The UK Government through the Her Majesty’s Treasury has imposed new sanctions against Iranian Banks and companies. The new sanctions are inline with the publication of the European Council Implementing Regulation (EU) No 668/2010 of 26 July 2010 (‘Regulation 668/2010’). The Council of the European Union has again amended Annex V to Council Regulation (EU) No. 423/2007 (‘Regulation 423/2007’). The sanctions have been granted under regulation 10 of the Iran (European Communities Financial Sanctions) Regulations 2007 and in accordance with Council Regulation (EU) No 423/2007. A list of entities subject to EU sanctions is listed below.
The new sanction applies to a person designated by virtue of the amendments made by Council Implementing Regulation (EU) No 668/2010 to Annex V of Council Regulation (EU) No 423/2007.
The amendments made to Annex V by Regulation 668/2010 take the form of the addition of individuals and entities to the list of those subject to the financial sanctions imposed by Regulation 423/2007. Article 7 of Regulation 423/2007 imposes an asset freeze on these individuals and entities.
With effect from 27 July 2010, all funds and economic resources belonging to, owned, held or controlled by designated persons (listed in Annex V to Regulation 423/2007 as amended by the Annex to Regulation 668/2010 which is listed below) must be frozen. No funds or economic resources are to be made available, directly or indirectly, to or for the benefit of persons listed unless authorised by HM Treasury.
Bank Saderat Iran, Bank Saderat PLC and Persia International Bank Plc
The entities added to Annex V include Bank Saderat Iran and its subsidiary, Bank Saderat PLC, and Persia International Bank Plc. Both Bank Saderat PLC and Persia International Bank Plc are UK-based banks. The asset freeze also applies to Persia International Bank Plc’s Dubai Branch.
Prior contract payments to a designated person
The asset freeze in Regulation 423/2007 does not apply to payments due to a designated person 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. It is possible to obtain a licence from HM Treasury to extend the date of those contracts, agreements or obligations to which the exception applies to those concluded or which arose before 27 July 2010 where a person has been added to Annex V of Regulation 423/2007 by virtue of Regulation 668/2010.
The purpose of Treasury licences is limited to specific transactions. The HM Treasury licences role is to allow specific transactions to proceed that would otherwise be prohibited under asset-freezing legislation. Licences are granted where there is a legitimate need for such transactions to proceed. A licence is a written authorisation from HM Treasury to allow an activity which would otherwise be prohibited. A licence may include associated reporting requirements or other conditions. Treasury licences do not determine entitlement to receive specific funds, goods or services.
The EU sanctions regime applies mainly to UK based financial institutions such as banks, insurance companies or money service businesses. It should not be mistaken that the regulations via Iran (European Communities Financial Sanctions) Regulations 2007 extend to all UK persons and any dealings with the assets or funds of a designated persons constitutes a criminal offence with severe penalties for non-compliance.
The EU Regulation includes four UK-based entities - Persia International Bank Plc, Bank Saderat PLC, Irinvestship Ltd and IRISL (UK) Ltd -, which are now designated persons for the purposes of the Iran (European Communities Financial Sanctions) Regulations 2007. The full list of the Annex is listed below and includes Bank Mellat and Islamic Republic of Iran Shipping Lines (IRISL), which are already subject to financial restrictions contained in the Financial Restrictions (Iran) Order 2009 issued by the Treasury under Schedule 7 to the Counter-Terrorism Act 2008.
Pindoria Solicitors can assist businesses should ensure that their systems and controls are updated to ensure that all changes made to the HM Treasury consolidated list of designated persons are taken into account when conducting their activities. We can provide appropriate advice if they are unsure as to the implications of the new sanctions. If you are customer or a depositor of Persia International Bank Plc, Bank Saderat PLC and your funds are blocked or a pre-existing contract or agreement please contact Bharat Pindoria of Pindoria Solicitors on 0207 183 4555 or email him at info@pindorialaw.com
This is a specialist field and it is important to get the correct legal advice early to avoid costly disputes. Pindoria Solicitors is uniquely placed due to its experience gained over several years to provide the right advice that corporations and individuals face during difficult and uncertain times. We have assisted several clients to receive payments from sanctions banks and institutions in UK.
CHANGES TO ANNEX V OF COUNCIL REGULATION (EU) NO 423/2007
List of Entities subject to EU sanctions added in the Annex to Regulation 668/2010 are listed below:
- ARFA PAINT COMPANY
- ARFEH COMPANY
- ARIAN BANK
- ARYA NIROO NIK
- ASSA CORPORATION
- ASSA CORPORATION LTD
- AZARAB INDUSTRIES
- BANCO INTERNACIONAL DE DESARROLLO CA
- BANK KARGOSHAEE
- BANK MELLAT
- BANK MELLI IRAN INVESTMENT COMPANY (BMIIC)
- BANK MELLI PRINTING AND PUBLISHING COMPANY (BMPPC)
- BANK REFAH
- BANK SADERAT IRAN
- BANK SADERAT PLC
- BANQUE SINA
- BUSHEHR SHIPPING COMPANY LIMITED (TEHRAN)
- CEMENT INVESTMENT AND DEVELOPMENT COMPANY (CIDCO)
- CISCO SHIPPING COMPANY LTD
- EDBI EXCHANGE COMPANY
- EDBI STOCK BROKERAGE COMPANY
- ESNICO (EQUIPMENT SUPPLIER FOR NUCLEAR INDUSTRIES CORPORATION)
- ETEMAD AMIN INVEST CO MOBIN
- EXPORT DEVELOPMENT BANK OF IRAN (EDBI)
- FAJR AVIATION COMPOSITE INDUSTRIES
- FARASEPEHR ENGINEERING COMPANY
- FIRST PERSIAN EQUITY FUND
- FULMEN
- FUTURE BANK BSC
- HAFIZE DARYA SHIPPING LINES (HDSL)
- HANSEATIC TRADE TRUST & SHIPPING (HTTS) GMBH
- HOSSEINI NEJAD TRADING CO
- INDUSTRIAL DEVELOPMENT & RENOVATION ORGANIZATION (IDRO)
- IRAN AIRCRAFT INDUSTRIES (IACI)
- IRAN AIRCRAFT MANUFACTURING COMPANY (IAMCO)
- IRAN CENTRIFUGE TECHNOLOGY COMPANY (TSA OR TESA)
- IRAN COMMUNICATIONS INDUSTRIES (ICI)
- IRAN INSURANCE COMPANY
- IRAN SAFFRON COMPANY
- IRANIAN AVIATION INDUSTRIES ORGANIZATION (IAIO)
- IRANO MISR SHIPPING COMPANY
- IRGC QODS FORCE
- IRGC-AIR FORCE AL GHADIR MISSILE COMMAND
- IRINVESTSHIP LTD
- IRISL (MALTA) LTD
- IRISL (UK) LTD
- IRISL CLUB
- IRISL EUROPE GMBH
- IRISL MARINE SERVICES AND ENGINEERING COMPANY
- IRISL MULTIMODAL TRANSPORT COMPANY
- IRITAL SHIPPING SRL
- ISFAHAN OPTICS
- ISI MARITIME LIMITED
- ISLAMIC REPUBLIC OF IRAN SHIPPING LINES (IRISL)
- ISLAMIC REVOLUTIONARY GUARD CORPS (IRGC)
- JAVEDAN MEHR TOOS
- KALA NAFT
- KHAZER SHIPPING LINES
- LEADMARINE
- MACHINE SAZI ARAK
- MARBLE SHIPPING LIMITED
- MASNA (MOIERAT SAAKHT NIROOGAHYE ATOMI IRAN) MANAGING COMPANY FOR THE CONSTRUCTION OF NUCLEAR POWER PLANTS
- MAZANDARAN CEMENT COMPANY
- MAZANDARAN TEXTILE COMPANY
- MEHR CAYMAN LTD
- MELLAT BANK SB CJSC
- MELLI AGROCHEMICAL COMPANY PJS
- MELLI INVESTMENT HOLDING INTERNATIONAL
- NASERIN VAHID
- OASIS FREIGHT AGENCIES
- PARTO SANAT CO
- PASSIVE DEFENSE ORGANIZATION
- PERSIA INTERNATIONAL BANK PLC
- POST BANK
- RAKA
- RESEARCH INSTITUTE OF NUCLEAR SCIENCE & TECHNOLOGY
- SAFIRAN PAYAM DARYA SHIPPING LINES (SAPID)
- SANTEXLINES
- SCHILLER NOVIN
- SEPANIR OIL AND GAS ENERGY ENGINEERING COMPANY
- SHAHID AHMAD KAZEMI INDUSTRIAL GROUP (SAKIG)
- SHAKHESE BEHBUD SANAT 83. SHETAB G.
- SHETAB GAMAN
- SHETAB TRADING
- SHIPPING COMPUTER SERVICES COMPANY (SCSCOL)
- SHOMAL CEMENT COMPANY
- SOROUSH SARAMIN ASATIR (SSA)
- SOUTH WAY SHIPPING AGENCY CO LTD
- TECHNOLOGY COOPERATION OFFICE (TCO) OF THE IRANIAN PRESIDENT'S OFFICE
- VALFAJR 8TH SHIPPING LINE CO.
- Y.A.S. CO. LTD
- YASA PART
