Paragraph 5 Transfer of designated funds

After article 5, insert—

“Transfer of designated funds

5A.

(1)

Within 28 days of the publication of a notice under article 4(1), any person who holds funds to which the notice applies—

(a)

must cause the transfer of those funds to the account of the Development Fund for Iraq held at the Federal Reserve Bank of New York; and

(b)

notify the relevant enforcement authority in writing of—

(i)

the identity of the person by, for, or on whose behalf he held the funds;

(ii)

the amount transferred; and

(iii)

the date the transfer took place.

(2)

A person who holds funds to which a notice under article 4(1) applies after the expiry of the period referred to in paragraph (1) must, as soon as possible after he becomes aware that he holds such funds—

(a)

cause the transfer of those funds to the account of the Development Fund for Iraq held at the Federal Reserve of New York; and

(b)

notify the relevant enforcement authority in writing of—

(i)

the identity of the person by, for, or on whose behalf he held those funds;

(ii)

the amount transferred; and

(iii)

the date the transfer took place.

(3)

Neither paragraph (1) nor (2) applies to any funds that—

(a)

are required to be dealt with otherwise than in accordance with that paragraph by—

(i)

an order or judgment of a court or a final and binding arbitral award made on or before the day on which the amendments to this Order made by the Iraq (United Nations Sanctions) (Channel Islands) Order 2003^f1 came into force; or

(ii)

a binding determination made on or before that date by a public authority or under an enactment; or

(b)

on or before that date were subject to a lien, charge or other like interest created or imposed as a means of enforcing an order or judgment of a court, a final and binding arbitral award or a binding determination made by a public authority or under an enactment; or

(c)

are authorised by a licence granted by the relevant enforcement authority under article 5 to be dealt with otherwise than in accordance with that paragraph.

(4)

An obligation to transfer funds under paragraph (1) or (2) applies notwithstanding any right, obligation, restriction or immunity, whether imposed or conferred by statute or otherwise, in relation to those funds.

(5)

No person may be held liable in respect of any action taken for the purpose of complying with an obligation to transfer funds under paragraph (1) or (2).

(6)

Funds in respect of which paragraph (1) or (2) applies are immune from any legal process (including any measure of restraint, attachment, execution or detention) requiring them to be dealt with otherwise than in accordance with this Order.

(7)

Any person who fails to comply with paragraph (1) or (2) is guilty of an offence.

(8)

In proceedings for an offence under this article, it is a defence for the accused to show that he took all reasonable precautions and exercised all due diligence to avoid committing the offence.”.