The Iran (Sanctions) (Overseas Territories) Order 2016 (S.I. 2016 No. 371)

Summary

This is a UK Order in Council that extends United Nations and EU sanctions against Iran to specified Overseas Territories, including the British Virgin Islands. It came into force on 17 March 2016 and revoked the earlier Iran (Restrictive Measures) (Overseas Territories) Order 2012, implementing the revised sanctions package agreed under the Joint Comprehensive Plan of Action (JCPOA) and UN Security Council resolution 2231 (2015).

• Asset freeze: Creates criminal offences for dealing with funds or economic resources of a designated person, or making funds or economic resources available to or for the benefit of a designated person, where the person knows or has reasonable cause to suspect this.
• Financial messaging: Makes it an offence to supply specialised financial messaging services to a designated person.
• Trade restrictions: Creates offences relating to the sale, supply, transfer or export of restricted goods, software or technology to or for use in Iran, and related carriage by ship, aircraft or vehicle.
• Reporting duty: Requires relevant institutions (deposit takers and building-society-type bodies) to inform the Governor as soon as practicable if they know or suspect a customer is a designated person or has committed a freezing offence, and to provide specified identifying and account information.
• Licensing: Allows the Governor, with the Secretary of State's consent, to license otherwise prohibited dealings (e.g. basic expenses, legal fees, pre-existing contractual payments, JCPOA-related civil nuclear activities).
• Enforcement powers: Provides powers to stop, board, divert and search ships, aircraft and vehicles suspected of carrying prohibited goods.

The Order applies broadly to any person in the Territory, British persons or bodies ordinarily resident or incorporated there, and persons aboard Territory-registered ships or aircraft, with particular obligations falling on relevant institutions such as banks and deposit-taking bodies.

Key obligations

• Persons must not deal with funds or economic resources belonging to, or owned, held or controlled by, a designated person where they know or suspect this.
• Persons must not make funds or economic resources available, directly or indirectly, to a designated person or for their benefit.
• Persons must not supply specialised financial messaging services to a designated person.
• Relevant institutions must inform the Governor as soon as practicable if they know or suspect a customer is a designated person or has committed an offence under article 4 or 20(7), providing the basis for suspicion, identifying information, and details of funds or resources held.
• Relevant institutions must inform the Governor as soon as practicable when they credit a frozen account under the permitted exceptions in article 5.
• Persons must not sell, supply, transfer or export restricted goods to an Iranian person or for use in Iran without authorisation.
• Any activity otherwise prohibited under article 4 or 6 requires a licence granted by the Governor with the Secretary of State's consent.

Applies to

relevant institutions (deposit-taking businesses and building-society-type bodies), any person in the Territory, British citizens, British overseas territories citizens and related British nationals ordinarily resident in the Territory, bodies incorporated or constituted under the law of the Territory, persons onboard Territory-registered ships or aircraft, owners, charterers, masters and operators of ships, aircraft and vehicles

Deadlines

• 17th March 2016: Date the Order comes into force
• as soon as practicable: Relevant institutions must inform the Governor upon knowing or suspecting a customer is a designated person or has committed a relevant offence, or upon crediting a frozen account under permitted exceptions

Related documents

• The Sanctions (Overseas Territories) (Revocations) Order 2020 repeals this document