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The Libya (Sanctions) (EU Exit) Regulations 2020

Type Statutory-Instrument

Publication 2020-12-29

Last updated 2026-01-19

State In force

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Made: 29th December 2020

Laid before Parliament: 4th January 2021

Coming into force in accordance with regulation 1(2) and (3)

The Secretary of State , in exercise of the powers conferred by sections 1(1)(a) and (c) and (3), 3(1)(a), (b)(ii), (d)(i) and (ii), 4, 5, 6, 7(6)(a) and (7), 8, 9(2), 10(2)(a) and (c), (3) and (4), 11, 13, 15(2)(a) and (b), (3), (4)(b), (5) and (6), 16, 17, 19, 20, 21(1), 54(1) and (2), and 62(4) to (6) of, and paragraphs 2(b), 3(a) and (b), 4(b) and (c), 5(a)(ii), (b), (c) and (d), 6(a)(ii) and (b), 7(a)(ii) and (b), 10(b), 11(a)(ii), 13(b), (h), (i), (k), (l), (m), (n) and (w), 14(a), (f) and (k), 15(a), (c) and (d), 17, 19 to 23, 26 and 27 of Schedule 1 to, the Sanctions and Anti-Money Laundering Act 2018 , and having decided, upon consideration of the matters set out in section 2(2) of that Act, that it is appropriate to do so, makes the following Regulations:

PART 1 — General

Citation and commencement

1

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

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

(a) this regulation;

(b) regulation 2 (interpretation);

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

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

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

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

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

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

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

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

Interpretation

2

In these Regulations—

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

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

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

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

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

“conduct” includes acts and omissions;

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

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

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

a “non-UN designated person” means a person—who is designated under regulation 5 (power to designate persons) for the purposes of regulations 12 to 16 (asset-freeze etc.), andwhose designation (in the opinion of the Secretary of State) is not required by paragraph 17 of resolution 1970 (read in accordance with regulation 4(4));

“port licence” means a licence under regulation 50;

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

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

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

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

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

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

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

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

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

“trade licence” means a licence under regulation 49;

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

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

Application of prohibitions and requirements outside the United Kingdom

3

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

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

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

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

(b) Part 3 (Finance),

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

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

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

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

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

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

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

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

Purposes

4

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

(a) compliance with the relevant UN obligations, and

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

(2) Those additional purposes are—

(a) promoting respect for human rights in Libya,

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

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

otherwise than by compliance with the relevant UN obligations.

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

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

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

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

(ii) owned or controlled by,

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

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

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

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

(4) In paragraph (3)(a) and (b)—

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

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

(i) paragraph 23 of resolution 1973,

(ii) paragraph 15 of resolution 2009,

(iii) paragraph 4 of resolution 2174,

(iv) paragraph 11 of resolution 2213,

(v) paragraph 11 of resolution 2362, and

(vi) paragraph 11 of resolution 2441.

PART 2 — Designation of persons

Power to designate persons

5

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

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

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

(b) regulation 22 (immigration).

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

Criteria for designating a person

6

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

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

(a) is or has been involved in—

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(5) In this regulation—

“relevant provision” means—any provision of Part 3 (Finance), Part 5 (Trade), Part 6 (Trade, transport and finance measures related to UN designated ships), or Part 7 (Aircraft);any provision of the law of a country other than the United Kingdom made for purposes corresponding to a purpose of any provision of Part 3 or Parts 5 to 7;any provision of resolution 1970, resolution 1973 or resolution 2146;

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

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

Meaning of “owned or controlled directly or indirectly”

7

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

(2) The first condition is that P—

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

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

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

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

Notification and publicity where designation power used

8

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

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

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

(2) The Secretary of State—

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(i) the designation, variation or revocation, and

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

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

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

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

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

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

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

(iii) in the interests of justice.

(9) Paragraph (10) applies if—

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

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

(10) The Secretary of State must—

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

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

Confidential information in certain cases where designation power used

9

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

(2) A person (“P”) who—

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

(b) obtains such information,

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

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

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

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

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

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

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

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

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

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

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

(b) the Secretary of State,

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

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

Designation of persons named by or under UN Security Council Resolutions

10

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

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

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

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

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

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

PART 3 — Finance

CHAPTER 1 — Asset-freeze etc.

Meaning of “designated person” in Chapter 1

11

In this Chapter a “designated person” means—

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

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

Asset-freeze in relation to designated persons

12

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Making funds available to designated persons

13

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

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

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

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

Making funds available for benefit of designated persons

14

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

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

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

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

(4) For the purposes of this regulation—

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

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

Making economic resources available to designated persons

15

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

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

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

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

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

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

Making economic resources available for benefit of designated persons

16

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

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

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

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

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

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

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

CHAPTER 2 — Partial asset-freeze etc.

Meaning of “designated person” in Chapter 2

17

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

Partial asset-freeze in relation to designated persons

18

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(8) In this regulation—

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

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

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

Making funds available to designated persons

19

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

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

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

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

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

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

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

Making funds available for benefit of designated persons

20

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

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

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

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

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

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

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

CHAPTER 3 — Circumvention

Circumventing etc. prohibitions

21

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

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

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

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

PART 4 — Immigration

Immigration

22

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

PART 5 — Trade

Export of restricted goods

23

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

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

24

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

(a) arms and related materiel;

(b) internal repression goods.

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

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

Supply and delivery of certain goods

25

(1) A person must not—

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

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

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

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

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

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

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

Making available or acquiring certain goods and technology

26

(1) A person must not—

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

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

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

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

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

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

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

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

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

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

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

Transfer of restricted technology

27

(1) A person must not—

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

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

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

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

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

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

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

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

Technical assistance relating to restricted goods and restricted technology

28

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

(a) to a person connected with Libya, or

(b) for use in Libya.

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

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

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

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

Financial services and funds relating to restricted goods and restricted technology

29

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

(a) the export of restricted goods,

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

(d) the transfer of restricted technology, or

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

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

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

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

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

(i) to a person connected with Libya, or

(ii) for use in Libya,

(d) the transfer of restricted technology—

(i) to a person connected with Libya, or

(ii) to a place in Libya, or

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

(i) to a person connected with Libya, or

(ii) for use in Libya.

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

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

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

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

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

30

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

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

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

(i) to a person connected with Libya, or

(ii) to a place in Libya,

(i) to a person connected with Libya, or

(ii) to a place in Libya,

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

(i) to a person connected with Libya, or

(ii) to a place in Libya,

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

(i) to a person connected with Libya, or

(ii) for use in Libya,

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

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

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

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

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

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

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

(4) In this regulation—

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

“third country” means—for the purposes of paragraph (1)(a) and (b), a country that is not the United Kingdom, the Isle of Man or Libya,for the purposes of any other provision of paragraph (1), a country that is not the United Kingdom or Libya.

CHAPTER 2 — Enabling or facilitating the conduct of armed hostilities

Enabling or facilitating the conduct of armed hostilities

31

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

(a) technical assistance,

(b) armed personnel,

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

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

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

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

(4) In this regulation—

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

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

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

CHAPTER 3 — Interpretation, circumvention and defences

Interpretation of this Part

32

(1) In this Part—

“arms and related materiel” means—military goods, andany thing which is, or would be, classified under chapter 93 of the Goods Classification Table, other than military goods;

“brokering service” means any service to secure, or otherwise in relation to, an arrangement, including but not limited to—the selection or introduction of persons as parties or potential parties to the arrangement,the negotiation of the arrangement,the facilitation of anything that enables the arrangement to be entered into, andthe provision of any assistance that in any way promotes or facilitates the arrangement;

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

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

“internal repression goods” means—any thing specified in Schedule 2, other than—any thing which is internal repression technology, orany thing for the time being specified in—Schedule 2 to the Export Control Order 2008 , orAnnex Ⅰ of Council Regulation (EC) No 428/2009 of 5 May 2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items, andany tangible storage medium on which internal repression technology is recorded or from which it can be derived;

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

“military goods” means—any thing for the time being specified in Schedule 2 to the Export Control Order 2008, other than any thing which is military technology, 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;

“restricted goods” means—goods which could be used for migrant smuggling and human trafficking,internal repression goods, andmilitary goods;

“restricted technology” means—internal repression technology, andmilitary technology;

“technical assistance”, in relation to goods or technology, means—technical support relating to the repair, development, production, assembly, testing, use or maintenance of the goods or technology, orany other technical service relating to the goods or technology;

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

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

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

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

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

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

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

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

Circumventing etc. prohibitions

33

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

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

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

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

Defences

34

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

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

Transporting etc. Libyan oil in relation to UN designated ships

35

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

(a) to transport Libyan oil, or

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

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

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

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

Port access or entry for UN designated ships

36

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

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

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

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

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

Bunkering or ship supply services

37

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

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

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

(4) In this regulation—

“bunkering or ship supply services” includes—the supply of goods for use in a ship including fuel and spare parts, whether or not for immediate use, andany other servicing of a ship;

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

Financial transactions in relation to Libyan oil aboard UN designated ships

38

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

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

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

(4) In this regulation—

Circumventing etc. prohibitions

39

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

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

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

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

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

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

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

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

Defences

40

(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 6

41

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

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

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

“refined petroleum products” means anything which falls within any of the following commodity codes—2710;2712;2713.

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

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

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

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

PART 7 — Aircraft

Movement of aircraft

42

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

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

(a) take off from the United Kingdom,

(b) overfly the United Kingdom, or

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

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

(b) require the aircraft to leave UK airspace.

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

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

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

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

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

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

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

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

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

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

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

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

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

PART 8 — Exceptions and licences

Finance: exceptions from prohibitions

43

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

(a) is held by P, and

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

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

(a) is not the designated person, and

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

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

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

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

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

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

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

(7) In this regulation—

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

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

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

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

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

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

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

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

44

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

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

Aircraft: exceptions

45

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

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

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

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

(b) protect the safety of another aircraft, or

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

Exception for authorised conduct in a relevant country

46

(1) Where a person's conduct in a relevant country would, in the absence of this regulation, contravene a 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—

“relevant country” means—any of the Channel Islands,the Isle of Man, orany British overseas territory;

“relevant prohibition” means a prohibition in any of—regulations 12 to 16 (asset-freeze etc.),regulations 18 to 20 (partial asset-freeze etc.),Chapters 1 and 2 of Part 5 (Trade), orregulations 35 (transporting etc. Libyan oil in relation to UN designated ships), 37 (bunkering or ship supply services), or 38 (financial transactions in relation to Libyan oil).

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

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

47

(1) Where an act would, in the absence of this paragraph, be prohibited by the prohibition in regulation 9(2) (confidentiality) or any prohibition in Part 3 (Finance), Part 5 (Trade), Part 6 (UN designated ships) or Part 7 (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 7, Part 9 (Information and records) or Part 11 (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

48

(1) The prohibitions in regulations 12 to 16 (asset-freeze etc.), 18 to 20 (partial asset-freeze etc.) and regulation 38 (financial transactions in relation to Libyan oil) 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 12 to 16.

(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 Chapter 1 of Part 1, or in Part 3 of, Schedule 4.

(4) The Treasury may issue a licence which authorises acts in relation to a UN designated person, other than the Libyan Investment Authority or the Libyan Africa Investment Portfolio, only where the Treasury consider that it is appropriate to issue the licence for a purpose set out in Chapter 1 of Part 1, or in Part 2 of Schedule 4.

(5) Paragraph (6) applies to the issuing of a licence which authorises acts which would otherwise be prohibited by regulations 18 to 20.

(6) The Treasury may issue a licence which authorises acts in relation to the Libyan Investment Authority or the Libyan Africa Investment Portfolio only where the Treasury consider that it is appropriate to issue the licence for a purpose set out in Part 1 or Part 2 of Schedule 4.

(7) The Treasury may issue a licence which authorises acts which would otherwise be prohibited by regulation 38 only where the Treasury consider that it is appropriate to issue the licence in order to give effect to an exception made by the Committee to paragraph 10(d) of resolution 2146.

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

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

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

(9) 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.

(10) 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.

Trade licences

49

The prohibitions in Chapters 1 and 2 of Part 5 (Trade), regulation 35 (transporting etc. Libyan oil in relation to UN designated ships) and regulation 37 (bunkering or ship supply services) do not apply to anything done under the authority of a licence issued by the Secretary of State under this regulation.

Port licences

50

The prohibitions in regulation 36 (port access or entry for UN designated ships) do not apply to anything done under the authority of a licence issued by the Secretary of State under this regulation.

Licences: general provisions

51

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

52

(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

53

(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.

Port access or entry for UN designated ships: licensing offences

54

(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 port licence (whether for P or anyone else).

(2) A person who purports to act under the authority of a port 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 the Immigration Act 1971: directions

55

(1) The Secretary of State may direct that, in relation to any person within regulation 22 (immigration) 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 9 — Information and records

Finance: reporting obligations

56

(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), regulation 38(3) (financial transactions in relation to Libyan oil) or regulation 52 (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 or a relevant account in accordance with regulation 43(4) (finance: exceptions from prohibitions), or

(b) transfers funds from a frozen account or a relevant account in accordance with regulation 43(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, the following terms have the same meaning as they have in regulation 43—

“designated person”;

“frozen account”;

“relevant account”;

“relevant institution”.

(8) For the purposes of this regulation, “relevant firm” is to be read in accordance with regulation 57.

“Relevant firm”

57

(1) The following are relevant firms for the purposes of regulation 56 (finance: reporting obligations)—

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

(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.

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The Libya (Sanctions) (EU Exit) Regulations 2020

PART 1 — General

Citation and commencement

1

Interpretation

2

Application of prohibitions and requirements outside the United Kingdom

3

Purposes

4

PART 2 — Designation of persons

Power to designate persons

5

Criteria for designating a person

6

Meaning of “owned or controlled directly or indirectly”

7

Notification and publicity where designation power used

8

Confidential information in certain cases where designation power used

9

Designation of persons named by or under UN Security Council Resolutions

10

PART 3 — Finance

CHAPTER 1 — Asset-freeze etc.

Meaning of “designated person” in Chapter 1

11

Asset-freeze in relation to designated persons

12

Making funds available to designated persons

13

Making funds available for benefit of designated persons

14

Making economic resources available to designated persons

15

Making economic resources available for benefit of designated persons

16

CHAPTER 2 — Partial asset-freeze etc.

Meaning of “designated person” in Chapter 2

17

Partial asset-freeze in relation to designated persons

18

Making funds available to designated persons

19

Making funds available for benefit of designated persons

20

CHAPTER 3 — Circumvention

Circumventing etc. prohibitions

21

PART 4 — Immigration

Immigration

22

PART 5 — Trade

CHAPTER 1 — Trade prohibitions related to goods and technology

Export of restricted goods

23

Import of arms and related materiel and internal repression goods

24

Supply and delivery of certain goods

25

Making available or acquiring certain goods and technology

26

Transfer of restricted technology

27

Technical assistance relating to restricted goods and restricted technology

28

Financial services and funds relating to restricted goods and restricted technology

29

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

30

CHAPTER 2 — Enabling or facilitating the conduct of armed hostilities

Enabling or facilitating the conduct of armed hostilities

31

CHAPTER 3 — Interpretation, circumvention and defences

Interpretation of this Part

32

Circumventing etc. prohibitions

33

Defences

34