Paragraph 11 Prior obligationsF1

United Kingdom

(1)

To enable, by the use of a designated person’s funds or economic resources, the satisfaction of an obligation of that designated person arising under a contract, provided that—

(a)

the obligation arose before the date on which that designated person became a designated person, and

(b)

no payments are made to another designated person, whether directly or indirectly.

(2)

The reference in paragraph (1) to “designated person’s funds or economic resources”—

(a)

means funds or economic resources owned, held or controlled by a designated person including, in particular, a reference to—

(i)

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

(ii)

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

(b)

is limited to “relevant funds or economic resources” as defined in regulation 18(4) in relation to funds or economic resources owned, held or controlled by persons designated by reason of regulation 10(3).

(3)

In this paragraph “that designated person” means—

(a)

the designated person whose funds or economic resources are to be used (“U”), or

(b)

any other designated person that within the meaning of regulation 7—

(i)

U owns or controls directly or indirectly,

(ii)

U is owned or controlled directly or indirectly by, or

(iii)

is owned or controlled directly or indirectly by the same designated person that owns or controls directly or indirectly U.

Annotations

Textual amendments

F1: Sch. 4 para. 11 substituted (13.5.2026) by The Sanctions (EU Exit) (Miscellaneous Amendments) Regulations 2026 (S.I. 2026/443), regs. 1(2), 32(7)(a)