(This note is not part of the Order)
This Order contains a direction given by the Treasury, under Schedule 7 to the Counter-Terrorism Act 2008 (c.28) (“the Act”), in response to the significant risk to the UK’s national interests posed by activity in Iran that facilitates the development or production of nuclear weapons and in response to a Financial Action Task Force call for measures to be taken against Iran.
The direction is given in relation to all persons operating in the UK financial sector, as defined in paragraphs 4 and 6 of Schedule 7 to the Act. The direction prohibits such persons entering into new transactions or business relationships with Iranian banks, their branches and subsidiaries, and the Central Bank of Iran, or continuing to participate in transactions or business relationships with them. The Treasury may grant licences under paragraph 17 of Schedule 7 to the Act to exempt certain acts from these prohibitions.
The Order will cease to have effect at the end of the period of one year beginning with the day it is made, in accordance with paragraph 16(4) of Schedule 7 to the Act. It replaces the Financial Restrictions (Iran) Order 2011 (S.I. 2011/2775), which ceased to have effect after one year in accordance with this provision.
A full impact assessment of the effect that this measure will have on the costs of business and the voluntary sector is available on the Treasury’s website () and is published with the Explanatory Memorandum alongside the instrument on www.legislation.gov.uk.