COUNCIL REGULATION (EU) No 267/2012
of 23 March 2012
concerning restrictive measures against Iran and repealing Regulation (EU) No 961/2010
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 215 thereof,
Having regard to Council Decision 2012/35/CFSP of 23 January 2012 amending Decision 2010/413/CFSP concerning restrictive measures against Iran (1),
Having regard to the joint proposal from the High Representative of the Union for Foreign Affairs and Security Policy and the European Commission,
Whereas:
(1)
On 25 October 2010, the Council adopted Regulation (EU) No 961/2010 on restrictive measures against Iran and repealing Regulation (EC) No 423/2007 (2), in order to give effect to Council Decision 2010/413/CFSP (3).
(2)
On 23 January 2012, the Council approved Decision 2012/35/CFSP providing for additional restrictive measures against the Islamic Republic of Iran (‧Iran‧) as requested by the European Council on 9 December 2011.
(3)
Those restrictive measures comprise, in particular, additional restrictions on trade in dual-use goods and technology, as well as on key equipment and technology which could be used in the petrochemical industry, a ban on the import of Iranian crude oil, petroleum products and petrochemical products, as well as a prohibition of investment in the petrochemical industry. Moreover, trade in gold, precious metals and diamonds with the Government of Iran, as well as the delivery of newly printed banknotes and coinage to or for the benefit of the Central Bank of Iran, should be prohibited.
(4)
Certain technical amendments to existing measures have also become necessary. In particular, the definition of "brokering services" should be clarified. In cases where the purchase, sale, supply, transfer or export of goods and technology or of financial and technical services may be authorised by a competent authority no separate authorisation of related brokering services will be required.
(5)
The definition of "transfers of funds" should be broadened to non-electronic transfers so as to counter attempts at circumventing the restrictive measures.
(6)
The revised restrictive measures concerning dual-use goods should cover all goods and technology set out in Annex I to 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 (4), with the exception of certain items in Part 2 of category 5 thereof in view of their use in public communication services in Iran. However, the prohibitions in Article 2 of this Regulation do not apply to the sale, supply, transfer or export of goods and technology newly listed in Annex I or II of this Regulation for which an authorisation has already been granted by the competent authorities of the Member States pursuant to Article 3 of Regulation (EU) No 961/2010 prior to the entry into force of this Regulation.
(7)
In order to ensure the effective implementation of the prohibition on the sale, supply, transfer or export to Iran of certain key equipment or technology which could be used in the key sectors of the oil, natural gas and petrochemical industries, lists of such key equipment and technology should be provided.
(8)
For the same reason, lists of items subject to trade restrictions on crude oil and petroleum products, petrochemical products, gold, precious metals and diamonds should also be provided.
(9)
In addition, to be effective, restrictions on investment in the Iranian oil and gas sector should cover certain key activities, such as bulk gas transmission services for the purpose of transit or delivery to directly interconnected grids, and, for the same reason, should apply to joint ventures as well as other forms of associations and cooperation with Iran in the sector of the transmission of natural gas.
(10)
Effective restrictions on Iranian investment in the Union require that measures be taken to prohibit natural or legal persons, entities and bodies subject to the jurisdiction of the Member States from enabling or authorising such investment.
(11)
Decision 2012/35/CFSP also extends the freezing of assets to additional persons, entities or bodies providing support to the Government of Iran, including financial, logistical and material support, or associated with them. The Decision also extends the freezing measures to other members of the Islamic Revolutionary Guard Corps (IRGC).
(12)
Decision 2012/35/CFSP also provides for the freezing of the assets of the Central Bank of Iran. However, in consideration of possible involvement of the Central Bank of Iran in the financing of foreign trade, derogations are deemed necessary as this targeted financial measure should not prevent trade operations, including contracts relating to foodstuffs, healthcare, medical equipment or for humanitarian purposes in accordance with the provisions of this Regulation. The exemptions in Articles 12 and 14 of this Regulation concerning contracts for the import, purchase or transport of Iranian crude oil, petroleum products and petrochemical products concluded before 23 January 2012 also apply to ancillary contracts, including transport, insurance or inspections contracts necessary for the execution of such contracts. Furthermore, Iranian crude oil, petroleum products and petrochemical products which are legally imported into a Member State pursuant to the exemptions in Articles 12 and 14 of this Regulation are to be considered as being in free circulation within the Union..
(13)
It is prohibited, pursuant to the obligation to freeze the assets of Islamic Republic of Iran Shipping Line (IRISL) and of entities owned or controlled by IRISL to load and unload cargoes on and from vessels owned or chartered by IRISL or by such entities in ports of Member States. Moreover, the transfer of ownership of vessels owned, controlled or chartered by IRISL companies to other entities is also prohibited pursuant to the freezing of IRISL's assets. However, the obligation to freeze the funds and economic resources of IRISL and of entities owned or controlled by IRISL does not require the impounding or detention of vessels owned by such entities or the cargoes carried by them insofar as such cargoes belong to third parties, nor does it require the detention of the crew contracted by them.
(14)
In consideration of Iran's attempts at circumventing the sanctions, it should be clarified that all funds and economic resources belonging to, owned, held or controlled by persons, entities or bodies listed in Annexes I or II to Decision 2010/413/CFSP are to be frozen without delay, including those of successor entities established to circumvent the measures set out in this Regulation.
(15)
It should also be clarified that submitting and forwarding the necessary documents to a bank for the purpose of their final transfer to a person, entity or body that is not listed, to trigger payments allowed under this Regulation, does not constitute making funds available within the meaning of this Regulation.
(16)
It should be clarified that funds or economic resources should be able to be released for the official purposes of diplomatic or consular missions or international organisations enjoying immunities in accordance with international law, in conformity with the provisions of this Regulation.
(17)
The application of targeted financial measures by providers of specialised financial messaging services should be further developed, in conformity with the provisions of this Regulation.
It should be clarified that the assets of non-designated persons, entities or bodies held at designated credit and financial institutions should not remain frozen in application of the targeted financial measures and should be able to be released under the conditions provided for in this Regulation.
In consideration of Iran's attempts at using its financial system for the purpose of circumventing the sanctions, it is necessary to require enhanced vigilance in relation to the activities of Iran's credit and financial institutions so as to prevent circumvention of this Regulation, including the freezing of the assets of the Central Bank of Iran. These enhanced vigilance requirements for credit and financial institutions should be complementary to existing obligations deriving from Regulation (EC) 1781/2006 of the European Parliament and of the Council of 15 November 2006 on information on the payer accompanying transfers of funds (5) and from the implementation of Directive 2005/60/EC of the European Parliament and of the Council of 26 October 2005 on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing (6).
(18)
Certain provisions regarding the controls of funds transfers should be reviewed in order to facilitate their application by competent authorities and operators and to prevent circumvention of the provisions of this Regulation, including the freezing of the assets of the Central Bank of Iran.
(19)
Furthermore, the restrictions on insurance should be adjusted, in particular with a view to clarifying that the insurance of diplomatic and consular missions within the Union is permitted, and to allow for the provision of third party liability insurance or environmental liability insurance.
(20)
Moreover, the requirement to submit pre-arrival and pre-departure information should be updated, since this obligation has become generally applicable to all goods entering or leaving the customs territory of the Union following the full implementation as from 1 January 2012 of the customs security measures laid down in the relevant provisions concerning entry and exit summary declarations in Regulation (EEC) No 2913/92 (7) and in Regulation (EEC) No 2454/93 (8).
(21)
Adjustments should also be made concerning the provision of bunkering and ship supply services, the liability of operators and the prohibition of the circumvention of the relevant restrictive measures.
(22)
The mechanisms for exchange of information between Member States and the Commission should be reviewed so as to ensure the effective implementation and uniform interpretation of this Regulation.
(23)
In consideration of its objectives, the ban on internal repression equipment should be provided for under Regulation (EU) No 359/2011 concerning restrictive measures directed against certain persons, entities and bodies in view of the situation in Iran (9), rather than under this Regulation.
(24)
For the sake of clarity, Regulation (EU) No 961/2010 should be repealed and replaced by this Regulation.
(25)
The restrictive measures provided for in this Regulation fall within the scope of the Treaty on the Functioning of the European Union and legislation at the level of the Union is therefore necessary in order to implement them, in particular with a view to ensuring their uniform application by economic operators in all Member States.
(26)
This Regulation respects the fundamental rights and observes the principles recognised in particular by the Charter of Fundamental Rights of the European Union and in particular the right to an effective remedy and to a fair trial, the right to property and the right to protection of personal data. This Regulation should be applied in accordance with those rights and principles.
(27)
This Regulation also respects the obligations of Member States under the Charter of the United Nations and the legally binding nature of Resolutions of the United Nations Security Council.
(28)
The procedure for the designation of persons subject to freezing measures under this Regulation should include providing designated natural or legal persons, entities or bodies with the grounds for listing, so as to give them an opportunity to submit observations. Where observations are submitted, or substantial new evidence is presented, the Council should review its decision in the light of those observations and inform the person, entity or body concerned accordingly.
(29)
For the implementation of this Regulation, and to create maximum legal certainty within the Union, the names and other relevant data concerning natural and legal persons, entities and bodies whose funds and economic resources must be frozen in accordance with the Regulation, should be made public. Any processing of personal data of natural persons under this Regulation should be in conformity with Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on the protection of individuals with regard to the processing of personal data by the Community institutions and bodies and on the free movement of such data (10) and Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data (11).
(30)
In order to ensure that the measures provided for in this Regulation are effective, it should enter into force on the day of its publication,
HAS ADOPTED THIS REGULATION:
CHAPTER I
DEFINITIONS
Article 1
For the purposes of this Regulation the following definitions shall apply:
(a)
‧branch‧ of a financial or credit institution means a place of business which forms a legally dependent part of a financial or credit institution and which carries out directly all or some of the transactions inherent in the business of financial or credit institutions;
(b)
‧brokering services‧ means:
(i)
the negotiation or arrangement of transactions for the purchase, sale or supply of goods and technology or of financial and technical services, including from a third country to any other third country, or
(ii)
the selling or buying of goods and technology or of financial and technical services, including where they are located in third countries for their transfer to another third country;
(c)
‧claim‧ means any claim, whether asserted by legal proceedings or not, made before or after the date of entry into force of this Regulation, under or in connection with a contract or transaction, and includes in particular:
(i)
a claim for performance of any obligation arising under or in connection with a contract or transaction;
(ii)
a claim for extension or payment of a bond, financial guarantee or indemnity of whatever form;
(iii)
a claim for compensation in respect of a contract or transaction;
(iv)
a counterclaim;
(v)
a claim for the recognition or enforcement, including by the procedure of exequatur, of a judgment, an arbitration award or an equivalent decision, wherever made or given;
(d)
‧contract or transaction‧ means any transaction of whatever form and whatever the applicable law, whether comprising one or more contracts or similar obligations made between the same or different parties; for this purpose ‧contract‧ includes a bond, guarantee or indemnity, particularly a financial guarantee or financial indemnity, and credit, whether legally independent or not, as well as any related provision arising under, or in connection with, the transaction;
(e)
‧competent authorities‧ refers to the competent authorities of the Member States as identified on the websites listed in Annex X;
(f)
‧credit institution‧ means a credit institution as defined in Article 4(1) of Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions (12), including its branches inside or outside the Union;
(g)
‧customs territory of the Union‧ means the territory as defined in Article 3 of Council Regulation (EEC) No 2913/92 of 12 October 1992 establishing the Community Customs Code (13) and in Commission Regulation (EEC) No 2454/93 of 2 July 1993 laying down provisions for the implementation of Regulation (EEC) No 2913/92 (14);
(h)
‧economic resources‧ means assets of every kind, whether tangible or intangible, movable or immovable, which are not funds, but which may be used to obtain funds, goods or services;
(i)
‧financial institution‧ means
(i)
an undertaking, other than a credit institution, which carries out one or more of the operations included in points 2 to 12 and points 14 and 15 of Annex I to Directive 2006/48/EC, including the activities of currency exchange offices (bureaux de change);
(ii)
an insurance company duly authorised in accordance with Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (15), in so far as it carries out activities covered by that Directive;
(iii)
an investment firm as defined in point 1 of Article 4(1) of Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments (16);
(iv)
a collective investment undertaking marketing its units or shares; or
(v)
an insurance intermediary as defined in Article 2(5) of Directive 2002/92/EC of the European Parliament and of the Council of 9 December 2002 on insurance mediation (17), with the exception of intermediaries referred to in Article 2(7) of that Directive, when they act in respect of life insurance and other investment related services;
including its branches inside or outside the Union;
(j)
‧freezing of economic resources‧ means preventing the use of economic resources to obtain funds, goods or services in any way, including, but not limited to, by selling, hiring or mortgaging them;
(k)
‧freezing of funds‧ means preventing any move, transfer, alteration, use of, access to, or dealing with funds in any way that would result in any change in their volume, amount, location, ownership, possession, character, destination or other change that would enable the funds to be used, including portfolio management;
(l)
‧funds‧ means financial assets and benefits of every kind, including, but not limited to:
(i)
cash, cheques, claims on money, drafts, money orders and other payment instruments;
(ii)
deposits with financial institutions or other entities, balances on accounts, debts and debt obligations;
(iii)
publicly-and privately-traded securities and debt instruments, including stocks and shares, certificates representing securities, bonds, notes, warrants, debentures and derivatives contracts;
(iv)
interest, dividends or other income on or value accruing from or generated by assets;
(v)
credit, right of set-off, guarantees, performance bonds or other financial commitments;
(vi)
letters of credit, bills of lading, bills of sale; and
(vii)
documents showing evidence of an interest in funds or financial resources;
(m)
‧goods‧ includes items, materials and equipment;
(n)
‧insurance‧ means an undertaking or commitment whereby one or more natural or legal persons is or are obliged, in return for a payment, to provide one or more other persons, in the event of materialisation of a risk, with an indemnity or a benefit as determined by the undertaking or commitment;
(o)
‧Iranian person, entity or body‧ means:
(i)
the State of Iran or any public authority thereof;
(ii)
any natural person in, or resident in, Iran;
(iii)
any legal person, entity or body having its registered office in Iran;
(iv)
any legal person, entity or body, inside or outside Iran, owned or controlled directly or indirectly by one or more of the above mentioned persons or bodies;
(p)
‧reinsurance‧ means the activity consisting in accepting risks ceded by an insurance undertaking or by another reinsurance undertaking or, in the case of the association of underwriters known as Lloyd's, the activity consisting in accepting risks, ceded by any member of Lloyd's, by an insurance or reinsurance undertaking other than the association of underwriters known as Lloyd's;
(q)
‧Sanctions Committee‧ means the Committee of the United Nations Security Council which was established pursuant to paragraph 18 of United Nations Security Council Resolution ("UNSCR") 1737 (2006);
(r)
‧technical assistance‧ means any technical support related to repairs, development, manufacture, assembly, testing, maintenance, or any other technical service, and may take forms such as instruction, advice, training, transmission of working knowledge or skills or consulting services; including verbal forms of assistance;
(s)
‧territory of the Union‧ means the territories of the Member States to which the Treaty is applicable, under the conditions laid down in the Treaty, including their airspace;
(t)
‧transfer of funds‧ means:
(i)
any transaction carried out on behalf of a payer through a payment service provider by electronic means, with a view to making funds available to a payee at a payment service provider, irrespective of whether the payer and the payee are the same person. The terms payer, payee and payment service provider have the same meaning as in Directive 2007/64/EC of the European Parliament and of the Council of 13 November 2007 on payment services in the internal market (18);
(ii)
any transaction by non-electronic means such as in cash, cheques or accountancy orders, with a view to making funds available to a payee irrespective of whether the payer and the payee are the same person.
CHAPTER II
EXPORT AND IMPORT RESTRICTIONS
Article 2
1. It shall be prohibited to sell, supply, transfer or export, directly or indirectly, the goods and technology listed in Annex I or II, whether or not originating in the Union, to any Iranian person, entity or body or for use in Iran.
2. Annex I shall include goods and technology, including software, which are dual-use items or technology as defined in Regulation (EC) No 428/2009 of 5 May 2009, except for certain goods and technology as specified in part A of Annex I to this Regulation.
3. Annex II shall include other goods and technology which could contribute to Iran's enrichment-related, reprocessing or heavy-water-related activities, to the development of nuclear weapon delivery systems, or to the pursuit of activities related to other topics about which the International Atomic Energy Agency (IAEA) has expressed concerns or has identified as outstanding, including those determined by the UN Security Council or by the Sanctions Committee.
4. Annexes I and II shall not include goods and technology included in the Common Military List of the European Union (19) (‧Common Military List‧).
Article 3
1. A prior authorisation shall be required for the sale, supply, transfer or export, directly or indirectly, of the goods and technology listed in Annex III, whether or not originating in the Union, to any Iranian person, entity or body or for use in Iran.
2. For all exports for which an authorisation is required under this Article, such authorisation shall be granted by the competent authorities of the Member State where the exporter is established and shall be in accordance with the detailed rules laid down in Article 11 of Regulation (EC) No 428/2009. The authorisation shall be valid throughout the Union.
3. Annex III shall include any goods and technology, other than those included in Annexes I and II, which could contribute to enrichment-related, reprocessing or heavy water-related activities, to the development of nuclear weapon delivery systems, or to the pursuit of activities related to other topics about which the IAEA has expressed concerns or has identified as outstanding.
4. Exporters shall supply the competent authorities with all relevant information required for their application for an export authorisation.
5. The competent authorities shall not grant any authorisation for any sale, supply, transfer or export of the goods or technology included in Annex III, if they have reasonable grounds to determine that the sale, supply, transfer or export of the goods and technology is or may be intended for use in connection with one of the following activities:
(a)
Iran's enrichment-related, reprocessing or heavy water-related activities;
(b)
the development of nuclear weapon delivery systems by Iran; or
(c)
the pursuit by Iran of activities related to other topics about which the IAEA has expressed concerns or has identified as outstanding.
6. Under the conditions set out in paragraph 5, the competent authorities may annul, suspend, modify or revoke an export authorisation which they have granted.
7. Where a competent authority refuses to grant an authorisation, or annuls, suspends, substantially limits or revokes an authorisation in accordance with paragraphs 5 or 6, the Member State concerned shall notify the other Member States and the Commission thereof and share the relevant information with them, while complying with the provisions concerning the confidentiality of such information of Council Regulation (EC) No 515/97 of 13 March 1997 on mutual assistance between the administrative authorities of the Member States and cooperation between the latter and the Commission to ensure the correct application of the law on customs and agricultural matters (20).
8. Before a Member State grants an authorisation in accordance with paragraph 5 for a transaction which is essentially identical to a transaction which is the subject of a still valid denial issued by another Member State or by other Member States under paragraphs 6 and 7, it shall first consult the Member State or States which issued the denial. If, following such consultations, the Member State concerned decides to grant an authorisation, it shall inform the other Member States and the Commission thereof, providing all relevant information to explain the decision.
Article 4
It shall be prohibited to purchase, import or transport from Iran, directly or indirectly, the goods and technology listed in Annex I or II whether the item concerned originates in Iran or not.
Article 5
1. It shall be prohibited:
(a)
to provide, directly or indirectly, technical assistance related to the goods and technology listed in the Common Military List, or related to the provision, manufacture, maintenance and use of goods included in that list, to any Iranian person, entity or body or for use in Iran;
(b)
to provide, directly or indirectly, technical assistance or brokering services related to the goods and technology listed in Annex I or II, or related to the provision, manufacture, maintenance and use of goods listed in Annex I or II, to any Iranian person, entity or body or for use in Iran; and
(c)
to provide, directly or indirectly, financing or financial assistance related to the goods and technology listed in the Common Military List or in Annex I or II, including in particular grants, loans and export credit insurance, for any sale, supply, transfer or export of such items, or for any provision of related technical assistance to any Iranian person, entity or body or for use in Iran.
2. The provision of the following shall be subject to an authorisation from the competent authority concerned:
(a)
technical assistance or brokering services related to goods and technology listed in Annex III and to the provision, manufacture, maintenance and use of those items, directly or indirectly to any Iranian person, entity or body or for use in Iran;
(b)
financing or financial assistance related to goods and technology referred to in Annex III, including in particular grants, loans and export credit insurance, for any sale, supply, transfer or export of those items, or for any provision of related technical assistance, directly or indirectly, to any Iranian person, entity or body or for use in Iran.
3. The competent authorities shall not grant any authorisation for the transactions referred to in paragraph 2, if they have reasonable grounds to determine that the action is or may be intended to contribute to one of the following activities:
(a)
Iran's enrichment-related, reprocessing or heavy water-related activities;
(b)
the development of nuclear weapon delivery systems by Iran; or
(c)
the pursuit by Iran of activities related to other topics about which the IAEA has expressed concerns or has identified as outstanding.
Article 6
Article 2(1) and Article 5(1) shall not apply to:
(a)
the direct or indirect transfer of goods falling within Part B of Annex I, through the territories of Member States when those goods are sold, supplied, transferred or exported to, or for use in, Iran for a light water reactor in Iran the construction of which has begun before December 2006;
(b)
transactions mandated by the IAEA technical cooperation programme; or
(c)
goods supplied or transferred to, or for use in, Iran due to obligations of State Parties under the Paris Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction of 13 January 1993.
Article 7
1. Without prejudice to Article 1(b) of Regulation (EU) No 359/2011, the competent authorities may grant, under such terms and conditions as they deem appropriate, an authorisation for a transaction in relation to goods and technology referred to in Article 2(1) of this Regulation or assistance or brokering services referred to in Article 5(1), provided that:
(a)
the goods and technology, assistance or brokering services are for food, agricultural, medical or other humanitarian purposes; and
(b)
in those cases where the transaction concerns goods or technology contained in the Nuclear Suppliers Group or Missile Technology Control Regime lists, the Sanctions Committee has determined in advance and on a case-by-case basis that the transaction would clearly not contribute to the development of technologies in support of Iran's proliferation-sensitive nuclear activities, or to the development of nuclear weapon development delivery systems.
2. The Member State concerned shall inform the other Member States and the Commission, within four weeks, of authorisations granted under this Article.
Article 8
1. It shall be prohibited to sell, supply, transfer or export key equipment or technology listed in Annex VI, directly or indirectly, to any Iranian person, entity or body or for use in, Iran.
2. Annex VI shall include key equipment and technology for the following key sectors of the oil and gas industry in Iran:
(a)
exploration of crude oil and natural gas;
(b)
production of crude oil and natural gas;
(c)
refining;
(d)
liquefaction of natural gas.
3. Annex VI shall also include key equipment and technology for the petrochemical industry in Iran.
4. Annex VI shall not include items included in the Common Military List, or in Annex I, Annex II or Annex III.
Article 9
It shall be prohibited:
(a)
to provide, directly or indirectly, technical assistance or brokering services related to the key equipment and technology listed in Annex VI, or related to the provision, manufacture, maintenance and use of goods listed in Annex VI, to any Iranian person, entity or body or for use in Iran.
(b)
to provide, directly or indirectly, financing or financial assistance related to the key equipment and technology listed in Annex VI, to any Iranian person, entity or body or for use in Iran.
Article 10
The prohibitions in Articles 8 and 9 shall not apply to:
(a)
transactions required by a trade contract concerning key equipment or technology in the exploration of crude oil and natural gas, production of crude oil and natural gas, refining, liquefaction of natural gas concluded before 27 October 2010, or ancillary contracts necessary for the execution of such contracts, or by a contract or agreement concluded before 26 July 2010 and relating to an investment in Iran made before 26 July 2010, nor shall they prevent the execution of an obligation arising there from; or
(b)
transactions required by a trade contract concerning key equipment or technology for the petrochemical industry concluded before 24 March 2012, or of ancillary contracts necessary for the execution of such contracts, or by a contract or agreement concluded before 23 January 2012 and relating to an investment in Iran made before 23 January 2012, nor shall they prevent the execution of an obligation arising therefrom;
provided that the natural or legal person, entity or body seeking to engage in such transactions, or to provide assistance to such transactions, has notified, at least 20 working days in advance, the transaction or assistance to the competent authority of the Member State in which it is established.
Article 11
1. It shall be prohibited:
(a)
to import crude oil or petroleum products into the Union if they:
(i)
originate in Iran; or
(ii)
have been exported from Iran;
(b)
to purchase crude oil or petroleum products which are located in or which originated in Iran;
(c)
to transport crude oil or petroleum products if they originate in Iran, or are being exported from Iran to any other country; and
(d)
to provide, directly or indirectly, financing or financial assistance, including financial derivatives, as well as insurance and re-insurance related to the import, purchase or transport of crude oil and petroleum products of Iranian origin or that have been imported from Iran.
2. Crude oil and petroleum products means the products listed in Annex IV.
Article 12
1. The prohibitions in Article 11 shall not apply to:
(a)
the execution until 1 July 2012, of trade contracts concluded before 23 January 2012, or of ancillary contracts necessary for the execution of such contracts;
(b)
the execution of contracts concluded before 23 January 2012, or of ancillary contracts, necessary for the execution of such contracts, where such a contract specifically provides that the supply of Iranian crude oil and petroleum products or the proceeds derived from their supply are for the reimbursement of outstanding amounts to persons, entities or bodies under the jurisdiction of Member States,
(c)
the import, purchase and transport of crude oil or petroleum products which had been exported from Iran prior to 23 January 2012, or where the export was made pursuant to point (a) on or prior to 1 July 2012; or where the export was made pursuant to point (b);
provided that the person, entity or body seeking to perform the contract concerned has notified, at least 20 working days in advance, the activity or transaction to the competent authority of the Member State in which it is established.
2. The prohibition in Article 11(1)(d) shall not apply to the provision, until 1 July 2012, directly or indirectly, of third party liability insurance and environmental liability insurance and reinsurance.
Article 13
1. It shall be prohibited
(a)
to import petrochemical products into the Union if they:
(i)
originate in Iran; or
(ii)
have been exported from Iran;
(b)
to purchase petrochemical products which are located in or which originated in Iran;
(c)
to transport petrochemical products if they originate in Iran, or are being exported from Iran to any other country; and
(d)
to provide, directly or indirectly, financing or financial assistance, including financial derivatives, as well as insurance and re-insurance related to the import, purchase or transport of petrochemical products of Iranian origin or that have been imported from Iran.
2. Petrochemical products means the products listed in Annex V.
Article 14
1. The prohibitions in Article 13 shall not apply to:
(a)
the execution until 1 May 2012, of trade contracts concluded before 23 January 2012, or of ancillary contracts necessary for the execution of such contracts;
(b)
the execution of contracts concluded before 23 January 2012, or of ancillary contracts, including transport or insurance contracts, necessary for the execution of such contracts, where a contract specifically provides that the supply of Iranian petrochemical products or the proceeds derived from their supply are for the reimbursement of outstanding amounts to persons, entities or bodies under the jurisdiction of Member States;
(c)
the import, purchase and transport of petrochemical products which had been exported from Iran prior to 23 January 2012, or where the export was made pursuant to point (b), on or prior to 1 May 2012,
provided that the person, entity or body seeking to perform the contract concerned has notified, at least 20 working days in advance, the activity or transaction to the competent authority of the Member State in which it is established.
2. The prohibition in Article 13(1)(d) shall not apply to the provision, until 1 May 2012, directly or indirectly, of third party liability insurance and environmental liability insurance and reinsurance.
Article 15
1. It shall be prohibited:
(a)
to sell, supply, transfer or export, directly or indirectly, gold, precious metals and diamonds, as listed in Annex VII, whether or not originating in the Union, to the Government of Iran, its public bodies, corporations and agencies, any person, entity or body acting on their behalf or at their direction, or any entity or body owned or controlled by them;
(b)
to purchase, import or transport, directly or indirectly, gold, precious metals and diamonds, as listed in Annex VII, whether the item concerned originates in Iran or not, from the Government of Iran, its public bodies, corporations and agencies and any person, entity or body acting on their behalf or at their direction, or any entity or body owned or controlled by them; and
(c)
to provide, directly or indirectly, technical assistance or brokering services, financing or financial assistance, related to the goods referred to in points (a) and (b), to the Government of Iran, its public bodies, corporations and agencies and any person, entity or body acting on their behalf or at their direction, or any enty or body owned or controlled by them.
2. Annex VII shall include gold, precious metals and diamonds subject to the prohibitions referred to in paragraph 1.
Article 16
It shall be prohibited to sell, supply, transfer or export, directly or indirectly, newly printed or unissued Iranian denominated banknotes and minted coinage, to, or for the benefit of the Central Bank of Iran.
CHAPTER III
RESTRICTIONS ON FINANCING OF CERTAIN ENTREPRISES
Article 17
1. The following shall be prohibited:
(a)
the granting of any financial loan or credit to any Iranian person, entity or body referred to in paragraph 2;
(b)
the acquisition or extension of a participation in any Iranian person, entity or body referred to in paragraph 2;
(c)
the creation of any joint venture with any Iranian person, entity or body referred to in paragraph 2.
2. The prohibition in paragraph 1 shall apply to any Iranian person, entity or body engaged:
(a)
in the manufacture of goods or technology listed in the Common Military List or in Annex I or II;
(b)
in the exploration or production of crude oil and natural gas, the refining of fuels or the liquefaction of natural gas; or
(c)
in the petrochemical industry.
3. For the purposes of paragraph 2(b) and (c) only, the following definitions shall apply:
(a)
‧exploration of crude oil and natural gas‧ includes the exploration for, prospection of and management of crude oil and natural gas reserves, as well as the provision of geological services in relation to such reserves;
(b)
‧production of crude oil and natural gas‧ includes bulk gas transmission services for the purpose of transit or delivery to directly interconnected grids;
(c)
‧refining‧ means the processing, conditioning or preparation for the ultimately final sale of fuels.
(d)
‧petrochemical industry‧ means production plants for the manufacturing of items in Annex V.
4. It shall be prohibited to establish cooperation with an Iranian person, entity or body engaged in the transmission of natural gas as referred to in paragraph 3(b).
5. For the purposes of paragraph 4, ‧cooperation‧ means:
(a)
the sharing of investment costs in an integrated or managed supply chain for the receipt or delivery of natural gas directly from or to the territory of Iran; and
(b)
direct cooperation for the purpose of investing in liquefied natural gas facilities within the territory of Iran or in liquefied natural gas facilities directly connected thereto.
Article 18
1. The making of an investment through transactions referred to in Article 17(1) in an Iranian person, entity or body engaged in the manufacture of goods or technology listed in Annex III shall be subject to an authorisation from the competent authority concerned.
2. The competent authorities shall not grant any authorisation for the transactions referred to in paragraph 1, if they have reasonable grounds to determine that the action would contribute to one of the following activities:
(a)
Iran's enrichment-related, reprocessing or heavy water-related activities;
(b)
the development of nuclear weapon delivery systems by Iran; or
(c)
the pursuit by Iran of activities related to other topics about which the IAEA has expressed concerns or has identified as outstanding.
Article 19
1. By way of derogation from Article 17(2)(a), the competent authorities may grant, under such terms and conditions as they deem appropriate, an authorisation to make an investment through transactions referred to in Article 17(1), if the following conditions are met:
(a)
the investment is for food, agricultural, medical or other humanitarian purposes; and
(b)
in those cases where the investment is made in an Iranian person, entity or body engaged in the manufacture of goods or technology contained in the Nuclear Suppliers Group and Missile Technology Control Regime lists, the Sanctions Committee has determined in advance and on a case-by-case basis that the transaction would clearly not contribute to the development of technologies in support of Iran's proliferation-sensitive nuclear activities, or to the development of nuclear weapon development delivery systems.
2. The Member State concerned shall inform the other Member States and the Commission, within four weeks, of authorisations granted under this Article.
Article 20
Article 17(2)(b) shall not apply to the granting of a financial loan or credit or to the acquisition or extension of a participation, if the following conditions are met:
(a)
the transaction is required by an agreement or contract concluded before 26 July 2010; and
(b)
the competent authority has been informed at least 20 working days in advance of that agreement or contract.
Article 21
Article 17(2)(c) shall not apply to the granting of a financial loan or credit or to the acquisition or extension of a participation, if the following conditions are met:
(a)
the transaction is required by an agreement or contract concluded before 23 January 2012; and
(b)
the competent authority has been informed at least 20 working days in advance of that agreement or contract.
Article 22
It shall be prohibited to accept or approve, by concluding an agreement or by any other means, that the granting of any financial loan or credit, or the acquisition or extension of a participation, or the creation of any joint venture be made by one or more Iranian persons, entities or bodies, in an enterprise engaged in any of the following activities:
(a)
uranium mining,
(b)
uranium enrichment and reprocessing of uranium;
(c)
the manufacture of goods or technology included in the Nuclear Suppliers Group or Missile Technology Control Regime lists.
CHAPTER IV
FREEZING OF FUNDS AND ECONOMIC RESOURCES
Article 23
1. All funds and economic resources belonging to, owned, held or controlled by the persons, entities and bodies listed in Annex VIII shall be frozen. Annex VIII includes the persons, entities and bodies designated by the United Nations Security Council or by the Sanctions Committee in accordance with paragraph 12 of UNSCR 1737 (2006), paragraph 7 of UNSCR 1803 (2008) or paragraph 11, 12 or 19 of UNSCR 1929 (2010).
2. All funds and economic resources belonging to, owned, held or controlled by the persons, entities and bodies listed in Annex IX shall be frozen. Annex IX shall include the natural and legal persons, entities and bodies who, in accordance with Article 20(1)(b) and (c) of Council Decision 2010/413/CFSP, have been identified as:
(a)
being engaged in, directly associated with, or providing support for Iran's proliferation-sensitive nuclear activities or the development of nuclear weapon delivery systems by Iran, including through involvement in the procurement of prohibited goods and technology, or being owned or controlled by such a person, entity or body, including through illicit means, or acting on their behalf or at their direction;
(b)
being a natural or legal person, entity or body that has assisted a listed person, entity or body to evade or violate the provisions of this Regulation, Council Decision 2010/413/CFSP or UNSCR 1737 (2006), UNSCR 1747 (2007), UNSCR 1803 (2008) and UNSCR 1929 (2010);
(c)
being a member of the Islamic Revolutionary Guard Corps or a legal person, entity or body owned or controlled by the Islamic Revolutionary Guard Corps or by one of more of its members, or natural or legal persons acting on their behalf;
(d)
being other persons, entities or bodies that provide support, such as material, logistical or financial support, to the Government of Iran, and persons and entities associated with them;
(e)
being a legal person, entity or body owned or controlled by the Islamic Republic of Iran Shipping Lines (IRISL), or acting on their behalf.
Pursuant to the obligation to freeze the funds and economic resources of IRISL and of designated entities owned or controlled by IRISL, it shall be prohibited to load and unload cargoes on and from vessels owned or chartered by IRISL or by such entities in ports of Member States.
The obligation to freeze the funds and economic resources of IRISL and of designated entities owned or controlled by IRISL shall not require the impounding or detention of vessels owned by such entities or the cargoes carried by them insofar as such cargoes belong to third parties, nor does it require the detention of the crew contracted by them.
3. No funds or economic resources shall be made available, directly or indirectly, to or for the benefit of the natural or legal persons, entities or bodies listed in Annexes VIII and IX or.
4. Without prejudice to the derogations provided for in Articles 24, 25, 26, 27, 28, or 29, it shall be prohibited to supply specialised financial messaging services, which are used to exchange financial data to the natural or legal persons, entities or bodies listed in Annexes VIII and IX.
5. Annexes VIII and IX shall include the grounds for listing of listed persons, entities and bodies, as provided by the Security Council or by the Sanctions Committee.
6. Annexes VIII and IX shall also include, where available, information necessary to identify the natural or legal persons, entities and bodies concerned, as provided by the Security Council or by the Sanctions Committee. With regard to natural persons, such information may include names including aliases, date and place of birth, nationality, passport and ID card numbers, gender, adress, if known, and function or profession. With regard to legal persons, entities and bodies, such information may include names, place and date of registration, registration number and place of business. With regard to airlines and shipping companies, Annexes VIII and IX shall also include, where available, information necessary to identify each vessel or aircraft belonging to a listed company such as the original registration number or name. Annexes VIII and IX shall also include the date of designation.
Article 24
By way of derogation from Article 23, the competent authorities may authorise the release of certain frozen funds or economic resources, if the following conditions are met:
(a)
the funds or economic resources are the subject of a judicial, administrative or arbitral lien established before the date on which the person, entity or body referred to in Article 23 has been designated by the Sanctions Committee, the Security Council or the Council or of a judicial, administrative or arbitral judgment rendered prior to that date;
(b)
the funds or economic resources will be used exclusively to satisfy claims secured by such a lien or recognised as valid in such a judgment, within the limits set by applicable laws and regulations governing the rights of persons having such claims;
(c)
the lien or judgment is not for the benefit of a person, entity or body listed in Annex VIII or IX;
(d)
recognising the lien or judgment is not contrary to public policy in the Member State concerned; and
(e)
where Article 23(1) applies, the Sanctions Committee has been notified by the Member State of the lien or judgment.
Article 25
By way of derogation from Article 23 and provided that a payment by a person, entity or body listed in Annex VIII or IX is due under a contract or agreement that was concluded by, or an obligation that arose for the person, entity or body concerned, before the date on which that person, entity or body had been designated by the Sanctions Committee, the Security Council or by the Council, the competent authorities may authorise, under such conditions as they deem appropriate, the release of certain frozen funds or economic resources, if the following conditions are met:
(a)
the competent authority concerned has determined that:
(i)
the funds or economic resources shall be used for a payment by a person, entity or body listed in Annex VIII or IX;
(ii)
the payment will not contribute to an activity prohibited under this Regulation; and
(iii)
the payment is not in breach of Article 23(3); and
(b)
where Article 23(1) applies, the Member State concerned has notified the Sanctions Committee of that determination and its intention to grant an authorisation, and the Sanctions Committee has not objected to that course of action within ten working days of notification.
Article 26
1. By way of derogation from Article 23, the competent authorities may authorise, under such conditions as they deem appropriate, the release of certain frozen funds or economic resources, or the making available of certain funds or economic resources, provided that the following conditions are met:
(a)
the competent authority concerned has determined that the funds or economic resources are:
(i)
necessary to satisfy the basic needs of persons listed in Annex VIII or IX and their dependent family members, including payments for foodstuffs, rent or mortgage, medicines and medical treatment, taxes, insurance premiums, and public utility charges;
(ii)
intended exclusively for payment of reasonable professional fees and reimbursement of incurred expenses associated with the provision of legal services; or
(iii)
intended exclusively for payment of fees or service charges for routine holding or maintenance of frozen funds or economic resources; and
(b)
where the authorisation concerns a person, entity or body listed in Annex VIII, the Member State concerned has notified the Sanctions Committee of the determination referred to in point (a) and its intention to grant an authorisation, and the Sanctions Committee has not objected to that course of action within five working days of notification.
2. By way of derogation from Article 23, the competent authorities may authorise the release of certain frozen funds or economic resources or the making available of certain funds or economic resources, after having determined that the funds or economic resources are necessary for extraordinary expenses or for payment for or transfer of goods when procured for a light water reactor in Iran the construction of which has begun before December 2006, or for any goods for the purposes referred to in Article 6(b) and (c), provided that where the authorisation concerns a person, entity or body listed in Annex VIII, the Sanctions Committee has been notified of that determination by the Member State concerned and the determination has been approved by that Committee.
Article 27
By way of derogation from Article 23(2) and (3), the competent authorities may authorise, under such conditions as they deem appropriate, the release of certain frozen funds or economic resources or the making available of certain funds or economic resources, after having determined that the funds or economic resources are necessary for official purposes of diplomatic or consular missions or international organisations enjoying immunities in accordance with international law.
Article 28
By way of derogation from Articles 23(2) and (3), the competent authorities may also authorise, under such conditions as they deem appropriate:
(a)
the making available of certain funds to the Central Bank of Iran, after having determined that the funds are necessary for the execution, until 1 July 2012, of a contract referred to in Article 12;
(b)
the release of certain frozen funds or economic resources of the Central Bank of Iran or the making available of certain funds or economic resources to the Central Bank of Iran, after having determined that the funds or economic resources are necessary for the purpose of providing credit or financial institutions with liquidity for the financing of trade, or the servicing of trade loans; or
(c)
the release of certain frozen funds or economic resources held by the Central Bank of Iran or the making available of certain funds or economic resources to the Central Bank of Iran, after having determined on a case-by-case basis, that the funds or economic resources are necessary in connection with a specific trade contract other than contracts referred to in paragraph (a), the execution of which may involve the Central Bank of Iran, provided that the payment will not contribute to an activity prohibited under this Regulation,
provided that the Member State concerned has notified the other Member States and the Commission of its intention to grant an authorisation at least ten working days prior to the authorisation.
Article 29
1. Article 23(3) shall not prevent financial or credit institutions from crediting frozen accounts where they receive funds transferred onto the account of a listed natural or legal person, entity or body, provided that any additions to such accounts shall also be frozen. The financial or credit institution shall inform the competent authorities about such transactions without delay.
2. Article 23(3) shall not apply to the addition to frozen accounts of:
(a)
interest or other earnings on those accounts; or
(b)
payments due under contracts, agreements or obligations that were concluded or arose before the date on which the person, entity or body referred to in Article 23 has been designated by the Sanctions Committee, the Security Council or by the Council;
provided that any such interest or other earnings and payments are frozen in accordance with Article 23(1) or (2).
3. This Article shall not be construed as authorising transfers of funds referred to in Article 30.
CHAPTER V
RESTRICTIONS ON TRANSFERS OF FUNDS AND ON FINANCIAL SERVICES
Article 30
1. Transfers of funds to and from an Iranian person, entity or body shall be processed as follows:
(a)
transfers due on transactions regarding foodstuffs, healthcare, medical equipment, or for humanitarian purposes shall be carried out without any prior authorisation. The transfer shall be notified in advance in writing to the competent authorities if above EUR 10 000 or equivalent;
(b)
any other transfer below EUR 40 000 shall be carried out without any prior authorisation. The transfer shall be notified in advance in writing to the competent authorities if above EUR 10 000 or equivalent;
(c)
any other transfer of or above EUR 40 000 or equivalent shall require a prior authorisation of the competent authorities.
2. Paragraph 1 shall apply regardless of whether the transfer of funds is executed in a single operation or in several operations which appear to be linked. For the purpose of this Article, "operations which appear to be linked" includes:
(i)
a series of consecutive transfers from or to the same Iranian person, entity or body which are made in connection with a single obligation to a transfer of funds, where each individual transfer falls below the threshold set out in paragraph 1 but which, in the aggregate, meet the criteria for notification or authorisation; or
(ii)
a chain of transfers involving different payment service providers or natural or legal persons which effects a single obligation to make a transfer of funds.
3. Notifications and requests for authorisation relating to the transfer of funds shall be processed as follows:
(a)
In the case of electronic transfers of funds processed by credit or financial institutions, notifications and requests for authorisation relating to the transfer of funds shall be processed as follows:
(i)
Notifications and requests for authorisation relating to the transfer of funds to an Iranian person, entity or body which is located outside the Union, shall be addressed by or on behalf of the payment service provider of the payer to the competent authorities of the Member State where the initial order to execute the transfer is given.
(ii)
Notifications and requests for authorisation relating to the transfer of funds from an Iranian person, entity or body which is located outside the Union, shall be addressed by or on behalf of the payment service provider of the payee to the competent authorities of the Member State in which the payee is resident or the payment service provider is established.
(iii)
If the payment service provider of the payer or of the payee does not fall under the scope of Article 49, notifications and requests for authorisation shall be addressed, in the case of a transfer to an Iranian person, entity or body, by the payer, and in the case of a transfer from an Iranian person, entity or body by the payee to the competent authorities of the Member State in which, respectively, the payer or payee is resident.
(iv)
Notifications and requests for authorisation relating to the transfer of funds to an Iranian person, entity or body which is located within the Union, shall be addressed by or on behalf of the payment service provider of the payee to the competent authorities of the Member States in which the payee is resident or the payment service provider is established.
(v)
Notifications and requests for authorisation relating to the transfer of funds from an Iranian person, entity or body which is located within the Union, shall be addressed by or on behalf of the payment service provider of the payer to the competent authorities of the Member States where the initial order to execute the transfer is given.
(vi)
In relation to a transfer of funds to or from an Iranian person, entity or body where none of the payer, payee or their respective payment service providers fall under the scope of Article 49 but a payment service provider which does fall under the scope of that Article acts as an intermediary, then that payment service provider must comply with the obligation to notify or seek authorisation, as applicable, if it knows or has reasonable cause to suspect that the transfer is to or from an Iranian person, entity or body. Where there is more than one payment service provider acting as an intermediary, only the first payment service provider to process the transfer is required to comply with the obligation to notify or seek authorisation, as applicable. Any notification or request for authorisation must be addressed to the competent authorities of the Member State in which the payment service provider is established.
(vii)
Where there is more than one payment service provider involved in a series of linked transfers of funds, transfers within the Union shall include a reference to the authorisation granted under this Article.
(b)
In the case of transfers of funds which are effected by non-electronic means, notifications and requests for authorisation relating to the transfer of funds shall be processed as follows:
(i)
Notifications and requests for authorisation relating to transfers to an Iranian person, entity or body shall be addressed by the payer to the competent authorities of the Member State where the payer is resident.
(ii)
Notifications and requests for authorisation relating to the transfers from an Iranian person, entity or body shall be addressed by the payee to the competent authorities of the Member State in which the payee is resident.
4. For the purposes of paragraph 1(c), the competent authorities shall grant, under such terms and conditions as they deem appropriate, an authorisation for a transfer of funds having a value of EUR 40 000 or more, unless they have reasonable grounds to determine that the transfer of funds for which the authorisation is requested could be in breach of any of the prohibitions or obligations in this Regulation.
A competent authority may charge a fee for the assessment of requests for authorisation.
An authorisation shall be deemed granted if a competent authority has received a request in writing for authorisation and, within four weeks, the competent authority has not objected in writing to the transfer of funds. If the objection is raised because an investigation is pending, the competent authority shall state this and communicate its decision without delay. The competent authorities shall have access, directly or indirectly, on a timely basis to the financial, administrative and law enforcement related information necessary for carrying out the investigation.
The Member State concerned shall inform the other Member States and the Commission of authorisations rejected.
5. This article shall not apply where an authorisation has been granted in accordance with Article 24, 25, 26, 27, or 28.
6. Persons, entities or bodies who merely convert paper documents into electronic data and are acting under a contract with a credit institution or a financial institution do not fall within the scope of this Article, nor does any natural or legal person, entity or body that provides credit or financial institutions solely with a message or other support system for transmitting funds or with clearing and settlement systems.
Article 31
1. Branches and subsidiaries, falling within the scope of Article 49, of credit and financial institutions domiciled in Iran shall notify the competent authority of the Member State where they are established of all transfers of funds carried out or received by them, the names of the parties and the amount and the date of the transaction, within five working days after carrying out or receiving the transfer of funds concerned. If the information is available, the notification must specify the nature of the transaction and, where appropriate, the nature of the goods covered by the transaction and must, in particular, state whether the goods are covered by Annex I, II, III, IV, V, VI or VII of this Regulation and, if their export is subject to authorisation, indicate the number of the licence granted.
2. Subject to and in accordance with the information-sharing arrangements, the other notified competent authorities shall without delay transmit that data, as necessary, in order to prevent any transaction that could contribute to proliferation-sensitive nuclear activities or to the development of nuclear weapons delivery systems, to the competent authorities of other Member States where the counterparts to such transactions are established.
Article 32
1. Credit and financial institutions shall, in their activities with entities referred to in paragraph 2 and in order to prevent infringements of the provisions of this Regulation, conduct enhanced vigilance as follows:
(a)
exercise continuous vigilance over account activity, particularly through their programmes on customer due diligence;
(b)
require that in payment instructions all information fields which relate to the originator and beneficiary of the transaction in question be completed and if that information is not supplied, refuse the transaction;
(c)
maintain all records of transactions for a period of five years and make them available to national authorities on request;
(d)
if they have reasonable grounds to suspect that activities with credit and financial institutions may be in breach of the provisions of this Regulation, report without delay their suspicions to the financial intelligence unit (FIU) or to another competent authority designated by the Member State concerned, without prejudice to Articles 5 and 23. The FIU or such other competent authority will serve as a national centre for receiving and analysing suspicious transaction reports regarding potential breaches of this Regulation. The FIU or such other competent authority shall have access, directly or indirectly, on a timely basis to the financial, administrative and law enforcement information that it requires to properly undertake this function, including the analysis of suspicious transaction reports.
2. The measures set out in paragraph 1 shall apply to credit and financial institutions in their activities with:
(a)
bureaux de change, credit and financial institutions domiciled in Iran;
(b)
branches and subsidiaries, where they fall within the scope of Article 49, of credit and financial institutions and bureaux de change domiciled in Iran;
(c)
branches and subsidiaries, where they do not fall within the scope of Article 49, of credit and financial institutions and bureaux de change domiciled in Iran; and
(d)
bureaux de change, credit and financial institutions that are not domiciled in Iran but are controlled by persons and entities domiciled in Iran.
Article 33
1. It shall be prohibited for credit and financial institutions falling within the scope of Article 49 to do any of the following:
(a)
to open a new bank account with a credit or financial institution domiciled in Iran or with any credit or financial institution referred to in Article 32(2);
(b)
to establish a new correspondent banking relationship with a credit or financial institution domiciled in Iran or with any credit or financial institution referred to in Article 32(2),
(c)
to open a new representative office in Iran or to establish a new branch or subsidiary in Iran;
(d)
to establish a new joint venture with a credit or financial institution domiciled in Iran or with any credit or financial institution referred to in Article 32(2).
2. It shall be prohibited:
(a)
to authorise the opening of a representative office or the establishment of a branch or subsidiary in the Union of a credit or financial institution domiciled in Iran or of any credit or financial institution referred to in Article 32(2);
(b)
to conclude agreements for, or on behalf of, a credit or financial institution domiciled in Iran or for, or on behalf of, any credit or financial institution referred to in Article 32(2) pertaining to the opening of a representative office or the establishment of a branch or subsidiary in the Union;
(c)
to grant an authorisation for taking up and pursuing the business of credit institution or for any other business requiring prior authorisation, by a representative office, branch or subsidiary of a credit or financial institution domiciled in Iran or of any credit or financial institution referred to in Article 32(2), if the representative office, branch or subsidiary was not operational before 26 July 2010.
(d)
to acquire or to extend a participation, or to acquire any other ownership interest, in a credit or financial institution falling within the scope of Article 49 by any credit or financial institution referred to in Article 32(2).
Article 34
It shall be prohibited:
(a)
to sell or purchase public or public-guaranteed bonds issued after 26 July 2010, directly or indirectly, to or from any of the following:
(i)
Iran or its Government, and its public bodies, corporations and agencies;
(ii)
a credit or financial institution domiciled in Iran or any credit or financial institution referred to in Article 32(2);
(iii)
a natural person or a legal person, entity or body acting on behalf or at the direction of a legal person, entity or body referred to in (i) or (ii);
(iv)
a legal person, entity or body owned or controlled by a person, entity or body referred to in (i), (ii) or (iii);
(b)
to provide brokering services with regard to public or public-guaranteed bonds issued after 26 July 2010 to a person, entity or body referred to in point (a);
(c)
to assist a person, entity or body referred to in point (a) in order to issue public or public-guaranteed bonds, by providing brokering services, advertising or any other service with regard to such bonds.
Article 35
1. It shall be prohibited to provide insurance or re-insurance, or to broker the provision of insurance or reinsurance, to:
(a)
Iran or its Government, and its public bodies, corporations and agencies;
(b)
an Iranian person, entity or body other than a natural person; or
(c)
a natural person or a legal person, entity or body when acting on behalf or at the direction of a legal person, entity or body referred to in (a) or (b).
2. Points (a) and (b) of paragraph 1 shall not apply to the provision or brokering of compulsory or third party liability insurance or reinsuranceto Iranian persons, entities and bodies based in the Union, nor to the provision of insurance for Iranian diplomatic or consular missions in the Union.
3. Point (c) of paragraph 1 shall not apply to the provision of insurance or brokering of insurance, including health and travel insurance or reinsurance, to individuals acting in their private capacity, except for persons listed in Annexes VIII and IX.
Point (c) of paragraph 1 shall not prevent the provision of insurance or re-insurance or brokering of insurance to the owner of a vessel, aircraft or vehicle chartered by a person, entity or body referred to in point (a) or (b) of paragraph 1.
For the purpose of point (c) of paragraph 1, a person, entity or body shall not be considered to act at the direction of a person, entity or body referred to in points (a) and (b) of paragraph 1 where that direction is for the purposes of docking, loading, unloading or safe transit of a vessel or aircraft temporarily in Iranian waters or airspace.
4. This Article prohibits the extension or renewal of insurance and re-insurance agreements concluded before 27 October 2010, but, without prejudice to Article 23(3), it does not prohibit compliance with agreements concluded before that date.
CHAPTER VI
RESTRICTIONS ON TRANSPORT
Article 36
1. To prevent the transfer of goods and technology which are covered by the Common Military List or the supply, sale, transfer, export or import of which is prohibited by this Regulation, and in addition to the obligation to provide the competent customs authorities with the pre-arrival and pre-departure information as determined in the relevant provisions concerning entry and exit summary declarations as well as customs declarations in Regulation (EEC) No 2913/92 (21) and in Regulation (EEC) No 2454/93 (22), the person who provides the information referred to in paragraph 2 of this Article, shall declare whether the goods are covered by the Common Military List or by this Regulation and, where their export is subject to authorisation, specify the particulars of the export licence granted.
2. The required additional elements referred to in this Article shall be submitted either in written form or using a customs declaration as appropriate.
Article 37
1. The provision of bunkering or ship supply services, or any other servicing of vessels, to vessels owned or controlled, directly or indirectly, by an Iranian person, entity or body shall be prohibited where the providers of the service have information, including from the competent customs authorities on the basis of the pre-arrival and pre-departure information referred to in Article 36, that provides reasonable grounds to determine that the vessels carry goods covered by the Common Military List or goods whose supply, sale, transfer or export is prohibited under this Regulation, unless the provision of such services is necessary for humanitarian and safety purposes.
2. The provision of engineering and maintenance services to cargo aircraft owned or controlled, directly or indirectly, by an Iranian person, entity or body shall be prohibited, where the providers of the service have information, including from the competent customs authorities on the basis of the pre-arrival and pre-departure information referred to in Article 36, that provides reasonable grounds to determine that the cargo aircraft carry goods covered by the Common Military List or goods the supply, sale, transfer or export of which is prohibited under this Regulation, unless the provision of such services is necessary for humanitarian and safety purposes.
3. The prohibitions in paragraphs 1 and 2 of this Article shall apply until the cargo has been inspected and, if necessary, seized or disposed of, as the case may be.
Any seizure and disposal may, in accordance with national legislation or the decision of a competent authority, be carried out at the expense of the importer or be recovered from any other person or entity responsible for the attempted illicit supply, sale, transfer or export.
CHAPTER VII
GENERAL AND FINAL PROVISIONS
Article 38
1. No claims in connection with any contract or transaction the performance of which has been affected, directly or indirectly, in whole or in part, by the measures imposed under this Regulation, including claims for indemnity or any other claim of this type, such as a claim for compensation or a claim under a guarantee, notably a claim for extension or payment of a bond, guarantee or indemnity, particularly a financial guarantee or financial indemnity, of whatever form, shall be satisfied, if they are made by:
(a)
designated persons, entities or bodies listed in Annexes VIII and IX;
(b)
any other Iranian person, entity or body, including the Iranian government;
(c)
any person, entity or body acting through or on behalf of one of the persons, entities or bodies referred to in points (a) and (b).
2. The performance of a contract or transaction shall be regarded as having been affected by the measures imposed under this Regulation where the existence or content of the claim results directly or indirectly from those measures.
3. In any proceedings for the enforcement of a claim, the onus of proving that satisfying the claim is not prohibited by paragraph 1 shall be on the person seeking the enforcement of that claim.
4. This Article is without prejudice to the right of the persons, entities and bodies referred to in paragraph 1 to judicial review of the legality of the non-performance of contractual obligations in accordance with this Regulation.
Article 39
For the purposes of Articles 8 and 9, point (b) of Article 17(2), and Articles 30 and 35, any body, entity or holder of rights derived from an original award before 27 October 2010 by a sovereign Government other than Iran, of a production sharing agreement shall not be considered an Iranian person, entity or body. In such cases and in relation to Article 8, the competent authority of the Member State may require appropriate end-user guarantees from any body or entity for any sale, supply, transfer or export of any key equipment or technology listed in Annex VI.
Article 40
1. Without prejudice to the applicable rules concerning reporting, confidentiality and professional secrecy, natural and legal persons, entities and bodies shall:
(a)
supply immediately any information which would facilitate compliance with this Regulation, such as information on accounts and amounts frozen in accordance with Article 23, to the competent authorities of the Member States where they are resident or located, and shall transmit such information, directly or through the Member States, to the Commission;
(b)
cooperate with the competent authorities in any verification of this information.
2. Any additional information received directly by the Commission shall be made available to the Member State concerned.
3. Any information provided or received in accordance with this Article shall be used only for the purposes for which it was provided or received.
Article 41
It shall be prohibited to participate, knowingly and intentionally, in activities the object or effect of which is to circumvent the measures referred to in Article 2, 5, 8, 9, 11, 13, 17, 22, 23, 30, 34 or 35.
Article 42
1. The freezing of funds and economic resources or the refusal to make funds or economic resources available, carried out in good faith on the basis that such action is in accordance with this Regulation, shall not give rise to liability of any kind on the part of the natural or legal person, entity or body implementing it, or its directors or employees, unless it is proved that the funds and economic resources were frozen or withheld as a result of negligence.
2. The measures set out in the present Regulation shall not give rise to liability of any kind on the part of the natural or legal persons, entities or bodies concerned, if they did not know, and had no reasonable cause to suspect, that their actions would infringe these prohibitions.
3. The disclosure in good faith, as provided for in Articles 30, 31 and 32 by a person, entity or body covered by this Regulation or an employee or director of such person, entity or body, of the information referred to in Articles 30, 31 and 32 shall not give rise to liability of any kind on the part of the institution or person or its directors or employees.
Article 43
1. A Member State may take all action it deems necessary to ensure that relevant international, Union or national legal obligations concerning the health and safety of workers and environmental protection are respected where cooperation with an Iranian person, entity or body may be affected by the implementation of this Regulation.
2. For the purpose of action taken pursuant to paragraph 1, the prohibitions in Articles 8 and 9, point (b) of Article 17(2), and Articles 23(2), 30 and 35 shall not apply.
3. The Member State concerned shall notify the other Member States and the Commission of the determination referred to in paragraph 1 and its intention to grant an authorisation at least ten working days prior to the authorisation.
Article 44
1. The Commission and Member States shall inform each other of the measures taken under this Regulation and share any other relevant information at their disposal in connection with this Regulation at three-monthly intervals, in particular information
(a)
in respect of funds frozen under Article 23 and authorisations granted under Articles 24, 25, 26 and 27;
(b)
in respect of violations and enforcement problems and judgments issued by national courts.
2. The Member States shall immediately inform each other and the Commission of any other relevant information at their disposal which might affect the effective implementation of this Regulation.
Article 45
The Commission shall:
(a)
amend Annex II on the basis of determinations made by either the United Nations Security Council or the Sanctions Committee or on the basis of information supplied by Member States;
(b)
amend Annexes III, IV, V, VI, VII and X on the basis of information supplied by Member States.
Article 46
1. Where the Security Council or the Sanctions Committee lists a natural or legal person, entity or body, the Council shall include such natural or legal person, entity or body in Annex VIII.
2. Where the Council decides to subject a natural or legal person, entity or body to the measures referred to in Article 23(2) and (3), it shall amend Annex IX accordingly.
3. The Council shall communicate its decision, including the grounds for listing, to the natural or legal person, entity or body referred to in paragraph 1 or 2, either directly, if the address is known, or through the publication of a notice, providing such natural or legal person, entity or body with an opportunity to present observations.
4. Where observations are submitted, or where substantial new evidence is presented, the Council shall review its decision and inform the natural or legal person, entity or body accordingly.
5. Where the United Nations decides to delist a natural or legal person, entity or body, or to amend the identifying data of a listed natural or legal person, entity or body, the Council shall amend Annex VIII accordingly.
6. The list in Annex IX shall be reviewed in regular intervals and at least every 12 months.
Article 47
1. Member States shall lay down the rules on penalties applicable to infringements of this Regulation and shall take all measures necessary to ensure that they are implemented. The penalties provided for shall be effective, proportionate and dissuasive.
2. Member States shall notify the Commission of those rules without delay after the entry into force of this Regulation and shall notify it of any subsequent amendment.
Article 48
1. Member States shall designate the competent authorities referred to in this Regulation and identify them on the websites listed in Annex X. Member States shall notify the Commission of any changes in the addresses of their websites listed in Annex X.
2. Member States shall notify the Commission of their competent authorities, including the contact details of those competent authorities, without delay after the entry into force of this Regulation, and shall notify it of any subsequent amendment.
3. Where this Regulation sets out a requirement to notify, inform or otherwise communicate with the Commission, the address and other contact details to be used for such communication shall be those indicated in Annex X.
Article 49
This Regulation shall apply:
(a)
within the territory of the Union, including its airspace;
(b)
on board any aircraft or any vessel under the jurisdiction of a Member State;
(c)
to any person inside or outside the territory of the Union who is a national of a Member State;
(d)
to any legal person, entity or body, inside or outside the territory of the Union, which is incorporated or constituted under the law of a Member State;
(e)
to any legal person, entity or body in respect of any business done in whole or in part within the Union.
Article 50
Regulation (EU) No 961/2010 is hereby repealed. References to the repealed regulation shall be construed as references to this Regulation.
Article 51
This Regulation shall enter into force on the day of its publication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 23 March 2012.