On 30 September 2014, the United Nations (Sanctions - Iran) Regulations 2014 (the “Regulations”) came into operation and revoked the United Nations (Sanctions - Iran) Regulations 2007.
By way of background, Singapore, being a member state of the United Nations, has been taking steps to implement various resolutions adopted by the United Nations Security Council (“UNSC”) as part of international efforts to address Iran’s nuclear programme.
These Regulations were passed as part of the steps taken to give effect to UNSC Resolution 1929 (2010) (“Resolution 1929 (2010)”). Prior to these Regulation coming into force, the Monetary Authority of Singapore (the “MAS”) had already implemented Resolution 1929 (2010) vis-à-vis financial institutions via the MAS (Freezing of Assets of Persons - Iran) (Amendment) Regulations 2010. These Regulations now extend the application of Resolution 1929 (2010) to all persons in Singapore and citizens of Singapore outside Singapore (“overseas Singaporeans”).
In the Regulations, the following sanctions have been implemented:
- Prohibition against selling or making available interest in certain commercial activities: Persons in Singapore and overseas Singaporeans must not sell or make available an interest in any commercial activity involving uranium mining, uranium production, or the use of certain specified nuclear materials or technology to:
- any person who is in Iran or who is a citizen of Iran;
- any entity that is incorporated in Iran or that is subject to the jurisdiction of Iran;
- any person or entity acting on behalf or at the discretion of Iran or of any person or entity referred to in paragraph (b) or (c), respectively; or
- any entity owned or controlled by Iran or by any person or entity referred to in paragraph (b) or (c), respectively.
(collectively referred to as the “Parties”).
- Prohibition against transfer of technology or technical assistance relating to ballistic missiles: Persons in Singapore and overseas Singaporeans are prohibited from engaging in conduct that assists or results in the transfer or provision to the Parties of any technology or technical assistance that is for, or in relation to, any activity related to the development or use of ballistic missiles capable of delivering nuclear weapons, including any launch using ballistic missile technology.
- Prohibition against provision of bunkering services: Persons in Singapore and overseas Singaporeans must not provide any bunkering service to any Iranian vessel if there are reasonable grounds to believe that the Iranian vessel is carrying any designated item in contravention of certain specified regulations.
- Prohibition against provision of financial services and other resources: Persons in Singapore and overseas Singaporeans must not provide any financial services or other related services, including insurance or re-insurance; or transfer any financial assets or resources, or any other assets or resources that may reasonably be used to contribute to the proliferation-sensitive nuclear activities of, or the development of nuclear weapon delivery systems by, Iran.
In addition to the above, the Regulations also impose a duty to exercise vigilance when doing business with any Iran-related individual or entity if there are reasonable grounds to believe that the business could contribute to the proliferation-sensitive nuclear activities of, or the development of nuclear weapon delivery systems by, Iran; or violate the relevant UNSC resolutions. There is also a new regulation relating to the power to direct a Singapore ship to proceed for inspection.