SCHEDULES
SCHEDULE 7Terrorist financing and money laundering
Part 8Supplementary and general
Report to Parliament
38
1
As soon as reasonably practicable after the end of each calendar year, the Treasury must—
a
prepare a report about their exercise during that year of their functions under this Schedule, and
b
lay a copy of the report before Parliament.
2
Sub-paragraph (1) does not apply in relation to a year if no direction under this Schedule is in force at any time in that year.
Supervision by supervisory authority
39
1
A supervisory authority must take appropriate measures to monitor persons operating in the financial sector for whom it is the supervisory authority for the purpose of securing compliance by those persons with the requirements of any directions under this Schedule.
2
For the purposes of this Schedule—
a
the F7FCA is the supervisory authority for—
i
credit institutions that are authorised persons;
ii
financial institutions (except money service businesses that are not authorised persons F13...);
F14b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c
HMRC are the supervisory authority for money service businesses that are not authorised persons;
F4d
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Where under sub-paragraph (2) there is more than one supervisory authority for a person, the authorities may agree that one of them will act as the supervisory authority for that person for the purposes of this Schedule.
4
Where an agreement has been made under sub-paragraph (3), the authority that has agreed to act as the supervisory authority must—
a
where directions under this Schedule have been given to specified persons operating in the financial sector, notify those persons;
b
where such directions have been given to all persons operating in the financial sector or to a description of such persons, publish the agreement in such way as it considers appropriate.
5
Where no agreement has been made under sub-paragraph (3), the supervisory authorities for a person must co-operate in the performance of their functions under this paragraph.
Assistance in preparing guidance
40
The Treasury must provide such assistance as may reasonably be required by a supervisory authority or other body drawing up guidance that, when issued and published with the approval of the Treasury, would be relevant guidance for the purposes of paragraph 25(3) (civil penalties) and 30(3) (offences: failure to comply with requirement imposed by direction).
Functions of F6Financial Conduct Authority
41
1
2
Any penalty under paragraph 25 F1or 25A (civil penalties) received by the FSA is to be applied towards expenses incurred by it in connection with its functions under this Schedule or for any incidental purpose.
Notices
42
1
A notice under this Schedule may be given to a person—
a
by posting it to the person's last known address, or
b
where the person is a body corporate, partnership or unincorporated association, by posting it to the registered or principal office of the body, partnership or association.
2
Where the Treasury are under a duty to give a notice to a person but do not have an address for them, they must make arrangements for the notice to be given to the person at the first available opportunity.
Crown application
43
1
This Schedule binds the Crown, subject as follows.
2
No contravention by the Crown of a provision of this Schedule makes the Crown criminally liable.
3
The following courts may, on the application of a person appearing to the court to have an interest, declare unlawful any act or omission of the Crown that constitutes such a contravention—
a
the High Court in England and Wales;
b
the Court of Session;
c
the High Court in Northern Ireland.
4
Nothing in this paragraph affects Her Majesty in her private capacity.
This is to be construed as if section 38(3) of the Crown Proceedings Act 1947 (c. 44) (meaning of Her Majesty in her private capacity) were contained in this Schedule.
Meaning of “United Kingdom person”
44
1
In this Schedule “United Kingdom person” means a United Kingdom national or a body incorporated or constituted under the law of any part of the United Kingdom.
2
For this purpose a United Kingdom national is an individual who is—
a
a British citizen, a British overseas territories citizen, a British National (Overseas) or a British Overseas citizen;
b
a person who under the British Nationality Act 1981 (c. 61) is a British subject; or
c
a British protected person within the meaning of that Act.
3
Her Majesty may by Order in Council extend the definition in sub-paragraph (1) so as to apply to bodies incorporated or constituted under the law of any of the Channel Islands, the Isle of Man or any British overseas territory.
Interpretation
45
1
In this Schedule—
“authorised person” means a person who is authorised for the purposes of the Financial Services and Markets Act 2000 (c. 8);
“business relationship” means a business, professional or commercial relationship between a relevant person and a customer, which is expected by the relevant person, at the time when contact is established, to have an element of duration;
“conduct” includes acts and omissions;
F15...
“country” includes territory;
“document” means information recorded in any form;
“money service business” means an undertaking which by way of business operates a currency exchange office, transmits money (or any representations of monetary value) by any means or cashes cheques which are made payable to customers;
“notice” means a notice in writing.
2
In this Schedule any reference to an amount in one currency includes the equivalent amount in any other currency.
F173
Unless otherwise defined, expressions used in this Schedule and in Directive 2015/849/EU of the European Parliament and of the Council of 20th May 2015 on the prevention of the use of the financial system for the purpose of money laundering or terrorist financing have the same meaning as in that Directive.
Index of defined expressions
46
In this Schedule the following expressions are defined or otherwise explained by the provisions indicated—
authorised person | paragraph 45(1) |
F11. . . | |
biological weapon | paragraph 2(6) |
business relationship | paragraph 45(1) |
F18. . . | F18. . . |
F12the capital requirements regulation | paragraph 7 |
chemical weapon | paragraph 2(5) |
conduct | paragraph 45(1) |
F16. . . | F16. . . |
country | paragraph 45(1) |
credit institution | paragraph 5(1) F2and (3) |
customer due diligence measures | paragraph 10(3) |
designated person, in relation to a direction | paragraph 9(3) |
DETINI | F5 paragraph 18(3)(b) |
document | paragraph 45(1) |
enforcement authority | paragraph 18(1) |
enforcement officer (in Part 5 of this Schedule) | paragraph 18(2) |
financial institution | paragraph 5(2) F3and (3) |
F10the FCA | paragraph 18(1)(a) |
HMRC | paragraph 18(1)(b) |
the life assurance consolidation directive (in Part 2 of this Schedule) | paragraph 7 |
local enforcement officer | paragraph 18(3) |
the markets in financial instruments directive (in Part 2 of this Schedule) | paragraph 7 |
money laundering | paragraph 2(2) |
money service business | paragraph 45(1) |
notice | paragraph 45(1) |
nuclear weapon | paragraph 2(3) |
the OFT | paragraph 18(1)(c) |
persons operating in the financial sector | paragraph 4 |
radiological weapon | paragraph 2(4) |
relevant person, in relation to a direction | paragraph 3(2) |
supervisory authority | paragraph 39(2) |
terrorist financing | paragraph 2(1) |
United Kingdom person | paragraph 44 |
Words in Sch. 7 para. 41 cross-heading substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 127(5)(c) (with Sch. 20); S.I. 2013/423, art. 3, Sch.