The Iran (United Nations Measures) (Overseas Territories) (Amendment) Order 2007

EXPLANATORY NOTE

(This note is not part of the Order)

This Order amends the Iran (United Nations Measures) (Overseas Territories) Order (SI 2007/282 “the principal Order”) to give effect to Resolution 1747 (2007) adopted by the Security Council of the United Nations on 24th March 2007, and to wider restrictive measures adopted by the Council of the European Union in Council Regulation (EC) No 423/2007 on 19th April 2007, in implementation of Council Common Position 2007/140/CFSP adopted on 27th February 2007, and in Council Common Position 2007/246/CFSP on 23th April 2007, which amended Council Common Position 2007/140/CFSP.

Resolution 1747 (2007) subjected the persons and entities listed in its Annex 1 to the asset freezing measures in resolution 1737 (2006) and prohibited the procurement of military goods and technology from Iran. In implementation of measures under Council Common Position 2007/140/CFSP, Council Regulation (EC) No 423/2007 imposed restrictions on the supply to Iran of specific proliferation-sensitive goods, additional to those specified by the UN. Council Common Position 2007/246/CFSP also adopted wider measures than resolution 1747 (2007), in particular by listing additional persons and entities subject to asset freezing measures.

As the European Union measures in Council Regulation (EC) No 423/2007 (“the EC Regulation”) and in Council Common Position 2007/140/CFSP as amended by Council Common Position 2007/246/CFSP (“the Council Common Position”) are wider in scope than those under resolution 1747 (2007), in addition to using the United Nations Act 1946 for the UN measures, it is necessary to give effect in this Order to the wider measures using additional statutory and prerogative enabling powers to legislate for the Overseas Territories. This amending Order applies to all the territories to which the principal Order extends except Bermuda, to which these additional enabling powers are not applicable.

The substantive provisions of this Order include the following amendments to the principal Order:

Article 2 amends the citation of the principal Order.

Article 2 also adds definitions of “Council Common Position”, “EC Regulation”, and “military goods”. It amends the definition of “designated person” to include persons and entities listed additionally in Annex 11 of Council Common Position 2007/246/CFSP, and amends the definition of “restricted goods” to include items listed in Annexes 1 and 11 of Council Regulation (EC) No 423/2007. Definitions of “ship”, “shipment” and “vehicle” are added, and the definition of “funds” is amended.

Article 2 amends article 3 of the principal Order to require the Governor to publish a list of military goods to be published in the gazette of the Territory.

Article 2 replaces the existing article 8 in the principal Order with a new article 8 which prohibits the procurement from Iran of military goods and technology, in addition to the existing prohibition on procurement of restricted goods. Minor amendments are made to article 9 of the principal Order to conform with amendments made to equivalent implementing legislation in the United Kingdom for consistency with the EC Regulation.

Article 2 amends article 11 of the principal Order to allow the crediting of a frozen account with funds transferred to that account by a third party and to clarify the definition of “frozen account”.

Article 2 amends article 23 of the principal Order to achieve consistency in the description of “fine”, and amends article 24 to clarify the arrest provisions.

Schedule 2 of the principal Order is replaced to reflect the present court structure and procedure in the Sovereign Base Areas.

Schedule 4 of the principal Order is amended to require a relevant institution to inform the Governor if it credits a frozen account in accordance with article 11(1A), and makes failure to inform an offence.

A full regulatory impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.