The Syria (European Union Financial Sanctions) (Amendment No. 2) Regulations 2012 (S.I. 2012/2524)

Summary

This UK Statutory Instrument amends the Syria (European Union Financial Sanctions) Regulations 2012 to remove derogations that previously allowed automatic exemptions for certain fund transfers to and from the Central Bank of Syria in respect of trade contracts. It also revokes the earlier amendment (S.I. 2012/639) that had introduced those derogations. The BVI Financial Services Commission has circulated this UK instrument as a sanctions alert for BVI-regulated persons and institutions.

• Derogations removed: References to regulation 8A (the derogation provision) are deleted from regulations 3(3), 4(2), 5(3), 6(2) and 7(3), and regulation 8A itself is omitted.
• Licensing now required: Transfers of funds or economic resources to or from the Central Bank of Syria in respect of trade contracts are no longer automatically exempt and must instead be authorised under the licensing procedure in regulation 10 of the 2012 Regulations.
• Revocation: The Syria (European Union Financial Sanctions) (Amendment) Regulations 2012 (S.I. 2012/639), which had introduced the now-removed derogations, are revoked.
• Underlying purpose: The changes implement Council Regulation (EU) No. 867/2012, which altered the wording of EU derogations concerning the Central Bank of Syria so they are subject to licensing rather than automatic exemption.

No impact assessment was produced because the UK government did not foresee any impact on the private or voluntary sectors, but BVI persons dealing with Syria-related transactions, particularly involving the Central Bank of Syria, should be aware that any such transfers now require a licence rather than relying on an automatic exemption.

Key obligations

• Persons wishing to make transfers of funds or economic resources to or from the Central Bank of Syria in respect of trade contracts must obtain a licence under regulation 10 of the Syria (European Union Financial Sanctions) Regulations 2012, as the prior automatic exemption (derogation) has been removed.

Applies to

persons and institutions subject to Syria financial sanctions, financial institutions dealing with the Central Bank of Syria, persons engaged in trade contracts involving Syria

Deadlines

• 26th October 2012: Date on which the Amendment No. 2 Regulations come into force, removing the Central Bank of Syria derogations and revoking S.I. 2012/639.