Anti-terrorism, Crime and Security Act 2001 (c. 24)

(The document as of February, 2008)

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(5) For paragraph 6(3) substitute--

" (3) A restraint order made under paragraph 5(1) shall in particular be discharged on an application under sub-paragraph (2) if the proceedings for the offence have been concluded.

(4) A restraint order made under paragraph 5(2) shall in particular be discharged on an application under sub-paragraph (2)--

(a) if no proceedings in respect of offences under any of sections 15 to 18 are instituted within such time as the High Court considers reasonable, and

(b) if all proceedings in respect of offences under any of sections 15 to 18 have been concluded. "

(6) In paragraph 8(3) for "the proposed proceedings" substitute "any proceedings for an offence under any of sections 15 to 18".

(7) In paragraph 9(1) (compensation where restraint order discharged) for "paragraph 6(3)(a)" substitute "paragraph 6(4)(a)".

3 (1) Part 2 of Schedule 4 to the Terrorism Act 2000 (c. 11) (forfeiture orders under section 23 of that Act: Scotland) is amended as follows.

(2) In paragraph 18 (restraint orders) for sub-paragraph (2) substitute--

" (2) The Court of Session may also make a restraint order on such an application where--

(a) a criminal investigation has been instituted in Scotland with regard to an offence under any of sections 15 to 18, and

(b) it appears to the Court of Session that a forfeiture order may be made in any proceedings for the offence. "

(3) In paragraph 18(3) for "the proceedings" substitute "any proceedings".

(4) In paragraph 18 after sub-paragraph (5) insert--

" (6) In this paragraph "criminal investigation" means an investigation which police officers or other persons have a duty to conduct with a view to it being ascertained whether a person should be charged with an offence. "

(5) For paragraph 19(3) substitute--

" (3) A restraint order made under paragraph 18(1) shall in particular be recalled on an application under sub-paragraph (2) if the proceedings for the offence have been concluded.

(3A) A restraint order made under paragraph 18(2) shall in particular be discharged on an application under sub-paragraph (2)--

(a) if no proceedings in respect of offences under any of sections 15 to 18 are instituted within such time as the Court of Session considers reasonable, and

(b) if all proceedings in respect of offences under any of sections 15 to 18 have been concluded. "

(6) In paragraph 23(1) for "19(3)(a)" substitute "19(3A)(a)".

4 (1) Part 3 of Schedule 4 to the Terrorism Act 2000 (forfeiture orders under section 23 of that Act: Northern Ireland) is amended as follows.

(2) In paragraph 33 (restraint orders) for sub-paragraph (2) substitute--

" (2) The High Court may also make a restraint order under this paragraph where--

(a) a criminal investigation has been started in Northern Ireland with regard to an offence under any of sections 15 to 18,

(b) an application for a restraint order is made to the High Court by the person who the High Court is satisfied will have the conduct of any proceedings for the offence, and

(3) In paragraph 33(3) for "the proceedings" substitute "any proceedings".

(4) In paragraph 33 after sub-paragraph (5) insert--

(5) For paragraph 34(3) substitute--

" (3) A restraint order made under paragraph 33(1) shall in particular be discharged on an application under sub-paragraph (2) if the proceedings for the offence have been concluded.

(4) A restraint order made under paragraph 33(2) shall in particular be discharged on an application under sub-paragraph (2)--

(a) if no proceedings in respect of offences under any of sections 15 to 18 are instituted within such time as the High Court considers reasonable, and

(b) if all proceedings in respect of offences under any of sections 15 to 18 have been concluded. "

(6) In paragraph 38(4), in the definition of "prosecutor", for "the proposed proceedings" substitute "any proceedings for an offence under any of sections 15 to 18".

(7) In paragraph 39(1) (compensation where restraint order discharged) for "paragraph 34(3)(a)" substitute "paragraph 34(4)(a)".

Part 3 Disclosure of information

5 (1) The Terrorism Act 2000 (c. 11) is amended as follows.

(2) The following sections are inserted after section 21--

" 21A Failure to disclose: regulated sector

(1) A person commits an offence if each of the following three conditions is satisfied.

(2) The first condition is that he--

(a) knows or suspects, or

(b) has reasonable grounds for knowing or suspecting,

that another person has committed an offence under any of sections 15 to 18.

(3) The second condition is that the information or other matter--

(a) on which his knowledge or suspicion is based, or

(b) which gives reasonable grounds for such knowledge or suspicion,

came to him in the course of a business in the regulated sector.

(4) The third condition is that he does not disclose the information or other matter to a constable or a nominated officer as soon as is practicable after it comes to him.

(5) But a person does not commit an offence under this section if--

(a) he has a reasonable excuse for not disclosing the information or other matter;

(b) he is a professional legal adviser and the information or other matter came to him in privileged circumstances.

(6) In deciding whether a person committed an offence under this section the court must consider whether he followed any relevant guidance which was at the time concerned--

(a) issued by a supervisory authority or any other appropriate body,

(b) approved by the Treasury, and

(c) published in a manner it approved as appropriate in its opinion to bring the guidance to the attention of persons likely to be affected by it.

(7) A disclosure to a nominated officer is a disclosure which--

(a) is made to a person nominated by the alleged offender's employer to receive disclosures under this section, and

(b) is made in the course of the alleged offender's employment and in accordance with the procedure established by the employer for the purpose.

(8) Information or other matter comes to a professional legal adviser in privileged circumstances if it is communicated or given to him--

(a) by (or by a representative of) a client of his in connection with the giving by the adviser of legal advice to the client,

(b) by (or by a representative of) a person seeking legal advice from the adviser, or

(9) But subsection (8) does not apply to information or other matter which is communicated or given with a view to furthering a criminal purpose.

(10) Schedule 3A has effect for the purpose of determining what is--

(a) a business in the regulated sector;

(b) a supervisory authority.

(11) For the purposes of subsection (2) a person is to be taken to have committed an offence there mentioned if--

(a) he has taken an action or been in possession of a thing, and

(b) he would have committed the offence if he had been in the United Kingdom at the time when he took the action or was in possession of the thing.

(12) A person guilty of an offence under this section is liable--

(a) on conviction on indictment, to imprisonment for a term not exceeding five years or to a fine or to both;

(b) on summary conviction, to imprisonment for a term not exceeding six months or to a fine not exceeding the statutory maximum or to both.

(13) An appropriate body is any body which regulates or is representative of any trade, profession, business or employment carried on by the alleged offender.

(14) The reference to a constable includes a reference to a person authorised for the purposes of this section by the Director General of the National Criminal Intelligence Service.

21B Protected disclosures

(1) A disclosure which satisfies the following three conditions is not to be taken to breach any restriction on the disclosure of information (however imposed).

(2) The first condition is that the information or other matter disclosed came to the person making the disclosure (the discloser) in the course of a business in the regulated sector.

(3) The second condition is that the information or other matter--

(a) causes the discloser to know or suspect, or

(b) gives him reasonable grounds for knowing or suspecting,

that another person has committed an offence under any of sections 15 to 18.

(4) The third condition is that the disclosure is made to a constable or a nominated officer as soon as is practicable after the information or other matter comes to the discloser.

(5) A disclosure to a nominated officer is a disclosure which--

(a) is made to a person nominated by the discloser's employer to receive disclosures under this section, and

(b) is made in the course of the discloser's employment and in accordance with the procedure established by the employer for the purpose.

(6) The reference to a business in the regulated sector must be construed in accordance with Schedule 3A.

(7) The reference to a constable includes a reference to a person authorised for the purposes of this section by the Director General of the National Criminal Intelligence Service. "

(3) In section 19 after subsection (1) insert--

" (1A) But this section does not apply if the information came to the person in the course of a business in the regulated sector. "

(4) In section 19 after subsection (7) insert--

" (7A) The reference to a business in the regulated sector must be construed in accordance with Schedule 3A.

(7B) The reference to a constable includes a reference to a person authorised for the purposes of this section by the Director General of the National Criminal Intelligence Service. "

(5) In section 20 after subsection (4) insert--

" (5) References to a constable include references to a person authorised for the purposes of this section by the Director General of the National Criminal Intelligence Service. "

(6) The following Schedule is inserted after Schedule 3--

" SCHEDULE 3A Regulated sector and supervisory authorities

Part 1 Regulated sector

Business in the regulated sector

1 (1) A business is in the regulated sector to the extent that it engages in any of the following activities--

(a) accepting deposits by a person with permission under Part 4 of the Financial Services and Markets Act 2000 (c. 8) to accept deposits (including, in the case of a building society, the raising of money from members of the society by the issue of shares);

(b) the business of the National Savings Bank;

(d) any home-regulated activity carried on by a European institution in respect of which the establishment conditions in paragraph 13 of Schedule 3 to the Financial Services and Markets Act 2000, or the service conditions in paragraph 14 of that Schedule, are satisfied;

(e) any activity carried on for the purpose of raising money authorised to be raised under the National Loans Act 1968 (c. 13) under the auspices of the Director of Savings;

(f) the activity of operating a bureau de change, transmitting money (or any representation of monetary value) by any means or cashing cheques which are made payable to customers;

(g) any activity falling within sub-paragraph (2);

(h) any of the activities in points 1 to 12 or 14 of Annex 1 to the Banking Consolidation Directive, ignoring an activity described in any of paragraphs (a) to (g) above;

(i) business which consists of effecting or carrying out contracts of long term insurance by a person who has received official authorisation pursuant to Article 6 or 27 of the First Life Directive.

(2) An activity falls within this sub-paragraph if it constitutes any of the following kinds of regulated activity in the United Kingdom--

(a) dealing in investments as principal or as agent;

(b) arranging deals in investments;

(d) safeguarding and administering investments;

(e) sending dematerialised instructions;

(f) establishing (and taking other steps in relation to) collective investment schemes;

(g) advising on investments.

(3) Paragraphs (a) and (i) of sub-paragraph (1) and sub-paragraph (2) must be read with section 22 of the Financial Services and Markets Act 2000 (c. 8), any relevant order under that section and Schedule 2 to that Act.

2 (1) This paragraph has effect for the purposes of paragraph 1.

(2) "Building society" has the meaning given by the Building Societies Act 1986.

(3) "Credit union" has the meaning given by the Credit Unions Act 1979 (c. 34) or the Credit Unions (Northern Ireland) Order 1985 (S.I. 1985/1205 (N.I. 12)).

(4) "European institution" means an EEA firm of the kind mentioned in paragraph 5(b) or (c) of Schedule 3 to the Financial Services and Markets Act 2000 which qualifies for authorisation for the purposes of that Act under paragraph 12 of that Schedule.

(5) "Home-regulated activity" in relation to a European institution, means an activity--

(a) which is specified in Annex 1 to the Banking Consolidation Directive and in respect of which a supervisory authority in the home State of the institution has regulatory functions, and

(b) if the institution is an EEA firm of the kind mentioned in paragraph 5(c) of Schedule 3 to the Financial Services and Markets Act 2000, which the institution carries on in its home State.

(6) "Home State", in relation to a person incorporated in or formed under the law of another member State, means that State.

(7) The Banking Consolidation Directive is the Directive of the European Parliament and Council relating to the taking up and pursuit of the business of credit institutions (No. 2000/12 EC).

(8) The First Life Directive is the First Council Directive on the co-ordination of laws, regulations and administrative provisions relating to the taking up and pursuit of the business of direct life assurance (No. 79/267/EEC).

Excluded activities

3 A business is not in the regulated sector to the extent that it engages in any of the following activities--

(a) the issue of withdrawable share capital within the limit set by section 6 of the Industrial and Provident Societies Act 1965 (c. 12) by a society registered under that Act;

(b) the acceptance of deposits from the public within the limit set by section 7(3) of that Act by such a society;

(c) the issue of withdrawable share capital within the limit set by section 6 of the Industrial and Provident Societies Act (Northern Ireland) 1969 (N.I. c. 24) by a society registered under that Act;

(d) the acceptance of deposits from the public within the limit set by section 7(3) of that Act by such a society;

(e) activities carried on by the Bank of England;

(f) any activity in respect of which an exemption order under section 38 of the Financial Services and Markets Act 2000 (c. 8) has effect if it is carried on by a person who is for the time being specified in the order or falls within a class of persons so specified .

Part 2 Supervisory authorities

4 (1) Each of the following is a supervisory authority--

(a) the Bank of England;

(b) the Financial Services Authority;

(d) the Director General of Fair Trading;

(e) a body which is a designated professional body for the purposes of Part 20 of the Financial Services and Markets Act 2000.

(2) The Secretary of State is also a supervisory authority in the exercise, in relation to a person carrying on a business in the regulated sector, of his functions under the enactments relating to companies or insolvency or under the Financial Services and Markets Act 2000.

(3) The Treasury are also a supervisory authority in the exercise, in relation to a person carrying on a business in the regulated sector, of their functions under the enactments relating to companies or insolvency or under the Financial Services and Markets Act 2000.

Part 3 Power to amend

5 (1) The Treasury may by order amend Part 1 or 2 of this Schedule.

(2) An order under sub-paragraph (1) must be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament. "

Part 4 Financial information orders

6 (1) Paragraph 1 of Schedule 6 to the Terrorism Act 2000 (c. 11) (financial information orders) is amended as follows.

(2) In sub-paragraph (1) after "financial institution" insert "to which the order applies".

(3) After sub-paragraph (1) insert--

" (1A) The order may provide that it applies to--

(a) all financial institutions,

(b) a particular description, or particular descriptions, of financial institutions, or

Section 6

SCHEDULE 3 Freezing orders

Interpretation

1 References in this Schedule to a person specified in a freezing order as a person to whom or for whose benefit funds are not to be made available are to be read in accordance with section 5(4).

Funds

2 A freezing order may include provision that funds include gold, cash, deposits, securities (such as stocks, shares and debentures) and such other matters as the order may specify.

Making funds available

3 (1) A freezing order must include provision as to the meaning (in relation to funds) of making available to or for the benefit of a person.

(2) In particular, an order may provide that the expression includes--

(a) allowing a person to withdraw from an account;

(b) honouring a cheque payable to a person;

(d) releasing documents of title (such as share certificates) held on a person's behalf;

(e) making available the proceeds of realisation of a person's property;

(f) making a payment to or for a person's benefit (for instance, under a contract or as a gift or under any enactment such as the enactments relating to social security);

(g) such other acts as the order may specify.

Licences

4 (1) A freezing order must include--

(a) provision for the granting of licences authorising funds to be made available;

(b) provision that a prohibition under the order is not to apply if funds are made available in accordance with a licence.

(2) In particular, an order may provide--

(a) that a licence may be granted generally or to a specified person or persons or description of persons;

(b) that a licence may authorise funds to be made available to or for the benefit of persons generally or a specified person or persons or description of persons;

(d) that a licence may be granted in relation to funds generally or to funds of a specified description;

(e) for a licence to be granted in pursuance of an application or without an application being made;

(f) for the form and manner in which applications for licences are to be made;

(g) for licences to be granted by the Treasury or a person authorised by the Treasury;

(h) for the form in which licences are to be granted;

(i) for licences to be granted subject to conditions;

(j) for licences to be of a defined or indefinite duration;

(k) for the charging of a fee to cover the administrative costs of granting a licence;

(l) for the variation and revocation of licences.

Information and documents

5 (1) A freezing order may include provision that a person--

(a) must provide information if required to do so and it is reasonably needed for the purpose of ascertaining whether an offence under the order has been committed;

(b) must produce a document if required to do so and it is reasonably needed for that purpose.

(2) In particular, an order may include--

(a) provision that a requirement to provide information or to produce a document may be made by the Treasury or a person authorised by the Treasury;

(b) provision that information must be provided, and a document must be produced, within a reasonable period specified in the order and at a place specified by the person requiring it;

(c) provision that the provision of information is not to be taken to breach any restriction on the disclosure of information (however imposed);

(d) provision restricting the use to which information or a document may be put and the circumstances in which it may be disclosed;

(e) provision that a requirement to provide information or produce a document does not apply to privileged information or a privileged document;

(f) provision that information is privileged if the person would be entitled to refuse to provide it on grounds of legal professional privilege in proceedings in the High Court or (in Scotland) on grounds of confidentiality of communications in proceedings in the Court of Session;

(g) provision that a document is privileged if the person would be entitled to refuse to produce it on grounds of legal professional privilege in proceedings in the High Court or (in Scotland) on grounds of confidentiality of communications in proceedings in the Court of Session;

(h) provision that information or a document held with the intention of furthering a criminal purpose is not privileged.

Disclosure of information

6 (1) A freezing order may include provision requiring a person to disclose information as mentioned below if the following three conditions are satisfied.

(2) The first condition is that the person required to disclose is specified or falls within a description specified in the order.

(3) The second condition is that the person required to disclose knows or suspects, or has grounds for knowing or suspecting, that a person specified in the freezing order as a person to whom or for whose benefit funds are not to be made available--

(a) is a customer of his or has been a customer of his at any time since the freezing order came into force, or

(b) is a person with whom he has dealings in the course of his business or has had such dealings at any time since the freezing order came into force.

(4) The third condition is that the information--

(a) on which the knowledge or suspicion of the person required to disclose is based, or

(b) which gives grounds for his knowledge or suspicion,

came to him in the course of a business in the regulated sector.

(5) The freezing order may require the person required to disclose to make a disclosure to the Treasury of that information as soon as is practicable after it comes to him.

(6) The freezing order may include--

(a) provision that Schedule 3A to the Terrorism Act 2000 (c. 11) is to have effect for the purpose of determining what is a business in the regulated sector;

(b) provision that the disclosure of information is not to be taken to breach any restriction on the disclosure of information (however imposed);

(c) provision restricting the use to which information may be put and the circumstances in which it may be disclosed by the Treasury;

(d) provision that the requirement to disclose information does not apply to privileged information;

(e) provision that information is privileged if the person would be entitled to refuse to disclose it on grounds of legal professional privilege in proceedings in the High Court or (in Scotland) on grounds of confidentiality of communications in proceedings in the Court of Session;

(f) provision that information held with the intention of furthering a criminal purpose is not privileged.

Offences

7 (1) A freezing order may include any of the provisions set out in this paragraph.

(2) A person commits an offence if he fails to comply with a prohibition imposed by the order.

(3) A person commits an offence if he engages in an activity knowing or intending that it will enable or facilitate the commission by another person of an offence under a provision included under sub-paragraph (2).

(4) A person commits an offence if--

(a) he fails without reasonable excuse to provide information, or to produce a document, in response to a requirement made under the order;

(b) he provides information, or produces a document, which he knows is false in a material particular in response to such a requirement or with a view to obtaining a licence under the order;

(c) he recklessly provides information, or produces a document, which is false in a material particular in response to such a requirement or with a view to obtaining a licence under the order;

(d) he fails without reasonable excuse to disclose information as required by a provision included under paragraph 6.

(5) A person does not commit an offence under a provision included under sub-paragraph (2) or (3) if he proves that he did not know and had no reason to suppose that the person to whom or for whose benefit funds were made available, or were to be made available, was the person (or one of the persons) specified in the freezing order as a person to whom or for whose benefit funds are not to be made available.

(6) A person guilty of an offence under a provision included under sub-paragraph (2) or (3) is liable--

(a) on summary conviction, to imprisonment for a term not exceeding 6 months or to a fine not exceeding the statutory maximum or to both;

(b) on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine or to both.

(7) A person guilty of an offence under a provision included under sub-paragraph (4) is liable on summary conviction to imprisonment for a term not exceeding 6 months or to a fine not exceeding level 5 on the standard scale or to both.

Offences: procedure

8 (1) A freezing order may include any of the provisions set out in this paragraph.

(2) Proceedings for an offence under the order are not to be instituted in England and Wales except by or with the consent of the Treasury or the Director of Public Prosecutions.

(3) Proceedings for an offence under the order are not to be instituted in Northern Ireland except by or with the consent of the Treasury or the Director of Public Prosecutions for Northern Ireland.

(4) Despite anything in section 127(1) of the Magistrates' Courts Act 1980 (c. 43) (information to be laid within 6 months of offence) an information relating to an offence under the order which is triable by a magistrates' court in England and Wales may be so tried if it is laid at any time in the period of one year starting with the date of the commission of the offence.

(5) In Scotland summary proceedings for an offence under the order may be commenced at any time in the period of one year starting with the date of the commission of the offence.

(6) In its application to an offence under the order Article 19(1)(a) of the Magistrates' Courts (Northern Ireland) Order 1981 (S.I. 1981/1675 (N.I. 26)) (time limit within which complaint charging offence must be made) is to have effect as if the reference to six months were a reference to twelve months.

Offences by bodies corporate etc.

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