1981 c.61. Part 4 was amended by the British Overseas Territories Act 2002 (c.8), section 1(1)(b) and the Nationality, Immigration and Asylum Act 2002 (c.41), sections 15 and 161, Schedule 2, paragraph 1(i) and Schedule 9.
As amended by the Financial Services Act 2010 (c.28), section 3.
As amended by S.I. 2006/3221.
As amended by S.I. 2003/2066, S.I. 2007/3253, the Enterprise Act 2002 (c.40), section 278(1), Schedule 25, paragraphs 19(a) and 40(1), and the Consumer Credit Act 2006 (c.14),section 33(9).
As amended by S.I. 2007/126 and S.I. 2007/3253.
The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544) as amended, most recently by the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2010 (S.I. 2010/86).
2008 c.28. Section 63(1) was amended by the Al-Qaida and Taliban (Asset-Freezing) Regulations 2010 (S.I. 2010/1197).
These Regulations may be cited as the Iran (European Union Financial Sanctions) Regulations 2010, and shall come into force on 11th December 2010.
An offence under these Regulations may be committed by conduct wholly or partly outside the United Kingdom by—
a UK national, or
a body incorporated or constituted under the law of any part of the United Kingdom.
In paragraph (2)—
“
“
a British citizen,
a British overseas territories citizen who acquired their citizenship from a connection with Gibraltar, or
a person who under the British Nationality Act 1981
In these Regulations—
“the 2000 Act” means the Financial Services and Markets Act 2000
“the Council Regulation” means Council Regulation (EU) No 961/2010 of 25th October 2010 on restrictive measures against Iran and repealing Regulation (EC) No 423/2007, and any reference to an Annex to that Regulation is to be construed as a reference to that Annex as amended from time to time;
“
“
“
a person who has permission under Part 4 of the 2000 Act (permission to carry on regulated activities)
an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to the 2000 Act (EEA passport rights)
an undertaking which by way of business operates a currency exchange office, transmits money (or any representations of monetary value) by any means or cashes cheques which are made payable to customers.
The definition of “relevant institution” in paragraph (1) must be read with—
section 22 of the 2000 Act (the classes of activity and categories of investment),
any relevant order under that section
Schedule 2 to that Act (regulated activities).
Any expression used both in these Regulations and in the Council Regulation has the meaning that it bears in the Council Regulation.
A person (“
In paragraph (1) “
in relation to funds—
use, alter, move, allow access to or transfer;
deal with the funds in any other way that would result in any change in volume, amount, location, ownership, possession, character or destination; or
make any other change that would enable use, including portfolio management; and
in relation to economic resources, exchange or use in exchange for funds, goods or services.
Paragraph (1) is subject to regulations 8 and 9.
A person who contravenes the prohibition in paragraph (1) commits an offence.
A person (“
Paragraph (1) is subject to regulations 8 and 9.
A person who contravenes the prohibition in paragraph (1) commits an offence.
A person (“
For the purposes of this regulation—
funds are made available for the benefit of a designated person only if that person thereby obtains, or is able to obtain, a significant financial benefit, and
“
Paragraph (1) is subject to regulations 8 and 9.
A person who contravenes the prohibition in paragraph (1) commits an offence.
A person (“
that P is making the economic resources so available, and
that the designated person would be likely to exchange the economic resources, or use them in exchange, for funds, goods or services.
Paragraph (1) is subject to regulation 9.
A person who contravenes the prohibition in paragraph (1) commits an offence.
A person (“
For the purposes of this regulation—
economic resources are made available for the benefit of a designated person only if that person thereby obtains, or is able to obtain, a significant financial benefit, and
“
Paragraph (1) is subject to regulation 9.
A person who contravenes the prohibition in paragraph (1) commits an offence.
The prohibitions in regulations 3 to 5 are not contravened by a relevant institution crediting a frozen account with—
interest or other earnings due on the account, or
payments due under contracts, agreements or obligations that were concluded or arose before the account became a frozen account.
The prohibitions in regulations 4 and 5 on making funds available do not prevent a relevant institution from crediting a frozen account where it receives funds transferred to the account.
A relevant institution must inform the Treasury without delay if it credits a frozen account in accordance with paragraph (1)(b) or (2).
In this regulation “
The prohibitions in regulations 3 to 7 do not apply to anything done under the authority of a licence granted by the Treasury.
A licence must specify the acts authorised by it and may be—
general or granted to a category of persons or to a particular person;
subject to conditions;
of indefinite duration or subject to an expiry date.
The Treasury may vary or revoke a licence at any time.
On the grant, variation or revocation of a licence, the Treasury must—
in the case of a licence granted to a particular person, give written notice of the grant, variation or revocation to that person,
in the case of a general licence or a licence granted to a category of persons, take such steps as the Treasury consider appropriate to publicise the grant, variation or revocation of the licence.
A person commits an offence who, for the purpose of obtaining a licence, knowingly or recklessly—
provides information that is false in a material respect, or
provides or produces a document that is not what it purports to be.
A person who purports to act under the authority of a licence but who fails to comply with any conditions included in the licence commits an offence.
Subject to paragraph (2), a transfer of funds to or from an Iranian person, entity or body—
which is due on a transaction regarding foodstuffs, healthcare, medical equipment or for humanitarian purposes, and is of more than 10,000 euro, must have been notified in advance in writing to the relevant competent authority,
which is due on a transaction other than one referred to in sub-paragraph (a)—
if it is of more than 10,000 euro but less than 40,000 euro, must be notified in advance in writing to the relevant competent authority, and
if it is of 40,000 euro or more, must have received prior authorisation from the relevant competent authority.
Paragraph (1) does not apply where—
amounts are credited to a frozen account in accordance with regulation 8 (or, in another Member State, Article 20 of the Council Regulation), or
an authorisation for the transfer has been granted—
by a competent authority in accordance with Article 13 of the Council Regulation, or
by the Treasury under regulation 9, or by a competent authority of another Member State in accordance with Article 17, 18 or 19 of the Council Regulation.
A person (“
For the purposes of this regulation and regulation 11, “the relevant competent authority” is—
in the case of a transfer of funds to an Iranian person, entity or body, the competent authority of the Member State in which the initial order to execute the transfer is given,
in the case of a transfer of funds from an Iranian person, entity or body, the competent authority of the Member State in which—
the payee is resident, or
the payment service provider is established.
In this regulation—
a reference to an amount in euro includes a reference to the equivalent amount in another currency, and
a reference to a transfer of funds of a particular amount includes a transfer executed in several operations which appear to be linked, as well as a transfer executed in a single operation.
A notification or request for authorisation for the purposes of regulation 10 must be made to the relevant competent authority—
in the case of a transfer of funds to an Iranian person, entity or body, by or on behalf of the payment service provider of the payer,
in the case of a transfer of funds from an Iranian person, entity or body, by or on behalf of the payment service provider of the payee.
If the payment service provider of the payer or the payee does not fall within the category of persons to whom the Council Regulation applies (by virtue of Article 39 of the Regulation), the notification or request for authorisation must be made by the payer or payee to the competent authority of the Member State in which the payer or payee is resident.
The relevant competent authority shall be deemed to have given authorisation for the purposes of regulation 10 if, after the period of 28 days beginning with the day upon which the authority received a request for authorisation, the authority has not objected in writing to the transfer.
An authorisation granted by the Treasury may be—
general or granted to a category of persons or to a particular person;
subject to conditions;
of indefinite duration or subject to an expiry date.
The Treasury may vary or revoke an authorisation at any time.
On the grant, variation or revocation of an authorisation, the Treasury must—
in the case of an authorisation granted to a particular person, give written notice of the grant, variation or revocation to that person,
in the case of a general authorisation or an authorisation granted to a category of persons, take such steps as the Treasury consider appropriate to publicise the grant, variation or revocation of the authorisation.
A person commits an offence who, for the purpose of making a notification or obtaining an authorisation, knowingly or recklessly—
provides information that is false in a material respect, or
provides or produces a document that is not what it purports to be.
A person who purports to act under an authorisation granted by the Treasury but who fails to comply with any conditions included in the authorisation commits an offence.
A branch or subsidiary established within the UK of a credit or financial institution domiciled in Iran must notify the Treasury in writing of all transfers of funds carried out or received by the branch or subsidiary.
A notification under paragraph (1) must—
specify the names of the parties to the transaction, the amount of funds transferred, and the date of the transaction;
include the following information where it is available to the branch or subsidiary—
the nature of the transaction;
the nature of any goods which are the subject of the transaction;
whether those goods are subject to Annex I, II, III, IV or VI of the Council Regulation;
where the export of goods is subject to authorisation, the number of the licence granted; and
be made within five working days after the day on which the transfer of funds is carried out or received by the branch or subsidiary.
A person who fails to comply with paragraph (1) commits an offence.
A person commits an offence who, for the purpose of making a notification under paragraph (1), knowingly or recklessly—
provides information that is false in a material respect, or
provides or produces a document that is not what it purports to be.
A credit or financial institution must not—
open a new bank account,
establish a new correspondent banking relationship, or
establish a new joint venture,
with a person falling within paragraph (2).
The following persons fall within this paragraph—
a credit or financial institution domiciled in Iran, including the Central Bank of Iran;
a branch or subsidiary, wherever located, of a credit or financial institution domiciled in Iran;
a credit or financial institution that is not domiciled in Iran but is controlled by a person or entity domiciled in Iran.
A credit or financial institution which—
contravenes a prohibition in paragraph (1), and
knows or has reasonable cause to suspect that the account, relationship or venture is with a person falling within paragraph (2),
commits an offence.
A credit or financial institution must not—
open a new representative office in Iran, or
establish a new branch or subsidiary in Iran.
A credit or financial institution which contravenes a prohibition in paragraph (4) commits an offence.
A person (“
A person who contravenes the prohibition in paragraph (1) commits an offence.
A person falling within regulation 13(2) must not acquire or extend a participation, or acquire any other ownership interest, in a credit or financial institution.
A person who contravenes the prohibition in paragraph (1) commits an offence.
A person (“
A person (“
A person (“
brokering services;
advertising; or
any other service with respect to such bonds,
if P knows or has reasonable cause to suspect that P is assisting such a person, entity or body.
The following persons, entities and bodies fall within this paragraph—
Iran or its Government, and its public bodies, corporations and agencies;
a credit or financial institution domiciled in Iran, including the Central Bank of Iran;
a branch or subsidiary, wherever located, of a credit or financial institution domiciled in Iran;
a credit or financial institution that is not domiciled in Iran but is controlled by a person or entity domiciled in Iran;
a person, entity or body acting on behalf of or at the direction of a legal person, entity or body falling within sub-paragraphs (a) to (d);
a legal person, entity or body owned or controlled by a person, entity or body falling within sub-paragraphs (a) to (e).
A person who contravenes a prohibition in paragraph (1), (2) or (3) commits an offence.
A person (“
Iran or its Government, and its public bodies, corporations and agencies;
any other Iranian legal person, entity or body; or
a person, entity or body acting on behalf of or at the direction of a person, entity or body referred to in sub-paragraph (a) or (b),
if P knows or has reasonable cause to suspect that the insurance or reinsurance is being provided to such a person, entity or body.
The prohibition in paragraph (1) does not apply to the provision of compulsory or third party insurance to Iranian persons, entities or bodies based in the European Union.
The prohibition in paragraph (1)(c) does not apply to the provision of—
insurance, including health and travel insurance, to individuals (other than designated persons) acting in their private capacity, or
re-insurance relating to insurance falling within sub-paragraph (a).
The prohibition in paragraph (1)(c) does not prevent the provision of insurance or re-insurance to the owner of a vessel, aircraft or vehicle which is chartered by a person, entity or body referred to in paragraph (1)(a) or (b), provided that the person, entity or body to which it is chartered is not a designated person.
For the purposes of paragraph (1)(c), a person, entity or body does not act at the direction of a person, entity or body referred to in paragraph (1)(a) or (b) where the direction is for the purposes of docking, loading, unloading or safe transit of a vessel or aircraft temporarily in Iranian waters or airspace.
The prohibition in paragraph (1) applies to the extension or renewal of an insurance or re-insurance agreement concluded before 27th October 2010, but, subject to regulations 4 to 7, does not apply to compliance with an insurance or reinsurance agreement concluded before that date.
A person who contravenes the prohibition in paragraph (1) commits an offence.
A person commits an offence who intentionally participates in activities knowing that the object or effect of them is (whether directly or indirectly)—
to circumvent any of the prohibitions in regulations 3 to 7, 10 and 12 to 17, or
to enable or facilitate the contravention of any such prohibition.
Where an offence under these Regulations committed by a body corporate—
is committed with the consent or connivance of any director, manager, secretary or other similar officer of the body corporate, or any person who was purporting to act in any such capacity, or
is attributable to any neglect on the part of any such person,
that person as well as the body corporate is guilty of the offence and is liable to be proceeded against and punished accordingly.
In paragraph (1) “
Paragraph (1) also applies in relation to a body that is not a body corporate, with the substitution for the reference to a director of the body of a reference—
in the case of a partnership, to a partner;
in the case of an unincorporated body other than a partnership—
where the body’s affairs are managed by its members, to a member of the body;
in any other case, to a member of the governing body.
A person guilty of an offence under any of regulations 3 to 7 and 9 to 18 is liable—
on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or to both;
on summary conviction, to imprisonment for a term not exceeding three months or to a fine not exceeding the statutory maximum or to both.
A person guilty of an offence under paragraph 1(5) or paragraph 4(1) of the Schedule is liable on summary conviction to imprisonment for a term not exceeding three months or to a fine not exceeding level 5 on the standard scale or to both.
Proceedings against any person for an offence may be taken before the appropriate court in the United Kingdom having jurisdiction in the place where that person is for the time being.
In England and Wales an information relating to an offence that is triable by a magistrates’ court may be so tried if it is laid—
at any time within three years after the commission of the offence, and
within twelve months after the date on which evidence sufficient in the opinion of the prosecutor to justify the proceedings comes to the knowledge of the prosecutor.
In Scotland—
summary proceedings for an offence may be commenced—
before the end of twelve months from the date on which evidence sufficient in the Lord Advocate’s opinion to justify the proceedings came to the Lord Advocate’s knowledge, and
not later than three years after the commission of the offence, and
section 136(3) of the Criminal Procedures (Scotland) Act 1995
In Northern Ireland summary proceedings for an offence may be instituted—
at any time within three years after the commission of the offence, and
within twelve months after the date on which evidence sufficient in the opinion of the prosecutor to justify the proceedings comes to the knowledge of the prosecutor.
For the purposes of this regulation a certificate of the prosecutor (or, in Scotland, the Lord Advocate) as to the date on which such evidence as is referred to above came to their notice is conclusive evidence.
Proceedings for an offence under these Regulations (other than for a summary offence) may not be instituted—
in England and Wales, except by or with the consent of the Attorney General,
in Northern Ireland, except by or with the consent of the Advocate General for Northern Ireland.
Nothing in paragraph (1) prevents—
the arrest of a person in respect of an offence under these Regulations, or
the remand in custody or on bail of any person charged with such an offence.
The Schedule (which contains provisions concerning information gathering and disclosure) has effect.
This regulation has effect in relation to any notice to be given to a person by the Treasury under regulation 9 or 11.
Any such notice may be given—
by posting it to the person’s last known address, or
where the person is a body corporate, partnership or unincorporated body other than a partnership, by posting it to the registered or principal office of the body or partnership concerned.
Where the Treasury do not have an address for the person, they must make arrangements for the notice to be given to the person at the first available opportunity.
These Regulations bind the Crown.
No contravention by the Crown of a provision of these Regulations makes the Crown criminally liable.
The High Court or, in Scotland, the Court of Session may, on the application of a person appearing to the court to have an interest, declare unlawful any act or omission of the Crown that constitutes a contravention of a provision of these Regulations.
Nothing in this regulation affects Her Majesty in her private capacity.
Paragraph (4) is to be read as if section 38(3) of the Crown Proceedings Act 1947
In section 63(1) of the Counter-Terrorism Act 2008 (application to set aside financial restrictions decision)
the Iran (European Union Financial Sanctions) Regulations 2010 (S.I. 2010/2937),
The following instruments are revoked—
the Iran (European Community Financial Sanctions) Regulations 2007
the Iran (European Community Financial Sanctions) (Amendment) Regulations 2010
Any licence which was granted by the Treasury under regulation 10 of the Iran (European Community Financial Sanctions) Regulations 2007 and was in effect immediately before the coming into force of these Regulations shall have effect as if it were a licence granted by the Treasury under regulation 9 of these Regulations.