(1) A UK credit or financial institution ("C") ("the correspondent") must not establish or continue a correspondent banking relationship with the following ("the respondent") -

(a) a designated person ("D"),

(b) a UK credit or financial institution, which is owned or controlled directly or indirectly (within the meaning of regulation 7) by D, or

(c) a non-UK credit or financial institution, which is owned or controlled directly or indirectly (within the meaning of regulation 7) by D,

if C knows, or has reasonable cause to suspect, that the correspondent banking relationship is with a designated person.

(2) C must not process a payment to, from or via -

(a) D,

(b) a UK credit or financial institution, which is owned or controlled directly or indirectly (within the meaning of regulation 7) by D, or