uksi/2019/461 — The Iran (Sanctions) (Nuclear) (EU Exit) Regulations 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 State , 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 2018 , 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 1 In these Regulations— “ the Act ” means the Sanctions and Anti-Money Laundering Act 2018; “ aircraft licence ” means a licence issued by the Secretary of State under regulation 41A (aircraft licences); “ 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 1979 ; “ 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; “ director disqualification licence ” means a licence under regulation 40A; “ 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 Dual-Use Regulation ” means Council Regulation (EC) No 428/2009 of 5 May 2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items; “ 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 961/2010 as it has effect in EU law; “ the Government of Iran ” includes its public bodies, corporations or agencies, its armed forces or any person acting on its behalf or at its direction; “ 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 (2006) adopted by the Security Council on 23 December 2006; “ resolution 1747 ” means resolution 1747 (2007) adopted by the Security Council on 24 March 2007; “ resolution 1803 ” means resolution 1803 (2008) adopted by the Security Council on 3 March 2008; “ resolution 1929 ” means resolution 1929 (2010) adopted by the Security Council on 9 June 2010; “ resolution 2231 ” means resolution 2231 (2015) adopted by the Security Council on 20 July 2015; “ ships licence ” means a licence issued by the Secretary of State under regulation 41B (ships licences); “ trade licence ” means a licence under regulation 41; “ United Kingdom person ” has the meaning given in section 21 of the Act; “ Treasury licence ” means a licence under regulation 40(1). 2 In these Regulations, a person is to be regarded as connected with Iran if the person is— a an individual who is, or an association or combination of individuals who are, ordinarily resident in Iran, b an individual who is, or an association or combination of individuals who are, located in Iran, c a person, other than an individual, which is incorporated or constituted under the law of Iran, d a person, other than an individual, which is domiciled in Iran, or e a person, other than an individual, which is owned or controlled directly or indirectly (within the meaning of regulation 7) by a person within any of sub-paragraphs (a) to (d). Interpretation: commodity codes 2A 1 For the purposes of these Regulations— a a reference to a commodity code is a reference to the relevant corresponding provision in the Goods Classification Table; b a thing “falls within” a commodity code if it is, or would be, classified under that commodity code, as set out in the Goods Classification Table; c a thing “falls within” a chapter if it is, or would be, classified under that chapter, as set out in the Goods Classification Table; d where a commodity code or chapter is preceded by “ex”, the goods specified in these Regulations constitute only a part of the scope of the commodity code or chapter and must fall within both the description given to that code or chapter in these Regulations and the scope of the code or chapter in the Goods Classification Table. 2 For the purposes of determining whether or not a thing is, or would be, “classified” in accordance with paragraph (1), the rules of interpretation contained in the following have effect— a Part Two (Goods Classification Table Rules of Interpretation) of the Tariff of the United Kingdom; b notes to a section or chapter of the Goods Classification Table. 3 For the purposes of this regulation— “ commodity code ” includes a code denoting a heading or sub-heading; “ the Goods Classification Table ” means the table so named in Annex I in Part Three of the Tariff of the United Kingdom; “ the Tariff of the United Kingdom ” means the document containing the legal classification and import rate for products being imported into the United Kingdom, entitled “The Tariff of the United Kingdom”, as revised or re-issued from time to time, including by any document published under regulations made under section 8(1) of the Taxation (Cross-border Trade) Act 2018 replacing the same in whole or in part. 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 this regulation a “ relevant prohibition ” means any prohibition imposed— a by regulation 9(2) (confidential information), b by Part 3 (Finance), c by Part 5 (Trade), ... ca by or under Part 5B (Ships), or d by a condition of a Treasury licence , a trade licence or a ships 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 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 by a condition of a Treasury licence , a trade licence or a ships 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Purposes 4 1 The regulations contained in this instrument that are made under section 1 of the Act have the following purposes— a compliance with the relevant UN obligations, and b the additional purposes mentioned in paragraph (2). 2 Those additional purposes are— a promoting the abandonment by Iran of nuclear weapons programmes, and b restricting the ability of Iran to develop nuclear weapons and nuclear weapons delivery systems, ... c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . otherwise than by compliance with the relevant UN obligations. 3 In this regulation “ the relevant UN obligations ” means— a the obligation that the United Kingdom has by virtue of paragraph 12 of resolution 1737 (asset-freeze etc) to take the measures required by that provision in respect of persons for the time being named for the purposes of that provision by the Security Council or the Committee; b the obligations that the United Kingdom has by virtue of paragraph 12 of resolution 1737 in respect of persons— i acting on behalf of or at the direction of, or ii owned or controlled by, the persons for the time being named by the Security Council or the Committee for the purposes of paragraph 12 of resolution 1737; c the obligations that the United Kingdom has by virtue of paragraphs 3, 4, 6 and 7 of resolution 1737 and paragraph 8 of resolution 1803 (certain nuclear-related goods and technology and connected trade); d the obligations that the United Kingdom has by virtue of paragraph 5 of resolution 1737 and paragraph 8 of resolution 1929 (arms and related materiel and connected trade); e the obligations that the United Kingdom has by virtue of paragraph 7 of resolution 1929 (commercial activity involving uranium mining, nuclear materials, etc); f the obligations that the United Kingdom has by virtue of paragraph 18 of resolution 1929 (bunkering services in respect of Iran-related ships); g the obligations that the United Kingdom has by virtue of paragraph 22 of resolution 2231 (notification etc, related to certain activities). 4 In paragraph (3)(a) and (b), the reference to paragraph 12 of resolution 1737 is a reference to that paragraph as read with— a paragraph 4 of resolution 1747; b paragraph 7 of resolution 1803; c paragraphs 11, 12 and 19 of resolution 1929. 5 In paragraph (3)(c), the reference to paragraphs 3, 4, 6 and 7 of resolution 1737 is a reference to those paragraphs as read with paragraph 13 of resolution 1929. PART 2 Designation of persons Power to designate persons 5 1 The Secretary of State may designate persons, by name, in accordance with regulation 5A (conditions for the designation of persons by name) for the purposes of any of the following— a regulations 12 to 17 (asset-freeze etc); aa regulation 18A (director disqualification sanctions); b regulation 19 (immigration); c regulation 33D (technical assistance relating to ships); d regulation 36A (movement of aircraft); e regulation 36G (prohibition on port entry); f regulation 36I (movement of ships); g regulation 36J (detention of ships); h regulation 36K (registration of ships in the United Kingdom); i regulation 43B (technical assistance relating to ships). 2 The Secretary of State may designate different persons for the purposes of different provisions mentioned in paragraph (1). Conditions for the designation of persons by name 5A 1 The Secretary of State may choose whether to designate a person under regulation 5 (power to designate persons) under— a the standard procedure, or b the urgent procedure. 2 Paragraph (3) applies where the Secretary of State chooses to designate a person under regulation 5 under the standard procedure. 3 The Secretary of State may not designate a person except where condition A is met. 4 Condition A is that the Secretary of State has reasonable grounds to suspect that that person is an involved person. 5 Paragraphs (6) to (8) apply where the Secretary of State chooses to designate a person under regulation 5 under the urgent procedure. 6 The Secretary of State may designate a person where condition A is not met, but conditions B and C are met. 7 The person ceases to be a designated person at the end of the period of 56 days beginning with the day following the day on which the person became a designated person unless, within that period, the Secretary of State certifies that— a condition A is met, or b conditions B and C continue to be met. 8 Where the Secretary of State makes a certification under paragraph (7)(b), the designation ceases to have effect at the end of the period of 56 days beginning with the day immediately following the period mentioned in paragraph (7), unless within that period the Secretary of State certifies that condition A is met. 9 Condition B is that relevant provision (whenever made) applies to, or in relation to, the person under the law of— a the United States of America; b the European Union; c Australia; d Canada. 10 Condition C is that the Secretary of State considers that it is in the public interest to make designations under the urgent procedure. 11 For the purposes of condition B, “relevant provision” is provision that the Secretary of State considers— a corresponds, or is similar, to the type of sanction or sanctions in these Regulations, or b is made for purposes corresponding, or similar, to any purpose of any type of sanction or sanctions in these Regulations. 12 In this regulation, “ involved person ” has the meaning given in regulation 6 (designation criteria: meaning of “involved person”). Designation criteria: meaning of “involved person” 6 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 For the purposes of regulation 5A an “ involved person ” means a person who— a is or has been involved in a relevant nuclear activity; 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 is acting on behalf of or at the direction of a person who is or has been so involved, or 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 being responsible for, engaging in, providing support for, or promoting, or facilitating, a relevant nuclear activity; b providing financial services , or making available funds or economic resources , that could contribute to a relevant nuclear activity; 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 being involved in assisting the contravention or circumvention of any relevant provision. 4 In this regulation— “ relevant nuclear activity ” means— 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 the development of a nuclear weapon delivery system in, or for use in, Iran; “ relevant provision ” means— any provision of Part 3 (Finance) or Part 5 (Trade), 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 any provision of a relevant resolution ; “ relevant resolution ” means resolution 1737, resolution 1747, resolution 1803 or resolution 1929; “ 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 holds directly or indirectly more than 50% of the shares in C, b holds directly or indirectly more than 50% of the voting rights in C, or 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 has made a designation under regulation 5, or 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 must without delay take such steps as are reasonably practicable to inform the designated person of the designation, variation or revocation, and b must take steps to publicise the designation, variation or revocation. 3 The information given under paragraph (2)(a)— a where the Secretary of State designates a person under the standard procedure, must include a statement of reasons; b where the Secretary of State designates a person under the urgent procedure, must include a statement— i that the designation is made under the urgent procedure, ii identifying the relevant provision by reference to which the Secretary of State considers that condition B is met in relation to the person, and iii setting out why the Secretary of State considers that condition C is met. 3A Where the Secretary of State designates a person under the urgent procedure, the Secretary of State must, after the end of the period mentioned in paragraph (7) of regulation 5A (conditions for the designation of persons by name) or, if the Secretary of State has made a certification under paragraph (7)(b) of that regulation, the period mentioned in paragraph (8) of that regulation, but otherwise without delay— a in a case where the person ceases to be a designated person, take such steps as are reasonably practicable to inform the person that they have ceased to be a designated person, or b in any other case, take such steps as are reasonably practicable to give the person a statement of reasons. 4 In this regulation, a “ statement of reasons ” means a brief statement of the matters that the Secretary of State knows, or has reasonable grounds to suspect, in relation to the person— a in the case of a designation under the standard procedure, which have led the Secretary of State to make the designation, and b in the case of a designation under the urgent procedure, as a result of which the person does not cease to be a designated person at the end of the period mentioned in regulation 5A(7) or (8) (as the case may be). 5 Matters that would otherwise be required by paragraph (4) to be included in a statement of reasons may be excluded from it where the Secretary of State considers that they should be excluded— a in the interests of national security or international relations, b for reasons connected with the prevention or detection of serious crime in the United Kingdom or elsewhere, or c in the interests of justice. 6 The steps taken under paragraph (2)(b) must— a unless one or more of the restricted publicity conditions is met, be steps to publicise generally— i the designation, variation or revocation, and ii in the case of a designation, the statement of reasons; b if one or more of those conditions is met, be steps to inform only such persons as the Secretary of State considers appropriate of the designation, variation or revocation and (in the case of a designation) of the contents of the statement of reasons. 7 The “restricted publicity conditions” are as follows— a the designation is of a person believed by the Secretary of State to be an individual under the age of 18; b the Secretary of State considers that disclosure of the designation, variation or revocation should be restricted— i in the interests of national security or international relations, ii for reasons connected with the prevention or detection of serious crime in the United Kingdom or elsewhere, or iii in the interests of justice. 8 Paragraph (9) applies if— a when a designation is made one or more of the restricted publicity conditions is met, but b at any time when the designation has effect, it becomes the case that none of the restricted publicity conditions is met. 9 The Secretary of State must— a take such steps as are reasonably practicable to inform the designated person that none of the restricted publicity conditions is now met, and b take steps to publicise generally the designation and the statement of reasons relating to it. Confidential information in certain cases where designation power used 9 1 Where the Secretary of State in accordance with regulation 8(6)(b) informs only certain persons of a designation, variation or revocation and (in the case of a designation) of the contents of the statement of reasons, the Secretary of State may specify that any of that information is to be treated as confidential. 2 A person (“P”) who— a is provided with information that is to be treated as confidential in accordance with paragraph (1), or b otherwise obtains such information, must not, subject to paragraph (3), disclose it if P knows, or has reasonable cause to suspect, that the information is to be treated as confidential. 3 The prohibition in paragraph (2) does not apply to any disclosure made by P with lawful authority. 4 For this purpose information is disclosed with lawful authority only if and to the extent that— a the disclosure is by, or is authorised by, the Secretary of State, b the disclosure is by or with the consent of the person who is or was the subject of the designation, c the disclosure is necessary to give effect to a requirement imposed under or by virtue of these Regulations or any other enactment, or d the disclosure is required, under rules of court, tribunal rules or a court or tribunal order, for the purposes of legal proceedings of any description. 5 This regulation does not prevent the disclosure of information that is already, or has previously been, available to the public from other sources. 6 A person who contravenes the prohibition in paragraph (2) commits an offence. 7 The High Court (in Scotland, the Court of Session) may, on the application of— a the person who is the subject of the information, or b the Secretary of State, grant an injunction (in Scotland, an interdict) to prevent a breach of the prohibition in paragraph (2). 8 In paragraph (4)(c), “ enactment ” has the meaning given by section 54(6) of the Act. Designation of persons named by or under UN Security Council Resolutions 10 1 Each person for the time being named for the purposes of paragraph 12 of resolution 1737 by the Security Council or the Committee is a designated person for the purposes of regulations 12 to 17 (asset freeze etc) (whose purposes include compliance with the UN obligation mentioned in regulation 4(3)(a)). 1A In paragraph (1), the reference to paragraph 12 of resolution 1737 is a reference to that paragraph as read with— a paragraph 4 of resolution 1747, b paragraph 7 of resolution 1803, and c paragraphs 11, 12 and 19 of resolution 1929. 2 Nothing in this regulation affects the power under regulation 5 to designate persons (in addition to those designated by this regulation) for the purposes of regulations 12 to 17. Insolvency 10A 1 To enable anything to be done in connection with— a any insolvency and restructuring proceedings relating to an insolvent person, b any other relevant proceedings relating to a person other than an individual, or c proceedings under the insolvency law of a country other than the United Kingdom that correspond to the proceedings in paragraph (a) or (b), provided that any payments made directly or indirectly to a designated person are credited to a frozen account. 2 In this paragraph— “ enactment ” has the meaning given in section 54(6) of the Act; “ insolvency and restructuring proceedings ” includes— the regimes and proceedings set out in Parts A1 to 6 of the Insolvency Act 1986, Parts 1A to 7 of the Insolvency (Northern Ireland) Order 1989 and so much of Part 1 of that Order as applies for the purposes of those Parts, but excluding— proceedings under Chapter 3 of Part 4 (members’ voluntary winding up) of the Insolvency Act 1986, and proceedings under Chapter 3 of Part 5 (members’ voluntary winding up) of the Insolvency (Northern Ireland) Order 1989; arrangements and reconstructions under Part 26 of the Companies Act 2006; arrangements and reconstructions for companies in financial difficulty under Part 26A of the Companies Act 2006; the proceedings and arrangements set out in the Bankruptcy (Scotland) Act 2016; “ insolvent person ” means a person (“ P ”), other than an individual, where— P is unable to pay its debts as they fall due, or the value of P’s assets is less than the amount of its liabilities, taking into account its contingent and prospective liabilities; “ other relevant proceedings ” means— the regimes and proceedings set out in— sections 367 and 377A to 377J of, or Schedule 19C to, the Financial Services and Markets Act 2000; the Insurers (Reorganisation and Winding Up) (Lloyd’s) Regulations 2005; Parts 1 to 3 of the Banking Act 2009 (including Parts 2 and 3 as applied to building societies by section 90C of the Building Societies Act 1986); the Investment Bank Special Administration Regulations 2011; Part 6 of the Financial Services (Banking Reform) Act 2013; the Payment and Electronic Money Institution Insolvency Regulations 2021; Schedule 11 to the Financial Services and Markets Act 2023; proceedings under any other special administration regime; “ special administration regime ” means provision made by an enactment for an insolvency procedure that— is similar or corresponds to the ordinary administration procedure provided for by Schedule B1 to the Insolvency Act 1986 or Schedule B1 to the Insolvency (Northern Ireland) Order 1989, and provides for the administrator to have one or more special objectives instead of or in addition to the objectives of ordinary administration. Judicial decisions etc. 10B To enable the implementation or satisfaction (in whole or in part) of a judicial, administrative or arbitral decision or lien which is enforceable in the United Kingdom (the “judicial decision”), provided that— a where funds or economic resources are made available to a designated person, they are credited to a frozen account or otherwise frozen by virtue of regulation 12; b where funds or economic resources are made available by a person (including a designated person) to a designated person to enable the implementation or satisfaction of the judicial decision, no other designated person benefits, directly or indirectly. PART 3 Finance Chapter 1 Asset-freeze etc. Meaning of “designated person” in Part 3 11 In this Part a “ designated person ” means— a a person who is designated under regulation 5 for the purposes of regulations 12 to 17, or b a person who is a designated person for the purposes of those regulations by reason of regulation 10. Asset-freeze in relation to designated persons 12 1 A person (“P”) must not deal with funds or economic resources owned, held or controlled by a designated person if P knows, or has reasonable cause to suspect, that P is dealing with such funds or economic resources. 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). 3 A person who contravenes the prohibition in paragraph (1) commits an offence. 4 For the purposes of paragraph (1) a person “deals with” funds if the person— a uses, alters, moves, transfers or allows access to the funds, b deals with the funds in any other way that would result in any change in volume, amount, location, ownership, possession, character or destination, or c makes any other change, including portfolio management, that would enable use of the funds. 5 For the purposes of paragraph (1) a person “deals with” economic resources if the person— a exchanges the economic resources for funds, goods or services, or b uses the economic resources in exchange for funds, goods or services (whether by pledging them as security or otherwise). 6 The reference in paragraph (1) to funds or economic resources that are “owned, held or controlled” by a person includes, in particular, a reference to— a funds or economic resources in which the person has any legal or equitable interest, regardless of whether the interest is held jointly with any other person and regardless of whether any other person holds an interest in the funds or economic resources; b any tangible property (other than real property), or bearer security, that is comprised in funds or economic resources and is in the possession of the person. 7 For the purposes of paragraph (1) funds or economic resources are to be treated as owned, held or controlled by a designated person if they are owned, held or controlled by a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person. 8 For the avoidance of doubt, the reference in paragraph (1) to a designated person includes P if P is a designated person. Making funds available to designated person 13 1 A person (“P”) must not make funds available directly or indirectly to a designated person if P knows, or has reasonable cause to suspect, that P is making the funds so available. 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). 3 A person who contravenes the prohibition in paragraph (1) commits an offence. 4 The reference in paragraph (1) to making funds available indirectly to a designated person includes, in particular, a reference to making them available to a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person. Making funds available for benefit of designated person 14 1 A person (“P”) must not make funds available to any person for the benefit of a designated person if P knows, or has reasonable cause to suspect, that P is making the funds so available. 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). 3 A person who contravenes the prohibition in paragraph (1) commits an offence. 3A The reference in paragraph (1) to making funds available to any person for the benefit of a designated person includes making funds available for the benefit of a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person (and references to designated person in paragraph (4) are to be read accordingly). 4 For the purposes of this regulation— a 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 b “ financial benefit ” includes the discharge (or partial discharge) of a financial obligation for which the designated person is wholly or partly responsible. Making economic resources available to designated person 15 1 A person (“P”) must not make economic resources available directly or indirectly to a designated person if P knows, or has reasonable cause to suspect— a that P is making the economic resources so available, and b that the designated person would be likely to exchange the economic resources for, or use them in exchange for, funds, goods or services. 2 Paragraph (1) is subject to Part 6 (exceptions and licences). 3 A person who contravenes the prohibition in paragraph (1) commits an offence. 4 The reference in paragraph (1) to making economic resources available indirectly to a designated person includes, in particular, a reference to making them available to a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person. Making economic resources available for benefit of designated person 16 1 A person (“P”) must not make economic resources available to any person for the benefit of a designated person if P knows, or has reasonable cause to suspect, that P is making the economic resources so available. 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). 3 A person who contravenes the prohibition in paragraph (1) commits an offence. 3A The reference in paragraph (1) to making economic resources available to any person for the benefit of a designated person includes making economic resources available for the benefit of a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person (and references to designated person in paragraph (4) are to be read accordingly). 4 For the purposes of paragraph (1)— a 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 b “ financial benefit ” includes the discharge (or partial discharge) of a financial obligation for which the designated person is wholly or partly responsible. Chapter 2 Investment, financial services and financial markets Financial messaging services 17 1 A person (“P”) must not provide specialised financial messaging services to a designated person if P knows or has reasonable cause to suspect that P is providing such services to a designated person. 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). 3 A person who contravenes the prohibition in paragraph (1) commits an offence. 4 In paragraph (1), “ specialised financial messaging services ” means specialised services enabling credit or financial institutions to electronically transmit messages effecting financial transactions or containing information about financial transactions. Investments in relation to Iran 17A 1 A person (“ P ”) must not directly or indirectly grant a loan or credit to a relevant person (“ Q ”), where P knows or has reasonable cause to suspect that Q is a relevant person. 2 A person (“ P ”) must not directly or indirectly acquire or extend a participation, or acquire any ownership interest, in a relevant person (“ Q ”) who is not an individual, where P knows or has reasonable cause to suspect that Q is a relevant person. 3 A person (“ P ”) must not directly or indirectly create a joint venture with a relevant person (“ Q ”), where P knows or has reasonable cause to suspect that Q is a relevant person. 4 Paragraphs (1), (2) and (3) are subject to Part 6 (Exceptions and licences). 5 A person who contravenes a prohibition in paragraph (1), (2) or (3) commits an offence. 6 In this regulation, a “relevant person” is any person connected with Iran engaged in— a the manufacture of— i any thing falling within a commodity code mentioned in column 1 of the table in Part 2 of Schedule 4 to the 2023 Regulations, or ii any item specified by description in Part 3 of Schedule 4 to the 2023 Regulations, b the exploration for, or production of, oil or gas, c the refining of fuels or the liquefaction of gas, d the petrochemical industry, or e uranium mining or the enrichment or reprocessing of uranium. 7 In this regulation— “ the 2023 Regulations ” mean the Iran (Sanctions) Regulations 2023; “ exploration ”, in relation to oil and gas, includes the exploration for oil and gas reserves, prospecting for and management of oil and gas reserves, as well as the provision of geological services in relation to such reserves; “ petrochemical industry ” means production plants for the manufacturing of any of the items listed in Annex V to the EU Iran Regulation; “ production ”, in relation to oil and gas, includes bulk gas transmission services for the purpose of transit or delivery to directly interconnected grids; “ refining ” means the processing, conditioning or preparation for the final sale of fuels. UK credit or financial institutions: accounts and corresponding banking relationships etc. 17B 1 A UK credit or financial institution must not— a open a bank account with, b establish a correspondent banking relationship with, or c establish a joint venture with, a person falling within paragraph (5), if the UK credit or financial institution knows or has reasonable cause to suspect that the bank account, correspondent banking relationship or joint venture is with a person falling within paragraph (5). 2 A UK credit or financial institution must not— a open a representative office of that institution in Iran, or b establish a branch or subsidiary of that institution in Iran. 3 A person (“ P ”) must not— a open a representative office or establish a branch or subsidiary in the United Kingdom of a person falling within paragraph (5); b enter into an arrangement for, or on behalf of, a person falling within paragraph (5) which relates to the opening of a representative office or the establishment of a branch or subsidiary in the United Kingdom, if P knows or has reasonable cause to suspect that the arrangement is for, or on behalf of such a person; c authorise the taking up and pursuit of new business by a representative office, branch or subsidiary of a person falling within paragraph (5), if the representative office, branch or subsidiary was not already authorised for such a purpose before 8th September 2026. 4 A person falling within paragraph (5) must not directly or indirectly acquire or extend a participation, or acquire any ownership interest, in a UK credit or financial institution. 5 The following persons fall within this paragraph— a a credit or financial institution domiciled in Iran; b a branch or subsidiary, wherever located, of a credit or financial institution domiciled in Iran; c a credit or financial institution that is not domiciled in Iran, but is owned or controlled directly or indirectly (within the meaning of regulation 7) by a person domiciled in Iran. 6 Paragraphs (1), (2), (3) and (4) are subject to Part 6 (Exceptions and licences). 7 A person who contravenes a prohibition in paragraph (1), (2), (3) or (4) commits an offence. 8 In this regulation— “ branch ” means, in relation to a credit or financial institution domiciled in Iran, or a UK credit or financial institution, a place of business which forms a legally dependent part of that institution and which carries out all or some of the transactions inherent in the business of that institution; “ credit or financial institution domiciled in Iran ” means— a person, other than an individual, which is domiciled in Iran and which would satisfy the threshold conditions for permission under Part 4A of the Financial Services and Markets Act 2000 if it had its registered office (or if it does not have a registered office, its head office) in the United Kingdom, or an undertaking domiciled in Iran which by way of business— operates a currency exchange, transmits money (or any representation of monetary value) by any means, or cashes cheques that are made payable to customers; “ subsidiary ” has the meaning given in section 1159 of the Companies Act 2006; “ UK credit or financial institution ” means— a person that has permission under Part 4A of the Financial Services and Markets Act 2000 (permission to carry on regulated activity), or an undertaking domiciled in the United Kingdom which by way of business— operates a currency exchange office, transmits money (or any representation of monetary value) by any means, or cashes cheques that are made payable to customers. Insurance and reinsurance services 17C 1 A person (“ P ”) must not provide insurance or reinsurance services to a person falling within paragraph (2), if P knows or has reasonable cause to suspect that P is providing such services to a person falling with paragraph (2). 2 A person (“ Q ”) falls within this paragraph if— a Q is connected with Iran, or b Q is acting on behalf of or at the direction of a person connected with Iran. 3 Paragraph (1) is subject to Part 6 (Exceptions and licences). 4 A person who contravenes the prohibition in paragraph (1) commits an offence. 5 Nothing in this regulation prohibits compliance with an insurance or reinsurance agreement concluded before 8th September 2026, provided that the agreement concerned was not prohibited at the date on which it was made. 6 For the purposes of this regulation— “ insurance and reinsurance services ” include the provision of services relating to the extension or renewal of an insurance or reinsurance agreement, except where there is an obligation, which arose before 8th September 2026, of the insurer or re-insurer to accept the extension or renewal; “ person acting at the direction of a person connected with Iran ” does not include any person who is acting under a direction which is given in relation to a ship or aircraft for the purposes of docking, loading or unloading the ship or aircraft or for any purpose in connection with the safe transit of the ship or aircraft in the territorial sea adjacent to Iran or in the airspace above it. Sale or purchase of bonds 17D 1 A person (“ P ”) must not directly or indirectly— a sell to a person falling within paragraph (4), or b purchase from such a person, Iranian bonds or bonds guaranteed by the Government of Iran and issued after 8th September 2026 if P knows, or has reasonable cause to suspect, that the sale or purchase of such bonds is directly or indirectly to or from such a person. 2 A person (“ P ”) must not provide brokering services to a person falling within paragraph (4) in respect of Iranian bonds or bonds guaranteed by the Government of Iran and issued after 8th September 2026, if P knows, or has reasonable cause to suspect, that the person falls within paragraph (4). 3 A person (“ P ”) must not provide— a brokering services, b advertising services, or c any other service, if P knows, or has reasonable cause to suspect, that the provision of the service assists a person falling within paragraph (4) to issue Iranian bonds or bonds guaranteed by the Government of Iran. 4 The following persons fall within this paragraph— a the Government of Iran, b a person falling within regulation 17B(5) (Iranian credit or financial institutions); c a person acting on behalf of or at the direction of a person falling within sub-paragraph (a), or (b); d a person, other than an individual, which is owned or controlled directly or indirectly (within the meaning of regulation 7) by a person falling within sub-paragraph (a), (b) or (c). 5 Paragraphs (1) to (3) are subject to Part 6 (Exceptions and licences). 6 A person who contravenes a prohibition in paragraph (1), (2) or (3) commits an offence. 7 For the purposes of this regulation, “ Iranian bonds ” means bonds issued by the Government of Iran. Chapter 3 Further Provision Circumventing etc prohibitions 18 1 A person must not intentionally participate in activities knowing that the object or effect of them is, whether directly or indirectly— a to circumvent any of the prohibitions in regulations 12 to 17D , or b to enable or facilitate the contravention of any such prohibition. 2 A person who contravenes the prohibition in paragraph (1) commits an offence. PART 3A Director disqualification sanctions Director disqualification sanctions 18A A person who is designated under regulation 5 (power to designate persons) for the purposes of this regulation is a person subject to director disqualification sanctions for the purposes of— a section 11A of the Company Directors Disqualification Act 1986, and b Article 15A of the Company Directors Disqualification (Northern Ireland) Order 2002. PART 4 Immigration Immigration 19 A person who is designated under regulation 5 for the purposes of this regulation is an excluded person for the purposes of section 8B of the Immigration Act 1971 . PART 5 Trade CHAPTER 1 Exports and related activities: restricted goods and restricted technology Meaning of “restricted goods” and “restricted technology” in this Chapter 20 In this Chapter— “ restricted goods ” means— maritime goods, military goods, missile-list goods, nuclear-list goods, graphite and relevant metals, other restricted goods; “ restricted technology ” means— maritime technology, military technology, missile-list technology, nuclear-list technology, other restricted technology. ... Export of restricted goods to, or for use in, Iran 21 1 The export of restricted goods to, or for use in, Iran is prohibited. 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). Supply and delivery of restricted goods from a third country to Iran 22 1 A person must not directly or indirectly supply or deliver restricted goods from a third country to a place in Iran. 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). 3 A person who contravenes the prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with that offence to show that the person did not know and had no reasonable cause to suspect that the goods were destined (or ultimately destined) for Iran. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Making available restricted goods and restricted technology 23 1 A person must not— a directly or indirectly make restricted goods or restricted technology available to a person connected with Iran; b directly or indirectly make restricted goods or restricted technology available for use in Iran. 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). 3 A person who contravenes a prohibition in paragraph (1) commits an offence, but— a it is a defence for a person charged with the offence of contravening paragraph (1)(a) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Iran; b it is a defence for a person charged with the offence of contravening paragraph (1)(b) to show that the person did not know and had no reasonable cause to suspect that the goods or technology were for use in Iran. Transfer of restricted technology to a place in Iran or a person connected with Iran 24 1 A person must not— a transfer restricted technology to a place in Iran; b transfer restricted technology to a person connected with Iran. 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). 3 A person who contravenes a prohibition in paragraph (1) commits an offence, but— a it is a defence for a person charged with the offence of contravening paragraph (1)(a) to show that the person did not know and had no reasonable cause to suspect that the transfer was to a place in Iran; b it is a defence for a person charged with the offence of contravening paragraph (1)(b) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Iran. Technical assistance relating to restricted goods and restricted technology 25 1 A person must not directly or indirectly provide technical assistance relating to restricted goods or restricted technology— a to a person connected with Iran, or b for use in Iran. 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). 3 A person who contravenes a prohibition in paragraph (1) commits an offence, but— a it is a defence for a person charged with the offence of contravening paragraph (1)(a) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Iran; b it is a defence for a person charged with the offence of contravening paragraph (1)(b) to show that the person did not know and had no reasonable cause to suspect that the goods or technology were for use in Iran. Financial services and funds relating to restricted goods and restricted technology 26 1 A person must not directly or indirectly provide, to a person connected with Iran, financial services in pursuance of or in connection with an arrangement whose object or effect is— a the export of restricted goods, b the direct or indirect supply or delivery of restricted goods, c directly or indirectly making restricted goods or restricted technology available to a person, d the transfer of restricted technology, or e the direct or indirect provision of technical assistance relating to restricted goods or restricted technology. 2 A person must not directly or indirectly make funds available to a person connected with Iran in pursuance of or in connection with an arrangement mentioned in paragraph (1). 3 A person must not directly or indirectly provide financial services or funds in pursuance of or in connection with an arrangement whose object or effect is— a the export of restricted goods to, or for use in, Iran, b the direct or indirect supply or delivery of restricted goods to a place in Iran, c directly or indirectly making restricted goods or restricted technology available— i to a person connected with Iran, or ii for use in Iran, d the transfer of restricted technology— i to a person connected with Iran, or ii for use in Iran, e the direct or indirect provision of technical assistance relating to restricted goods— i to a person connected with Iran, or ii for use in Iran. 4 Paragraphs (1) to (3) are subject to Part 6 (Exceptions and licences). 5 A person who contravenes a prohibition in any of paragraphs (1) to (3) commits an offence, but— a it is a defence for a person charged with an offence of contravening paragraph (1) or (2) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Iran; b it is a defence for a person charged with an offence of contravening a prohibition in paragraph (3) to show that the person did not know and had no reasonable cause to suspect that the financial services or funds (as the case may be) were provided in pursuance of or in connection with an arrangement mentioned in that paragraph. Brokering services: non-UK activity relating to restricted goods and restricted technology 27 1 A person must not directly or indirectly provide brokering services in relation to an arrangement (“arrangement A”) whose object or effect is— a the direct or indirect supply or delivery of restricted goods from a third country to a place in Iran; b directly or indirectly making restricted goods available in a third country for direct or indirect supply or delivery— i to a person connected with Iran, or ii to a place in Iran; c directly or indirectly making restricted technology available in a third country for transfer— i to a person connected with Iran, or ii to a place in Iran; d the transfer of restricted technology from a place in a third country— i to a person connected with Iran, or ii to a place in Iran; e the direct or indirect provision, in a non-UK country, of technical assistance relating to restricted goods or restricted technology— i to a person connected with Iran, or ii for use in Iran; f the direct or indirect provision, in a non-UK country, of financial services— i to a person connected with Iran, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 26(1), or ii where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 26(3); g directly or indirectly making funds available, in a non-UK country, to a person connected with Iran, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 26(1); or h the direct or indirect provision of funds from a non-UK country, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 26(3). 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). 3 A person who contravenes a prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with that offence to show that the person did not know and had no reasonable cause to suspect that the brokering services were provided in relation to an arrangement mentioned in that paragraph. 4 In this regulation— ... “ non-UK country ” means a country that is not the United Kingdom or the Isle of Man; ... 5 For the purposes of this regulation, the definition of “country” in section 62(1) of the Act does not apply. Chapter 1A Exports and related activities: gold, precious metals and diamonds Export of gold, precious metals and diamonds to Iran 27A 1 The export of gold, precious metals or diamonds to, or for use in, Iran is prohibited. 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). Supply and delivery of gold, precious metals and diamonds to Iran 27B 1 A person must not directly or indirectly supply or deliver gold, precious metals or diamonds from a third country to a place in Iran. 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). 3 A person who contravenes the prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with that offence (“ P ”) to show that P did not know and had no reasonable cause to suspect that the gold, precious metals or diamonds were destined (or ultimately destined) for Iran. Making available gold, precious metals and diamonds 27C 1 A person must not directly or indirectly make gold, precious metals or diamonds available— a to a person connected with Iran, or b for use in Iran. 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). 3 A person who contravenes a prohibition in paragraph (1) commits an offence, but— a it is a defence for a person charged with the offence of contravening paragraph (1)(a) (“ P ”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Iran; b it is a defence for a person charged with the offence of contravening paragraph (1)(b) (“ Q ”) to show that Q did not know and had no reasonable cause to suspect that the gold, precious metals or diamonds were for use in Iran. Technical assistance relating to gold, precious metals and diamonds 27D 1 A person must not directly or indirectly provide technical assistance relating to gold, precious metals or diamonds— a to a person connected with Iran, or b for use in Iran. 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). 3 A person who contravenes a prohibition in paragraph (1) commits an offence, but— a it is a defence for a person charged with the offence of contravening paragraph (1)(a) (“ P ”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Iran; b it is a defence for a person charged with the offence of contravening paragraph (1)(b) (“ Q ”) to show that Q did not know and had no reasonable cause to suspect that the gold, precious metals or diamonds were for use in Iran. Financial services and funds relating to gold, precious metals and diamonds 27E 1 A person must not directly or indirectly provide, to a person connected with Iran, financial services in pursuance of or in connection with an arrangement whose object or effect is— a the export of gold, precious metals or diamonds, b the direct or indirect supply or delivery of gold, precious metals or diamonds, c directly or indirectly making available gold, precious metals or diamonds to a person, or d the direct or indirect provision of technical assistance relating to gold, precious metals or diamonds. 2 A person must not directly or indirectly make funds available to a person connected with Iran in pursuance of or in connection with an arrangement mentioned in paragraph (1). 3 A person must not directly or indirectly provide financial services or funds in pursuance of or in connection with an arrangement whose object or effect is— a the export of gold, precious metals or diamonds to, or for use in, Iran, b the direct or indirect supply or delivery of gold, precious metals or diamonds to a place in Iran, c directly or indirectly making available gold, precious metals or diamonds— i to a person connected with Iran, or ii for use in Iran, or d the direct or indirect provision of technical assistance relating to gold, precious metals or diamonds— i to a person connected with Iran, or ii for use in Iran. 4 Paragraphs (1), (2) and (3) are subject to Part 6 (Exceptions and licences). 5 A person who contravenes a prohibition in paragraph (1), (2) or (3) commits an offence, but— a it is a defence for a person charged with an offence of contravening paragraph (1) or (2) (“ P ”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Iran; b it is a defence for a person charged with an offence of contravening paragraph (3) (“ Q ”) to show that Q did not know and had no reasonable cause to suspect that the financial services or funds (as the case may be) were provided in pursuance of or in connection with an arrangement mentioned in that paragraph. Brokering services relating to gold, precious metals and diamonds 27F 1 A person must not directly or indirectly provide brokering services in relation to any arrangements described in regulation 27E(1) to (3). 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). 3 A person who contravenes the prohibition in paragraph (1) commits an offence. 4 It is a defence for a person charged with an offence of contravening paragraph (1) (“ P ”) to show that P did not know and had no reasonable cause to suspect that the brokering services were provided in relation to an arrangement mentioned in that paragraph. Chapter 1B Exports and related activities: energy-related goods and energy-related technology Interpretation 27G For the purposes of this Chapter “ Iran ” includes Iran's exclusive economic zone and continental shelf (which terms are to be interpreted in accordance with the United Nations Convention on the Law of the Sea). Export of energy-related goods 27H 1 The export of energy-related goods to, or for use in, Iran is prohibited. 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). Supply and delivery of energy-related goods 27I 1 A person must not directly or indirectly supply or deliver energy-related goods from a third country to a place in Iran. 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). 3 A person who contravenes a prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with the offence of contravening paragraph (1) (“ P ”) to show that P did not know and had no reasonable cause to suspect that the goods were destined (or ultimately destined) for Iran. Making energy-related goods and energy-related technology available 27J 1 A person must not directly or indirectly make energy-related goods or energy-related technology available— a to a person connected with Iran, or b for use in Iran. 2 Paragraph (1) is subject to Part 6 (Exceptions and licences). 3 A person who contravenes a prohibition in paragraph (1)(a) commits an offence, but it is a defence for a person charged with that offence (“ Q ”) to show that Q did not know and had no reasonable cause to suspect that the person was connected with Iran. 3 A person who contravenes a prohibition in paragraph (1)(b) commits an offence, but it is a defence for a person charged with that offence (“ P ”) to show that P did not know and had no reasonable cause to suspect that the goods or technology were for use in Iran. Transfer of energy-related technology 27K 1 A person must not transfer energy-related technology— a to a person connected with Iran; b to a place