For the purposes of this Regulation the following definitions shall apply:
(a)
‘branch’ of a financial or credit institution means a place of business which forms a legally dependent part of a financial or credit institution and which carries out directly all or some of the transactions inherent in the business of financial or credit institutions;
(b)
‘brokering services’ means:
(i)
the negotiation or arrangement of transactions for the purchase, sale or supply of goods and technology from a third country to any other third country, or
(ii)
the selling or buying of goods and technology that are located in third countries for their transfer to another third country.
(c)
‘contract or transaction’ means any transaction of whatever form and whatever the applicable law, whether comprising one or more contracts or similar obligations made between the same or different parties; for this purpose ‘contract’ includes a bond, guarantee or indemnity, particularly a financial guarantee or financial indemnity, and credit, whether legally independent or not, as well as any related provision arising under, or in connection with, the transaction;
(d)
‘credit institution’ means a credit institution as defined in Article 4(1) of Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions (7), including its branches inside or outside the Union;
(e)
‘customs territory of the Union’ means the territory as defined in Article 3 of Council Regulation (EEC) No 2913/92 of 12 October 1992 establishing the Community Customs Code (8) and in Commission Regulation (EEC) No 2454/93 of 2 July 1993 laying down provisions for the implementation of Regulation (EEC) No 2913/92 (9);
(f)
‘economic resources’ means assets of every kind, whether tangible or intangible, movable or immovable, which are not funds, but which may be used to obtain funds, goods or services;
(g)
‘financial institution’ means
(i)
an undertaking, other than a credit institution, which carries out one or more of the operations included in points 2 to 12 and points 14 and 15 of Annex I to Directive 2006/48/EC, including the activities of currency exchange offices (bureaux de change);
(ii)
an insurance company duly authorised in accordance with Directive 2002/83/EC of the European Parliament and of the Council of 5 November 2002 concerning life assurance (10), insofar as it carries out activities covered by that Directive;
(iii)
an investment firm as defined in point 1 of Article 4(1) of Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments (11);
(iv)
a collective investment undertaking marketing its units or shares; or
(v)
an insurance intermediary as defined in Article 2(5) of Directive 2002/92/EC of the European Parliament and of the Council of 9 December 2002 on insurance mediation (12), with the exception of intermediaries referred to in Article 2(7) of that Directive, when they act in respect of life insurance and other investment related services;
including its branches inside or outside the Union.
(h)
‘freezing of economic resources’ means preventing the use of economic resources to obtain funds, goods or services in any way, including, but not limited to, by selling, hiring or mortgaging them;
(i)
‘freezing of funds’ means preventing any move, transfer, alteration, use of, access to, or dealing with funds in any way that would result in any change in their volume, amount, location, ownership, possession, character, destination or other change that would enable the funds to be used, including portfolio management;
(j)
‘funds’ means financial assets and benefits of every kind, including, but not limited to:
(i)
cash, cheques, claims on money, drafts, money orders and other payment instruments;
(ii)
deposits with financial institutions or other entities, balances on accounts, debts and debt obligations;
(iii)
publicly-and privately-traded securities and debt instruments, including stocks and shares, certificates representing securities, bonds, notes, warrants, debentures and derivatives contracts;
(iv)
interest, dividends or other income on or value accruing from or generated by assets;
(v)
credit, right of set-off, guarantees, performance bonds or other financial commitments;
(vi)
letters of credit, bills of lading, bills of sale; and
(vii)
documents showing evidence of an interest in funds or financial resources;
(k)
‘goods’ includes items, materials and equipment;
(l)
‘insurance’ means an undertaking or commitment whereby one or more natural or legal persons is or are obliged, in return for a payment, to provide one or more other persons, in the event of materialisation of a risk, with an indemnity or a benefit as determined by the undertaking or commitment;
(m)
‘Iranian person, entity or body’ means:
(i)
the State of Iran or any public authority thereof;
(ii)
any natural person in, or resident in, Iran;
(iii)
any legal person, entity or body having its registered office in Iran;
(iv)
any legal person, entity or body, inside or outside Iran, owned or controlled directly or indirectly by one or more of the above mentioned persons or bodies;
(n)
‘reinsurance’ means the activity consisting in accepting risks ceded by an insurance undertaking or by another reinsurance undertaking or, in the case of the association of underwriters known as Lloyd’s, the activity consisting in accepting risks, ceded by any member of Lloyd’s, by an insurance or reinsurance undertaking other than the association of underwriters known as Lloyd’s;
(o)
‘Sanctions Committee’ means the Committee of the United Nations Security Council which was established pursuant to paragraph 18 of United Nations Security Council Resolution (‘UNSCR’) 1737 (2006);
(p)
‘technical assistance’ means any technical support related to repairs, development, manufacture, assembly, testing, maintenance, or any other technical service, and may take forms such as instruction, advice, training, transmission of working knowledge or skills or consulting services; including verbal forms of assistance;
(q)
‘territory of the Union’ means the territories of the Member States to which the Treaty is applicable, under the conditions laid down in the Treaty, including their airspace;
(r)
‘transfer of funds’ means any transaction carried out on behalf of a payer through a payment service provider by electronic means, with a view to making funds available to a payee at a payment service provider, irrespective of whether the payer and the payee are the same person. The terms payer, payee and payment service provider have the same meaning as in Regulation (EC) No 1781/2006 of the European Parliament and of the Council of 15 November 2006 on information on the payer accompanying transfers of funds (13);
(s)
‘claim’ means any claim, whether asserted by legal proceedings or not, made before or after the date of entry into force of this Regulation, under or in connection with a contract or transaction, and includes in particular:
(i)
a claim for performance of any obligation arising under or in connection with a contract or transaction;
(ii)
a claim for extension or payment of a bond, financial guarantee or indemnity of whatever form;
(iii)
a claim for compensation in respect of a contract or transaction;
(iv)
a counterclaim;
(v)
a claim for the recognition or enforcement, including by the procedure of exequatur, of a judgment, an arbitration award or an equivalent decision, wherever made or given.
CHAPTER II - EXPORT AND IMPORT RESTRICTIONS
Article 2
1. It shall be prohibited:
(a)
to sell, supply, transfer or export, directly or indirectly, the goods and technology listed in Annexes I and II, whether or not originating in the Union, to any Iranian person, entity or body or for use in Iran; or
(b)
to sell, supply, transfer or export, directly or indirectly, equipment which might be used for internal repression as listed in Annex III, whether or not originating in the Union, to any Iranian person, entity or body or for use in Iran;
(c)
to participate, knowingly and intentionally, in activities the object or effect of which is to circumvent the prohibitions referred to in points (a) and (b).
2. Annex I shall include goods and technology, including software, which are dual-use items or technology as defined in Regulation (EC) No 428/2009 of 5 May 2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items, except for the goods and technology defined in Category 5 of Annex I to that Regulation which are not included in the Nuclear Suppliers Group and Missile Technology Control Regime lists.
3. Annex II shall include other goods and technology which could contribute to Iran's enrichment-related, reprocessing or heavy-water-related activities, to the development of nuclear weapon delivery systems, or to the pursuit of activities related to other topics about which the IAEA has expressed concerns or has identified as outstanding, including those determined by the UN Security Council or by the Sanctions Committee.
4. Annexes I, II and III shall not include goods and technology included in the Common Military List of the European Union (14) (‘Common Military List’).
Article 3
1. A prior authorisation shall be required for the sale, supply, transfer or export, directly or indirectly, of the goods and technology listed in Annex IV, whether or not originating in the Union, to any Iranian person, entity or body or for use in Iran.
2. For all exports for which an authorisation is required under this Article, such authorisation shall be granted by the competent authorities of the Member State where the exporter is established and shall be in accordance with the detailed rules laid down in Article 11 of Regulation (EC) No 428/2009. The authorisation shall be valid throughout the Union.
3. Annex IV shall include any goods and technology, other than those included in Annexes I and II, which could contribute to enrichment-related, reprocessing or heavy water-related activities, to the development of nuclear weapon delivery systems, or to the pursuit of activities related to other topics about which the International Atomic Energy Agency (IAEA) has expressed concerns or has identified as outstanding.
4. Exporters shall supply the competent authorities with all relevant information required for their application for an export authorisation.
5. The competent authorities of the Member States, as identified on the websites listed in Annex V, shall not grant any authorisation for any sale, supply, transfer or export of the goods or technology included in Annex IV, if they have reasonable grounds to determine that the sale, supply, transfer or export thereof would contribute to one of the following activities:
(a)
Iran's enrichment-related, reprocessing or heavy water-related activities;
(b)
the development of nuclear weapon delivery systems by Iran; or
(c)
the pursuit by Iran of activities related to other topics about which the IAEA has expressed concerns or has identified as outstanding.
6. Under the conditions set out in paragraph 5, the competent authorities of the Member States, as identified on the websites listed in Annex V, may annul, suspend, modify or revoke an export authorisation which they have granted.
7. Where the competent authority of a Member State refuses to grant an authorisation, or annul, suspend, substantially limit or revoke an authorisation in accordance with paragraph 5, the Member State shall notify the other Member States and the Commission thereof and share the relevant information with them, while complying with the provisions concerning the confidentiality of such information of Council Regulation (EC) No 515/97 of 13 March 1997 on mutual assistance between the administrative authorities of the Member States and cooperation between the latter and the Commission to ensure the correct application of the law on customs and agricultural matters (15).
8. Before a Member State grants an authorisation in accordance with paragraph 5 for a transaction which is essentially identical to a transaction which is the subject of a still valid denial issued by another Member State or by other Member States under paragraphs 6 and 7, it will first consult the Member State or States which issued the denial. If, following such consultations, the Member State concerned decides to grant an authorisation, it shall inform the other Member States and the Commission thereof, providing all relevant information to explain the decision.
Article 4
It shall be prohibited to purchase, import or transport from Iran the goods and technology listed in Annexes I, II and III, whether the item concerned originates in Iran or not.
Article 5
1. It shall be prohibited:
(a)
to provide, directly or indirectly, technical assistance related to the goods and technology listed in the Common Military List, or related to the provision, manufacture, maintenance and use of goods included in that list, to any Iranian person, entity or body or for use in Iran;
(b)
to provide, directly or indirectly, technical assistance or brokering services related to the goods and technology listed in Annexes I and II, or related to the provision, manufacture, maintenance and use of goods listed in Annexes I and II, to any Iranian person, entity or body or for use in Iran;
(c)
to provide, directly or indirectly, technical assistance or brokering services related to equipment which might be used for internal repression as listed in Annex III, to any Iranian person, entity or body or for use in Iran;
(d)
to provide, directly or indirectly, financing or financial assistance related to the goods and technology listed in the Common Military List or in Annexes I, II and III, including in particular grants, loans and export credit insurance, for any sale, supply, transfer or export of such items, or for any provision of related technical assistance to any Iranian person, entity or body or for use in Iran;
(e)
to participate, knowingly and intentionally, in activities the object or effect of which is to circumvent the prohibitions referred to in points (a) to (d).
2. The provision of the following shall be subject to an authorisation from the competent authority of the Member State concerned:
(a)
technical assistance or brokering services related to goods and technology listed in Annex IV and to the provision, manufacture, maintenance and use of those items, directly or indirectly to any Iranian person, entity or body or for use in Iran;
(b)
financing or financial assistance related to goods and technologies referred to in Annex IV, including in particular grants, loans and export credit insurance, for any sale, supply, transfer or export of those items, or for any provision of related technical assistance, directly or indirectly, to any Iranian person, entity or body or for use in Iran.
3. The competent authorities of the Member States, as identified on the websites listed in Annex V, shall not grant any authorisation for the transactions referred to in paragraph 2, if they have reasonable grounds to determine that the action would contribute to one of the following activities:
(a)
Iran's enrichment-related, reprocessing or heavy water-related activities;
(b)
the development of nuclear weapon delivery systems by Iran; or
(c)
the pursuit by Iran of activities related to other topics about which the IAEA has expressed concerns or has identified as outstanding.
Article 6
Article 2(1)(a) shall not apply to:
(a)
the direct or indirect transfer of goods falling within Part B of Annex I, through the territories of Member States when those goods are sold, supplied, transferred or exported to, or for use in, Iran for a light water reactor in Iran the construction of which has begun before December 2006;
(b)
transactions mandated by the International Atomic Energy Agency (IAEA) technical cooperation programme;
(c)
goods supplied, transferred to or for use in, Iran due to obligations of State Parties under the Paris Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction of 13 January 1993.
Article 7
1. The competent authorities of the Member States, as identified on the websites listed in Annex V, may grant, under such terms and conditions as they deem appropriate, an authorisation for a transaction in relation to goods and technology referred to in Article 2(1) or assistance or brokering services referred to in Article 5(1), if they determine, except when subparagraph (c) applies, that the transaction would clearly not contribute to the development of technologies in support of Iran's proliferation-sensitive nuclear activities, or to the development of nuclear weapon delivery systems, including where such goods and technology, assistance or brokering services are for food, agricultural, medical or other humanitarian purposes, and if the following conditions are met:
(a)
the contract for delivery of the goods or technology, or for the provision of assistance or brokering services, includes appropriate end-user guarantees;
(b)
Iran has undertaken not to use the goods or technology concerned, or if applicable, the assistance or brokering services concerned, in proliferation-sensitive nuclear activities or for development of nuclear weapon delivery systems; and
(c)
in those cases where the transaction concerns goods or technology contained in the Nuclear Suppliers Group or Missile Technology Control Regime lists, the Sanctions Committee has determined in advance and on a case-by-case basis that the transaction would clearly not contribute to the development of technologies in support of Iran's proliferation-sensitive nuclear activities, or to the development of nuclear weapon development delivery systems.
2. The Member State concerned shall inform the other Member States and the Commission when it rejects a request for an authorisation.
3. Paragraph 1 shall not apply to transactions or brokering services in relation to goods and technology referred to in Annex III.
Article 8
1. It shall be prohibited to sell, supply, transfer or export key equipment or technology listed in Annex VI, directly or indirectly, to any Iranian person, entity or body or for use in, Iran.
2. Annex VI shall include key equipment and technology for the following key sectors of the oil and gas industry in Iran:
(a)
exploration of crude oil and natural gas;
(b)
production of crude oil and natural gas;
(c)
refining;
(d)
liquefaction of natural gas.
3. Annex VI shall not include items included in the Common Military List, or in Annex I, Annex II or Annex IV.
Article 9
It shall be prohibited:
(a)
to provide, directly or indirectly, technical assistance or brokering services related to the key equipment and technology listed in Annex VI, or related to the provision, manufacture, maintenance and use of goods listed in Annex VI, to any Iranian person, entity or body or for use in Iran.
(b)
to provide, directly or indirectly, financing or financial assistance related to the key equipment and technology listed in Annex VI, to any Iranian person, entity or body or for use in Iran.
(c)
to participate, knowingly and intentionally, in activities the object or effect of which is to circumvent the prohibitions referred to in points (a) and (b).
Article 10
The prohibitions in Articles 8 and 9 shall not apply to transactions required by a trade contract concluded before the date of entry into force of this Regulation, or by a contract or agreement concluded before 26 July 2010 and relating to an investment in Iran made before 26 July 2010, nor shall they prevent the execution of an obligation arising therefrom, provided that the natural or legal person, entity or body seeking to engage in the transaction or to provide assistance has notified, at least 20 working days in advance, the transaction or assistance to the competent authorities of the Member State in which it is established, as identified on the websites listed in Annex V.
CHAPTER III - RESTRICTIONS ON FINANCING OF CERTAIN ENTREPRISES
Article 11
1. The following shall be prohibited:
(a)
the granting of any financial loan or credit to any Iranian person, entity or body referred to in paragraph (2);
(b)
the acquisition or extension of a participation in any Iranian person, entity or body referred to in paragraph (2);
(c)
the creation of any joint venture with any Iranian person, entity or body referred to in paragraph (2).
(d)
the participation, knowingly and intentionally, in activities, the object or effect of which is to circumvent the prohibitions referred to in points (a), (b) and (c).
2. The prohibition in paragraph (1) shall apply to any Iranian person, entity or body engaged:
(a)
in the manufacture of goods or technology listed in the Common Military List or in Annex I or II;
(b)
in the manufacture of equipment which might be used for internal repression as listed in Annex III;
(c)
in the exploration or production of crude oil and natural gas, the refining of fuels or the liquefaction of natural gas.
3. For the purposes of paragraph 2(c) only, the following definitions shall apply:
(a)
‘exploration of crude oil and natural gas’ includes the exploration for, prospection of and management of crude oil and natural gas reserves, as well as the provision of geological services in relation to such reserves;
(b)
‘production of crude oil and natural gas’ includes bulk gas transmission services for the purpose of transit or delivery to directly interconnected grids;
(c)
‘refining’ means the processing, conditioning or preparation for the ultimately final sale of fuels.
4. It shall be prohibited to establish cooperation with an Iranian person, entity or body engaged in the transmission of natural gas as referred to in paragraph 3(b).
5. For the purposes of paragraph 4, ‘cooperation’ means:
(a)
the sharing of investment costs in an integrated or managed supply chain for the receipt or delivery of natural gas directly from or to the territory of Iran; and
(b)
direct co-operation for the purpose of investing in liquefied natural gas facilities within the territory of Iran or in liquefied natural gas facilities directly connected thereto.
Article 12
1. The making of an investment through transactions referred to in Article 11(1) in an Iranian person, entity or body engaged in the manufacture of goods or technology listed in Annex IV shall be subject to an authorisation from the competent authority of the Member State concerned.
2. The competent authorities of the Member States, as identified on the websites listed in Annex V, shall not grant any authorisation for the transactions referred to in paragraph 1, if they have reasonable grounds to determine that the action would contribute to one of the following activities:
(a)
Iran's enrichment-related, reprocessing or heavy water-related activities;
(b)
the development of nuclear weapon delivery systems by Iran; or
(c)
the pursuit by Iran of activities related to other topics about which the IAEA has expressed concerns or has identified as outstanding.
Article 13
By way of derogation from Article 11(2)(a), the competent authorities of the Member States, as identified on the websites listed in Annex V, may grant, under such terms and conditions as they deem appropriate, an authorisation to make an investment through transactions referred to in Article 11(1), if the following conditions are met:
(a)
the Iranian person, entity or body has committed itself to apply appropriate end-user guarantees as regards the goods or technology concerned;
(b)
Iran has undertaken not to use the goods or technology concerned in proliferation-sensitive nuclear activities or for development of nuclear weapon delivery systems; and
(c)
in those cases where the investment is made in an Iranian person, entity or body engaged in the manufacture of goods or technology contained in the Nuclear Suppliers Group and Missile Technology Control Regime lists, the Sanctions Committee has determined in advance and on a case-by-case basis that the transaction would clearly not contribute to the development of technologies in support of Iran's proliferation-sensitive nuclear activities, or to the development of nuclear weapon development delivery systems.
Article 14
Article 11(2)(c) shall not apply to the granting of a financial loan or credit or to the acquisition or extension of a participation , if the following conditions are met:
(a)
the transaction is required by an agreement or contract concluded before 26 July 2010; and
(b)
the competent authority has been informed at least 20 working days in advance of that agreement or contract.
Article 15
It shall be prohibited:
(a)
to accept or approve, by concluding an agreement or by any other means, that the granting of any finacial loan or credit, or the acquisition or extension of a participation, or the creation of any joint venture be made by one or more Iranian persons, entities or bodies, in an enterprise engaged in any of the following activities:
(i)
uranium mining,
(ii)
uranium enrichment and reprocessing of uranium;
(iii)
the manufacture of goods or technology included in the Nuclear Suppliers Group and Missile Technology Control Regime lists.
(b)
to participate, knowingly and intentionally, in activities, the object or effect of which is to circumvent the prohibition in point (a).
CHAPTER IV - FREEZING OF FUNDS AND ECONOMIC RESOURCES
Article 16
1. All funds and economic resources belonging to, owned, held or controlled by the persons, entities and bodies listed in Annex VII shall be frozen. Annex VII shall include the persons, entities and bodies designated by the United Nations Security Council or by the Sanctions Committee in accordance with paragraph 12 of UNSCR 1737 (2006), paragraph 7 of UNSCR 1803 (2008) or paragraph 11, 12 or 19 of UNSCR 1929 (2010).
2. All funds and economic resources belonging to, owned, held or controlled by the persons, entities and bodies listed in Annex VIII shall be frozen. Annex VIII shall include the natural and legal persons, entities and bodies, not covered by Annex VII, who, in accordance with Article 20(1)(b) of Council Decision 2010/413/CFSP, have been identified as:
(a)
being engaged in, directly associated with, or providing support for Iran's proliferation-sensitive nuclear activities or the development of nuclear weapon delivery systems by Iran, including through involvement in the procurement of prohibited goods and technology, or being owned or controlled by such a person, entity or body, including through illicit means, or acting on their behalf or at their direction;
(b)
being a natural or legal person, entity or body that has assisted a listed person, entity or body to evade or violate the provisions of this Regulation, Council Decision 2010/413/CFSP or UNSCR 1737 (2006), UNSCR 1747 (2007), UNSCR 1803 (2008) and UNSCR 1929 (2010);
(c)
being a senior member of the Islamic Revolutionary Guard Corps or a legal person, entity or body owned or controlled by the Islamic Revolutionary Guard Corps or by one of more of its senior members;
(d)
being a legal person, entity or body owned or controlled by the Islamic Republic of Iran Shipping Lines (IRISL).
It shall be prohibited, pursuant to the obligation to freeze the funds and economic resources of IRISL and of designated entities owned or controlled by IRISL, to load and unload cargoes on and from vessels owned or chartered by IRISL or by such entities in ports of Member States. That prohibition shall not prevent the execution of a contract concluded before the entry into force of this Regulation.
The obligation to freeze the funds and economic resources of IRISL and of designated entities owned or controlled by IRISL shall not require the impounding or detention of vessels owned by such entities or the cargoes carried by them insofar as such cargoes belong to third parties, nor does it require the detention of the crew contracted by them.
3. No funds or economic resources shall be made available, directly or indirectly, to or for the benefit of the natural or legal persons, entities or bodies listed in Annexes VII and VIII.
4. The participation, knowingly and intentionally, in activities the object or effect of which is, directly or indirectly, to circumvent the measures referred to in paragraphs 1, 2 and 3 shall be prohibited.
5. Annexes VII and VIII shall include the grounds for listing of listed persons, entities and bodies, as provided by the Security Council or by the Sanctions Committee for Annex VII.
6. Annexes VII and VIII shall also include, where available, information necessary to identify the natural or legal persons, entities and bodies concerned, as provided by the Security Council or by the Sanctions Committee for Annex VII. With regard to natural persons, such information may include names including aliases, date and place of birth, nationality, passport and ID card numbers, gender, adress, if known, and function or profession. With regard to legal persons, entities and bodies, such information may include names, place and date of registration, registration number and place of business. Annex VII shall also include the date of designation by the Security Council or by the Sanctions Committee.
Article 17
By way of derogation from Article 16, the competent authorities of the Member States, as indicated on the websites listed in Annex V, may authorise the release of certain frozen funds or economic resources, if the following conditions are met:
(a)
the funds or economic resources are the subject of a judicial, administrative or arbitral lien established before the date on which the person, entity or body referred to in Article 16 has been designated by the Sanctions Committee, the Security Council or the Council or of a judicial, administrative or arbitral judgment rendered prior to that date;
(b)
the funds or economic resources will be used exclusively to satisfy claims secured by such a lien or recognised as valid in such a judgment, within the limits set by applicable laws and regulations governing the rights of persons having such claims;
(c)
the lien or judgment is not for the benefit of a person, entity or body listed in Annex VII or VIII;
(d)
recognising the lien or judgment is not contrary to public policy in the Member State concerned; and
(e)
where Article 16(1) applies, the Sanctions Committee has been notified by the Member State of the lien or judgment.
Article 18
By way of derogation from Article 16 and provided that a payment by a person, entity or body listed in Annex VII or VIII is due under a contract or agreement that was concluded by, or an obligation that arose for the person, entity or body concerned, before the date on which that person, entity or body had been designated by the Sanctions Committee, the Security Council or by the Council, the competent authorities of the Member States, as indicated on the websites listed in Annex V, may authorise, under such conditions as they deem appropriate, the release of certain frozen funds or economic resources, if the following conditions are met:
(a)
the competent authority concerned has determined that:
(i)
the funds or economic resources shall be used for a payment by a person, entity or body listed in Annex VII or VIII;
(ii)
the contract, agreement or obligation will not contribute to the manufacture, sale, purchase, transfer, export, import, transport or use of goods and technology listed in Annexes I, II, III and VI; and
(iii)
the payment is not in breach of Article 16(3);
(b)
where Article 16(1) applies, the Member State concerned has notified the Sanctions Committee of that determination and its intention to grant an authorisation, and the Sanctions Committee has not objected to that course of action within ten working days of notification; and
(c)
where Article 16(2) applies, the Member State concerned has, at least two weeks prior to the grant of the authorisation, notified the other Member States and the Commision of that determination and its intention to grant an authorisation.
Article 19
1. By way of derogation from Article 16, the competent authorities of the Member States, as identified on the websites listed in Annex V, may authorise, under such conditions as they deem appropriate, the release of certain frozen funds or economic resources, or the making available of certain funds or economic resources, provided that the following conditions are met:
(a)
the competent authority concerned has determined that the funds or economic resources are:
(i)
necessary to satisfy the basic needs of persons listed in Annex VII or VIII, and their dependent family members, including payments for foodstuffs, rent or mortgage, medicines and medical treatment, taxes, insurance premiums, and public utility charges;
(ii)
intended exclusively for payment of reasonable professional fees and reimbursement of incurred expenses associated with the provision of legal services; or
(iii)
intended exclusively for payment of fees or service charges for routine holding or maintenance of frozen funds or economic resources; and
(b)
where the authorisation concerns a person, entity or body listed in Annex VII, the Member State concerned has notified the Sanctions Committee of that determination and its intention to grant an authorisation, and the Sanctions Committee has not objected to that course of action within five working days of notification.
2. By way of derogation from Article 16, the competent authorities of the Member States, as indicated on the websites listed in Annex V, may authorise the release of certain frozen funds or economic resources or the making available of certain funds or economic resources, after having determined that the funds or economic resources are necessary for extraordinary expenses or for payment for or transfer of goods when procured for a light water reactor in Iran the construction of which has begun before December 2006, or for goods referred to in Article 6(b) and (c), provided that the following conditions are met:
(a)
where the authorisation concerns a person, entity or body listed in Annex VII, the Sanctions Committee has been notified of that determination by the Member State concerned and the determination has been approved by that Committee; and
(b)
where the authorisation concerns a person, entity or body listed in Annex VIII, the competent authority has notified the grounds on which it considers that a specific authorisation should be granted to the other competent authorities of the Member States and to the Commission at least two weeks before the authorisation.
3. The relevant Member State shall inform the other Member States and the Commission of any authorisation granted under paragraphs 1 or 2.
Article 20
1. Article 16(3) shall not prevent financial or credit institutions from crediting frozen accounts where they receive funds transferred onto the account of a listed natural or legal person, entity or body, provided that any additions to such accounts shall also be frozen. The financial or credit institution shall inform the competent authorities about such transactions without delay.
2. Article 16(3) shall not apply to the addition to frozen accounts of:
(a)
interest or other earnings on those accounts; or
(b)
payments due under contracts, agreements or obligations that were concluded or arose before the date on which the person, entity or body referred to in Article 16 has been designated by the Sanctions Committee, the Security Council or by the Council;
provided that any such interest or other earnings and payments are frozen in accordance with Article 16(1) or (2).
3. This Article shall not be construed as authorising transfers of funds referred to in Article 21.
CHAPTER V - RESTRICTIONS ON TRANSFERS OF FUNDS AND ON FINANCIAL SERVICES
Article 21
1. Transfer of funds to and from an Iranian person, entity or body shall be processed as follows:
(a)
transfers due on transactions regarding foodstuffs, healthcare, medical equipment, or for humanitarian purposes shall be carried out without any prior authorisation. The transfer shall be notified in advance in writing to the competent authorities of the Member States, as identified on the websites listed in Annex V, if above EUR 10 000 or equivalents;
(b)
any other transfer below EUR 40 000 shall be carried out without any prior authorisation. The transfer shall be notified in advance in writing to the competent authorities of the Member States, as identified on the websites listed in Annex V, if above EUR 10 000 or equivalent;
(c)
any other transfer of or above EUR 40 000 or equivalent shall require a prior authorisation of the competent authorities of the Member States, as identified on the websites listed in Annex V.
2. These provisions shall apply regardless of whether the transfer of funds is executed in a single operation or in several operations which appear to be linked.
3. Notifications and requests for authorisation relating to the transfer of funds to an Iranian person, entity or body shall be addressed by or on behalf of the payment service provider of the payer as referred to in Article 1(r) to the competent authorities of the Member State where the initial order to execute the transfer is given.
Notifications and requests for authorisation relating to the transfer of funds from an Iranian person, entity or body shall be addressed by or on behalf of the payment service provider of the payee as referred to in Article 1(r) to the competent authorities of the Member State in which the payee is resident or the payment service provider is established.
If the payments service provider of the payer or the payee does not fall under the scope of Article 39, notifications and requests for authorisation shall be addressed by the payer or payee to the competent authorities of the Member State in which the payer or payee is resident.
4. For the purposes of paragraph 1(c), the competent authorities of the Member States, as identified on the websites listed in Annex V, shall grant, under such terms and conditions as they deem appropriate, an authorisation for a transfer of funds having a value of EUR 40 000 or more, unless they have reasonable grounds to determine that the transfer of funds for which the authorisation is requested, would contribute to one of the following activities:
(a)
Iran's enrichment-related, reprocessing or heavy water-related activities;
(b)
the development of nuclear weapon delivery systems by Iran;
(c)
the pursuit by Iran of activities related to other topics about which the IAEA has expressed concerns or has identified as outstanding; or
(d)
prohibited activities related to the exploration of crude oil and natural gas, production of crude oil and natural gas, refining, or liquefaction of natural gas as referred to in Articles 8, 9 and 11 by an Iranian person, entity or body.
A competent authority may charge a fee for the assessment of requests for authorisation.
An authorisation shall be deemed granted if a competent authority has received a request in writing for authorisation and, within four weeks, the competent authority has not objected in writing to the transfer of funds. If the objection is raised because an investigation is pending, the competent authority shall state this and communicate its decision as soon as possible. The competent authorities shall have access, directly or indirectly, on a timely basis to the financial, administrative and law enforcement related information necessary for carrying out the investigation.
The Member State concerned shall inform the other Member States and the Commission when it rejects a request for authorisation.
5. This article shall not apply where an authorisation for a transfer has been granted in accordance with Articles 13, 17, 18, 19 or 20.
Article 22
1. Branches and subsidiaries, falling within the scope of Article 39, of credit and financial institutions domiciled in Iran shall notify the competent authority of the Member State where they are established, as identified on the website mentioned in Annex V, of all transfers of funds carried out or received by them, the names of the parties and the amount and the date of the transaction, within five working days after carrying out or receiving the transfer of funds concerned. If the information is available, the notification must specify the nature of the transaction and, where appropriate, the nature of the goods covered by the transaction and must, in particular, state whether the goods are covered by Annex I, II, III, IV or VI of this Regulation and, if their export is subject to authorisation, indicate the number of the licence granted.
2. Subject to and in accordance with the information-sharing arrangements, the other notified competent authorities shall without delay transmit that data, as necessary, in order to prevent any transaction that could contribute to proliferation-sensitive nuclear activities or to the development of nuclear weapons delivery systems, to the competent authorities of other Member States where the counterparts to such transactions are established.
Article 23
1. Credit and financial institutions which fall within the scope of Article 39 shall, in their activities with credit and financial institutions referred to in paragraph 2, and in order to prevent such activities from contributing to proliferation-sensitive nuclear activities or to the development of nuclear weapon delivery systems:
(a)
exercise continuous vigilance over account activity, particularly through their programmes on customer due diligence and under their obligations relating to money laundering and financing of terrorism;
(b)
require that in payment instructions all information fields which relate to the originator and beneficiary of the transaction in question be completed and if that information is not supplied, refuse the transaction;
(c)
maintain all records of transactions for a period of five years and make them available to national authorities on request;
(d)
if they suspect or have reasonable grounds to suspect that funds are related to proliferation financing, promptly report their suspicions to the financial intelligence unit (FIU) or to another competent authority designated by the Member State concerned, as indicated on the websites listed in Annex V, without prejudice to Articles 5 and 16. The FIU or such other competent authority will serve as a national centre for receiving and analysing suspicious transaction reports regarding potential proliferation financing. The FIU or such other competent authority shall have access, directly or indirectly, on a timely basis to the financial, administrative and law enforcement information that it requires to properly undertake this function, including the analysis of suspicious transaction reports.
The above requirements for credit and financial institutions shall be complementary to existing obligations deriving from Regulation (EC) No 1781/2006 and from the implementation of Directive 2005/60/EC of the European Parliament and of the Council of 26 October 2005 on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing (16).
2. The measures set out in paragraph 1 shall apply to credit and financial institutions in their activities with:
(a)
credit and financial institutions domiciled in Iran, including the Central Bank of Iran;
(b)
branches and subsidiaries, where they fall within the scope of Article 39, of credit and financial institutions domiciled in Iran;
(c)
branches and subsidiaries, where they do not fall within the scope of Article 39, of credit and financial institutions domiciled in Iran;
(d)
credit and financial institutions that are not domiciled in Iran but are controlled by persons and entities domiciled in Iran.
Article 24
1. It shall be prohibited for credit and financial institutions falling within the scope of Article 39 to do any of the following:
(a)
to open a new bank account with a credit or financial institution domiciled in Iran, including the Central Bank of Iran, or with any credit or financial institution referred to in Article 23(2);
(b)
to establish a new correspondent banking relationship with a credit or financial institution domiciled in Iran, including the Central Bank of Iran, or with any credit or financial institution referred to in Article 23(2),
(c)
to open a new representative office in Iran or to establish a new branch or subsidiary in Iran;
(d)
to establish a new joint venture with a credit or financial institution domiciled in Iran, including the Central Bank of Iran, or with any credit or financial institution referred to in Article 23(2).
2. It shall be prohibited:
(a)
to authorise the opening of a representative office or the establishment of a branch or subsidiary in the Union of a credit or financial institution domiciled in Iran, including the Central Bank of Iran, or of any credit or financial institution referred to in Article 23(2);
(b)
to conclude agreements for, or on behalf of, a credit or financial institution domiciled in Iran, including the Central Bank of Iran, or for, or on behalf of, any credit or financial institution referred to in Article 23(2) pertaining to the opening of a representative office or the establishment of a branch or subsidiary in the Union;
(c)
to grant an authorisation for taking up and pursuing the business of credit institution or for any other business requiring prior authorisation, by a representative office, branch or subsidiary of a credit or financial institution domiciled in Iran, including the Central Bank of Iran, or of any credit or financial institution referred to in Article 23(2), if the representative office, branch or subsidiary was not operational before 26 July 2010.
(d)
to acquire or to extend a participation, or to acquire any other ownership interest, in a credit or financial institution falling within the scope of Article 39 by any credit or financial institution referred to in Article 23(2).
Article 25
It shall be prohibited:
(a)
to sell or purchase public or public-guaranteed bonds issued after 26 July 2010, directly or indirectly, to or from any of the following:
(i)
Iran or its Government, and its public bodies, corporations and agencies;
(ii)
a credit or financial institution domiciled in Iran, including the Central Bank of Iran, or any credit or financial institution referred to in Article 23(2);
(iii)
a natural person or a legal person, entity or body acting on behalf or at the direction of a legal person, entity or body referred to in (i) or (ii);
(iv)
a legal person, entity or body owned or controlled by a person, entity or body referred to in (i), (ii) or (iii);
(b)
to provide brokering services with regard to public or public-guaranteed bonds issued after 26 July 2010 to a person, entity or body referred to in point (a);
(c)
to assist a person, entity or body referred to in point (a) in order to issue public or public-guaranteed bonds, by providing brokering services, advertising or any other service with regard to such bonds.
Article 26
1. It shall be prohibited:
(a)
to provide insurance or re-insurance to:
(i)
Iran or its Government, and its public bodies, corporations and agencies;
(ii)
an Iranian person, entity or body other than a natural person; or
(iii)
a natural person or a legal person, entity or body when acting on behalf or at the direction of a legal person, entity or body referred to in (i) or (ii).
(b)
to participate, knowingly and intentionally, in activities, the object or effect of which is to circumvent the prohibition in point (a).
2. Points (i) and (ii) of paragraph 1(a) shall not apply to the provision of compulsory or third party insurance to Iranian persons, entities or bodies based in the Union.
3. Point (iii) of paragraph 1(a) shall not apply to the provision of insurance, including health and travel insurance, to individuals acting in their private capacity, except for persons listed in Annexes VII and VIII, and re-insurance relating thereto.
Point (iii) of paragraph 1(a) shall not prevent the provision of insurance or re-insurance to the owner of a vessel, aircraft or vehicle chartered by a person, entity or body referred to in point (i) or (ii) of paragraph 1(a) and which is not listed in Annexes VII or VIII.
For the purpose of point (iii) of paragraph 1(a), a person, entity or body shall not be considered to act at the direction of a person, entity or body referred to in points (i) and (ii) of paragraph 1(a) where that direction is for the purposes of docking, loading, unloading or safe transit of a vessel or aircraft temporarly in Iranian waters or airspace.
4. This Article prohibits the extension or renewal of insurance and re-insurance agreements concluded before the entry into force of this Regulation, but, without prejudice to Article 16(3), it does not prohibit compliance with agreements concluded before that date.
CHAPTER VI - RESTRICTIONS ON TRANSPORT
Article 27
1. To prevent the transfer of goods and technology which are covered by the Common Military List or the supply, sale, transfer, export or import of which is prohibited by this Regulation, all goods brought into or leaving the customs territory of the Union from or to Iran shall be made subject to pre-arrival or pre-departure information to be submitted to the competent customs authorities of the Member State concerned.
2. The rules governing the obligation to provide pre-arrival and pre-departure information, in particular regarding the person who provides that information, the time limits to be respected and the data required, shall be as determined in the relevant provisions concerning entry and exit summary declarations as well as customs declarations in Regulation (EEC) No 2913/92 and in Regulation (EEC) No 2454/93.
3. Furthermore, the person who provides the information referred to in paragraph 2, shall declare whether the goods are covered by the Common Military List or by this Regulation and, where their export is subject to authorisation, specify the particulars of the export licence granted.
4. Until 31 December 2010 the entry and exit summary declarations and the required additional elements referred to in paragraph 3 may be submitted in written form using commercial, port or transport information, provided that they contain the necessary details.
5. As from 1 January 2011, the required additional elements referred to in this Article shall be submitted either in written form or using a customs declaration as appropriate.
Article 28
1. The provision by nationals of Member States or from the territories of Member States of bunkering or ship supply services, or any other servicing of vessels, to vessels owned or controlled, directly or indirectly, by an Iranian person, entity or body shall be prohibited where the providers of the service have information, including from the competent customs authorities on the basis of the pre-arrival and pre-departure information referred to in Article 27, that provides reasonable grounds to believe that the vessels carry goods covered by the Common Military List or goods whose supply, sale, transfer or export is prohibited under this Regulation, unless the provision of such services is necessary for humanitarian purposes.
2. The provision by nationals of Member States, or from the territories of Member States, of engineering and maintenance services to cargo aircraft owned or controlled, directly or indirectly, by an Iranian person, entity or body shall be prohibited, where the providers of the service have information, including from the competent customs authorities on the basis of the pre-arrival and pre-departure information referred to in Article 27, that provides reasonable grounds to believe that the cargo aircraft carry goods covered by the Common Military List or goods the supply, sale, transfer or export of which is prohibited under this Regulation, unless the provision of such services is necessary for humanitarian and safety purposes.
3. The prohibitions in paragraphs 1 and 2 shall apply until the cargo has been inspected and, if necessary, seized or disposed of, as the case may be.
Any seizure and disposal may, in accordance with national legislation or the decision of a competent authority, be carried out at the expense of the importer or be recovered from any other person or entity responsible for the attempted illicit supply, sale, transfer or export.
CHAPTER VII - GENERAL AND FINAL PROVISIONS
Article 29
1. No claims in connection with any contract or transaction the performance of which would have been affected, directly or indirectly, in whole or in part, by the measures imposed under Regulation (EC) No 423/2007 or this Regulation, including claims for indemnity or any other claim of this type, such as a claim for compensation or a claim under a guarantee, notably a claim for extension or payment of a bond, guarantee or indemnity, particularly a financial guarantee or financial indemnity, of whatever form, shall be satisfied, if they are made by:
(a)
designated persons, entities or bodies listed in Annexes VII and VIII;
(b)
any other Iranian person, entity or body, including the Iranian government;
(c)
any person, entity or body acting through or on behalf of one of the persons, entities or bodies referred to in points (a) and (b).
2. The performance of a contract or transaction shall be regarded as having been affected by the measures imposed under Regulation (EC) No 423/2007 or by this Regulation where the existence or content of the claim results directly or indirectly from those measures.
3. In any proceedings for the enforcement of a claim, the onus of proving that satisfying the claim is not prohibited by paragraph 1 shall be on the person seeking the enforcement of that claim.
4. This Article is without prejudice to the right of the persons, entities and bodies referred to in paragraph 1 to judicial review of the legality of the non-performance of contractual obligations in accordance with Regulation (EC) No 423/2007 or this Regulation.
Article 30
For the purposes of Articles 8 and 9, point (c) of Article 11(2), and Articles 21 and 26, any body, entity or holder of rights derived from an original award before the entry into force of this Regulation by a sovereign Government other than Iran, of a production sharing agreement shall not be considered an Iranian person, entity or body. In such cases and in relation to Article 8, the competent authority of the Member State may require appropriate end-user guarantees from any body or entity for any sale, supply, transfer or export of any key equipment or technology listed in Annex VI.
Article 31
1. Without prejudice to the applicable rules concerning reporting, confidentiality and professional secrecy, natural and legal persons, entities and bodies shall:
(a)
supply immediately any information which would facilitate compliance with this Regulation, such as information on accounts and amounts frozen in accordance with Article 16, to the competent authorities of the Member States, as indicated on the websites listed in Annex V, where they are resident or located, and shall transmit such information, directly or through the Member States, to the Commission;
(b)
cooperate with the competent authorities, as indicated on the websites listed in Annex V, in any verification of this information.
2. Any additional information received directly by the Commission shall be made available to the Member State concerned.
3. Any information provided or received in accordance with this Article shall be used only for the purposes for which it was provided or received.
Article 32
1. The freezing of funds and economic resources or the refusal to make funds or economic resources available, carried out in good faith on the basis that such action is in accordance with this Regulation, shall not give rise to liability of any kind on the part of the natural or legal person or entity or body implementing it, or its directors or employees, unless it is proved that the funds and economic resources were frozen or withheld as a result of negligence.
2. The prohibitions set out in the present Regulation shall not give rise to liability of any kind on the part of the natural or legal persons or entities concerned, if they did not know, and had no reasonable cause to suspect, that their actions would infringe these prohibitions.
3. The disclosure in good faith, as provided for in Articles 21, 22 and 23, by an institution or by a person covered by this Regulation or an employee or director of such an institution, of the information referred to in Articles 21, 22 and 23 shall not give rise to liability of any kind on the part of the institution or person or its directors or employees.
Article 33
1. A Member State may take all action it deems necessary to ensure that relevant international, Union or national legal obligations concerning the health and safety of workers and environmental protection are respected where cooperation with an Iranian person, entity or body may be affected by the implementation of this Regulation.
2. For the purpose of action taken pursuant to paragraph 1, the prohibitions in Articles 8 and 9, point (c) of Article 11(2), and Articles 16(2), 21 and 26 shall not apply.
3. Member States shall inform each other in advance of action pursuant to paragraph 1.
Article 34
The Commission and Member States shall immediately inform each other of the measures taken under this Regulation and shall supply each other with any other relevant information at their disposal in connection with this Regulation, in particular information in respect of violations and enforcement problems and judgments issued by national courts.
Article 35
The Commission shall:
(a)
amend Annex II on the basis of determinations made by either the United Nations Security Council or the Sanctions Committee or on the basis of information supplied by Member States;
(b)
amend Annex IV on the basis of information supplied by Member States;
(c)
amend Annex V on the basis of information supplied by Member States.
Article 36
1. Where the Security Council or the Sanctions Committee lists a natural or legal person, entity or body, the Council shall include such natural or legal person, entity or body in Annex VII.
2. Where the Council decides to subject a natural or legal person, entity or body to the measures referred to in Article 16(2), it shall amend Annex VIII accordingly.
3. The Council shall communicate its decision, including the grounds for listing, to the natural or legal person, entity or body referred to in paragraphs 1 and 2, either directly, if the address is known, or through the publication of a notice, providing such natural or legal person, entity or body with an opportunity to present observations.
4. Where observations are submitted, or where substantial new evidence is presented, the Council shall review its decision and inform the natural or legal person, entity or body accordingly.
5. Where the United Nations decides to delist a natural or legal person, entity or body, or to amend the identifying data of a listed natural or legal person, entity or body, the Council shall amend Annex VII accordingly.
6. The list in Annex VIII shall be reviewed in regular intervals and at least every 12 months.
Article 37
1. Member States shall lay down the rules on penalties applicable to infringements of this Regulation and shall take all measures necessary to ensure that they are implemented. The penalties provided for shall be effective, proportionate and dissuasive.
2. Member States shall notify the Commission of those rules without delay after the entry into force of this Regulation and shall notify it of any subsequent amendment.
Article 38
1. Member States shall designate the competent authorities referred to in this Regulation and identify them on the websites listed in Annex V. Member States shall notify the Commission of any changes in the addresses of their websites listed in Annex V.
2. Member States shall notify the Commission of their competent authorities, including the contact details of those competent authorities, without delay after the entry into force of this Regulation, and shall notify it of any subsequent amendment.
3. Where this Regulation sets out a requirement to notify, inform or otherwise communicate with the Commission, the address and other contact details to be used for such communication shall be those indicated in Annex V.
Article 39
This Regulation shall apply:
(a)
within the territory of the Union, including its airspace;
(b)
on board any aircraft or any vessel under the jurisdiction of a Member State;
(c)
to any person inside or outside the territory of the Union who is a national of a Member State;
(d)
to any legal person, entity or body which is incorporated or constituted under the law of a Member State;
(e)
to any legal person, entity or body in respect of any business done in whole or in part within the Union.
Article 40
Regulation (EC) No 423/2007 is hereby repealed. References to the repealed regulation shall be construed as references to this Regulation.
Article 41
This Regulation shall enter into force on the day of its publication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
