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The Myanmar (Sanctions) Regulations 2021

Type Statutory-Instrument

Publication 2021-04-26

Last updated 2026-01-19

State In force

Department King's Printer of Acts of Parliament

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Made: 26th April 2021

Laid before Parliament: at 11.00 a.m. on 29th April 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)(c) and (3)(b), 3(1)(a), (b)(ii) and (iii), and (d)(i), (ii) and (iii), 4, 5, 9(2)(a), 10(2)(a) and (c), (3) and (4), 11, 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(a)(iii) and (b), 4(a)(iii), (b) and (c), 5(a)(ii) and (iii) and (b), 6(a)(ii) and (iii) and (b), 10(b), 11(a)(ii) and (iii), 13(a), (b), (g), (h), (k), (l), (m), (n) and (w), 14(a), (f) and (k), 17, 19 to 23 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 Myanmar (Sanctions) Regulations 2021.

(2) The following provisions come into force at 2.00 p.m. on 29th April 2021—

(a) this regulation;

(b) regulation 2 (interpretation);

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

(e) regulation 6 (designation criteria);

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

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

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

(3) All other provisions come into force at 5.00 p.m. on 29th April 2021.

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;

“conduct” includes acts and omissions;

“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;

“director disqualification licence” means a licence under regulation 44A;

“the Dual-Use Regulation” means 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;

“humanitarian assistance activity” includes the work of international and non-governmental organisations carrying out relief activities in Myanmar for the benefit of the civilian population there;

“the Myanmar security forces” means the Tatmadaw and the Myanmar Police Force, including the Border Guard Force, and any person acting on their behalf or under their command or control;

“serious human rights violation or abuse” means a serious violation or abuse of any of the human rights specified in regulation 4;

“the Tatmadaw” means the Myanmar Armed Forces;

“trade licence” means a licence under regulation 45;

“Treasury licence” means a licence under regulation 44(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 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) a condition of a Treasury licence or a trade 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 7 (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 or a trade 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

The purposes of the regulations contained in this instrument are to—

(a) promote the peace, stability and security of Myanmar;

(b) promote respect for democracy, the rule of law and good governance in Myanmar, including in particular promoting the successful completion of Myanmar's transition to a democratic country;

(d) promote compliance with international human rights law and respect for human rights in Myanmar, including in particular, respect for—

(i) the right to life of persons in Myanmar;

(ii) the right of persons in Myanmar not to be held in slavery or required to perform forced or compulsory labour;

(iii) the right of persons in Myanmar, including in particular the Rohingya, not to be subjected to forced deportation or forcible transfer from Myanmar;

(iv) the right of persons not to be subject to torture or cruel, inhuman or degrading treatment or punishment in Myanmar, including in the context of—

(aa) violence against persons on the basis of their political opinion, religious belief or ethnicity,

(bb) rape and other forms of sexual and gender-based violence, or

(cc) recruitment or use of, or violence against, children;

(v) the right to liberty and security of persons in Myanmar, including freedom from arbitrary arrest, detention or enforced disappearance;

(vi) the right to a fair trial of persons charged with criminal offences in Myanmar;

(vii) the rights of journalists, human rights defenders, civil society activists, religious leaders, politicians and all other persons in Myanmar to freedom of expression, peaceful assembly and association with others;

(viii) the enjoyment of rights and freedoms in Myanmar without discrimination, including on the basis of a person's sex, race, colour, language, religion, political or other opinion, national or social origin, association with a national minority, property, birth or other status.

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 11 to 15 (asset-freeze etc.);

(aa) regulation 16A (director disqualification sanctions);

(b) regulation 17 (immigration).

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

Designation criteria

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) undermining democracy, the rule of law or good governance in Myanmar;

(ii) the repression of the civilian population in Myanmar;

(iii) the commission of, or the obstruction of an independent investigation into, a serious human rights violation or abuse in Myanmar;

(iv) the commission of a violation of international humanitarian law in Myanmar;

(v) the obstruction of a humanitarian assistance activity in Myanmar;

(vi) any other action, policy or activity which threatens the peace, stability or security of Myanmar,

(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 one or more of the activities set out in paragraph (2)(a) includes being 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 such an activity;

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

(d) providing financial services to, or making available funds or economic resources directly or indirectly to or for the benefit of, the Myanmar security forces;

(e) carrying out activities as a member of, or working for, the State Administration Council;

(f) working for, or being affiliated to, the Myanmar security forces as—

(i) a member of the Myanmar security forces of the rank of colonel or the equivalent or higher,

(ii) a member of the Border Guard Force,

(iii) a member of a militia,

(iv) a MSF-affiliated business, or

(v) a patron, director, trustee or other manager (whether executive or non-executive) of a MSF-affiliated business;

(g) being involved in the supply to Myanmar of goods or technology which could contribute to a serious human rights violation or abuse, or in providing financial services relating to such supply;

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

(i) being involved in the supply to Myanmar of dual-use goods or dual-use technology for military use or the use of the Myanmar security forces, or of material related to such goods or technology, or in providing financial services relating to such supply;

(j) assisting the contravention or circumvention of any relevant Myanmar-related provision.

(4) In this regulation, “relevant Myanmar-related provision” means—

(a) any provision of Part 3 (Finance) or Part 5 (Trade);

(b) 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 Part 5.

(5) 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.

(6) For the purposes of paragraph (3)(f)(iv), a “MSF-affiliated business” includes—

(a) a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by, or otherwise makes available funds or economic resources directly or indirectly to or for the benefit of, the Myanmar security forces;

(b) a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by, or otherwise makes available funds or economic resources directly or indirectly to or for the benefit of, any person mentioned in paragraph (3)(f)(i) to (iii);

(c) a person who is not an individual (“C”) where more than one person, each of whom is a current or former member of, a unit of, or an organisation associated with, the Myanmar security forces, together—

(i) hold directly or indirectly more than 50% of the shares in C (within the meaning set out in Schedule 1),

(ii) hold directly or indirectly more than 50% of the voting rights in C (within the meaning set out in Schedule 1), or

(iii) hold the right directly or indirectly to appoint or remove a majority of the board of directors of C (within the meaning set out in Schedule 1).

(7) In this regulation—

“dual-use goods” and “dual-use technology” have the meanings given by Part 5;

“militia” means a national, regional or local armed group which supports or receives funding from, but is not part of or integrated into, the Myanmar security forces;

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

“the State Administration Council” means the State Administration Council established in Myanmar on 2 February 2021, and includes any successor entity with equivalent functions.

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) Matters that would otherwise be required by paragraph (4) 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

(6) 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.

(7) 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.

(8) Paragraph (9) 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.

(9) 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(6)(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) otherwise 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.

PART 3 — Finance

Meaning of “designated person” in Part 3

10

In this Part, a “designated person” means a person who is designated under regulation 5 (power to designate persons) for the purposes of regulations 11 to 15 (asset-freeze etc.).

Asset-freeze in relation to designated persons

11

(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 6 (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

12

(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 6 (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

13

(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 6 (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

14

(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 6 (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

15

(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 6 (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.

Circumventing etc. prohibitions

16

(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 11 to 15 (asset-freeze etc.), or

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

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

PART 4 — Immigration

Immigration

17

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

CHAPTER 1 — Interpretation

Definition of “restricted goods” and “restricted technology”

18

In this Part—

“restricted goods” means—military goods,internal repression goods, andinterception and monitoring goods;

“restricted technology” means—military technology,internal repression technology, andinterception and monitoring technology.

Definitions relating to “restricted goods” and “restricted technology”

19

(1) The following definitions apply for the purposes of regulation 18—

“interception and monitoring goods” means any items mentioned in sub-paragraph (a) or (b), provided that it may be used for interception and monitoring services—a relevant Schedule 3 item;any tangible storage medium on which interception and monitoring technology is recorded or from which it can be derived;

“interception and monitoring technology” means any thing—which is described as software in paragraph 2 of Schedule 3, provided that it may be used for interception and monitoring services, andwhich is described as software or other technology in paragraph 3 of Schedule 3, (but see paragraph (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 the Dual-Use Regulation, 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.

(2) For the purpose of paragraph (1), “a relevant Schedule 3 item” means any thing described in Schedule 3, other than—

(a) any thing which is interception and monitoring technology, or

(b) any thing for the time being specified in—

(i) Schedule 2 to the Export Control Order 2008, or

(ii) Annex I of the Dual-Use Regulation.

(3) The definition of “interception and monitoring technology” does not apply to software which is—

(a) generally available to the public, or

(b) in the public domain.

(4) For the purpose of paragraph (3)—

(a) software is “generally available to the public” if—

(i) the software is sold from stock at retail selling points without restriction, by means of—

(aa) over the counter transactions,

(bb) mail order transactions,

(cc) electronic transactions, or

(dd) telephone order transactions, and

(ii) the software is designed for installation by the user without further substantial support by the supplier;

(b) software is “in the public domain” if the software has been made available without restrictions upon its further dissemination (and for this purpose copyright restrictions do not constitute a restriction upon its further dissemination).

Definition of “interception and monitoring services”

20

(1) For the purposes of this Part, “interception and monitoring services” means any service that has as its object or effect the interception of a communication in the course of its transmission by means of a telecommunication system.

(2) A person intercepts a communication in the course of its transmission by means of a telecommunication system if, and only if—

(a) the person does a relevant act in relation to the system, and

(b) the effect of the relevant act is to make any content of the communication available, at a relevant time, to a person who is not the sender or intended recipient of the communication.

(3) In paragraph (2), a “relevant act”, in relation to a telecommunication system, means—

(a) modifying, or interfering with, the system or its operation;

(b) monitoring transmissions made by means of the system;

(4) In paragraph (2), a “relevant time”, in relation to a communication transmitted by means of a telecommunication system, means—

(a) any time while the communication is being transmitted, and

(b) any time when the communication is stored in or by the system (whether before or after its transmission).

(5) For the purpose of paragraph (2), the cases in which any content of a communication is to be taken to be made available to a person at a relevant time include any case in which any of the communication is diverted or recorded at a relevant time so as to make the content of the communication available to a person after that time.

(6) In paragraph (3), references to modifying a telecommunication system include references to attaching any apparatus to, or otherwise modifying or interfering with—

(a) any part of the system, or

(b) any wireless telegraphy apparatus used for making transmissions to or from apparatus that is part of the system.

(7) For the purposes of this regulation, the following definitions also apply—

“apparatus” includes any equipment, machinery or device (whether physical or logical) and any wire or cable;

“communication”, for the purpose of a telecommunication system, includes—anything comprising speech, music, sounds, visual images or data of any description, andsignals serving for the impartation of anything between persons, between a person and a thing or between things, for the actuation or control of any apparatus;

“content”, in relation to a communication and a telecommunication system, means any element of the communication, or any data attached to or logically associated with the communication, which reveals anything of what might reasonably be considered to be the meaning (if any) of the communication, but—any meaning arising from the fact of the communication or from any data relating to the transmission of the communication is to be disregarded, andanything which is systems data is not content;

“systems data” means any data that enables or facilitates, or identifies or describes anything connected with enabling or facilitating, the functioning of a telecommunication system (including any apparatus forming part of the system);

“a telecommunication system” means a system (including the apparatus comprised in it) that exists for the purpose of facilitating the transmission of communications by any means involving the use of electrical or electromagnetic energy;

“wireless telegraphy” and “wireless telegraphy apparatus” have the same meaning as in sections 116 and 117 of the Wireless Telegraphy Act 2006 .

Interpretation of other expressions used in this Part

21

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

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

(3) In this Part—

“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;

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

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

“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.

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

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

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

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

CHAPTER 2 — Restricted goods and restricted technology

Export of restricted goods

22

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

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

Supply and delivery of restricted goods

23

(1) A person must not directly or indirectly supply or deliver restricted goods from a third country to a place in Myanmar.

(2) Paragraph (1) is subject to Part 6 (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 goods were destined (or ultimately destined) for Myanmar.

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

Making restricted goods and restricted technology available

24

(1) A person must not—

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

(b) directly or indirectly make restricted goods or restricted technology available for use in Myanmar.

(2) Paragraph (1) is subject to Part 6 (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 Myanmar;

(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 Myanmar.

Transfer of restricted technology

25

(1) A person must not—

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

(b) transfer restricted technology to a person connected with Myanmar.

(2) Paragraph (1) is subject to Part 6 (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 Myanmar;

(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 Myanmar.

Technical assistance relating to restricted goods and restricted technology

26

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

(a) to a person connected with Myanmar, or

(b) for use in Myanmar.

(2) Paragraph (1) is subject to Part 6 (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 Myanmar;

(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 Myanmar.

Financial services and funds relating to restricted goods and restricted technology

27

(1) A person must not directly or indirectly provide, to a person connected with Myanmar, 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 Myanmar 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, Myanmar,

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

(i) to a person connected with Myanmar, or

(ii) for use in Myanmar,

(d) the transfer of restricted technology—

(i) to a person connected with Myanmar, or

(ii) to a place in Myanmar, or

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

(i) to a person connected with Myanmar, or

(ii) for use in Myanmar.

(4) Paragraphs (1) to (3) are subject to Part 6 (Exceptions and licences).

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

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

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

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

28

(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 Myanmar,

(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 Myanmar, or

(ii) to a place in Myanmar,

(i) to a person connected with Myanmar, or

(ii) to a place in Myanmar,

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

(i) to a person connected with Myanmar, or

(ii) to a place in Myanmar,

(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 Myanmar, or

(ii) for use in Myanmar,

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

(i) to a person connected with Myanmar, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 27(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 27(3),

(g) directly or indirectly making funds available, in a non-UK country, to a person connected with Myanmar, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 27(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 27(3).

(2) Paragraph (1) is subject to Part 6 (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 Myanmar, andfor the purposes of any other provision of paragraph (1), a country that is not the United Kingdom or Myanmar.

CHAPTER 3 — Dual-use goods and dual-use technology

Interpretation of this Chapter

29

For the purposes of this Chapter—

(a) goods are “for military use” if they are—

(i) for use by the Tatmadaw or any other military end-user, or

(ii) for any military use;

(b) technology is “for military use” if it—

(i) relates to military activities carried on or proposed to be carried on by the Tatmadaw or any other military end-user, or

(ii) is for any military use.

Export of dual-use goods

30

(1) The export to Myanmar of dual-use goods for military use is prohibited.

(2) The export of dual-use goods for military use in Myanmar is prohibited.

(3) The export of dual-use goods to or for use by the Myanmar security forces is prohibited.

(4) Paragraphs (1), (2) and (3) are subject to Part 6 (Exceptions and licences).

Supply and delivery of dual-use goods

31

(1) A person must not—

(a) directly or indirectly supply or deliver dual-use goods for military use from a third country to a place in Myanmar;

(b) directly or indirectly supply or deliver dual-use goods from a third country to, or for use by, the Myanmar security forces.

(2) Paragraph (1) is subject to Part 6 (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—

(i) the goods were destined (or ultimately destined) for Myanmar, or

(ii) the goods were for military use;

(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 goods were supplied or delivered to or for the use of the Myanmar security forces.

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

Making dual-use goods and dual-use technology available

32

(1) A person must not—

(a) directly or indirectly make available, to a person connected with Myanmar, dual-use goods for military use or dual-use technology for military use;

(b) directly or indirectly make available dual-use goods for military use in Myanmar or dual-use technology for military use in Myanmar;

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

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

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

(i) the person was connected with Myanmar, or

(ii) the goods or technology were for military use;

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

(c) it is a defence for a person charged with an offence of contravening paragraph (1)(c) (“P”) to show that P did not know and had no reasonable cause to suspect that the goods were made available to or for the use of the Myanmar security forces.

Transfer of dual-use technology

33

(1) A person must not—

(a) transfer dual-use technology for military use to a place in Myanmar;

(b) transfer dual-use technology for military use to a person connected with Myanmar;

(2) Paragraph (1) is subject to Part 6 (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—

(i) the transfer was to a place in Myanmar, or

(ii) the technology was for military use;

(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—

(i) the person was connected with Myanmar, or

(ii) the technology was for military use;

(c) it is a defence for a person charged with an offence of contravening paragraph (1)(c) (“P”) to show that P did not know and had no reasonable cause to suspect that the technology was transferred to the Myanmar security forces.

Technical assistance relating to dual-use goods and dual-use technology

34

(1) A person must not directly or indirectly—

(a) provide technical assistance relating to dual-use goods for military use or dual-use technology for military use to a person connected with Myanmar;

(b) provide technical assistance relating to dual-use goods for military use in Myanmar or dual-use technology for military use in Myanmar;

(d) provide technical assistance relating to dual-use goods or dual-use technology for use by the Myanmar security forces.

(2) Paragraph (1) is subject to Part 6 (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—

(i) the person was connected with Myanmar, or

(ii) the goods or technology were for military use;

(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 goods or technology were for military use in Myanmar;

(c) it is a defence for a person charged with the offence of contravening paragraph (1)(c) (“P”) to show that P did not know and had no reasonable cause to suspect that the technical assistance was provided to the Myanmar security forces;

(d) it is a defence for a person charged with the offence of contravening paragraph (1)(d) (“P”) to show that P did not know and had no reasonable cause to suspect that the goods or technology were for use by the Myanmar security forces.

Financial services and funds relating to dual-use goods and dual-use technology

35

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

(a) the export of dual-use goods for military use,

(b) the direct or indirect supply or delivery of dual-use goods for military use,

(d) the transfer of dual-use technology for military use, or

(e) the direct or indirect provision of technical assistance relating to dual-use goods or dual-use technology for military use.

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

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

(a) the export of dual-use goods,

(b) the direct or indirect supply or delivery of dual-use goods,

(d) the transfer of dual-use technology, or

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

(4) 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 to Myanmar of dual-use goods for military use,

(b) the export of dual-use goods for military use in Myanmar,

(d) the direct or indirect supply or delivery of dual-use goods for military use to a place in Myanmar,

(e) the direct or indirect supply or delivery of dual-use goods to, or for use by, the Myanmar security forces,

(f) directly or indirectly making available, to a person connected with Myanmar, dual-use goods for military use or dual-use technology for military use,

(g) directly or indirectly making available dual-use goods for military use in Myanmar or dual-use technology for military use in Myanmar,

(h) directly or indirectly making available dual-use goods or dual-use technology to, or for use by, the Myanmar security forces,

(i) the transfer of dual-use technology for military use—

(i) to a person connected with Myanmar, or

(ii) to a place in Myanmar,

(j) the transfer of dual-use technology to the Myanmar security forces,

(k) the direct or indirect provision of technical assistance relating to dual-use goods for military use or dual-use technology for military use to a person connected with Myanmar,

(l) the direct or indirect provision of technical assistance relating to dual-use goods for military use in Myanmar or dual-use technology for military use in Myanmar,

(m) the direct or indirect provision of technical assistance relating to dual-use goods or dual-use technology to the Myanmar security forces, or

(n) the direct or indirect provision of technical assistance relating to dual-use goods or dual-use technology for use by the Myanmar security forces.

(5) Paragraphs (1) to (4) are subject to Part 6 (Exceptions and licences).

(6) A person who contravenes a prohibition in any of paragraphs (1) to (4) commits an offence, but—

(a) it is a defence for a person charged with an offence of contravening a prohibition in 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 Myanmar;

(b) it is a defence for a person charged with an offence of contravening a prohibition in paragraph (3) (“P”) to show that P did not know and had no reasonable cause to suspect that the financial services or funds (as the case may be) were provided to the Myanmar security forces;

(c) it is a defence for a person charged with an offence of contravening a prohibition in paragraph (4) (“P”) to show that P 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 dual-use goods and dual-use technology

36

(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 dual-use goods for military use from a third country to a place in Myanmar,

(b) the direct or indirect supply or delivery of dual-use goods to or for use by the Myanmar security forces,

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

(i) to a person connected with Myanmar, or

(ii) to a place in Myanmar,

(d) directly or indirectly making dual-use technology for military use available in a third country for transfer—

(i) to a person connected with Myanmar, or

(ii) to a place in Myanmar,

(e) directly or indirectly making dual-use goods or dual-use technology available to, or for use by, the Myanmar security forces,

(f) the transfer of dual-use technology for military use from a place in a third country—

(i) to a person connected with Myanmar, or

(ii) to a place in Myanmar,

(g) the transfer of dual-use technology from a place in a third country to the Myanmar security forces,

(h) the direct or indirect provision, in a non-UK country, of technical assistance relating to dual-use goods or dual-use technology for military use—

(i) to a person connected with Myanmar, or

(ii) for use in Myanmar,

(i) the direct or indirect provision, in a non-UK country, of technical assistance relating to dual-use goods or dual-use technology to the Myanmar security forces,

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

(i) to a person connected with Myanmar, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 35(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 35(3),

(k) directly or indirectly making funds available, in a non-UK country, to a person connected with Myanmar, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 35(1), or

(l) 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 35(3).

(2) Paragraph (1) is subject to Part 6 (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 (c), a country that is not the United Kingdom, the Isle of Man or Myanmar, andfor the purposes of any other provision of paragraph (1), a country that is not the United Kingdom or Myanmar.

CHAPTER 4 — Interception and monitoring services

Provision of interception and monitoring services

37

(1) A person must not directly or indirectly provide interception and monitoring services to, or for the benefit of, the Government of Myanmar.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with that offence (“P”) to show that P did not know and had no reasonable cause to suspect that the services were provided to, or for the benefit of, the Government of Myanmar.

(4) In this regulation, “the Government of Myanmar” includes its public bodies, corporations or agencies, or any person acting on its behalf or at its direction.

CHAPTER 5 — Military activities etc.

Military activities or otherwise enabling or facilitating the conduct of armed hostilities

38

(1) A person must not directly or indirectly provide anything falling within paragraph (2) to or for the benefit of the Tatmadaw, or to any person acting on its behalf or under its direction, where such provision—

(a) relates to the military activities of the recipient in Myanmar, or

(b) otherwise enables or facilitates the conduct of armed hostilities in Myanmar.

(2) The following fall within this paragraph—

(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).

(3) Paragraph (1) is subject to Part 6 (Exceptions and licences).

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

(a) was to or for the benefit of the Tatmadaw, or to any person acting on its behalf or under its direction, or

(b) related to the military activities of the recipient in Myanmar or would otherwise enable or facilitate the conduct of armed hostilities in Myanmar.

(5) 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”.

(6) Nothing in this regulation is to be taken to limit the meaning of any of the prohibitions contained in Chapters 2 to 4 of this Part.

CHAPTER 6 — Further provision

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 any of the prohibitions in Chapters 2 to 5 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

40

(1) Paragraph (2) applies where a person relies on a defence under Chapters 2 to 5 of this Part.

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

PART 6 — Exceptions and licences

Finance: exceptions from prohibitions

41

(1) The prohibition in regulation 11 (asset-freeze in relation to designated persons) is not contravened by an independent person (“P”) transferring to another person a legal or equitable interest in funds or economic resources where, immediately before the transfer, the interest—

(a) is held by P, and

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

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

(a) is not the designated person, and

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

(3) The prohibitions in regulations 11 to 13 (asset-freeze in relation to, and making funds available to, or for the benefit of, designated persons) are not contravened by a relevant institution crediting a frozen account with interest or other earnings due on the account.

(4) The prohibitions in regulations 12 and 13 (making funds available to, or for the benefit of, designated persons) are not contravened by a relevant institution crediting a frozen account where it receives funds transferred to that institution for crediting to that account.

(5) The prohibitions in regulations 12 and 13 are not contravened by the transfer of funds to a relevant institution for crediting to an account held or controlled (directly or indirectly) by a designated person, where those funds are transferred in discharge (or partial discharge) of an obligation which arose before the date on which the person became a designated person.

(6) The prohibitions in regulations 11 to 13 are not contravened in relation to a designated person (“P”) by a transfer of funds from account A to account B, where—

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

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

(7) In this regulation—

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

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

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

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

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

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

Exception for authorised conduct in a relevant country

42

(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.) or Chapters 2 to 5 of Part 5 (Trade) (“the relevant prohibition”), the relevant prohibition is not contravened if the conduct is authorised by a licence or other authorisation which is issued—

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

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

(2) In this regulation, “relevant country” means—

(a) any of the Channel Islands,

(b) the Isle of Man, or

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

43

(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) or Part 5 (Trade), 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 (Information and records) or Part 9 (Maritime enforcement), that requirement does not apply if a responsible officer has determined that not doing the thing in question would be in the interests of—

(a) national security, or

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

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

Treasury licences

44

(1) The prohibitions in regulations 11 to 15 (asset-freeze etc.) do not apply to anything done under the authority of a licence issued by the Treasury under this paragraph.

(2) The Treasury may issue a licence which authorises acts by a particular person only where the Treasury consider that it is appropriate to issue the licence for a purpose set out in Schedule 4.

Trade licences

45

The prohibitions in Chapters 2 to 5 of Part 5 (Trade) do not apply to anything done under the authority of a licence issued by the Secretary of State under this regulation.

Licences: general provisions

46

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

47

(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

48

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

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

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

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

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

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

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

49

(1) The Secretary of State may direct that, in relation to any person within regulation 17 (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 may contain conditions.

(3) A direction 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).

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

(5) 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.

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

PART 7 — Information and records

Finance: reporting obligations

50

(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) or regulation 47 (finance: licensing offences), and

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

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

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

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

(3) Paragraph (4) applies if—

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

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

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

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

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

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

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

(a) credits a frozen account in accordance with regulation 41(4) (finance: exceptions from prohibitions), or

(b) transfers funds from a frozen account in accordance with regulation 41(6).

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

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

(7) In this regulation—

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

“frozen account” has the same meaning as it has in regulation 41;

“relevant firm” is to be read in accordance with regulation 51 (“relevant firm”);

“relevant institution” has the same meaning as it has in regulation 41.

“Relevant firm”

51

(1) The following are relevant firms for the purposes of regulation 50 (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 licence) ;

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

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

(ii) precious stones or pearls.

(h) a cryptoasset exchange provider;

(i) a custodian wallet provider.

(j) a high value dealer;

(k) an art market participant;

(l) an insolvency practitioner;

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

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

(a) forming companies or other legal persons;

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

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

(ii) as a partner of a partnership, or

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

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

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

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

(ii) a nominee shareholder for a person.

(3) In paragraph (1)—

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

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

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

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

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

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

(a) cryptoassets on behalf of its customers, or

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

(3C) For the purposes of this regulation—

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

(b) “money” means—

(i) money in sterling,

(ii) money in any other currency, or

(iii) money in any other medium of exchange,

but does not include a cryptoasset; and

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

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

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

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

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

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

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

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

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

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

(b) done—

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

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

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

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

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

(3K) Those things are—

(a) publishing advertisements or disseminating information;

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

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

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

(5) For the purposes of regulation 50(1), information or another matter comes to a relevant firm “in the course of carrying on its business” if the information or other matter comes to the firm—

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

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

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

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