by the Treasury under paragraph (1) may, in particular, authorise acts which would otherwise be prohibited by any of regulations 11 to 18C or regulations 46Z9B to 46Z9D for a particular period beginning with—

(a) the coming into force of the prohibition, or

(b) where the prohibition relates to a person designated for the purposes of regulations 11 to 15, regulation 17A or regulation 18C, the date on which the person was designated.

(2) The Treasury may issue a licence which authorises acts by a particular person only—

(a) in the case of acts which would otherwise be prohibited by regulations 11 to 15, where the Treasury consider that it is appropriate to issue the licence for a purpose set out in Part 1 of Schedule 5, ...

(aza) in the case of acts which would otherwise be prohibited by regulations 11 to 15, 16, 17, 17A, 18A and 18C, where the Treasury consider that it is appropriate to issue the licence for a purpose set out in Part 1ZA or Part 1ZB of Schedule 5;

(aa) in the case of acts which would otherwise be prohibited by regulation 17, where the Treasury consider that it is appropriate to issue the licence for a purpose set out in Part 1A of Schedule 5,

(ab) in the case of acts which would otherwise be prohibited by regulation 17A, where the Treasury consider that it is appropriate to issue the licence for a purpose set out in Part 1B of Schedule 5,

(ac) in the case of acts which would otherwise be prohibited by regulation 17A(2) (processing ... payments), where the Treasury consider that it is appropriate to issue the licence for a purpose set out in Part 1C of Schedule 5, ...

(b) in the case of acts which would otherwise be prohibited by regulation 18, where the Treasury consider that it is appropriate to issue the licence for a purpose set out in Part 2 of Schedule 5 , ...

(c) in the case of acts which would otherwise be prohibited by regulation 18A (provision of foreign exchange reserve and asset management services), where the Treasury consider that it is appropriate to issue the licence for a purpose set out in Part 1D of Schedule 5, ...

(d) in the case of acts which would otherwise be prohibited by regulation 18B (investments in relation to Russia), where the Treasury consider that it is appropriate to issue the licence for a purpose set out in Part 3 of Schedule 5, ...

(da) in the case of acts which would otherwise be prohibited by regulation 18C (trust services), where the Treasury consider that it is appropriate to issue the licence for a purpose set out in Part 3A of Schedule 5, and

(e) in the case of acts which would otherwise be prohibited by regulations 46Z9B to 46Z9D, where the Treasury consider that it is appropriate to issue the licence for the purpose set out in Part 4 of Schedule 5.

(3) Part A1 of Schedule 5 has effect for the interpretation of terms in that Schedule.

Trade licences

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The prohibitions in Chapters 2 to 6 and Chapter 6B of Part 5 (Trade) (other than the prohibitions in Chapter 4IA of that Part) do not apply to anything done under the authority of a licence issued by the Secretary of State under this regulation.

Licences: general provisions

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

Finance: licensing offences

67

(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 (whether for P or anyone else).

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

Trade: licensing offences

68

(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.

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

69

(1) The Secretary of State may direct that, in relation to any person within regulation 20 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 8 — Information and records

Finance: reporting obligations

70

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

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

(i) is a designated person, or

(ii) has breached a prohibition or failed to comply with an obligation under any provision of Part 3 (Finance) , regulations 46Z9B to 46Z9D (maritime transportation of certain oil and oil products) or regulation 67 (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.

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

(a) it knows, or has reasonable cause to suspect, that it holds funds or economic resources for a prohibited person; 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.

(1ZB) Where the relevant firm ... —

(a) has informed the Treasury under paragraph (1ZA), and

(b) continues to hold the funds or economic resources referred to in paragraph (1ZA),

it 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 that firm as of 30th September in that calendar year.

(1A) An involved person must inform the Treasury as soon as practicable if—

(a) they know or have reasonable cause to suspect that a person has breached a prohibition or failed to comply with an obligation under any provision of —

(i) regulations 46Z9B to 46Z9D; or

(ii) regulation 67 in so far as the suspected breach or failure under that regulation relates to a prohibition referred to in paragraph (i); and

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

(2) Where a relevant firm informs the Treasury under paragraph (1) or an involved person informs the Treasury under paragraph (1A), it must state—

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

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

(c) any related information it holds about the supply or delivery by ship, financial services or funds or brokering services provided with regard to the provisions referred to in paragraph (1A)(a)

(2A) An involved person must also state, where they inform the Treasury under paragraph (1A), the nature, amount, value, or quantity of any goods or services related to the suspected offence at the time when they first had the knowledge or suspicion.

(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 or under paragraph (1ZA) that it knows, or has reasonable cause to suspect, that a person for whom it holds funds or economic resources is a prohibited 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.

(4D) Paragraphs (4A) and (4B) do not apply where P is a designated person who is required to report to the Treasury in accordance with regulation 70A(1) or (2) (designated persons: reporting obligations), except in so far as P is a designated person who holds funds or economic resources for another designated person.

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

(a) credits a frozen account in accordance with regulation 58(4) (finance: exceptions from prohibitions), or

(b) transfers funds from a frozen account in accordance with regulation 58(6).

(6) A person who fails to comply with a requirement in paragraph (1), (1ZA), (1ZB), (1A), (2), (2A) 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 Chapter 1 of Part 3 (Finance);

“frozen account” has the same meaning as it has in regulation 58;

“involved person” means a person who is involved in—the supply or delivery of oil and oil products; orthe provision of financial services or funds or brokering services relating to the supply or delivery of oil and oil products;

“oil and oil products” has the meaning given in regulation 21(1) (interpretation of Part 5);

“prohibited person” means a person to whom financial services must not be provided by virtue of regulation 18A(1);

“relevant firm” is to be read in accordance with regulation 71;

“relevant institution” has the same meaning as it has in regulation 58.

“Relevant firm”

71

(1) The following are relevant firms for the purposes of regulation 70—

(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, ...

(iv) ... company services within the meaning of paragraph (2), or

(v) trust services;

(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) “... 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) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii) a nominee shareholder for a person (other than acting as a nominee shareholder within the meaning of regulation 18C(8) (trust services)).

(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.

“trust services” has the meaning given in regulation 18C(7) (trust services).

(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 70(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.

Finance: powers to request information

72

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

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

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

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

(a) by the designated person, or

(b) for the benefit of the designated person.

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

(4) The power in paragraph (1) or (2) is exercisable only where the Treasury believe that it is necessary for the purpose of monitoring compliance with or detecting evasion of any provision of Part 3 (Finance).

(5) The Treasury may request a person acting under a Treasury licence to provide information about—

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

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

(c) any matter to which a licence relates, where that licence authorises an act that would otherwise be prohibited under regulation , 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) , 18C (trust services) or 46Z9B to 46Z9D (maritime transportation of certain oil and oil products).

(6) The Treasury may request a person to provide information within paragraph (7) if the Treasury believe that the person may be able to provide the information.

(7) Information within this paragraph is such information as the Treasury may reasonably require for the purpose of—

(a) establishing for the purposes of any provision of Chapter 1 of Part 3 (Finance)—

(i) the nature and amount or quantity of any funds or economic resources owned, held or controlled by or on behalf of a designated person,

(ii) the nature and amount or quantity of any funds, financial services or economic resources made available directly or indirectly to, or for the benefit of, a designated person, or

(iii) the nature of any financial transactions entered into by a designated person;

(b) monitoring compliance with or detecting evasion of—

(i) any provision of Part 3 or regulations 46Z9B to 46Z9D,

(ii) regulation 70 (finance: reporting obligations), or

(iii) any condition of a Treasury licence;

(c) detecting or obtaining evidence of the commission of an offence under Part 3, regulations 46Z9B to 46Z9D (maritime transportation of certain oil and oil products), regulation 67 (finance: licensing offences) or 70 (finance: reporting obligations).

(8) The Treasury may specify the way in which, and the period within which, information is to be provided.

(9) If no such period is specified, the information which has been requested must be provided within a reasonable time.

(10) A request may include a continuing obligation to keep the Treasury informed as circumstances change, or on such regular basis as the Treasury may specify.

(11) Information requested under this regulation may relate to any period of time during which a person is, or was, a designated person.

(12) Information requested by virtue of paragraph (1)(b), (2) or (7)(a)(iii) may relate to any period before a person became a designated person (as well as, or instead of, any subsequent period).

(13) Expressions used in this regulation have the same meaning as they have in Chapter 1 of Part 3.

Finance: production of documents

73

(1) A request under regulation 72 may include a request to produce specified documents or documents of a specified description.

(2) Where the Treasury request that documents be produced, the Treasury may—

(a) take copies of or extracts from any document so produced,

(b) request any person producing a document to give an explanation of it, and

(c) where that person is a body corporate, partnership or unincorporated body other than a partnership, request any person who is—

(i) in the case of a partnership, a present or past partner or employee of the partnership, or

(ii) in any other case, a present or past officer or employee of the body concerned,

to give such an explanation.

(3) Where the Treasury request a designated person or a person acting under a Treasury licence to produce documents, that person must—

(a) take reasonable steps to obtain the documents (if they are not already in the person's possession or control);

(b) keep the documents under the person's possession or control (except for the purpose of providing them to the Treasury or as the Treasury may otherwise permit).

(4) In this regulation “designated person” has the same meaning as it has in Chapter 1 of Part 3 (Finance).

Finance: information offences

74

(1) A person commits an offence, if that person—

(a) without reasonable excuse, refuses or fails within the time and in the manner specified (or, if no time has been specified, within a reasonable time) to comply with any request under regulation 72 (finance: powers to request information);

(b) knowingly or recklessly gives any information, or produces any document, which is false in a material particular in response to such a request;

(c) with intent to evade any provision of regulation 72 or 73 (finance: production of documents), destroys, mutilates, defaces, conceals or removes any document;

(d) otherwise intentionally obstructs the Treasury in the exercise of their powers under regulation 72 or 73.

(2) Where a person is convicted of an offence under this regulation, the court may make an order requiring that person, within such period as may be specified in the order, to comply with the request.

Trade: application of information powers in CEMA

75

(1) Section 77A of CEMA applies in relation to a person carrying on a relevant activity as it applies in relation to a person concerned in the importation or exportation of goods but as if—

(a) in subsection (1), the reference to a person concerned in the importation or exportation of goods for which for that purpose an entry is required by regulation 5 of the Customs Controls on Importation of Goods Regulations 1991 or an entry or specification is required by or under CEMA were to a person carrying on a relevant activity;

(b) any other reference to importation or exportation were to a relevant activity;

(2) For the purposes of paragraph (1), a “relevant activity” means an activity—

(a) which would, unless done under the authority of a trade licence, constitute a contravention of any prohibition in Chapters 2 to 6B of Part 5 (Trade), except any prohibition on imports or exports, or

(b) which would constitute a contravention of the prohibition in regulation 55(1) (circumventing etc. prohibitions).

General trade licences: records

76

(1) This regulation applies in relation to a person (“P”) who does any act authorised by a general licence issued under regulation 65 (trade licences) (“the licence”).

(2) P must keep a register or record containing such details as may be necessary to allow the following information , where appropriate, to be identified in relation to each act done under the authority of the licence—

(a) a description of the act;

(b) a description of any goods, technology, services or funds to which the act relates;

(d) the quantity of any goods or funds to which the act relates;

(e) P's name and address;

(f) the name and address of any consignee of goods to which the act relates or any recipient of technology, services or funds to which the act relates;

(g) in so far as it is known to P, the name and address of the end-user of the goods, technology, services or funds to which the act relates;

(h) if different from P, the name and address of the supplier of any goods to which the act relates;

(i) any further information required by the licence.

(3) The register or record relating to an act must be kept until the end of the calendar year in which the register or record is created and for a further period of 4 years from the end of that calendar year.

(4) P must notify the Secretary of State in writing of P's name and the address at which the register or record may be inspected, and must make a further such notification if those details change.

(5) A notification under paragraph (4) must be given no later than 30 days after—

(a) P first does any act authorised by the licence, or

(b) there is any change to the details previously notified.

(6) A person who fails to comply with a requirement in paragraph (2), (3) or (4) commits an offence.

General trade licences: inspection of records

77

(1) A person authorised by the Secretary of State or the Commissioners (an “official”) may at any reasonable hour enter premises notified under regulation 76(4) for the purposes of monitoring compliance with or detecting evasion of regulation 76(2) or (3).

(2) An official may require any person on the premises to produce any register or record required to be kept under regulation 76, or any document included in such a register or record, that is in the person's possession or control.

(3) An official may inspect and copy any such register, record or document.

(4) An official must, if requested to do so, produce documentary evidence that he or she is authorised to exercise a power conferred by this regulation.

(5) A person commits an offence if, without reasonable excuse, the person—

(a) intentionally obstructs an official in the performance of any of the official's functions under this regulation, or

(b) fails to produce a register, record or document when reasonably required to do so by an official under this regulation.

Disclosure of information

78

(1) The Secretary of State, the Treasury , OFCOM or the Commissioners may, in accordance with this regulation, disclose—

(a) any information obtained under or by virtue of Part 7 (Exceptions and licences), this Part or Part 10 (Maritime enforcement), or

(b) any information held in connection with—

(i) anything done under or by virtue of Part 2 (Designation of persons), Part 3 (Finance), Part 3A (Director disqualification sanctions), Part 5 (Trade), Part 6 (Ships) or Part 6A (Aircraft), or

(ii) any exception or licence under Part 7 or anything done in accordance with such an exception or under the authority of such a licence.

(2) Information referred to in paragraph (1) may be disclosed for, or in connection with, any of the following purposes—

(a) any purpose stated in regulation 4;

(b) the exercise of functions under these Regulations;

(d) taking any action with a view to instituting, or otherwise for the purposes of, any proceedings in the United Kingdom—

(i) for an offence under any provision of these Regulations,

(ii) for an offence under CEMA in connection with any prohibition in Part 5 on imports or exports, ...

(iii) in relation to a monetary penalty under section 146 of the Policing and Crime Act 2017 (breach of financial sanctions legislation) ,

(iv) in relation to a monetary penalty under regulation 88A (OFCOM: power to impose monetary penalties) , or

(v) in relation to a monetary penalty under regulation 88C(1) , (1A), (1B), (3) or (3A) (Treasury: power to impose monetary penalties)

(e) taking any action with a view to instituting, or otherwise for the purposes of, any proceedings in any of the Channel Islands, the Isle of Man, or any British overseas territory, for an offence—

(i) under a provision in any such jurisdiction that is similar to a provision of these Regulations, or

(ii) in connection with a prohibition in any such jurisdiction that is similar to a prohibition referred to in sub-paragraph (d)(ii);

(f) compliance with an international obligation ;

(g) facilitating the exercise by an authority outside the United Kingdom or by an international organisation of functions which correspond to functions under these Regulations.

(3) Information referred to in paragraph (1) may be disclosed to the following persons—

(a) a police officer;

(b) any person holding or acting in any office under or in the service of—

(i) the Crown in right of the Government of the United Kingdom,

(ii) the Crown in right of the Scottish Government, the Northern Ireland Executive or the Welsh Government,

(iii) the States of Jersey, Guernsey or Alderney or the Chief Pleas of Sark,

(iv) the Government of the Isle of Man, or

(v) the Government of any British overseas territory;

(d) the Scottish Legal Aid Board;

(e) the Financial Conduct Authority, the Prudential Regulation Authority, the Bank of England, the Jersey Financial Services Commission, the Guernsey Financial Services Commission or the Isle of Man Financial Services Authority;

(f) any other regulatory body (whether or not in the United Kingdom);

(g) any organ of the United Nations;

(h) the Council of the European Union, the European Commission or the European External Action Service;

(i) the Government of any country;

(j) any other person where the Secretary of State, the Treasury or the Commissioners (as the case may be) consider that it is appropriate to disclose the information.

(4) Information referred to in paragraph (1) may be disclosed to any person with the consent of a person who, in their own right, is entitled to the information.

(5) In paragraph (4) “in their own right” means not merely in the capacity as a servant or agent of another person.

(6) In paragraph (1)(b)—

(a) the reference to information includes information obtained at a time when any provision of these Regulations is not in force, and

(b) the reference to a licence under Part 7 includes—

(i) a licence or authorisation which has effect or is treated as if it were a licence which had been issued under that Part, and

(ii) a licence which is deemed to have been issued under that Part.

Part 7: supplementary

79

(1) A disclosure of information under regulation 78 or 78A does not breach any restriction on such disclosure imposed by statute or otherwise.

(2) But nothing in those regulations authorises a disclosure that—

(a) contravenes the data protection legislation, or

(b) is prohibited by any of Parts 1 to 7 or Chapter 1 of Part 9 of the Investigatory Powers Act 2016 .

(3) Nothing in this Part is to be read as requiring a person who has acted or is acting as counsel or solicitor for any person to disclose any privileged information in their possession in that capacity.

(4) Regulations 78 and 78A do not limit the circumstances in which information may be disclosed apart from those regulations.

(5) Nothing in this Part limits any conditions which may be contained in a Treasury licence or a trade licence.

(6) In this regulation—

“the data protection legislation” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act) ;

“privileged information” means information with respect to which a claim to legal professional privilege (in Scotland, to confidentiality of communications) could be maintained in legal proceedings.

PART 9 — Enforcement

Penalties for offences

80

(1) A person who commits an offence under any provision of Part 3 (Finance), regulation 67 (finance: licensing offences), 57 (Crimean ports direction, Donetsk ports direction or Kherson and Zaporizhzhia ports direction), 57A (prohibition on port entry), 57B(4) (directions prohibiting port entry), 57C(3) (movement of ships) or 57N(1) to (4) (aircraft offences) is liable—

(a) on summary conviction in England and Wales, to imprisonment for a term not exceeding the general limit in a magistrates’ court or a fine (or both);

(b) on summary conviction in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum (or both);

(c) on summary conviction in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum (or both);

(d) on conviction on indictment, to imprisonment for a term not exceeding 7 years or a fine (or both).

(2) A person who commits an offence under any provision of Part 5 (Trade) is liable—

(a) on summary conviction in England and Wales, to imprisonment for a term not exceeding the general limit in a magistrates’ court or a fine (or both);

(b) on summary conviction in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum (or both);

(c) on summary conviction in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum (or both);

(d) on conviction on indictment, to imprisonment for a term not exceeding 10 years or a fine (or both).

(3) A person who commits an offence under regulation 9(6) or 9B(6) (confidentiality), 67A (director disqualification: licensing offences), 68 (trade: licensing offences), 68A (aircraft: licensing offences), 76(6) (general trade licences: records) or 77(5) (general trade licences: inspection of records) is liable—

(a) on summary conviction in England and Wales, to imprisonment for a term not exceeding the general limit in a magistrates’ court or a fine (or both);

(b) on summary conviction in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum (or both);

(c) on summary conviction in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum (or both);

(d) on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine (or both).

(4) A person who commits an offence under regulation 57B(6) (directions prohibiting port entry: confidentiality), 57C(5) (movement of ships: confidentiality), 57N(5) (aircraft: confidentiality), 70(6) , 70A(6) or 74 (information offences in connection with Part 3) , or 77B (internet services: information offences) is liable—

(a) on summary conviction in England and Wales, to imprisonment for a term not exceeding 6 months or a fine (or both);

(b) on summary conviction in Scotland, to imprisonment for a term not exceeding 6 months or a fine not exceeding level 5 on the standard scale (or both);

(c) on summary conviction in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding level 5 on the standard scale (or both).

(5) In relation to an offence committed before 2nd May 2022 the reference in each of paragraphs (1)(a), (2)(a) and (3)(a) to the general limit in a magistrates’ court is to be read as a reference to 6 months.

Liability of officers of bodies corporate etc.

81

(1) Where an offence under these Regulations , committed by a body corporate—

(a) is committed with the consent or connivance of any director, manager, secretary or other similar officer of the body corporate, or any person who was purporting to act in any such capacity, or

(b) is attributable to any neglect on the part of any such person,

that person as well as the body corporate is guilty of the offence and is liable to be proceeded against and punished accordingly.

(2) In paragraph (1) “director”, in relation to a body corporate whose affairs are managed by its members, means a member of the body corporate.

(3) Paragraph (1) also applies in relation to a body that is not a body corporate, with the substitution for the reference to a director of the body of a reference—

(a) in the case of a partnership, to a partner;

(b) in the case of an unincorporated body other than a partnership—

(i) where the body's affairs are managed by its members, to a member of the body;

(ii) in any other case, to a member of the governing body.

(4) Section 171(4) of CEMA (which is a provision similar to this regulation) does not apply to any offence under these Regulations to which that provision would, in the absence of this paragraph, apply.

Jurisdiction to try offences

82

(1) Where an offence under regulation 9(6) or 9B(6) (confidentiality), Part 3 (Finance), regulation 46Z9B, 46Z9C or 46Z9D (maritime transportation of certain oil and oil products), regulation 54D (legal advisory services), regulation 67 (finance: licensing offences) , 68A (aircraft: licensing offences) , regulation 70(6) or 74 (information offences in connection with Part 3) , or 77B (internet services: information offences) is committed in the United Kingdom—

(a) proceedings for the offence may be taken at any place in the United Kingdom, and

(b) the offence may for all incidental purposes be treated as having been committed at any such place.

(2) Where an offence under these Regulations is committed outside the United Kingdom—

(a) proceedings for the offence may be taken at any place in the United Kingdom, and

(b) the offence may for all incidental purposes be treated as having been committed at any such place.

(3) In the application of paragraph (2) to Scotland, any such proceedings against a person may be taken—

(a) in any sheriff court district in which the person is apprehended or is in custody, or

(b) in such sheriff court district as the Lord Advocate may determine.

(4) In paragraph (3) “sheriff court district” is to be read in accordance with the Criminal Procedure (Scotland) Act 1995 (see section 307(1) of that Act) .

Procedure for offences by unincorporated bodies

83

(1) Paragraphs (2) and (3) apply if it is alleged that an offence under these Regulations has been committed by an unincorporated body (as opposed to by a member of the body).

(2) Proceedings in England and Wales or Northern Ireland for such an offence must be brought against the body in its own name.

(3) For the purposes of proceedings, for such an offence brought against an unincorporated body—

(a) rules of court relating to the service of documents have effect as if the body were a body corporate;

(b) the following provisions apply as they apply in relation to a body corporate

(i) section 33 of the Criminal Justice Act 1925 and Schedule 3 to the Magistrates' Courts Act 1980 ;

(ii) section 18 of the Criminal Justice Act (Northern Ireland) 1945 and Article 166 of, and Schedule 4 to, the Magistrates' Courts (Northern Ireland) Order 1981 .

(4) A fine imposed on an unincorporated body on its conviction of an offence under these Regulations is to be paid out of the funds of the body.

Time limit for proceedings for summary offences

84

(1) Proceedings for an offence under these Regulations which is triable only summarily may be brought within the period of 12 months beginning with the date on which evidence sufficient in the opinion of the prosecutor to justify the proceedings comes to the prosecutor's knowledge.

(2) But such proceedings may not be brought by virtue of paragraph (1) more than 3 years after the commission of the offence.

(3) A certificate signed by the prosecutor as to the date on which the evidence in question came to the prosecutor's knowledge is conclusive evidence of the date on which it did so; and a certificate to that effect and purporting to be so signed is to be treated as being so signed unless the contrary is proved.

(4) In relation to proceedings in Scotland—

(a) section 136(3) of the Criminal Procedure (Scotland) Act 1995 (date of commencement of summary proceedings) applies for the purposes of this regulation as it applies for the purposes of that section, and

(b) references in this regulation to the prosecutor are to be treated as references to the Lord Advocate.

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85

(1) Where the Commissioners investigate or propose to investigate any matter with a view to determining—

(a) whether there are grounds for believing that a relevant offence has been committed, or

(b) whether a person should be prosecuted for such an offence,

the matter is to be treated as an assigned matter.

(2) In paragraph (1) “assigned matter” has the meaning given by section 1(1) of CEMA .

(3) In this regulation a “relevant offence” means an offence under—

(a) Part 5 (Trade), except regulation 54D (legal advisory services), but only insofar as the offence under that regulation relates to legal advisory services concerning relevant activity which would be prohibited under any of regulations 11 to 19,

(aa) regulation 67 (finance: licensing offences) but only insofar as the offence under that regulation relates to offences under regulations 46Z9B to 46Z9D (maritime transportation of certain oil and oil products),

(b) regulation 68 (trade: licensing offences),

(d) regulation 77(5) (general trade licences: inspection of records).

(3A) The Commissioners may not investigate the suspected commission of a relevant offence listed in paragraph (3B), unless the suspected offence has been the subject of—

(a) a referral to the Commissioners by—

(i) the Secretary of State,

(ii) the Treasury, or

(iii) OFCOM, where such referral relates to a suspected offence under regulation 54A(4);

(b) a decision by the Commissioners to treat the suspected offence as if it had been referred to them under sub-paragraph (a).

(3B) Paragraph (3A) applies to the suspected commission of a relevant offence under any of the following provisions—

(za) regulation 24(3) insofar as the offence does not relate to dual-use goods, military goods, or defence and security goods;

(zaa) regulation 25(3) insofar as it does not relate to the import or export of goods or the transfer of technology to or from the UK, to dual-use goods and dual-use technology, military goods and military technology, or defence and security goods and defence and security technology;

(zab) regulation 26(3) insofar as it does not relate to the import or export of goods or the transfer of technology to or from the UK, to dual-use goods and dual use technology, military goods and military technology, or defence and security goods and defence and security technology;

(zac) regulation 27(3) insofar as it does not relate to the import or export of goods or the transfer of technology to or from the UK, to dual-use goods and dual use technology, military goods and military technology, or defence and security goods and defence and security technology;

(zad) regulation 28(7) insofar as it does not relate to the import or export of goods or the transfer of technology to or from the UK, to dual-use goods and dual-use technology, military goods and military technology, or defence and security goods and defence and security technology;

(zae) regulation 29(3) insofar as it does not relate to the import or export of goods or the transfer of technology to or from the UK, to dual-use goods and dual use technology, military goods and military technology, or defence and security goods and defence and security technology;

(zb) regulation 29A(3) insofar as it does not relate to the import or export of goods;

(zc) regulation 30(3);

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ca) regulation 42(3) insofar as it does not relate to the import or export of goods or to the transfer of technology to or from the United Kingdom;

(caa) regulation 42A(3) insofar as it does not relate to the transfer of technology to or from the UK;

(cb) regulation 43(3) insofar as it does not relate to the import or export of goods or to the transfer of technology to or from the United Kingdom;

(cc) regulation 44(5) insofar as it does not relate to the import or export of goods or to the transfer of technology to or from the United Kingdom;

(d) regulation 45(3) insofar as it does not relate to the import or export of goods or to the transfer of technology to or from the United Kingdom;

(dza) regulation 46(3);

(da) regulation 46A(4) insofar as it does not relate to the import or export of goods or the transfer of technology to or from the UK;

(e) regulation 46B(4) insofar as it does not relate to the import or export of goods;

(ea) regulation 46BA(3) (technical assistance relating to luxury goods) insofar as it does not relate to the import or export of goods;

(eb) regulation 46BB(3) (financial services and funds relating to luxury goods) insofar as it does not relate to the import or export of goods;

(ec) regulation 46BC(4) (brokering services relating to luxury goods) insofar as it does not relate to the import or export of goods;

(ed) regulation 46E(3) insofar as it does not relate to the import or export of goods;

(f) regulation 46F(3);

(g) regulation 46G(3) insofar as it does not relate to the import or export of goods;

(h) regulation 46H(3) insofar as it does not relate to the import or export of goods;

(hza) regulation 46I(3) insofar as it does not relate to the import or export of goods;

(hzb) regulation 46IH(3) insofar as it does not relate to the import or export of goods;

(ha) regulation 46II(3);

(i) regulation 46K(3);

(ia) regulation 46L(4) insofar as it does not relate to the import or export of goods;

(j) regulation 46N(4) insofar as it does not relate to the import or export of goods;

(jza) regulation 46O(3) insofar as it does not relate to the import or export of goods;

(jzb) regulation 46P(5) insofar as it does not relate to the import or export of goods;

(jzc) regulation 46Q(3) insofar as it does not relate to the import or export of goods;

(jzca) regulation 46T(3) insofar as it does not relate to the import or export of goods;

(jzcb) regulation 46V(3) insofar as it does not relate to the import or export of goods;

(jzcc) regulation 46W(3) insofar as it does not relate to the import or export of goods;

(jzcd) regulation 46X(3) insofar as it does not relate to the import or export of goods;

(jzd) regulation 46XC(3) insofar as it does not relate to the import or export of goods;

(ja) regulation 46XD(3);

(jb) regulation 46XE(3) insofar as it does not relate to the import or export of goods;

(jc) regulation 46XF(3) insofar as it does not relate to the import or export of goods;

(jd) regulation 46XG(3) insofar as it does not relate to the import or export of goods;

(k) regulation 46Y(4) insofar as it does not relate to the import or export of goods or to the transfer of technology to or from the United Kingdom;

(kza) regulation 46YA(3) insofar as it does not relate to the transfer of technology to or from the United Kingdom;

(ka) regulation 46Z(3) insofar as it does not relate to the import or export of goods or to the transfer of technology to or from the United Kingdom;

(kb) regulation 46Z1(5) insofar as it does not relate to the import or export of goods or to the transfer of technology to or from the United Kingdom;

(l) regulation 46Z2(3) insofar as it does not relate to the import or export of goods or to the transfer of technology to or from the United Kingdom;

(la) regulation 46Z5(3) insofar as it does not relate to the import or export of goods;

(lb) regulation 46Z7(3) insofar as it does not relate to the import or export of goods;

(lc) regulation 46Z8(3) insofar as it does not relate to the import or export of goods;

(ld) regulation 46Z9(3) insofar as it does not relate to the import or export of goods;

(m) regulation 46Z9B(8);

(n) regulation 46Z9B(9);

(o) regulation 46Z9C(4);

(p) regulation 46Z9C(5);

(q) regulation 46Z9D(4);

(r) regulation 46Z9D(5);

(rza) regulation 46Z12(3) insofar as it does not relate to the import or export of goods;

(rzb) regulation 46Z14(3) insofar as it does not relate to the import or export of goods;

(rzc) regulation 46Z15(3) insofar as it does not relate to the import or export of goods;

(rzd) regulation 46Z16(3) insofar as it does not relate to the import or export of goods;

(rze) regulation 46Z16D(4) insofar as it does not relate to the import or export of goods;

(rzf) regulation 46Z16E(3) insofar as it does not relate to the import or export of goods;

(rzg) regulation 46Z16G(3) insofar as it does not relate to the import or export of goods;

(rzh) regulation 46Z16H(3) insofar as it does not relate to the import of goods;

(rzi) regulation 46Z16I(3) insofar as it does not relate to the import or export of goods;

(ra) regulation 46Z16L(3) insofar as it does not relate to the import or export of goods;

(rb) regulation 46Z16M(3);

(rc) regulation 46Z16N(3) insofar as it does not relate to the import or export of goods;

(rd) regulation 46Z16O(3) insofar as it does not relate to the import or export of goods;

(re) regulation 46Z16P(3) insofar as it does not relate to the import or export of goods;

(rf) regulation 46Z19(3) insofar as it does not relate to the import or export of goods;

(rg) regulation 46Z21(3) insofar as it does not relate to the import or export of goods;

(rh) regulation 46Z22(3) insofar as it does not relate to the import or export of goods;

(ri) regulation 46Z23(3) insofar as it does not relate to the import or export of goods;

(rj) regulation 46Z26(3) insofar as it does not relate to the import or export of goods;

(rk) regulation 46Z27(3) insofar as it does not relate to the import or export of goods;

(rl) regulation 46Z28(3) insofar as it does not relate to the import or export of goods;

(rm) regulation 46Z29(3) insofar as it does not relate to the import or export of goods;

(s) regulation 46Z30(4) insofar as it does not relate to the import or export of goods or to the transfer of technology to or from the United Kingdom;

(saa) regulation 46Z30A(3) insofar as it does not relate to the transfer of technology to or from the United Kingdom;

(sa) regulation 46Z31(3) insofar as it does not relate to the import or export of goods or to the transfer of technology to or from the United Kingdom;

(sb) regulation 46Z32(5) insofar as it does not relate to the import or export of goods or to the transfer of technology to or from the United Kingdom;

(t) regulation 46Z33(3) insofar as it does not relate to the import or export of goods or to the transfer of technology to or from the United Kingdom;

(ta) regulation 46Z34(3) insofar as it does not relate to the transfer of technology to or from the United Kingdom;

(tb) regulation 46Z35(3) insofar as it does not relate to the transfer of technology to or from the United Kingdom;

(tc) regulation 46Z36(3) insofar as it does not relate to the transfer of technology to or from the United Kingdom;

(td) regulation 46Z37(5) insofar as it does not relate to the transfer of technology to or from the United Kingdom;

(te) regulation 46Z38(3) insofar as it does not relate to the transfer of technology to or from the United Kingdom;

(u) regulation 49(3);

(ua) regulation 50(3) insofar as it does not relate to the import or export of goods;

(ub) regulation 51(3) insofar as it does not relate to the import or export of goods;

(uc) regulation 52(5) insofar as it does not relate to the import or export of goods;

(v) regulation 53(3) insofar as it does not relate to the import or export of goods;

(w) regulation 54(3);

(x) regulation 54A(4);

(y) regulation 54C(3);

(z) regulation 54D(4);

(z1) regulation 67(1);

(z2) regulation 67(2).

(3BA) In paragraph (3B)(ea) to (ec), “third country” meansa country that is not the United Kingdom, the Isle of Man or Russia.

(3BB) Paragraph (3A) also applies to the suspected commission of a relevant offence under regulation 55(2), insofar as the activity to which the suspected offence relates is the circumvention of, or enabling or facilitation of a contravention of, a prohibition in relation to an offence specified in paragraph (3B).

(3C) Paragraph (3A) also applies to the suspected commission of a relevant offence under any of regulations 68(1), 68(2), 76(6) and 77(5) insofar as—

(a) the suspected offence relates to a licence issued under regulation 65, and

(b) the prohibited activity authorised by that licence would, if no licence had been issued, amount to an offence specified in paragraph (3B)(a) to (z).

(4) Section 138 of CEMA (arrest of persons) applies to a person who has committed, or whom there are reasonable grounds to suspect of having committed, a relevant offence as it applies to a person who has committed, or whom there are reasonable grounds to suspect of having committed, an offence for which the person is liable to be arrested under the customs and excise Acts, but as if—

(a) any reference to an offence under, or for which a person is liable to be arrested under, the customs and excise Acts were to a relevant offence;

(b) in subsection (2), the reference to any person so liable were to a person who has committed, or whom there are reasonable grounds to suspect of having committed, a relevant offence.

(5) The provisions of CEMA mentioned in paragraph (6) apply in relation to proceedings for a relevant offence as they apply in relation to proceedings for an offence under the customs and excise Acts, but as if—

(a) any reference to the customs and excise Acts were to any of the provisions mentioned in paragraph (3)(a) to (d);

(b) in section 145(6), the reference to an offence for which a person is liable to be arrested under the customs and excise Acts were to a relevant offence;

(c) in section 151, the reference to any penalty imposed under the customs and excise Acts were to any penalty imposed under these Regulations in relation to a relevant offence;

(d) in section 154(2)—

(i) the reference to proceedings relating to customs or excise were to proceedings under any of the provisions mentioned in paragraph (3)(a) to (d), and

(ii) the reference to the place from which any goods have been brought included a reference to the place to which goods have been exported, supplied or delivered or the place to or from which technology has been transferred.

(6) The provisions of CEMA are sections 145, 146, 147, 148(1), 150, 151, 152, 154 and 155 (legal proceedings).

(7) Any term in this regulation that is defined in Chapter 1 (Interpretation) of Part 5 (Trade) bears the same meaning as in that Chapter of that Part.

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