GSY – New Sanction Measures against Iran – The States of Guernsey has adopted new sanction measures against Iran. The new sanctions carry forward the existing sanctions, introduce additional categories or persons as being subject to asset freezing provisions, and extend certain restrictions to the provision of insurance or reinsurance.

Financial services businesses and prescribed businesses will need to familiarise themselves with the new sanctions and check their records to ensure compliance.

Further information on the sanctions and any notifications which need to be made are contained on the States of Guernsey website which can be accessed through the following link: www.gov.gg/sanctionsiran.

Please note that it is proposed that similar legislation will be put in place for Alderney and Sark.

http://www.gfsc.gg/AML-CFT/News/Pages/New-Sanction-Measures-against-Iran.aspx

The goverment web site goes on to say (see http://www.gov.gg/sanctionsiran)

Iran

United Nations Security Council Resolution (UNSCR) 1929 (2010) was adopted on 9 June 2010 and it strengthened and widened existing sanctions against Iran. The EU has implemented these measures through a Council Regulation (EU) No 267/2012 which came into force on 24 March 2012.

Guernsey has implemented the provision of these sanctions measures with the Iran (Restrictive Measures) (Guernsey) Ordinance, 2012. This Ordinance repeals and replaces the Iran (Restrictive Measures) Ordinance 2010.

In order to ensure the Island’s sanction regime is up to date in respect of UNSCR 1929 (2010) and that it meets its obligations in this regard, this Ordinance was made by the Legislation Select Committee (under Article 66(3) of the Reform (Guernsey) Law 1948 as amended) on 4 April 2012 and came into force the same day.

Information on the asset freezes imposed by UNSCR 1929 can be obtained here.

On 24 March 2012 Council Regulation (EU) No 267/2012 came into force which replaces the regime put in place by Council Regulation (EU) No 961/2010 and introduces additional measures and are implemented through the Iran (Restrictive Measures) (Guernsey) Ordinance, 2012. Further guidance can be found from the HM Treasury Guidance Note.

The amendments to the restrictive measures include:

•A ban on the purchase, import or transport from Iran of crude oil and petroleum and petrochemical products; this includes a ban on the provision of financing and insurance and reinsurance in relation to the same.
•A ban on the sale, purchase, transportation or brokering of gold, precious metals and diamonds to, from or for the Government of Iran; this includes a ban on the provision of technical assistance, brokering services and financing or financial assistance in relation to the same.
•A ban on the supply of specialised financial messaging services to exchange financial data to persons whose funds are subject to asset freezing under the 2012 Regulation.
•The extension of the restrictions on transfers of funds to and from Iranian persons to cover non-electronic transfers such as by cash, cheque or accountancy orders.
•The extension of the restrictions on the provision of insurance or reinsurance to the Iranian Government or other Iranian persons (other than individuals) to the provision of brokering services in relation to insurance and reinsurance to such person.
•The introduction new exemptions from some of the sanctions for persons enjoying diplomatic immunity.
Restrictions on transfers of funds to and from Iranian person, entity or body
Article 21 of the EU Regulation sets out restrictions on the transfers of funds to and from an Iranian person, entity or body, and how transfers shall be processed. Prior notification or authorisation from the Policy Council will be required for the following types of transaction of funds under Article 21 of EU Regulation 961/2010:

Transfer Value Requirements
€10,000 or less No requirements. These can be made as normal unless there are a series of transactions below €10,000 that appear to be linked. If this is the case, they should be notified to the Policy Council.

More than €10,000 but less than €40,000 Must be notified in advance to the Policy Council, whatever the transaction is for. A notification request form can be found at the bottom of this page.

€40,000 or above If they relate to foodstuffs, healthcare, medical equipment or humanitarian purposes, they must be notified in advance to the Policy Council. It does not require prior authorisation from the Policy Council. An authorisation request can be accessed below.

If the transaction if for any other purpose, it must be submitted to the Policy Council in advance for authorisation. It cannot be undertaken without prior authorisation. An authorisation request form can be accessed below.

A definition of ‘transfers of funds’, and definitions of an ‘Iranian person, entity or body’ and further explanation of the measures can be found within the HM Treasury guidance notice.

Prior authorisation or any queries relating to these sanction measure can be contained by contacting sanctions@gov.gg with subject line ‘Iran Sanctions’.

Human Rights
On 12 April 2011, Council Regulation (EU) No 359/2011 came into force which placed restrictive measures on persons responsible for serious human rights violations in Iran and these measures were implemented locally through the Iran (Freezing of Funds) Ordinance 2011.

All financial institutions and other bodies and persons in Guernsey will need to ensure they do not maintain any accounts or otherwise hold any funds or economic resources for the entities and individuals named in the HM Treasury consolidated lists. If so, they should report to the Policy Council details of all funds or economic resources that they have frozen in accordance with the Order. They must also provide the Policy Council with all relevant information necessary for ensuring compliance with the Order.