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Interpretation
     2. —(1) In this Order—

"the 2000 Act" means the Financial Services and Markets Act 2000[2];

"the 2001 Order" means the Terrorism (United Nations Measures) Order 2001[3];

"body corporate" includes a Scottish partnership;

"designated person" has the meaning given by article 3;

"the Council Decision" means Council Decision 2006/379/EC[4] as provided for in Article 2.3 of Regulation (EC) No 2580/2001 of 27th December 2001[5];

"document" includes information recorded in any form and, in relation to information recorded otherwise than in legible form, references to its production include references to producing a copy of the information in legible form;

"economic resources" means assets of every kind, whether tangible or intangible, movable or immovable, which are not funds but can be used to obtain funds, goods or services;

"financial services" (except in the title of the 2000 Act) means any service of a financial nature, including (but not limited to)—

(a) insurance-related services consisting of—


(i) direct life assurance;

(ii) direct insurance other than life assurance;

(iii) reinsurance and retrocession;

(iv) insurance intermediation, such as brokerage and agency; and



(b) banking and other financial services consisting of—



(i) accepting deposits and other repayable funds;

(ii) lending (including consumer credit, mortgage credit, factoring and financing of commercial transactions);

(iii) financial leasing;

(iv) payment and money transmission services (including credit, charge and debit cards, travellers' cheques and bankers' drafts);

(v) providing guarantees or commitments;

(vi) financial trading;

(vii) participating in issues of any kind of securities (including underwriting and placement as an agent, whether publicly or privately) and providing services related to such issues;

(viii) money brokering;

(ix) settlement and clearing services for financial assets (including securities, derivative products and other negotiable instruments);

(x) providing or transferring financial information, financial data processing or related software (but only by suppliers of other financial services);

(xi) providing advisory and other auxiliary financial services in respect of any activity listed in paragraphs (i) to (x) (including credit reference and analysis, investment and portfolio research and advice, advice on acquisitions and on corporate restructuring and strategy);

"financial trading" means trading for own account or for account of customers, whether on an investment exchange, in an over-the-counter market or otherwise, in—

(a) money market instruments (including cheques, bills and certificates of deposit);

(b) foreign exchange;

(c) derivative products (including futures and options);

(d) exchange rate and interest rate instruments (including products such as swaps and forward rate agreements);

(e) transferable securities;

(f) other negotiable instruments and financial assets (including bullion);

"funds" means financial assets and benefits of every kind, including (but not limited to)—

(a) cash, cheques, claims on money, drafts, money orders and other payment instruments;

(b) deposits with relevant institutions or other persons, balances on accounts, debts and debt obligations;

(c) publicly and privately traded securities and debt instruments, including stocks and shares, certificates representing securities, bonds, notes, warrants, debentures and derivative products;

(d) interest, dividends or other income on or value accruing from or generated by assets;

(e) credit, rights of set-off, guarantees, performance bonds or other financial commitments;

(f) letters of credit, bills of lading, bills of sale;

(g) documents providing evidence of an interest in funds or financial resources;

(h) any other instrument of export financing;

"officer", in relation to a body corporate, means—

(a) in relation to a Scottish partnership, a partner, and

(b) in relation to any other body corporate, a director, manager, secretary or other similar officer of the body corporate or any person who has purported to act in any such capacity;

"relevant institution" means—

(a) a person who has permission under Part 4 of the 2000 Act; and

(b) an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to the 2000 Act[6] which has permission under paragraph 15 of that Schedule as a result of qualifying for authorisation under paragraph 12 of that Schedule to accept deposits;

"Security Council Resolutions" means resolution 1373(2001) adopted by the Security Council of the United Nations on 28th September 2001 and resolution 1452(2002) adopted by the Security Council on 20th December 2002.

    (2) The definition of "relevant institution" in paragraph (1) must be read with—

(a) section 22 of the 2000 Act;

(b) any relevant order under that section; and

(c) Schedule 2 to that Act.

    (3) For the purposes of this Order, "terrorism" means the use or threat of action where—

(a) the action falls within paragraph (4),

(b) the use or threat is designed to influence the government or an international governmental organisation or to intimidate the public or a section of the public, and

(c) the use or threat is made for the purpose of advancing a political, religious or ideological cause.

    (4) Action falls within this paragraph if it—

(a) involves serious violence against a person,

(b) involves serious damage to property,

(c) endangers a person's life, other than that of the person committing the action,

(d) creates a serious risk to the health or safety of the public or a section of the public, or

(e) is designed seriously to interfere with or seriously to disrupt an electronic system.

    (5) The use or threat of action falling within paragraph (4) which involves the use of firearms or explosives is terrorism whether or not paragraph (3)(b) is satisfied.

    (6) In paragraphs (3), (4) and (5)—

(a) "action" includes action outside the United Kingdom,

(b) a reference to any person or to property is a reference to any person or property, wherever situated,

(c) a reference to the public includes a reference to the public of a country other than the United Kingdom, and

(d) "the government" means the government of the United Kingdom, of a part of the United Kingdom or of a country other than the United Kingdom.

    (2) In this Part "direction" (other than in articles 4(2)(d) and 5(3)(c)) means a direction given by the Treasury under article 4(1).

Treasury's power to designate persons
     4. —(1) Where any condition in paragraph (2) is satisfied, the Treasury may give a direction that a person identified in the direction is designated for the purposes of this Order.

    (2) The conditions are that the Treasury have reasonable grounds for suspecting that the person is or may be—

(a) a person who commits, attempts to commit, participates in or facilitates the commission of acts of terrorism;

(b) a person identified in the Council Decision;

(c) a person owned or controlled, directly or indirectly, by a designated person; or

(d) a person acting on behalf of or at the direction of a designated person.

    (3) The Treasury may specify in the direction that the prohibition in article 8(1) does not apply in respect of the person identified in the direction.

    (4) The Treasury may vary or revoke a direction at any time.

Directions: further provisions
     5. —(1) Where the Treasury give a direction they must—

(a) take such steps as they consider appropriate—


(i) to publicise generally the direction, or

(ii) to inform only certain persons of the direction;



(b) give written notice to the person identified in the direction; and

(c) if they vary or revoke the direction, take steps to bring the variation or revocation to the attention of the persons informed or notified under sub-paragraph (a) or (b).

    (2) Where the Treasury inform only certain persons of the direction, only those persons and the person identified in the direction are subject to the prohibitions referred to in paragraph (3).

    (3) The prohibitions mentioned in paragraph (2) are those in articles 7(1) and, as the case may be, 8(1) insofar as they relate to—

(a) the person identified in the direction,

(b) any person owned or controlled, directly or indirectly, by him, or

(c) any person acting on his behalf or at his direction.

    (4) The High Court or, in Scotland, the Court of Session may set aside a direction on the application of—

(a) the person identified in the direction, or

(b) any other person affected by the direction.

    (5) A person who makes an application under paragraph (4) must give a copy of the application and any witness statement or affidavit in support to the Treasury not later than seven days before the date fixed for the hearing of the application.

Confidential information
     6. —(1) Where the Treasury propose (in accordance with article 5(1)(a)(ii)) to inform only certain persons of a direction, they may specify in the direction that information contained in it is to be treated as confidential.

    (2) A person who obtains information which is to be treated as confidential in accordance with paragraph (1), or to whom such information is provided, must not disclose it except with lawful authority.

    (3) Confidential information is disclosed with lawful authority only if and to the extent that any of the following applies—

(a) the disclosure is by the Treasury;

(b) the disclosure is with the consent of the person who is the subject of the information;

(c) the disclosure is to (and is necessary to) give effect to a requirement under this Order;

(d) the disclosure is required, under rules of court or a court order, for the purposes of legal proceedings of any description.

    (4) This article does not prevent the disclosure of information which is already, or has previously been, available to the public from other sources.

    (5) A person who contravenes the prohibition in paragraph (2) is guilty of an offence.

    (6) In proceedings for an offence under this article, it is a defence for a person to show that he did not know and had no reasonable cause to suspect that he was disclosing confidential information.

    (7) The High Court or, in Scotland, the Court of Session may grant an injunction to prevent a breach of paragraph (2) in relation to any information upon the application of—

(a) the person who is the subject of the information, or

(b) the Treasury.

Making funds, economic resources or financial services available to designated persons etc.
     8. —(1) A person must not make funds, economic resources or financial services available, directly or indirectly, to or for the benefit of a person referred to in article 7(2) unless he does so under the authority of a licence granted under article 11.

    (2) A person who contravenes the prohibition in paragraph (1) is guilty of an offence.

    (3) In proceedings for an offence under this article, it is a defence for a person to show that he did not know and had no reasonable cause to suspect that he was making funds, economic resources or financial services available, directly or indirectly, to or for the benefit of a person referred to in article 7(2).

    (4) This article is subject to articles 4(3) and 5(2).

Interest
     9. —(1) A person is not guilty of an offence under article 7 or 8 if he credits a frozen account with interest.

    (2) For the avoidance of doubt, article 7 applies to any funds credited to a frozen account in accordance with this article.

    (3) In this article "frozen account" means an account of a person referred to in article 7(2).

Circumventing prohibitions etc.
     10. A person is guilty of an offence if he participates, knowingly and intentionally, in activities the object or effect of which is, directly or indirectly, to—

(a) circumvent a prohibition in article 7(1) or 8(1), or

(b) enable or facilitate the commission of an offence under article 7 or 8.

Licences
     11. —(1) The Treasury may grant a licence to exempt acts specified in the licence from the prohibition in article 7(1) or 8(1).

    (2) A licence may be—

(a) general or granted to a category of persons or to a particular person;

(b) subject to conditions;

(c) of indefinite duration or subject to an expiry date.

    (3) The Treasury may vary or revoke a licence at any time.

    (4) The Treasury, where they grant, vary or revoke a licence, must—

(a) in the case of a licence granted to a particular person, give written notice of the licence, variation or revocation to that person, and

(b) in the case of a general licence or a licence granted to a category of persons, take such steps as the Treasury consider appropriate to publicise the licence, variation or revocation.

    (5) Any person who, for the purpose of obtaining a licence, knowingly or recklessly makes any statement or furnishes any document or information which is false in a material particular is guilty of an offence.

    (6) Any person who has done any act under the authority of a licence and who fails to comply with any conditions attaching to that licence is guilty of an offence.

the officer as well as the body corporate is guilty of the offence and is liable to be proceeded against and punished accordingly.

Proceedings
     14. —(1) Proceedings against any person for an offence may be taken before the appropriate court in the United Kingdom having jurisdiction in the place where that person is for the time being.

    (2) In England and Wales, summary proceedings for an offence may be tried by a magistrates' court if any information is laid—

(a) before the end of twelve months from the date on which evidence sufficient in the opinion of the prosecutor to justify the proceedings came to his knowledge, but

(b) not later than three years from the commission of the offence.

    (3) In Scotland—

(a) summary proceedings for an offence may be commenced—


(i) before the end of twelve months from the date on which evidence sufficient in the Lord Advocate's opinion to justify the proceedings came to his knowledge, but

(ii) not later than three years from the commission of the offence; and



(b) section 136(3) of the Criminal Procedure (Scotland) Act 1995[7] (time limit for certain offences) applies for the purpose of this paragraph as it applies for the purpose of that section.

    (4) In Northern Ireland, summary proceedings for an offence may be instituted—

(a) before the end of twelve months from the date on which evidence sufficient in the opinion of the prosecutor to justify the proceedings came to his knowledge, but

(b) not later than three years from the commission of the offence.

    (5) For the purposes of this article—

(a) a certificate signed by or on behalf of the prosecutor or the Lord Advocate as to the date on which such evidence as is referred to in paragraphs (2) to (4) came to his knowledge is conclusive evidence of that fact, and

(b) a certificate purporting to be so signed is presumed to be so signed unless the contrary is proved.

    (6) In Scotland, where a constable reasonably believes that a person has committed or is committing an offence, he may arrest that person without a warrant.

    (7) In Northern Ireland, article 26 of the Police and Criminal Evidence (Northern Ireland) Order 1989[8] (arrest without warrant for arrestable offences) applies to an offence which is not an arrestable offence by virtue of the term of imprisonment for which a person may be sentenced in respect of it, as if it were mentioned in paragraph (2) of that article.

    (8) No proceedings for an offence, other than for a summary offence, may be instituted in England, Wales or Northern Ireland except with the consent of the Treasury or the Attorney General or, as the case may be, the Attorney General for Northern Ireland.

    (9) Whether or not such consent has been given, paragraph (8) does not prevent—

(a) the arrest of any person in respect of an offence, or

(b) the remand in custody or on bail of any person charged with an offence.

    (10) In this article, "offence" means an offence under this Order.

Notices
     15. —(1) This article has effect in relation to any notice to be given to a person by the Treasury under article 5(1)(b) or 11(4)(a).

    (2) Any such notice may be given—

(a) by posting it to his last known address; or

(b) where the person is a body corporate, by posting it to the registered or principal office of the body corporate.

    (3) Where the Treasury do not have an address for the person, they must make arrangements for the notice to be given to him at the first available opportunity.

Functions of the Treasury
     16. —(1) The Treasury may, to such extent and subject to such restrictions and conditions as they may think proper, delegate or authorise the delegation of any of their functions under this Order to any person or description of persons.

    (2) References in this Order to the Treasury are to be construed accordingly.

Postponement etc. of the operation of the Security Council Resolutions
     17. —(1) If the Security Council of the United Nations takes any decision which has the effect of postponing, suspending or cancelling the operation of the Security Council Resolutions, in whole or in part, this Order shall cease to have effect or its operation shall be postponed or suspended, in whole or in part as the case may be, in accordance with that decision.

    (2) The Secretary of State must publish particulars of the decision in a notice in the London, Edinburgh and Belfast Gazettes.

The Crown
     18. —(1) This Order binds the Crown, subject to the following provisions of this article.

    (2) No contravention by the Crown of a provision of this Order makes the Crown criminally liable; but the High Court or in Scotland the Court of Session may, on the application of a person appearing to the Court to have an interest, declare unlawful any act or omission of the Crown which constitutes such a contravention.

    (3) Nothing in this article affects Her Majesty in her private capacity; and this is to be construed as if section 38(3) of the Crown Proceedings Act 1947[9] (meaning of Her Majesty in her private capacity) were contained in this Order.

Transitional provisions
     19. —(1) In relation to an offence under article 6, 7, 8, 10 or 11 or paragraph 4(b) or (d) of Schedule 1 committed before the commencement of section 282 of the Criminal Justice Act 2003[10] (increase in maximum term that may be imposed on summary conviction of offence triable either way), the references in article 13(1)(b)(i) and (2)(b)(i) to 12 months shall have effect as if they were references to six months.

    (2) In relation to an offence under paragraph 2(3) or 4(a) or (c) Schedule 1 committed before the commencement of section 281(4) and (5) of the Criminal Justice Act 2003 (alteration of penalties for certain summary offences), the reference in article 13(3)(a) to 51 weeks shall have effect as if it were a reference to six months.

Revocation and saving provision
     20. —(1) Subject to paragraph (2), the instruments mentioned in Schedule 2 are revoked to the extent provided for in that Schedule.

    (2) Where a direction made by the Treasury under article 4 of the 2001 Order had effect immediately before the coming into force of this Order, the 2001 Order continues to apply for the purposes of that direction as if it had not been revoked by paragraph (1).


A. K. Galloway
Clerk of the Privy Council

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

(b) any information it holds about the relevant person by which the person can be identified; and

(c) the nature and amount or quantity of any funds or economic resources held by the relevant institution for the relevant person since the 2001 Order came into force[11].

    (3) A relevant institution that fails to comply with a requirement in paragraph (1) or (2) is guilty of an offence.

    (4) In this paragraph, "relevant person" means—

(a) a customer of the institution;

(b) a person who has been a customer of the institution since the 2001 Order came into force; or

(c) a person with whom the institution has had dealings in the course of its business since then.

     3. —(1) The Treasury may request any person in or resident in the United Kingdom to give to them any information or to produce to them any document in his possession or control which they may require for the purpose of—

(a) ensuring compliance with or detecting evasion of this Order;

(b) obtaining evidence of the commission of an offence under this Order;

(c) establishing the nature and amount or quantity of any funds or economic resources owned, held or controlled, directly or indirectly, by a designated person; or

(d) establishing the nature of any financial transactions entered into by a designated person.

    (2) This includes power to—

(a) take copies of or extracts from any document so produced;

(b) request any person producing a document to give an explanation of it; and

(c) where that person is a body corporate, request any person who is a present or past officer of, or employee of, the body corporate to give such an explanation.

    (3) Any person to whom a request is made must comply with it within such time and in such manner as may be specified in the request.

    (4) Nothing in this paragraph shall be taken to require any person who has acted as counsel or solicitor for any person to give or produce any privileged information or document in his possession in that capacity.

     4. A person is guilty of an offence if he—

(a) without reasonable excuse refuses or fails within the time and in the manner specified (or, if no time has been specified, within a reasonable time) to comply with any request made under paragraph 3;

(b) knowingly or recklessly gives any information or produces any document which is false in a material particular in response to such a request;

(c) otherwise wilfully obstructs the Treasury in the exercise of their powers under this Schedule; or

(d) with intent to evade the provisions of this Schedule, destroys, mutilates, defaces, conceals or removes any document.

     5. Where a person is convicted of an offence under paragraph 4(a), the court may make an order requiring him, within such period as may be specified in the order, to give the requested information or to produce the requested document.

     6. —(1) The Treasury may only disclose any information given or document produced under this Schedule (including any copy or extract made of any such document)—

(a) to a police officer;

(b) to any person holding or acting in any office under or in the service of—


(i) the Crown in respect of the Government of the United Kingdom;

(ii) the Government of the Isle of Man;

(iii) the States of Guernsey or Alderney or the Chief Pleas of Sark;

(iv) the State of Jersey;

(v) any British overseas territory;



(c) for the purpose of giving assistance or cooperation, pursuant to the Security Council Resolutions, to—



(i) any organ of the United Nations;

(ii) any person in the service of the United Nations, the Council of the European Union, the European Commission or the Government of any country;



(d) with a view to instituting, or otherwise for the purposes of, any proceedings—



(i) in the United Kingdom, for an offence under this Order; or

(ii) in any of the Channel Islands, the Isle of Man or any British overseas territory, for an offence under a similar provision in any such jurisdiction; or



(e) with the consent of a person who, in his own right, is entitled to the information or to the possession of the document, to any third party.

    (2) In this paragraph, "in his own right" means not merely in the capacity as a servant or agent of another person.

     7. An action done under this Schedule is not to be treated as a breach of any restriction imposed by statute or otherwise.

[2] 2000 c.8.back

[3] S.I. 2001/3365 as amended by S.I. 2001/3801; S.I. 2002/111; S.I. 2003/1297; S.I.2005/1525 and S.I.2005/3389.back

[4] OJ No L 144, 31.5.2006, p.21.back

[5] OJ No L 344, 28.12.2001, p.70, as amended by Commission Regulation (EC) No 745/2003 of 28th April 2003 (OJ L 106, 29.4.03, p.22) and Commission Regulation (EC) No 1207/2005 of 27th July 05 (OJ L 197, 28.7.05, p.16).back

[6] As amended by S.I. 2000/2952 and S.I. 2003/1473.back

[7] 1995 c.46.back

[8] S.I. 1989/1341 (N.I. 12), to which there are amendments not relevant to this Order.back

[9] 1947 c.44.back

[10] 2003 c.44.back

[11] The Order referred to came into force on 10th October 2001.back

 © Crown copyright 2006