# The Libya (Sanctions) (EU Exit) Regulations 2020, Regulation 43ZB: Finance: exceptions relating to payment of Treasury debt


(1) The prohibitions in regulations 12 to 14 (asset-freeze in relation to, and making funds available to, or for the benefit of, designated persons) and regulations 18 to 20 (partial asset-freeze and making funds available to or for benefit of designated persons) are not contravened by any act done by a person to transfer funds to—
(a) a UN designated person (“D”) in order to satisfy an obligation owed ... to D in respect of Treasury debt where the conditions in paragraph (2) are met; or
(b) a person (“B”) in respect of Treasury debt where the effect of the transfer is to make funds available to or for the benefit of D and the conditions in paragraph (3) are met.
(2) The person (“P”) making the transfer of funds to D knows or has reasonable cause to suspect that the obligation referred to in paragraph (1) arose before the date on which D was designated and P takes reasonable steps to satisfy itself that the funds to be transferred to D are credited to a specified account.
(3) The person (“P”) making the transfer of funds to B knows or has reasonable cause to suspect that the effect of such a transfer will be to enable the satisfaction of an obligation of any person to D in respect of Treasury debt and P takes reasonable steps to satisfy itself that such obligation arose before the date on which D was designated and the funds to be transferred to D are ultimately credited to a specified account.
(4) The prohibitions in regulations 12 to 14 and regulations 18 to 20 are not contravened by any act done by a person (where that person is not P in paragraph (2) or (3)) to enable a transfer of funds to any person in respect of Treasury debt—
(a) in order to satisfy an obligation owed by the Treasury to D, or
(b) where the effect of the transfer will be to enable the satisfaction of an obligation of any person to D in respect of Treasury debt.
(5) For the purposes of this regulation, references to a UN designated person, in so far as they relate to a designated person within the meaning of regulation 11 or 17, are to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the UN designated person.
(6) In this regulation—
“corresponding non-UK country” means a non-UK country whose laws contain relevant—
(a)prohibitions and exceptions corresponding to regulations 12 to 14, 18 to 20 and regulation 43 (finance: exceptions from prohibitions); and
(b)grounds for licences to be issued that correspond to the purposes in Schedule 4 (Treasury licences: purposes);
“frozen account” has the meaning given in regulation 43(7);
“non-UK country” means a country that is not the United Kingdom;
“non-UK relevant institution” means—
(a)a person, other than an individual, which would satisfy the threshold conditions for permission under Part 4A of the Financial Services and Markets Act 2000 if it had its registered office (or if it does not have one, its head office) in the United Kingdom, or
(b)an undertaking which 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;
“recognised CSD” has the meaning given in section 285(1)(e) of the Financial Services and Markets Act 2000;
“relevant account” has the meaning given in regulation 43(7);
“relevant money market instrument” means an instrument of a kind normally dealt in on the money market, such as treasury bills, certificates of deposit and commercial papers, excluding instruments of payment;
“relevant transferable security” means a security, negotiable on the capital market, of any of the following kinds, but excluding instruments of payment—
(a)shares in companies and other securities equivalent to shares in companies, partnerships or other entities, and depositary receipts in respect of shares;
(b)bonds or other forms of securitised debt, including depositary receipts in respect of such securities;
(c)any other securities giving the right to purchase or sell any security of a kind mentioned in paragraph (a) or (b);
“specified account” means—
(a)a frozen account or a relevant account of a person;
(b)an account held by or for the benefit of a person with a recognised CSD;
(c)an account held by or for the benefit of a person with a non-UK relevant institution in a corresponding non-UK country; or
(d)an account held by or for the benefit of a person with a third country CSD in a corresponding non-UK country—
where the person referred to in (a) to (d) above is also D in paragraph (2) or (3);
“third country CSD” has the meaning given in section 285(1)(g) of the Financial Services and Markets Act 2000;
“Treasury debt” means any relevant transferable security, relevant money market instrument, loan or credit entered into or issued by, or on behalf of the Treasury in respect of funds borrowed by or on behalf of the Treasury;
“UN designated person” has the meaning given in regulation 43ZA(8).

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Source: https://www.legislation.gov.uk/uksi/2020/1665/regulation/43ZB (the official version)
Page: https://openlegislation.uk/libya-sanctions-eu-exit-regulations-2020/regulation-43ZB
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.