5Permissible dealings for sanctions regulations

5 Permissible dealings for sanctions regulations

(1) This regulation defines various permissible dealings for the Sanctions Regulations. (2) If a set of Sanctions Regulations adopts any of subregulations (3) to (7): (a) a reference in the subregulation to a designated person or entity is a reference to a designated person or entity as defined in those Regulations; and (b) a reference in the subregulation to a controlled asset is a reference to a controlled asset as defined in those Regulations. (3) A dealing constituted by: (a) a payment to: (i) a designated person; or (ii) a person or entity acting on behalf of, or at the direction of, a designated person or entity; or (iii) an entity owned or controlled by a designated person or entity; or (b) a use or dealing with a controlled asset; is a basic expense dealing if it is necessary for basic expenses, including the following: (c) foodstuffs; (d) rent or mortgage; (e) medicines or medical treatment; (f) taxes; (g) insurance premiums; (h) public utility charges; (i) reasonable professional fees; (j) reimbursement of expenses associated with the provision of legal services; (k) fees or service charges that are in accordance with national laws for the routine holding or maintenance of frozen assets. (4) A dealing constituted by: (a) a payment to: (i) a designated person; or (ii) a person or entity acting on behalf of, or at the direction of, a designated person or entity; or (iii) an entity owned or controlled by a designated person or entity; or (b) a use or dealing with a controlled asset; is a legally required dealing if: (c) it is necessary to satisfy a judicial, administrative or arbitral lien or judgement that was made prior to the date on which the person or entity became a designated person or entity; and (d) it is not for the benefit of a designated person or entity. (5) A dealing constituted by: (a) a payment to: (i) a designated person; or (ii) a person or entity acting on behalf of, or at the direction of, a designated person or entity; or (iii) an entity owned or controlled by a designated person or entity; or (b) a use or dealing with a controlled asset; is a contractual dealing if it is a payment: (c) to apply interest or other earnings due on accounts holding controlled assets; or (d) required under contracts, agreements or obligations made before the date on which those accounts became accounts holding controlled assets.

Note: If the account into which the payment is paid is frozen under Sanctions Regulations, this payment will also be frozen once received.

(6) A dealing constituted by: (a) a payment by: (i) a designated person; or (ii) a person or entity acting on behalf of, or at the direction of, a designated person or entity; or (iii) an entity owned or controlled by a designated person or entity; is a required payment dealing if: (b) the payment is required under a contract made before the person or entity became a designated person or entity; and (c) the payment is not directly or indirectly being received by a designated person or entity. (7) Any other dealing constituted by: (a) a payment to: (i) a designated person; or (ii) a person or entity acting on behalf of, or at the direction of, a designated person or entity; or (iii) an entity owned or controlled by a designated person or entity; or (b) a use or dealing with a controlled asset; is an extraordinary expense dealing if it is necessary for extraordinary expenses.