PART 3General

Definitions

60Meaning of “funds”, “economic resources” and “freeze”

1

In this Act “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, 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 and other income on or value accruing from or generated by assets;

e

credit, rights of set-off, guarantees, performance bonds and other financial commitments;

f

letters of credit, bills of lading and bills of sale;

g

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

h

any other instrument of export financing.

2

In this Act “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.

3

In this Act references to “freezing” funds are to preventing funds from being dealt with; and for the purposes of this subsection funds are “dealt with” if—

a

they are used, altered, moved, or transferred or access is allowed to them,

b

they are dealt with in any other way that would result in any change in volume, amount, location, ownership, possession, character or destination, or

c

any other change is made that would enable their use, including portfolio management.

4

In this Act references to “freezing” economic resources are to preventing economic resources from being dealt with; and for the purposes of this subsection economic resources are “dealt with” if—

a

they are exchanged for funds, goods or services, or

b

they are used in exchange for funds, goods or services (whether by being pledged as security or otherwise).

61Meaning of “financial services” and “financial products”

1

In this Act “financial services” 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;

v

services auxiliary to insurance, such as consultancy, actuarial, risk assessment and claim settlement services;

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 (as defined in subsection (2));

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

asset management, such as cash or portfolio management, all forms of collective investment management, pension fund management, custodial, depository and trust services;

x

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

xi

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

xii

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

2

In subsection (1)(b)(vi), “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 financial products.

3

In this Act “financial products” means—

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).

62Interpretation

1

In this Act—

  • “appropriate Minister” is to be read in accordance with section 1(9);

  • “country” includes any territory, region or other place;

  • “designation power” has the meaning given by section 10(1);

  • “economic resources” has the meaning given by section 60(2);

  • “financial products” has the meaning given by section 61(3);

  • “financial services” has the meaning given by section 61(1);

  • “freeze”, in relation to funds or economic resources, has the meaning given by section 60(3) and (4);

  • “funds” has the meaning given by section 60(1);

  • “international obligation” has the meaning given by section 1(8);

  • “person” has the meaning given by section 9(5);

  • “prescribed”, in any provision relating to regulations, means prescribed by the regulations;

  • “retained direct EU legislation” has the same meaning as in the European Union (Withdrawal) Act 2018;

  • “retained EU law” has the same meaning as in that Act;

  • “the Security Council” means the Security Council of the United Nations;

  • “the territorial sea” (without more) means the territorial sea adjacent to the United Kingdom;

  • “terrorism” has the same meaning as in the Terrorism Act 2000 (see section 1(1) to (4) of that Act);

  • “UN obligation” has the meaning given by section 1(8);

  • “UN Security Council Resolution” has the meaning given by section 1(8).

2

Any reference in this Act to a person named “for the purposes of” a UN Security Council Resolution so far as it provides for the taking of particular measures includes any person who, by virtue of—

a

being named for any purposes by the Security Council or a subsidiary organ of the Security Council, and

b

the terms of the resolution,

is a person in relation to whom the resolution provides for the measures to be taken.

3

Any reference in this Act to ships designated “for purposes of” a UN Security Council Resolution which provides for the taking of measures in relation to ships includes any ship which, by virtue of—

a

being designated for any purposes by the Security Council or a subsidiary organ of the Security Council, and

b

the terms of the resolution,

is a ship in relation to which the resolution provides for the measures to be taken.

4

Regulations under section 1 may make provision as to the meaning of any reference in the regulations to funds, economic resources or technology (or a particular description of funds, economic resources or technology) being—

a

owned by a person,

b

held by a person,

c

controlled by a person, or

d

made available to or for the benefit of a person.

5

Regulations under section 1 may make provision as to the meaning of any reference in the regulations to a person “owning” or “controlling” another person.

6

Regulations under section 1 may make provision as to the connection that is required between—

a

a person, or a person of a prescribed description, and

b

a country,

in order for the person to be regarded as “connected with” that country for the purposes of any provision of the regulations.