Iran
United Nations Security Council Resolution (UNSCR) 1929 (2010) was adopted on 9 June 2010 and it strengthened and widened existing sanctions against Iran. Information on the measures imposed by UNSCR 1929 can be obtained via the link at the bottom of the page. The EU has implemented these measures through Council Regulation (EU) No 267/2012 which came into force on 24 March 2012 ("the EU Regulation"). On 22 December 2012, the EU extended the existing restrictive measures by way of amendments contained in Council Regulation (EU) No 1263/2012. References to the EU Regulation below mean the EU Regulation as amended. Guernsey has implemented the various measures with the Iran (Restrictive Measures) (Guernsey) Ordinance, 2012, as amended.
The restrictive measures include import and export bans and related prohibitions on the provision of financing or financial assistance, asset freezes and restrictions on the transfer of funds to and from Iranian parties.
There are also specific restrictions relating to Iranian banks. These include a more restrictive regime for the transfer of funds, which is looked at in detail below, and a prohibition on entering into specified business relationships with Iranian financial institutions, such as new correspondent banking relationships. In addition there are reporting and due diligence requirements in respect of dealings with Iranian financial institutions which are complementary to existing obligations under the Disclosure (Bailiwick of Guernsey) Law 2007, the Transfer of Funds (Guernsey) Ordinance 2007, the Criminal Justice (Proceeds of Crime) (Financial Services Businesses) (Bailiwick of Guernsey) Regulations 2007, and the Criminal Justice (Proceeds of Crime) (Legal Professionals, Accountants and Estate Agents)( Bailiwick of Guernsey) Regulations 2008.
Restrictions on transfers of funds
Before 22 December 2012, there were restrictions on the transfer of funds in place which applied to all transactions involving an Iranian persons, entity or body. With effect from 22 December 2012, further specific restrictions have been introduced in respect of transactions involving Iranian banks. The pre-existing regime continues to apply to all transfers involving Iranian parties that are not covered by the new regime for Iranian banks.
Iranian Banks
Article 30 prohibits transfers involving:
- credit and financial institutions and bureaux de change domiciled in Iran (including the Central Bank of Iran);
- their branches and subsidiaries, wherever located;
- credit and financial institutions and bureaux de change not domiciled in Iran, but controlled by persons and entities domiciled in Iran.
There is an exemption from this prohibition for certain categories of transfer ("permitted transfers"). Permitted transfers are subject to authorisation or notification requirements. See Table A.
The Article 30 restrictions are additional to the reporting and due diligence requirements referred to above.
Other Iranian Parties
The authorisation or notification requirements in respect of transfers of funds involving other Iranian persons, entities or bodies, which were previously found at Article 30, are now set out in Article 30a. This regime is unchanged, save that the threshold for notifications has been lowered slightly so that while the previous restrictions did not apply to transactions of EUR 10,000, now transactions of EUR 10,000 or above are covered. See Table B.
Authorisations and Notifications
The Policy Council is the competent authority for the purposes of notification and authorisation under both Article 30 and Article 30a. Unlike Article 30a transfers, permitted transfers under Article 30 are not subject to a deemed authorisation time period so in all cases where authorisation is required for a permitted transfer, the transfer can only proceed if positive authorisation has been obtained from the Policy Council.
Linked Transactions
The requirements for notification and authorisation under both Article 30 and Article 30a are subject to certain thresholds. It is important to be aware that operations which appear to be linked will be treated as a single transaction, and the notification and authorisation thresholds will apply as appropriate to the total value of the linked transactions.
Previously Authorised Transfers
Articles 30 and 30a will not apply to transfers that have already been authorised under the asset freezing measures in the existing Regulation, provided that evidence of the authorisation in question is produced to the satisfaction of the Policy Council. Similarly, there is no need to submit an authorisation request under Article 30 for a transfer that has been previously authorised under old Article 30 (transfer of funds to or from Iranian persons, bodies or entities) provided that the transfer takes place before 15 April 2013.
Further information on the due diligence and reporting requirements, the definition of 'transfers of funds', and the definition of 'Iranian person, entity or body' can be found within the HM Treasury guidance notice.
Table A - Article 30
| Permitted Transfer | Notification/Authorisation Requirements |
|---|---|
Transfers relating to foodstuffs, healthcare, medical equipment, or for agricultural or humanitarian purposes. | Below €10,000 - no requirements. €10,000 or more but below €100,000 - must be notified in advance to the Policy Council €100,000 or more - must be submitted to the Policy Council in advance for authorisation. It cannot be undertaken without prior authorisation. |
| Transfers relating to personal remittances | Below €10,000 - no requirements. €10,000 or more and below €40,000 - must be notified in advance to the Policy Council €40,000 or more - must be submitted to the Policy Council in advance for authorisation. It cannot be undertaken without prior authorisation. |
| Transfers relating to a specific trade contract that is not otherwise prohibited under the EU Regulation | Below €10,000 - no requirements. €10,000 or more - must be submitted to the Policy Council in advance for authorisation. It cannot be undertaken without prior authorisation. |
| Transfers relating to a diplomatic mission, consular post or international organisation enjoying immunities in accordance with international law, for the official purposes of the mission, post or organisation. | Below €10,000 - no requirements. €10,000 or more - must be submitted to the Policy Council in advance for authorisation. It cannot be undertaken without prior authorisation. |
Transfers relating to payment to satisfy claims against Iranian persons entities or bodies, provided that they do not contribute to activities prohibited under the EU regulation . | Below €10,000 - no requirements. €10,000 or more - must be submitted to the Policy Council in advance for authorisation. It cannot be undertaken without prior authorisation. |
| Transfers necessary for the execution of obligations arising from contracts referred to in Article 12(1)(b) of the Regulation (contracts concluded before 23rd January 2012 which provide that the supply of Iranian crude oil and petroleum or their proceeds are for the reimbursement of outstanding amounts owed to persons, entities or bodies under the jurisdiction of member states | Below €10,000 - no requirements. €10,000 or more - must be submitted to the Policy Council in advance for authorisation. It cannot be undertaken without prior authorisation. |
Table B - Article 30a
| Transfer Value | Requirements |
|---|---|
| Below €10,000 | No requirements |
| €10,000 or above and below €40,000 | Must be notified in advance to the Policy Council, whatever the transaction is for. |
| €40,000 or above | If the transaction relates to foodstuffs, healthcare, medical equipment or humanitarian purposes, it must be notified in advance to the Policy Council. It does not require prior authorisation from the Policy Council. If the transaction if for any other purpose, it must be submitted to the Policy Council in advance for authorisation. It cannot be undertaken without prior authorisation. |
Notification and authorisation request forms can be accessed below.
Human Rights
On 12 April 2011, Council Regulation (EU) No 359/2011 came into force which placed restrictive measures on persons responsible for serious human rights violations in Iran and these measures were implemented locally through the Iran (Freezing of Funds) Ordinance 2011.
All financial institutions and other bodies and persons in Guernsey will need to ensure they do not maintain any accounts or otherwise hold any funds or economic resources for the entities and individuals named in the HM Treasury consolidated lists.
Prior authorisation or any queries relating to these sanction measures can be obtained by contacting sanctions@gov.gg with subject line 'Iran Sanctions'.
Document downloads
Iran Sanctions Forms
Forms for Authorisation and Notification under EU Reg 267/2012
Relevant links & information
UNSCR 1929 (2010)
Council Regulation (EU) No 359/2011
Council Regulation (EU) No 961/2010
Council Regulation (EU) No 267/2012
Repeals Regulation (EU) No 961/2010 and provides for additional measures
Council Regulation (EU) No 1263/2012
HM Treasury financial sanctions notice
Provides further information on Council Regulation (EU) No 267/2012
External Relations Team (Sanctions)
External Relations Team, Sir Charles Frossard House, La Charroterie, St Peter Port, Guernsey, GY1 1FH, Channel IslandsTel: +44 1481 717020 Fax: +44 1481 717000
Email: sanctions@gov.gg
