The Russia (Sanctions) (EU Exit) (Amendment) (No. 17) Regulations 2022
| Jurisdiction | UK Non-devolved |
| Citation | SI 2022/1331 |
| Year | 2022 |
2022 No. 1331
Sanctions
The Russia (Sanctions) (EU Exit) (Amendment) (No. 17) Regulations 2022
Made 14th December 2022
Laid before Parliament 15th December 2022
Coming into force in accordance with regulation 1(2)
The Secretary of State1, considering that the condition in section 45(2) of the Sanctions and Anti-Money Laundering Act 20182is met, makes the following Regulations in exercise of the powers conferred by sections 1, 3(1)(b)(i) and (ii) and (d)(ii), 5, 9(2)(a), 10(2) to (4), 11, 12, 15(2)(a) and (b), (3) and (6), 16, 17, 19, 20, 21, 45 and 54(1) and (2) of, and paragraphs 2(b), 4(b) and (c), 5(a)(ii) and (b), 6(a)(ii) and (b), 11(a)(ii), 13(b), (g), (h), (i), (k), (l), (m), (n) and (w), 14(a), (f), (g) and (k), 17, 19(a), 20 to 23 and 27(2) of Schedule 1 to, that Act.
Citation and commencement
1.—(1) These Regulations may be cited as the Russia (Sanctions) (EU Exit) (Amendment) (No. 17) Regulations 2022.
(2) These Regulations come into force—
(a)
(a) for the purposes of Part 2 of Schedule 4, and regulation 21 in so far as it relates to that Part of that Schedule, on 1st January 2023;
(b)
(b) for all other purposes, on 16th December 2022.
Amendment of the Russia (Sanctions) (EU Exit) Regulations 2019
2. The Russia (Sanctions) (EU Exit) Regulations 20193are amended as set out in regulations 3 to 21.
Amendment of regulation 5 (power to designate persons)
3. In regulation 5—
(a) in paragraph (1), after sub-paragraph (aa), insert—
“
(ab)
(ab) regulation 18C (trust services);
”;
(b) in paragraph (1A), after sub-paragraph (b), insert—
“
(ba)
(ba) regulation 18C (trust services);
Amendment of regulation 16 (dealing with transferable securities or money-market instruments)
4. In regulation 16—
(a) after paragraph (4F), insert—
“
4G A person (“P”) must not, directly or indirectly, deal with a transferable security or money-market instrument falling within paragraph (4H) if P knows, or has reasonable cause to suspect, that P is dealing with such a transferable security or money-market instrument.
4H A transferable security or money-market instrument falls within this paragraph if it is issued—
(a) on or after 16th December 2022,
(b) by a person, other than an individual, which is not a person connected with Russia, and
(c) for the purposes of an activity mentioned in regulation 18B(2).
”;
(b) in paragraph (5), for “and (4E)” substitute “, (4E) and (4G)”;
(c) in paragraph (6), for “and (4E)” substitute “, (4E) or (4G)”.
Amendment of regulation 17 (loans and credit arrangements)
5. In regulation 17—
(a) after paragraph (2), insert—
“
2A A person must not make funds or economic resources available to a relevant entity (“E”) where the purposes of making those funds or economic resources available is to enable E to grant a relevant loan on or after 16th December 2022.
”;
(b) in paragraph (3), for “and (2)” substitute “, (2) and (2A)”;
(c) in paragraph (4), for “or (2)” substitute “, (2) or (2A)”;
(d) in paragraph (5)—
(i) omit the definition of “the Amendment (No. 15) Regulations”;
(ii) in the definition of “category 3 loan”, in paragraph (c), for “the date on which the Amendment (No. 15) Regulations come into force” substitute “29th October 2022”;
(iii) in the definition of “category 5 loan”, in paragraphs (b)(i)(aa) and (c), for “the date on which the Amendment (No. 15) Regulations come into force” in both places substitute “29th October 2022”;
(iv) after the definition of “category 5 loan”, insert—
“
“category 6 loan” means a loan or credit—
(a) made or granted to a relevant entity,
(b) which is for the purposes of an activity mentioned in regulation 18B(2),
(c) which is first made or granted at any time on or after 16th December 2022, and
(d) which is not a category 1 loan, a category 2 loan, a category 3 loan, a category 4 loan or a category 5 loan;
”;
(v) after the definition of “owned”, insert—
“
“relevant entity” has the meaning given in regulation 18B(8);
”;
(vi) in the definition of “relevant loan” for “or a category 5 loan” substitute “, a category 5 loan or a category 6 loan”.
Amendment of regulation 18B (investments in relation to Russia)
6. In regulation 18B, in paragraph (8), in the definition of “relevant entity”, omit “has a place of business located in Russia but”.
Insertion of regulation 18C (Trust services)
7. After regulation 18B (investments in relation to Russia), insert—
“
Trust services
18C.—(1) A person must not provide trust services to or for the benefit of a designated person.
(2) A person (“P”) must not provide trust services to or for the benefit of a person connected with Russia (“C”) unless pursuant to an ongoing arrangement pursuant to which P provided those trust services to or for the benefit of C immediately before 16th December 2022.
(3) Paragraphs (1) and (2) are subject to Part 7 (Exceptions and licences).
(4) A person who contravenes a prohibition in paragraph (1) or (2) commits an offence.
(5) For the purposes of paragraphs (1) and (2), trust services are provided for the benefit of a person (“B”) where—
(a)
(a) B is a beneficiary of a trust or similar arrangement,
(b)
(b) B is referred to as a potential beneficiary in a document from the settlor relating to a trust or similar arrangement (such as a letter of wishes), or
(c)
(c) having regard to all the circumstances, B might reasonably be expected to obtain, or to be able to obtain, a significant financial benefit from the trust or similar arrangement.
(6) For the purpose of paragraph (5), “beneficiary”, “potential beneficiary” and “settlor”, in relation to an arrangement similar to a trust, means those persons who hold equivalent or similar positions to those described in sub-paragraphs (a) to (c) of that paragraph in respect of a trust.
(7) In this regulation—
“designated person” means a person who is designated under regulation 5 (power to designate persons) for the purposes of this regulation;
“trust services” means—
(a) the creation of a trust or similar arrangement,
(b) the provision of a registered office, business address, correspondence address or administrative address for a trust or similar arrangement,
(c) the operation or management of a trust or similar arrangement, or
(d) acting or arranging for another person to act as trustee of a trust or similar arrangement, where “trustee”, in relation to an arrangement similar to a trust, means a person who holds an equivalent or similar position to a trustee of a trust.
”
Amendment of regulation 19 (circumventing etc. prohibitions)
8. In regulation 19(1)(a), for “18B” substitute “18C”.
Amendment of regulation 54B (interpretation of Chapter 6B)
9. In regulation 54B, for paragraphs (a), (b) and (c) substitute—
“
(a)
(a) “accounting services” has the meaning given in paragraph 2 of Schedule 3J;
(b)
(b) “advertising services” has the meaning given in paragraph 3 of Schedule 3J;
(c)
(c) “architectural services” has the meaning given in paragraph 4 of Schedule 3J;
(d)
(d) “auditing services” has the meaning given in paragraph 5 of Schedule 3J;
(e)
(e) “business and management consulting services” has the meaning given in paragraph 6 of Schedule 3J;
(f)
(f) “engineering services” has the meaning given in paragraph 7 of Schedule 3J;
(g)
(g) “IT consultancy and design services” has the meaning given in paragraph 8 of Schedule 3J;
(h)
(h) “public relations services” has the meaning given in paragraph 9 of Schedule 3J.
”
Amendment of regulation 54C (professional and business services)
10. In regulation 54C(1), for sub-paragraphs (a), (b) and (c) substitute—
“
(a)
(a) accounting services,
(b)
(b) advertising services,
(c)
(c) architectural services,
(d)
(d) auditing services,
(e)
(e) business and management consulting services,
(f)
(f) engineering services,
(g)
(g) IT consultancy and design services, or
(h)
(h) public relations services.
”
Amendment of regulation 59 (exceptions relating to loans and credit arrangements)
11. In regulation 59—
(a) in paragraph (1)(c)(iii), for “the date on which the Amendment Regulations (No. 15) 2022 come into force” substitute “29th October 2022”;
(b) after paragraph (1)(c)(iii), insert—
“
(iv)
(iv) in the case of a category 6 loan, 16th December 2022;
”;
(c) in paragraph (2)(a)(i)(cc), for “the date on which the Amendment Regulations (No. 15) 2022 come into force” substitute “29th October 2022”;
(d) after paragraph (2)(a)(i)(cc), insert—
“
(dd)
(dd) in the case of a category 6 loan, 16th December 2022;
”;
(e) in paragraph (3)—
(i) omit ““the Amendment Regulations (No. 15) 2022 has the meaning given to it in regulation 17;”;
(ii) after the definition of “category 5 loan”, insert—
“
“category 6 loan” has the meaning given to it in regulation 17;
Amendment of regulation 60ZZA (exceptions relating to investments in relation to Russia)
12. In regulation 60ZZA—
(a) in paragraph (1), for “contract concluded before the coming into force of the Amendment No. 12 Regulations,” substitute—
“
contract—
(a)
(a) concluded before 16th December 2022, in the case of a relevant activity, or
(b)
(b) concluded before 19th July 2022, in any other case,
”;
(b) in paragraph (3)—
(i) after the definition of “dealing with”, insert—
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