Regulation 22 Finance: exceptions from prohibitionsI1

The prohibition in regulation 14 (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—

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

The prohibitions in regulations 14 to 16 (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.

The prohibitions in regulations 15 and 16 (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.

The prohibitions in regulations 15 and 16 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.

The prohibitions in regulations 14 to 16 are not contravened in relation to a designated person (“P”) by a transfer of funds from account A to account B, where—

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 activities)^f3.

The definition of “relevant institution” in paragraph (7) is to be read with section 22 of the Financial Services and Markets Act 2000 (regulated activities)^f4, any relevant order under that section^f5 and Schedule 2 to that Act (regulated activities)^f6.

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 9) by the designated person.

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 9) 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.