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Her Majesty’s Treasury issues further sanctions against
Iranian banks in London in particular against Melli Bank plc and its parent
Bank Melli Iran by way of a Notice to advise that with the publication of Council Decision 2008/475/EC of 23 June 2008, implementing Article 7(2) of Council Regulation (EC) No 423/2007, on 24 June 2008.
Article 7(2) of Regulation 423/2007 provides for the Council to identify persons, not designated by the United Nations Security Council or by the Sanctions Committee established pursuant to paragraph 18 of UNSCR 1737 (2006), as subject to the financial sanctions imposed by Regulation 423/2007. Such persons are listed in Annex V to Regulation 423/2007.
The amendments made to Annex V by Council Decision 2008/475/EC take the form of the addition of persons and entities to the list of those subject to the financial sanctions imposed by Regulation 423/2007 and the addition of further identifiers for several existing entries. Article 7 of Regulation 423/2007 imposes an asset freeze on these persons and entities.
The entities added to Annex V include sanctions on Iranian banks such as Bank Melli Iran, its branches and subsidiaries. One such named subsidiary is Melli Bank plc, a UK-based entity. The asset freeze also applies to Melli Bank plc’s Hong Kong branch. The Treasury has today published a supplement to this Notice which deals specifically with Bank Melli Iran and Melli Bank plc.
With effect from 24 June 2008, all funds and economic resources belonging to, owned, held or controlled by persons in Annex V to Regulation 423/2007 as amended by the Annex to Council Decision 2008/475/EC must be frozen. This included Melli Bank Plc and Bank Melli Iran. No funds or economic resources are to be made available, directly or indirectly, to or for the benefit of persons listed in Annex V unless authorised by HM Treasury.
All financial institutions and other bodies and persons in the UK are required to check whether they maintain any accounts or otherwise hold any funds for the individuals and entities named and, if so, they should report to HM Treasury details of all funds or economic resources that they have frozen in accordance with Article 7 of Regulation 423/2007. They must also provide the Treasury with all relevant information necessary to facilitate compliance with Regulation 423/2007. Iranian sanctions banks
The asset freeze in Regulation 423/2007 does not apply to payments due under a contract, agreement or obligation which was concluded or arose before the date of designation if payment is made into a frozen account. The exception that already appears in regulation 8 of the Iran (European Communities Financial Sanctions) Regulations 2007 allows payments for any contracts, agreements or obligations that were concluded or arose prior to 23 December 2006. Annex II to this Notice provides a licence from H M Treasury to extend the date of those contracts, agreements or obligations to which the exception applies to those concluded or which arose before 24 June 2008 where a person has been added to Annex V of Regulation 423/2007 by virtue of Council Decision 2008/475/EC.
Payment must be made into a frozen account with a relevant institution which is held or controlled by a designated person. A relevant institution is defined in regulation 2 of the Iran (European Communities Financial Sanctions) Regulations 2007.
Author: John Smit
Pindoria Solicitors has not written this article and hence takes no responsibility or liability for it. Please contact the author directly to know more about this article about sanctions against Iran, Persia international, Bank saderat, Bank mellat, Future bank,
Iranian sanctions banks, Iranian sanctions legislation, Iranian sanctions HM Treasury & Iranian sanctions EU, UN, UK.
