CHAPTER 5U.K. FREEZING OF FUNDS AND ECONOMIC RESOURCES

Article 20U.K.

1.All funds and economic resources which belong to, are owned, held or controlled, directly or indirectly by the following, shall be frozen:

(a)persons and entities designated in the Annex to UNSCR 1737 (2006), additional persons and entities designated by the Security Council or by the Committee in accordance with paragraph 12 of UNSCR 1737 (2006) and paragraph 7 of UNSCR 1803 (2008) as well as IRGC individuals and entities and IRISL entities designated by the Security Council or by the Committee, as listed in Annex I;

[F1 [F2(b) persons and entities not covered by Annex I that are engaged in, directly associated with, or providing support for, Iran's proliferation-sensitive nuclear activities or for the development of nuclear weapon delivery systems, including through the involvement in procurement of the prohibited items, goods, equipment, materials and technology, or persons or entities acting on their behalf or at their direction, or entities owned or controlled by them, including through illicit means, or persons and entities that have evaded or violated, or assisted designated persons or entities in evading or violating, the provisions of UNSCR 1737 (2006), UNSCR 1747 (2007), UNSCR 1803 (2008) and UNSCR 1929 (2010) or of this Decision, as well as other members and entities of IRGC and IRISL and entities owned or controlled by them or persons and entities acting on their behalf or persons and entities providing insurance or other essential services to IRGC and IRISL, or to entities owned or controlled by them or acting on their behalf, as listed in Annex II;]

(c) other persons and entities not covered by Annex I that provide support to the Government of Iran and entities owned or controlled by them or persons and entities associated with them, as listed in Annex II [F3;] ]

[F4(d) other persons and entities designated by the Security Council as having engaged in, directly associated with, or provided support for, Iran's proliferation-sensitive nuclear activities undertaken contrary to Iran's commitments in the JCPOA or the development of nuclear weapon delivery systems, including through the involvement in the procurement of prohibited items, goods, equipment, materials and technology specified in the statement attached to Annex B to UNSCR 2231 (2015); having assisted designated persons or entities in evading or acting inconsistently with the JCPOA or UNSCR 2231 (2015); having acted on behalf or at the direction of designated persons or entities, or having been owned or controlled by designated persons or entities, as listed in Annex III;

(e) other persons and entities not covered by Annex III that have engaged in, directly associated with, or provided support for, Iran's proliferation-sensitive nuclear activities undertaken contrary to Iran's commitments in the JCPOA or the development of nuclear weapon delivery systems, including through the involvement in the procurement of prohibited items, goods, equipment, materials and technology specified in the statement attached to Annex B to UNSCR 2231 (2015) or in this Decision; having assisted designated persons or entities in evading or acting inconsistently with the JCPOA, UNSCR 2231 (2015) or this Decision; having acted on behalf or at the direction of designated persons or entities, or having been owned or controlled by designated persons or entities, as listed in Annex IV.]

2.No funds or economic resources shall be made available, directly or indirectly, to or for the benefit of persons and entities referred to in paragraph 1.

3.Exemptions may be made for funds and economic resources which are:

(a)necessary to satisfy basic needs, including payment for foodstuffs, rent or mortgage, medicines and medical treatment, taxes, insurance premiums, and public utility charges;

(b)intended exclusively for payment of reasonable professional fees and reimbursement of incurred expenses associated with the provision of legal services;

(c)intended exclusively for payment of fees or service charges, in accordance with national laws, for routine holding or maintenance of frozen funds and economic resources;

[F3after notification by the Member State concerned to the Security Council of the intention to authorise, where appropriate, access to such funds and economic resources and in the absence of a negative decision by the Security Council within five working days of such notification.]

[F34. Exemptions may also be made for funds and economic resources which are:

(a) necessary for extraordinary expenses, after notification by the Member State concerned to, and approval by, the Security Council;

(b) the subject of a judicial, administrative or arbitral lien or judgement, in which case the funds and economic resources may be used to satisfy that lien or judgement provided that the lien or judgement was entered before the date of UNSCR 1737 (2006), and is not for the benefit of a person or entity referred to in paragraph 1 of this Article, after notification by the Member State concerned to the Security Council;

(c) necessary for activities directly related to the items specified in paragraph 2(c), subparagraph 1 of Annex B to UNSCR 2231 (2015) for light water reactors.

(d) necessary for the civil nuclear cooperation projects described in Annex III of the JCPOA, after notification by the Member State concerned to, and approval by, the Security Council;

(e) necessary for activities directly related to the items specified in Articles 26c and 26d, or to any other activity required for the implementation of the JCPOA, after notification by the Member State concerned to, and approval by, the Security Council.]

[F54a. With regard to persons and entities listed in Annex II, exemptions may also be made for funds and economic resources which are to be paid into or from an account of a diplomatic or consular mission or an international organisation enjoying immunities in accordance with international law, in so far as such payments are intended to be used for official purposes of the diplomatic or consular mission or international organisation.]

5.Paragraph 2 shall not apply to the addition to frozen accounts of:

(a)interest or other earnings on those accounts; or

(b)payments to frozen accounts due under contracts, agreements or obligations that were concluded or arose before the date on which those accounts became subject to restrictive measures;

provided that any such interest, other earnings and payments continue to be subject to paragraph 1.

[F36. Paragraph 1 shall not prevent a designated person or entity from making payment due under a contract entered into before the listing of such a person or entity, provided that the relevant Member State has determined that:

(a) the contract is not related to any of the prohibited items, materials, equipment, goods, technologies, assistance, training, financial assistance, investment, brokering or services referred to in this Decision;

(b) the payment is not directly or indirectly received by a person or entity referred to in paragraph 1,

and after notification by the relevant Member State to the Security Council of the intention to make or receive such payments or to authorise, where appropriate, the unfreezing of funds or economic resources for this purpose, 10 working days prior to such authorisation.]

[F17. Paragraph 1 shall not apply to:

(a) a transfer by or through the Central Bank of Iran of frozen funds or economic resources where such transfer is for the purpose of providing financial institutions under the jurisdiction of Member States with liquidity for the financing of trade;

(b) the reimbursement by or through the Central Bank of Iran of claims due under a contract or agreement that was concluded by public or private Iranian entities before the adoption of this Decision,

provided that the transfer or reimbursement has been authorised by the relevant Member State.]

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[F111. Paragraph 7 is without prejudice to paragraphs 3, 4, 4a, 5 and 6 and to Article 10(3) and (4).]

[F712. Without prejudice to the exemptions provided for in this Article, it shall be prohibited to supply specialised financial messaging services, which are used to exchange financial data, to the persons and entities referred to in paragraph 1.]

[F813. Paragraphs 1 and 2 shall not apply to acts and transactions carried out with regard to entities listed in Annex II which hold rights derived from an original award before 27 October 2010, by a sovereign Government other than Iran, of a gas production sharing agreement, insofar as such acts and transactions relate to those entities' participation in that agreement.

[F914. Paragraphs 1 and 2 shall not apply to acts and transactions carried out with regard to entities listed in Annex II insofar as necessary for the execution, until 28 January 2016 , of the obligations as referred to in Article 3c(2) provided that those acts and transactions have been authorised in advance, on a case-by-case basis, by the relevant Member State. The relevant Member State shall inform the other Member States and the Commission of its intention to grant an authorisation.] ]

Textual Amendments