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Regulation 6 Financial measures

Original text. Later amendments are not shown.

In Part 3 (Finance)—

(a)

before regulation 11, insert as a Chapter heading—

“Chapter 1

Asset-freeze etc.”;

(b)

after regulation 16, insert as a Chapter heading—

“Chapter 2

Investment, financial services and financial markets”;

(c)

after regulation 17, insert—

“Investments in relation to Iran

17A
(1)

A person (“P”) must not directly or indirectly grant a loan or credit to a relevant person (“Q”), where P knows or has reasonable cause to suspect that Q is a relevant person.

(2)

A person (“P”) must not directly or indirectly acquire or extend a participation, or acquire any ownership interest, in a relevant person (“Q”) who is not an individual, where P knows or has reasonable cause to suspect that Q is a relevant person.

(3)

A person (“P”) must not directly or indirectly create a joint venture with a relevant person (“Q”), where P knows or has reasonable cause to suspect that Q is a relevant person.

(4)

Paragraphs (1), (2) and (3) are subject to Part 6 (Exceptions and licences).

(5)

A person who contravenes a prohibition in paragraph (1), (2) or (3) commits an offence.

(6)

In this regulation, a “relevant person” is any person connected with Iran engaged in—

(a)

the manufacture of—

(i)

any thing falling within a commodity code mentioned in column 1 of the table in Part 2 of Schedule 4 to the 2023 Regulations, or

(ii)

any item specified by description in Part 3 of Schedule 4 to the 2023 Regulations,

(b)

the exploration for, or production of, oil or gas,

(c)

the refining of fuels or the liquefaction of gas,

(d)

the petrochemical industry, or

(e)

uranium mining or the enrichment or reprocessing of uranium.

(7)

In this regulation—

  • “the 2023 Regulations” mean the Iran (Sanctions) Regulations 2023;

  • “exploration”, in relation to oil and gas, includes the exploration for oil and gas reserves, prospecting for and management of oil and gas reserves, as well as the provision of geological services in relation to such reserves;

  • “petrochemical industry” means production plants for the manufacturing of any of the items listed in Annex V to the EU Iran Regulation;

  • “production”, in relation to oil and gas, includes bulk gas transmission services for the purpose of transit or delivery to directly interconnected grids;

  • “refining” means the processing, conditioning or preparation for the final sale of fuels.

UK credit or financial institutions: accounts and corresponding banking relationships etc.

17B
(1)

A UK credit or financial institution must not—

(a)

open a bank account with,

(b)

establish a correspondent banking relationship with, or

(c)

establish a joint venture with,

a person falling within paragraph (5), if the UK credit or financial institution knows or has reasonable cause to suspect that the bank account, correspondent banking relationship or joint venture is with a person falling within paragraph (5).

(2)

A UK credit or financial institution must not—

(a)

open a representative office of that institution in Iran, or

(b)

establish a branch or subsidiary of that institution in Iran.

(3)

A person (“P”) must not—

(a)

open a representative office or establish a branch or subsidiary in the United Kingdom of a person falling within paragraph (5);

(b)

enter into an arrangement for, or on behalf of, a person falling within paragraph (5) which relates to the opening of a representative office or the establishment of a branch or subsidiary in the United Kingdom, if P knows or has reasonable cause to suspect that the arrangement is for, or on behalf of such a person;

(c)

authorise the taking up and pursuit of new business by a representative office, branch or subsidiary of a person falling within paragraph (5), if the representative office, branch or subsidiary was not already authorised for such a purpose before 8th September 2026.

(4)

A person falling within paragraph (5) must not directly or indirectly acquire or extend a participation, or acquire any ownership interest, in a UK credit or financial institution.

(5)

The following persons fall within this paragraph—

(a)

a credit or financial institution domiciled in Iran;

(b)

a branch or subsidiary, wherever located, of a credit or financial institution domiciled in Iran;

(c)

a credit or financial institution that is not domiciled in Iran, but is owned or controlled directly or indirectly (within the meaning of regulation 7) by a person domiciled in Iran.

(6)

Paragraphs (1), (2), (3) and (4) are subject to Part 6 (Exceptions and licences).

(7)

A person who contravenes a prohibition in paragraph (1), (2), (3) or (4) commits an offence.

(8)

In this regulation—

  • “branch” means, in relation to a credit or financial institution domiciled in Iran, or a UK credit or financial institution, a place of business which forms a legally dependent part of that institution and which carries out all or some of the transactions inherent in the business of that institution;

  • “credit or financial institution domiciled in Iran” means—

    1. (a)

      a person, other than an individual, which is domiciled in Iran and which would satisfy the threshold conditions for permission under Part 4A of the Financial Services and Markets Act 2000 if it had its registered office (or if it does not have a registered office, its head office) in the United Kingdom, or

    2. (b)

      an undertaking domiciled in Iran which by way of business—

      1. (i)

        operates a currency exchange,

      2. (ii)

        transmits money (or any representation of monetary value) by any means, or

      3. (iii)

        cashes cheques that are made payable to customers;

  • “subsidiary” has the meaning given in section 1159 of the Companies Act 2006;

  • “UK credit or financial institution” means—

    1. (a)

      a person that has permission under Part 4A of the Financial Services and Markets Act 2000 (permission to carry on regulated activity), or

    2. (b)

      an undertaking domiciled in the United Kingdom which by way of business—

      1. (i)

        operates a currency exchange office,

      2. (ii)

        transmits money (or any representation of monetary value) by any means, or

      3. (iii)

        cashes cheques that are made payable to customers.

Insurance and reinsurance services

17C
(1)

A person (“P”) must not provide insurance or reinsurance services to a person falling within paragraph (2), if P knows or has reasonable cause to suspect that P is providing such services to a person falling with paragraph (2).

(2)

A person (“Q”) falls within this paragraph if—

(a)

Q is connected with Iran, or

(b)

Q is acting on behalf of or at the direction of a person connected with Iran.

(3)

Paragraph (1) is subject to Part 6 (Exceptions and licences).

(4)

A person who contravenes the prohibition in paragraph (1) commits an offence.

(5)

Nothing in this regulation prohibits compliance with an insurance or reinsurance agreement concluded before 8th September 2026, provided that the agreement concerned was not prohibited at the date on which it was made.

(6)

For the purposes of this regulation—

  • “insurance and reinsurance services” include the provision of services relating to the extension or renewal of an insurance or reinsurance agreement, except where there is an obligation, which arose before 8th September 2026, of the insurer or re-insurer to accept the extension or renewal;

  • “person acting at the direction of a person connected with Iran” does not include any person who is acting under a direction which is given in relation to a ship or aircraft for the purposes of docking, loading or unloading the ship or aircraft or for any purpose in connection with the safe transit of the ship or aircraft in the territorial sea adjacent to Iran or in the airspace above it.

Sale or purchase of bonds

17D
(1)

A person (“P”) must not directly or indirectly—

(a)

sell to a person falling within paragraph (4), or

(b)

purchase from such a person,

Iranian bonds or bonds guaranteed by the Government of Iran and issued after 8th September 2026 if P knows, or has reasonable cause to suspect, that the sale or purchase of such bonds is directly or indirectly to or from such a person.

(2)

A person (“P”) must not provide brokering services to a person falling within paragraph (4) in respect of Iranian bonds or bonds guaranteed by the Government of Iran and issued after 8th September 2026, if P knows, or has reasonable cause to suspect, that the person falls within paragraph (4).

(3)

A person (“P”) must not provide—

(a)

brokering services,

(b)

advertising services, or

(c)

any other service,

if P knows, or has reasonable cause to suspect, that the provision of the service assists a person falling within paragraph (4) to issue Iranian bonds or bonds guaranteed by the Government of Iran.

(4)

The following persons fall within this paragraph—

(a)

the Government of Iran,

(b)

a person falling within regulation 17B(5) (Iranian credit or financial institutions);

(c)

a person acting on behalf of or at the direction of a person falling within sub-paragraph (a), or (b);

(d)

a person, other than an individual, which is owned or controlled directly or indirectly (within the meaning of regulation 7) by a person falling within sub-paragraph (a), (b) or (c).

(5)

Paragraphs (1) to (3) are subject to Part 6 (Exceptions and licences).

(6)

A person who contravenes a prohibition in paragraph (1), (2) or (3) commits an offence.

(7)

For the purposes of this regulation, “Iranian bonds” means bonds issued by the Government of Iran.”;

(d)

before regulation 18, insert as a Chapter heading—

“Chapter 3

Further Provision”;

(e)

in regulation 18(1)(a), for “17” substitute “17D”.