(1) The Treasury may not designate a person under regulation 5 unless the Treasury -

(a) have reasonable grounds to suspect that that person is an involved person, and

(b) consider that the designation of that person is appropriate, having regard to -

(i) the purposes stated in regulation 4, and

(ii) the likely significant effects of the designation on that person (as they appear to the Treasury to be on the basis of the information that the Treasury have).

(2) In this regulation, an "involved person" means a person who -

(a) is or has been involved in terrorist activity,

(b) is owned or controlled directly or indirectly (within the meaning of regulation 7) by a person who is or has been so involved,

(c) is acting on behalf of or at the direction of a person who is or has been so involved, or

(d) is a member of, or associated with, a person who is or has been so involved.

(3) Any reference in this regulation to being involved in terrorist activity includes being so involved in whatever way and wherever any actions constituting the involvement take place and in particular includes -