The Nicaragua (Sanctions) (EU Exit) Regulations 2020

SCHEDULE 2 — Treasury licences: purposes

Interpretation

1

• (1) In this Schedule—

• “designated person” has the same meaning as it has in Part 3 (Finance);

• “frozen account” has the meaning given in regulation 18(7);

• “frozen funds or economic resources” means funds or economic resources frozen by virtue of regulation 11, and any reference to a person's frozen funds or economic resources is to funds or economic resources frozen as a consequence of the designation of that person for the purpose of that regulation.

• (2) For the purposes of this Schedule, references to a designated person are to be read as including a person (“C”) who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person (“P”).

• (3) When determining for the purposes of paragraph 10 when C became a designated person, C is to be treated as having become a designated person at the same time as P.

Basic needs

2

• (1) To enable the basic needs of a designated person, or (in the case of an individual) any dependent family member of such a person, to be met.

• (2) In the case of an individual, in sub-paragraph (1), “basic needs” includes—

• (a) medical needs;

• (b) needs for—

• (i) food;

• (ii) payment of insurance premiums;

• (iii) payment of tax;

• (iv) rent or mortgage payments;

• (v) utility payments.

• (3) In the case of a person other than an individual, in sub-paragraph (1), “basic needs” includes needs for—

• (a) payment of insurance premiums;

• (b) payment of reasonable fees for the provision of property management services;

• (c) payment of remuneration, allowances or pensions of employees;

• (d) payment of tax;

• (e) rent or mortgage payments;

• (f) utility payments.

• (4) In sub-paragraph (1)—

• “dependent” means financially dependent;

• “family member” includes—the wife or husband of the designated person;the civil partner of the designated person;any parent or other ascendant of the designated person;any child or other descendant of the designated person;any person who is a brother or sister of the designated person, or a child or other descendant of such a person.

Legal services

3

To enable the payment of—

• (a) reasonable professional fees for the provision of legal services, or

• (b) reasonable expenses associated with the provision of legal services.

Maintenance of frozen funds and economic resources

4

To enable the payment of—

• (a) reasonable fees, or

• (b) reasonable service charges,

arising from the routine holding or maintenance of frozen funds or economic resources.

Extraordinary expenses

5

To enable an extraordinary expense of a designated person to be met.

Pre-existing judicial decisions etc.

6

To enable the implementation or satisfaction (in whole or in part) of a judicial, administrative or arbitral decision or lien which is enforceable in the United Kingdom (the “judicial decision”), provided that—

• (a) where funds or economic resources are made available to a designated person, they are credited to a frozen account or otherwise frozen by virtue of regulation 11;

• (b) where funds or economic resources are made available by a person (including a designated person) to a designated person to enable the implementation or satisfaction of the judicial decision, no other designated person benefits, directly or indirectly.

Diplomatic missions etc.

7

• (1) To enable anything to be done in order that the functions of a diplomatic mission or consular post or of an international organisation enjoying immunities in accordance with international law may be carried out.

• (2) In this paragraph—

• “consular post” has the same meaning as in the Vienna Convention on Consular Relations done at Vienna on 24 April 1963 , and any reference to the functions of a consular post is to be read in accordance with that Convention;

• “diplomatic mission” and any reference to the functions of a diplomatic mission are to be read in accordance with the Vienna Convention on Diplomatic Relations done at Vienna on 18 April 1961 .

Humanitarian assistance activities

8

• (1) To enable anything to be done in connection with the performance of any humanitarian assistance activity.

• (2) In sub-paragraph (1), “humanitarian assistance activity” includes the work of international and non-governmental organisations carrying out relief activities in Nicaragua for the benefit of the civilian population there.

Extraordinary situation

9

To enable anything to be done to deal with an extraordinary situation.

Prior obligations

10

To enable, by the use of a designated person's frozen funds or economic resources, the satisfaction of an obligation of that person (whether arising under a contract, other agreement or otherwise), provided that—

• (a) the obligation arose before the date on which the person became a designated person, and

• (b) no payments are made to another designated person, whether directly or indirectly.

Signed

Ahmad — Minister of State — 2020-06-18

Explanatory note

(This note is not part of the Regulations)

Footnotes

Editorial notes

Finance: exception for authorised conduct in a relevant country

18A

• (1) Where a person's conduct in a relevant country would, in the absence of this regulation, contravene a prohibition in any of regulations 11 to 15 (asset-freeze etc.) (“the relevant prohibition”), the relevant prohibition is not contravened if the conduct is authorised by a licence or other authorisation which is issued—

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

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

• (2) In this regulation—

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

Treasury licences

Finance: licensing offences

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

Finance: disclosure to the Treasury

28A

• (1) A relevant public authority may disclose information to the Treasury if the disclosure is made for the purpose of enabling or assisting the Treasury to discharge any of its functions in connection with any sanctions regulations contained in these Regulations.

• (2) In this regulation—

• “relevant public authority” means—any person holding or acting in any office under or in the service of—the Crown in right of the Government of the United Kingdom,the Crown in right of the Scottish Government, the Northern Ireland Executive or the Welsh Government,any local authority,any police officer,the Financial Conduct Authority, the Prudential Regulation Authority, the Bank of England or any other regulatory body in the United Kingdom, orany other person exercising functions of a public nature;

• “local authority” means—in relation to England—a county council,a district council,a London Borough council,the Common Council of the City of London in its capacity as a local authority,the Council of the Isles of Scilly, oran eligible parish council within the meaning of section 1(2) of the Local Government Act 2000,in relation to Wales, a county council, a county borough council or a community council,in relation to Scotland, a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994, orin relation to Northern Ireland, a district council.

Part 6: supplementary

PART 3A — Director disqualification sanctions

Director disqualification sanctions

16A

A person who is designated under regulation 5 (power to designate persons) for the purposes of this regulation is a person subject to director disqualification sanctions for the purposes of—

• (a) section 11A of the Company Directors Disqualification Act 1986, and

• (b) Article 15A of the Company Directors Disqualification (Northern Ireland) Order 2002.

Director disqualification licences

20A

The Secretary of State may issue a licence in relation to any person who is designated under regulation 5 for the purposes of regulation 16A (director disqualification sanctions) providing that the prohibitions in—

• (a) section 11A(1) of the Company Directors Disqualification Act 1986, and

• (b) Article 15A(1) of the Company Directors Disqualification (Northern Ireland) Order 2002,

do not apply to anything done under the authority of that licence.

Licences: general provisions

20B

• (1) This regulation applies in relation to Treasury licences and director disqualification 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

Director disqualification: licensing offences

21A

• (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 director disqualification licence (whether for P or anyone else).

• (2) A person who purports to act under the authority of a director disqualification 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

Finance: exception from prohibitions for required payments

18B

• (1) This regulation applies to required payments within the meaning of paragraph (2).

• (2) A required payment is a payment which—

• (a) a designated person is required to make under or by virtue of any enactment to—

• (i) the registrar of companies,

• (ii) the Commissioners for His Majesty's Revenue and Customs,

• (iii) the Welsh Revenue Authority,

• (iv) Revenue Scotland,

• (v) the Financial Conduct Authority,

• (vi) the Secretary of State,

• (vii) the Welsh Ministers,

• (viii) the Department of Finance in Northern Ireland, or

• (ix) a local authority, and

• (b) is not an excluded payment.

• (3) The prohibitions in regulations 11 (asset-freeze in relation to designated persons) and 13 (making funds available for benefit of designated persons) are not contravened by a person making a required payment.

• (4) Where a required payment is made by a person other than a designated person, the prohibition in regulation 11 is not contravened by the designated person making a reimbursement payment to that person.

• (5) The reference in paragraph (3) to a person making a required payment includes a designated person, but only where they are making a required payment on their own behalf.

• (6) The following payments are to be treated as payments which a designated person is required to make under or by virtue of an enactment for the purposes of this regulation, where made by a designated person on their own behalf or by a person, other than a designated person, on behalf of a designated person—

• (a) a payment to the Financial Conduct Authority of a levy imposed by the scheme manager of the Financial Services Compensation Scheme by virtue of section 213 of the Financial Services and Markets Act 2000 (the compensation scheme);

• (b) a payment to the Financial Conduct Authority which is collected by that Authority on behalf of the Financial Reporting Council Limited.

• (7) For the purposes of this regulation, 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.

• (8) In this regulation—

• “BID levy” means a levy that is imposed on those persons who are, in respect of particular business improvement district proposals, entitled to vote in accordance with section 39(3) of the Planning etc. (Scotland) Act 2006;

• “business improvement district” has the meaning given in section 33 of the Planning etc. (Scotland) Act 2006;

• “designated person” has the same meaning as it has in Part 3 (Finance);

• “enactment” has the meaning given in section 54(6) of the Act;