The Iran (Sanctions) (Nuclear) (EU Exit) Regulations 2019
| Year | 2019 |
2019 No. 461
Exiting The European Union
Sanctions
The Iran (Sanctions) (Nuclear) (EU Exit) Regulations 2019
Made 5th March 2019
Laid before Parliament 7th March 2019
Coming into force in accordance with regulation 1(2)
The Secretary of State1, in exercise of the powers conferred by sections 1(1)(a) and (c) and (3), 3(1)(a), (b)(i) and (ii), (d)(i) and (ii) and (2)(b) and (c), 4, 5, 9(2)(a), 10(2)(a) and (c), (3) and (4), 11(2) to (9), 13, 15(2)(a) and (b), (3), (4)(b), (5) and (6), 16, 17(2) to (9), 19, 20, 21(1), 54(1)(a) and (2)(a), 56(1) and 62(4) to (6) of, and paragraphs 2(b), 3(a) and (b), 4(b) and (c), 5(a)(ii), (b), (c) and (d), 6(a)(ii), (b), 7(b), 11(a), 13(b), (h), (k), (l), (m), (n) and (w), 14(a), (f) and (k), 17, 19 to 23 and 27 of Schedule 1 to, the Sanctions and Anti-Money Laundering Act 20182, and having decided, upon consideration of the matters set out in section 2(2) and 56(1) of that Act, that it is appropriate to do so, makes the following Regulations:
PART 1
General
Citation and commencement
1.—(1) These Regulations may be cited as the Iran (Sanctions) (Nuclear) (EU Exit) Regulations 2019.
(2) These Regulations come into force in accordance with regulations made by the Secretary of State under section 56 of the Act.
Interpretation
2. In these Regulations—
“the Act” means the Sanctions and Anti-Money Laundering Act 2018;
“arrangement” includes any agreement, understanding, scheme, transaction or series of transactions, whether or not legally enforceable (but see Schedule 1 for the meaning of that term in that Schedule);
“CEMA” means the Customs and Excise Management Act 19793;
“the Committee” means the Committee of the Security Council established under paragraph 18 of resolution 1737;
“the Commissioners” means the Commissioners for Her Majesty’s Revenue and Customs;
“conduct” includes acts and omissions;
“document” includes information recorded in any form and, in relation to information recorded otherwise than in legible form, references to its production include producing a copy of the information in legible form;
“the EU Iran Regulation” means Council Regulation (EU) No 267/2012 of 23 March 2012 concerning restrictive measures against Iran and repealing Regulation (EU) No 961/20104as it has effect in EU law;
“the Joint Comprehensive Plan of Action” means the document attached as Annex A to resolution 2231;
“non-UN designated person” means a person who is designated under regulation 5 for the purposes of regulations 12 to 17;
“resolution 1737” means resolution 1737 adopted by the Security Council on 23 December 2006;
“resolution 2231” means resolution 2231 adopted by the Security Council on 20 July 2015;
“trade licence” means a licence under regulation 41;
“Treasury licence” means a licence under regulation 40(1).
Application of prohibitions and requirements outside the United Kingdom
3.—(1) A United Kingdom person may contravene a relevant prohibition by conduct wholly or partly outside the United Kingdom.
(2) Any person may contravene a relevant prohibition by conduct in the territorial sea.
(3) In paragraphs (1) and (2) a “relevant prohibition” means any prohibition imposed—
(a)
(a) by regulation 9(2) (confidential information),
(b)
(b) by Part 3 (Finance),
(c)
(c) by Part 5 (Trade), or
(d)
(d) by a condition of a Treasury licence or a trade licence.
(4) A United Kingdom person may comply, or fail to comply, with a relevant requirement by conduct wholly or partly outside the United Kingdom.
(5) Any person may comply, or fail to comply, with a relevant requirement by conduct in the territorial sea.
(6) In this regulation a “relevant requirement” means any requirement imposed—
(a)
(a) imposed by or under Part 7 (Information and records), or by reason of a request made under a power conferred by that Part, or
(b)
(b) by a condition of a Treasury licence or a trade licence.
(7) Nothing in this regulation is to be taken to prevent a relevant prohibition or a relevant requirement from applying to conduct (by any person) in the United Kingdom
(8) In this regulation, “United Kingdom person” has the same meaning as in section 21 of the Act.
Purposes
4.—(1) The regulations contained in this instrument that are made under section 1 of the Act have the following purposes—
(a)
(a) compliance with the relevant UN obligations, and
(b)
(b) the additional purposes mentioned in paragraph (2).
(2) Those additional purposes are—
(a)
(a) promoting the abandonment by Iran of nuclear weapons programmes,
(b)
(b) restricting the ability of Iran to develop nuclear weapons and nuclear weapons delivery systems, and
(c)
(c) promoting implementation of the Joint Comprehensive Plan of Action,
otherwise than by compliance with the relevant UN obligations.
(3) In this regulation “the relevant UN obligations” means—
(a)
(a) the obligation that the United Kingdom has by virtue of paragraph 7(b) of, and paragraph 6(c) of Annex B to, resolution 2231 (asset-freeze etc) to take the measures required by that provision in respect of persons5for the time being named for the purposes of that provision by the Security Council or the Committee;
(b)
(b) the obligations that the United Kingdom has by virtue of paragraph 7(b) of, and paragraphs 2, 4, 5 and 6 (a), (b) and (d) to (f) of Annex B to, resolution 2231.
PART 2
Designation of persons
Power to designate persons
5.—(1) The Secretary of State may designate persons, by name, for the purposes of any of the following—
(a)
(a) regulations 12 to 17 (asset-freeze etc);
(b)
(b) regulation 19 (immigration).
(2) The Secretary of State may designate different persons for the purposes of different provisions mentioned in paragraph (1).
Criteria for designating a person
6.—(1) The Secretary of State may not designate a person under regulation 5 unless the Secretary of State—
(a)
(a) has reasonable grounds to suspect that that person is an involved person, and
(b)
(b) considers 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 Secretary of State to be on the basis of the information that the Secretary of State has).
(2) In this regulation an “involved person” means a person who—
(a)
(a) is or has been involved in a relevant nuclear activity;
(b)
(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)
(c) is acting on behalf of or at the direction of a person who is or has been so involved, or
(d)
(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 a relevant nuclear activity includes being so involved in whatever way, and wherever, any actions constituting the involvement take place, and in particular includes—
(a)
(a) being responsible for, engaging in, providing support for, or promoting, or facilitating, a relevant nuclear activity;
(b)
(b) providing financial services6, or making available funds or economic resources7, that could contribute to a relevant nuclear activity;
(c)
(c) being involved in the supply to Iran of restricted goods or restricted technology, or in providing financial services relating to such supply; or
(d)
(d) being involved in assisting the contravention or circumvention of any relevant provision.
(4) In this regulation—
“relevant nuclear activity” means—
(a) the proliferation or development of nuclear weapons in, or for use in, Iran, or an activity that could lead to the development of nuclear weapons in, or for use in, Iran, or
(b) the development of a nuclear weapon delivery system in, or for use in, Iran;
“relevant provision” means—
(a) any provision of Part 3 (Finance) or Part 5 (Trade),
(b) any provision of the law of a country other than the United Kingdom made for purposes corresponding to a purpose of any provision of Part 3 or 5, or
(c) any provision of resolution 2231;
“restricted goods” and “restricted technology” have the same meaning as they have in Chapter 1 of Part 5.
(5) Nothing in any sub-paragraph of paragraph (3) is to be taken to limit the meaning of any of the other sub-paragraphs of that paragraph.
Meaning of “owned or controlled directly or indirectly”
7.—(1) A person who is not an individual (“C”) is “owned or controlled directly or indirectly” by another person (“P”) if either of the following two conditions is met (or both are met).
(2) The first condition is that P—
(a)
(a) holds directly or indirectly more than 50% of the shares in C,
(b)
(b) holds directly or indirectly more than 50% of the voting rights in C, or
(c)
(c) holds the right directly or indirectly to appoint or remove a majority of the board of directors of C.
(3) Schedule 1 contains provision applying for the purpose of interpreting paragraph (2).
(4) The second condition is that it is reasonable, having regard to all the circumstances, to expect that P would (if P chose to) be able, in most cases or in significant respects, by whatever means and, whether directly or indirectly, to achieve the result that affairs of C are conducted in accordance with P’s wishes.
Notification and publicity where designation power used
8.—(1) Paragraph (2) applies where the Secretary of State—
(a)
(a) has made a designation under regulation 5, or
(b)
(b) has by virtue of section 22 of the Act varied or revoked a designation made under that regulation.
(2) The Secretary of State—
(a)
(a) must without delay take such steps as are reasonably practicable to inform the designated person of the designation, variation or...
To continue reading
Request your trial