Document ID: chunk:federal_register_of_legislation:F2021C00916:reg:5:p1
Version: federal_register_of_legislation:F2021C00916
Segment Type: reg
Provision Reference: reg 5 (pt 1/2)
Character Range: 4950–7619

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