The Syria (European Union Financial Sanctions) (Amendment No. 2) Regulations 2013 (S.I. 2013/1876)

Summary

This UK Statutory Instrument amends the Syria (European Union Financial Sanctions) Regulations 2012 by inserting a licensing derogation mechanism. It reflects a change to the underlying EU Council Regulation that allows Member State competent authorities (in the UK, HM Treasury) to license exceptions to certain restrictions on dealings with Syrian credit and financial institutions.

• What changes: Regulation 12 of the 2012 Regulations is amended so that the prohibitions on credit institutions opening new bank accounts with Syrian credit or financial institutions, opening new representative offices in Syria, or establishing new branches or subsidiaries in Syria, do not apply where the Treasury has granted a licence authorising the activity.
• Licensing conditions: Where the Treasury grants such a licence, the existing licence conditions in regulation 10(2) to (6) of the 2012 Regulations apply to it.
• Background: The change implements Article 25a inserted into Council Regulation (EU) No 36/2012 by the amending Council Regulation (EU) No 697/2013, which permits derogations to sanctions prohibitions to be authorised.

No new impact assessment was produced, as the Treasury did not foresee any additional cost to business or the voluntary sector. The instrument is procedural in the sense that it creates a licensing exemption route rather than imposing new prohibitions or reporting duties.

Key obligations

• Credit institutions relying on the new derogation must obtain a licence from HM Treasury before opening a new bank account with a Syrian credit or financial institution, opening a new representative office in Syria, or establishing a new branch or subsidiary in Syria
• Any licence granted under the new derogation is subject to the licence conditions set out in regulation 10(2) to (6) of the Syria (European Union Financial Sanctions) Regulations 2012

Applies to

credit institutions, financial institutions subject to EU financial sanctions on Syria

Deadlines

• 16th August 2013: Date the Amendment No. 2 Regulations 2013 come into force