The Iran (European Union Financial Sanctions) Regulations 2012

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations make provision relating to the enforcement of Council Regulation (EU) No. 267/2012 of 23 March 2012 concerning restrictive measures against Iran and repealing Regulation (EU) No. 961/2010 (OJ L 88, 24.3.2012, p.1) (“the Council Regulation”).

The measures include the freezing of funds and economic resources of designated persons and ensuring that funds and economic resources are not made available to them or for their benefit. They also include broader financial sanctions measures.

Regulation 2 defines designated persons as any person named in Annex VIII or IX to the Council Regulation (as amended from time to time). Annex VIII includes those persons listed by the United Nations Security Council, and Annex IX includes those persons listed by the Council of the European Union.

Regulations 3 to 7 provide prohibitions against dealing with the funds or economic resources of a designated person, or making funds or economic resources available, directly or indirectly, to or for the benefit of a designated person.

Regulation 8 provides an exception to the prohibitions in regulations 4 and 5 where a frozen account is credited for a permitted reason.

Regulation 9 provides a licensing procedure to enable funds and economic resources to be exempted from the prohibitions.

Regulation 10 prohibits the transfer of funds to or from certain persons in or connected to Iran, if the transfers have not been notified or authorised in accordance with the Council Regulation. Regulation 11 makes provision in relation to authorisations.

Regulation 12 prohibits the provision of specialist financial messaging services to designated persons.

Regulation 13 requires a branch or subsidiary of an Iranian bank to comply with the requirements of the Council Regulation to notify the Treasury of details of transfers of funds.

Regulation 14 prohibits a credit or financial institution establishing certain relationships with an Iranian bank, or opening a representative office or establishing a branch in Iran.

Regulation 15 prohibits the making of an agreement for or on behalf of an Iranian bank to establish a representative office, branch or subsidiary in the European Union.

Regulation 16 prohibits an Iranian bank acquiring or extending an ownership interest in a credit or financial institution.

Regulation 17 prohibits the sale or purchase of bonds to or from an Iranian person, the provision of brokering services in respect of bonds to an Iranian person, and the provision of any assistance to an Iranian person to issue bonds.

Regulation 18 prohibits the provision of insurance or re-insurance to Iranian persons, and of brokering services in respect of such insurance or re-insurance.

Regulation 19 makes it an offence to breach any of the prohibitions in regulations 3 to 7, 10, 12 and 14 to 18, or to fail to comply with the requirements of regulation 13, or to seek to circumvent those provisions. Regulations 20 to 23 contain provision about penalties, proceedings and who, in relation to bodies corporate and other bodies, may be prosecuted for an offence under the Regulations.

Regulation 27 amends the Counter-Terrorism Act 2008 so that an application to the High Court to set aside any decision of the Treasury under these Regulations is subject to the procedure set out in that Act and in Part 79 of the Civil Procedure Rules.

Regulation 28 revokes the Regulations which currently make provision for penalties for contravention of the asset freezing measures contained in the Council Regulation. Regulation 29 provides that licences which were granted under those revoked Regulations continue to have effect for the purposes of these Regulations.

The Schedule makes provision for information gathering and information disclosure.

A list of designated persons is available on the Internet at: www.hm-treasury.gov.uk/fin_sanctions_index.htm.

An impact assessment has not been produced for this instrument as no impact on the costs of business or the voluntary sector is foreseen. Further information is available from the Asset Freezing Unit, HM Treasury, 1 Horse Guards Road, London SW1A 2HQ and on HM Treasury’s website (www.hm-treasury.gov.uk).