TNAG-2028-FCO40-2890-Hong-Kong-freezing-of-Kuwaiti-and-Iraqi-assets-1990 — Page 174

INTRODUCTION

1 On 2 August 1990 HM Treasury issued directions under the Emergency Laws (Re- enactments and Repeals) Act 1964 which have the effect of freezing certain Kuwaiti assets.

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The directions are contained in Statutory Instrument 1990 No 1591 which may be cited as The Control of Gold, Securities, Payments and Credits (Kuwait) Directions 1990. Copies may be obtained from HM Stationery Office.

3 Article 2 of the Statutory Instrument reads as follows:- "Except with permission granted by or on behalf of the Treasury, no order given by or on behalf of the government of or any person resident in Kuwait at the time of the coming into force of these directions or at any later time while these directions are in force, shall be carried out, insofar as the order:-

(i)

(ii)

requires the person to whom the order is given to make any payment or to part with any gold or securities; or

requires any change to be made in the persons to whose credit any sum is to stand or to whose order any gold or securities is to be held.'

"

4 These directions apply to all persons (including bodies corporate) in the United Kingdom, including the Channel Islands and the Isle of Man, and to all other persons, wherever they may be, who are ordinarily resident in the United Kingdom and who are citizens of the United Kingdom and Colonies* or British protected persons.

Residents of Kuwait

›

5 For the purposes of the directions, a resident of Kuwait is any person, including any body corporate, normally resident in that country on 2 August 1990 or at any later time. A branch in Kuwait of any business is treated as if the branch were a body corporate resident in Kuwait. Orders given by branches outside Kuwait of any body corporate resident in Kuwait or by branches of any business whose head office is in Kuwait are given on behalf of persons resident in Kuwait, irrespective of the location of such branches. Persons resident or becoming resident in Kuwait should not subsequently be treated as resident elsewhere without prior reference: to the Bank of England.

6 Bodies incorporated in the United Kingdom whose day-to-day control and management are established in the United Kingdom are to be treated for the purposes of this Notice as resident in the United Kingdom unless a controlling interest is held by the government of Kuwait.

7 Residential status should be determined by reference to the facts. Among bodies to be regarded as residents of Kuwait are Kuwait Investment Office, Kuwait Petroleum Corporation and branches in the United Kingdom of the National Bank of Kuwait. Branches in the United Kingdom of the United Bank of Kuwait are to be regarded as residents of the United Kingdom. Cases of doubt should be referred to the Bank of England.

*In this paragraph "citizens of the United Kingdom and Colonies" means a British citizen, a British Dependent Territories citizen or a British Overseas citizen or a person who under the Hong Kong (British Nationality) Order 1986 is a British National (Overseas). See the British Nationality Act 1981 Section 51 (3) (a) (ii).

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