The European Union (“EU”) has sharpened its sanctions against Iran. Resolution 1802(2008) of the United Nations (“UN”) has imposed additional sanctions against Iran. The Council of the European Union has consequently amended its Common Position 2007/140/CFSP concerning restrictive measures against Iran by adopting Common Position 2008/652/CFSP. The sanctions against Iran are stipulated in Regulation (EC) 423/2007. The proposal to amend Regulation (EC) 423/2007, because of UN Resolution 1802(2008) and Common Position 2008/652/CFSP has already been drafted. Once the proposal has been approved, the amended Regulation (EC) 423/2007 will enter into force.
Prohibition sale, delivery and transfer of goods
The EU prohibits the direct or indirect supply, sale or transfer of certain items, materials, equipment goods and technology to Iran. This prohibition has been amended by adding items, materials, equipment, goods and technology that could contribute to enrichment-related, reprocessing or heavy water-related activities, to the development of nuclear weapons delivery system or to the pursuit of activities related to other topics about which the International Atomic Energy Agency (“IAEA”) has expressed concerns or identified as outstanding.
EU Member States have to exercise vigilance over the activities of financial institutions within their jurisdiction. This includes:
- banks domiciled in Iran;
- branches and subsidiaries within the jurisdiction of the EU Member States domiciled in Iran as listed in Common Position 2008/652/CFSP,
- branches and subsidiaries outside the jurisdiction of the EU Member States domiciled in Iran as listed in Common Position 2008/652/CFSP,
- financial institutions that are neither domiciled in Iran nor within the jurisdiction of EU Member States but are controlled by EU- listed persons and entities.
Financial institutions have the following obligations as regards banks and financial institutions as listed above:
- customer due diligence and other obligations related to money-laundering and financing of terrorism;
- require that all information fields of payment instructions which relate to the originator and beneficiary of the transaction in question to be completed and if that information is not supplied, refuse the transaction;
- maintain records for a period of five years and make them available to national authorities on request;
- report suspicions to the Financial Intelligence Union or another competent authority in the EU Member State.
EU Member States have to inspect the cargoes to and from Iran, of aircraft and vessels owned or operated by Iran Air Cargo and Islamic Republic of Iran Shipping Line at their airports and seaports, if the EU Member States have reasonable grounds to believe that the vessel or airline is transporting goods that are prohibited
Controlled persons and entities
The list of controlled persons and entities concerning Iran has been amended.