The Iraq (Sanctions) (EU Exit) Regulations 2020

These Regulations may be cited as the Iraq (Sanctions) (EU Exit) Regulations 2020.

These Regulations come into force in accordance with regulations made by the Secretary of State under section 56 of the Act.

A United Kingdom person may contravene a relevant prohibition by conduct wholly or partly outside the United Kingdom.

Any person may contravene a relevant prohibition by conduct in the territorial sea.

A United Kingdom person may comply, or fail to comply, with a relevant requirement by conduct wholly or partly outside the United Kingdom.

Any person may comply, or fail to comply, with a relevant requirement by conduct in the territorial sea.

Nothing in this regulation is to be taken to prevent a relevant prohibition or a relevant requirement from applying to conduct (by any person) in the United Kingdom.

The purpose of the regulations contained in this instrument that are made under section 1 of the Act is compliance with the relevant UN obligations.

Each person M6 for the time being named by the Security Council or the Committee as a person referred to in paragraph 23(a) of resolution 1483 is a designated person for the purposes of regulation 8 (partial asset-freeze in relation to the former Government of Iraq and its state bodies, corporations or agencies) (whose purposes include compliance with the UN obligations mentioned in regulation 4(2)(a) M7).

Each person for the time being named by the Security Council or the Committee as a person referred to in paragraph 23(b) of resolution 1483 is a designated person for the purposes of regulations 9 to 13 (asset-freeze etc. in relation to persons connected with the former Iraqi regime) (whose purposes include compliance with the UN obligations mentioned in regulation 4(2)(b)).

The prohibitions in regulation 8 (partial asset-freeze) and regulations 9 to 11 (asset-freeze in relation to, and making funds available to, or for the benefit of, persons connected with the former Iraqi regime) are not contravened by a relevant institution crediting a frozen account or a relevant account with interest or other earnings due on the account.

The prohibitions in regulations 10 and 11 (making funds available to, or for the benefit of, persons connected with the former Iraqi regime) are not contravened by a relevant institution crediting a frozen account where it receives funds transferred to that institution for crediting to that account.

The prohibitions in regulations 10 and 11 are not contravened by the transfer of funds to a relevant institution for crediting to an account held or controlled (directly or indirectly) by a designated person, where those funds are transferred in discharge (or partial discharge) of an obligation which arose before the date on which the person became a designated person.

In this regulation—

• “designated person” has the same meaning as it has in regulation 6(1) or (2);

• “frozen account” means an account with a relevant institution which is held or controlled (directly or indirectly) by a designated person within the meaning of regulation 6(2);

• “relevant account” means an account with a relevant institution which—

  1. a

     is held or controlled (directly or indirectly) by a designated person within the meaning of regulation 6(1), and

  2. b

     which contains “relevant funds or economic resources” within the meaning given to these terms in regulation 8(4);

• “relevant institution” means a person that has permission under Part 4A of the Financial Services and Markets Act 2000 M11 (Permission to carry on regulated activities).

The definition of “relevant institution” in paragraph (7) is to be read with section 22 of the Financial Services and Markets Act 2000 M12, any relevant order under that section M13 and Schedule 2 to that Act M14.

Nothing in this regulation affects the application of a prohibition in a case where it would be incompatible with a UN obligation for the prohibition not to apply.

In this regulation “responsible officer” means a person in the service of the Crown or holding office under the Crown, acting in the course of that person's duty.

Nothing in this regulation affects the application of a prohibition or requirement in a case where it would be incompatible with a UN obligation for the prohibition or requirement not to apply.

The prohibitions in regulations 8 to 13 (partial asset-freeze and asset-freeze etc.) do not apply to anything done under the authority of a licence issued by the Treasury under this paragraph.

The Treasury may issue a licence which authorises acts in relation to a designated person which would otherwise be prohibited by regulation 8 or 9 (partial asset-freeze and asset-freeze) only where the Treasury considers that it is appropriate to issue the licence for the purpose set out in Part 2 of Schedule 2.

The Treasury may issue a licence which authorises acts in relation to a designated person which would otherwise be prohibited by regulations 10 to 13 (making funds or economic resources available to, or for the benefit of, persons connected with the former Iraqi regime) only where the Treasury considers that it is appropriate to issue the licence for a purpose set out in Part 3 of Schedule 2.

This regulation applies in relation to Treasury licences and trade licences.

A licence must specify the acts authorised by it.

A licence may be general or may authorise acts by a particular person or persons of a particular description.

A person who issues a licence may vary, revoke or suspend it at any time.

A person who issues, varies, revokes or suspends a licence which authorises acts by a particular person must give written notice to that person of the issue, variation, revocation or suspension of the licence.

A person who issues, varies, revokes or suspends a general licence or a licence which authorises acts by persons of a particular description must take such steps as that person considers appropriate to publicise the issue, variation, revocation or suspension of the licence.

A person who purports to act under the authority of a Treasury licence but who fails to comply with any condition of the licence commits an offence.

A person who purports to act under the authority of a trade licence but who fails to comply with any condition of the licence commits an offence.

A licence in respect of which an offence under paragraph (1) has been committed is to be treated as void from the time at which it was issued.

The relevant firm must also state the nature and amount or quantity of any funds or economic resources held by it for the customer at the time when it first had the knowledge or suspicion.

A person who fails to comply with a requirement in paragraph (1), (2) or (4) commits an offence.

In this regulation—

• “designated person” has the same meaning as it has in Part 3 (Finance);

• “frozen account” has the same meaning as it has in regulation 30;

• “relevant firm” is to be read in accordance with regulation 41;

• “relevant institution” has the same meaning as it has in regulation 30.

In paragraph (1)—

• “estate agency work” is to be read in accordance with section 1 of the Estate Agents Act 1979 M18, but as if references in that section to disposing of or acquiring an interest in land included (despite anything in section 2 of that Act) references to disposing of or acquiring an estate or interest in land outside the United Kingdom where that estate or interest is capable of being owned or held as a separate interest;

• “firm” means any entity that, whether or not a legal person, is not an individual, and includes a body corporate and a partnership or other unincorporated body.

Paragraph (1)(a) and (b) are to be read with section 22 of the Financial Services and Markets Act 2000, any relevant order under that section and Schedule 2 to that Act.

For the purposes of paragraph (2), expenditure for the benefit of a designated person includes expenditure on the discharge (or partial discharge) of a financial obligation for which the designated person is wholly or partly responsible.

The power in paragraph (1) or (2) is exercisable only where the Treasury believe that it is necessary for the purpose of monitoring compliance with or detecting evasion of any provision of Part 3 (Finance).

The Treasury may request a person to provide information within paragraph (7) if the Treasury believe that the person may be able to provide the information.

The Treasury may specify the way in which, and the period within which, information is to be provided.

If no such period is specified, the information which has been requested must be provided within a reasonable time.

A request may include a continuing obligation to keep the Treasury informed as circumstances change, or on such regular basis as the Treasury may specify.

Information requested under this regulation may relate to any period of time during which a person is, or was, a designated person.

Information requested by virtue of paragraph (1)(b), (2) or (7)(a)(iii) may relate to any period before a person became a designated person (as well as, or instead of, any subsequent period).

Expressions used in this regulation have the same meaning as they have in Part 3.

A request under regulation 42 (finance: powers to request information) may include a request to produce specified documents or documents of a specified description.

In this regulation “designated person” has the same meaning as it has in Part 3 (Finance).

Where a person is convicted of an offence under this regulation, the court may make an order requiring that person, within such period as may be specified in the order, to comply with the request.

This regulation applies in relation to a person (“P”) who does any act authorised by a general licence issued under regulation 36 (trade licences) (“the licence”).

The register or record relating to an act must be kept until the end of the calendar year in which the register or record is created and for a further period of 4 years from the end of that calendar year.

P must notify the Secretary of State in writing of P's name and the address at which the register or record may be inspected, and must make a further such notification if those details change.

A person who fails to comply with a requirement in paragraph (2), (3) or (4) commits an offence.

A person authorised by the Secretary of State or the Commissioners (an “official”) may at any reasonable hour enter premises notified under regulation 46(4) (general trade licences: records) for the purposes of monitoring compliance with, or detecting evasion of, regulation 46(2) or (3).

An official may require any person on the premises to produce any register or record required to be kept under regulation 46, or any document included in such a register or record, that is in the person's possession or control.

An official may inspect and copy any such register, record or document.

An official must, if requested to do so, produce documentary evidence that he or she is authorised to exercise a power conferred by this regulation.

Information referred to in paragraph (1) may be disclosed to any person with the consent of a person who, in their own right, is entitled to the information.

In paragraph (4) “in their own right” means not merely in the capacity as a servant or agent of another person.

A disclosure of information under regulation 48 (disclosure of information) does not breach any restriction on such disclosure imposed by statute or otherwise.

Nothing in this Part is to be read as requiring a person who has acted or is acting as counsel or solicitor for any person to disclose any privileged information in their possession in that capacity.

Regulation 48 does not limit the circumstances in which information may be disclosed apart from that regulation.

Nothing in this Part limits any conditions which may be contained in a Treasury licence or a trade licence.

In this regulation—

• “the data protection legislation” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act) M25;

• “privileged information” means information with respect to which a claim to legal professional privilege (in Scotland, to confidentiality of communications) could be maintained in legal proceedings.

In relation to an offence committed before section 154(1) of the Criminal Justice Act 2003 M26 comes into force, the reference in each of paragraphs (1)(a), (2)(a) and (3)(a) to 12 months is to be read as a reference to 6 months.

In paragraph (1) “director”, in relation to a body corporate whose affairs are managed by its members, means a member of the body corporate.

Section 171(4) of CEMA (which is a provision similar to this regulation) does not apply to any offence under these Regulations to which that provision would, in the absence of this paragraph, apply.

In paragraph (3) “sheriff court district” is to be read in accordance with the Criminal Procedure (Scotland) Act 1995 (see section 307(1) of that Act) M27.

Paragraphs (2) and (3) apply if it is alleged that an offence under these Regulations has been committed by an unincorporated body (as opposed to by a member of the body).

Proceedings in England and Wales or Northern Ireland for such an offence must be brought against the body in its own name.

A fine imposed on an unincorporated body on its conviction of an offence under these Regulations is to be paid out of the funds of the body.

Proceedings for an offence under these Regulations which is triable only summarily may be brought within the period of 12 months beginning with the date on which evidence sufficient in the opinion of the prosecutor to justify the proceedings comes to the prosecutor's knowledge.

But such proceedings may not be brought by virtue of paragraph (1) more than 3 years after the commission of the offence.

A certificate signed by the prosecutor as to the date on which the evidence in question came to the prosecutor's knowledge is conclusive evidence of the date on which it did so; and a certificate to that effect and purporting to be so signed is to be treated as being so signed unless the contrary is proved.

In paragraph (1) “assigned matter” has the meaning given by section 1(1) of CEMA M32.

The provisions of CEMA are sections 145, 146, 147, 148(1), 150, 151, 152, 154 and 155 M35 (legal proceedings).

Paragraph (2) applies where a person is guilty of an offence under section 50(2) of CEMA in connection with the prohibition in regulation 22(2) (import of illegally removed Iraqi cultural property).

Where this paragraph applies, the reference to 7 years in section 50(4)(b) M36 of CEMA is to be read as a reference to 10 years.

Paragraph (4) applies where a person is guilty of an offence under section 68(2) of CEMA in connection with a prohibition mentioned in regulation 17(1) or 22(1) (exports).

Where this paragraph applies, the reference to 7 years in section 68(3)(b) of CEMA M37 is to be read as a reference to 10 years.

Paragraph (6) applies where a person is guilty of an offence under section 170(2) of CEMA in connection with a prohibition mentioned in regulation 17(1) or 22 (exports or imports).

Where this paragraph applies, the reference to 7 years in section 170(3)(b) of CEMA M38 is to be read as a reference to 10 years.

In this Part, “the maritime enforcement powers” are the powers conferred by regulations 61 (power to stop, board, search etc.) and 62 (seizure power).

This regulation is subject to regulation 63 (restrictions on exercise of maritime enforcement powers).

This regulation applies if a maritime enforcement officer has reasonable grounds to suspect that a relevant ship is carrying prohibited goods or relevant goods.

The officer may exercise a power conferred by paragraph (3)(a)(i) or (b) only to the extent reasonably required for the purpose of discovering prohibited goods or relevant goods.

The officer may exercise the power conferred by paragraph (3)(a)(ii) in relation to a person only where the officer has reasonable grounds to believe that the person might use a thing to cause physical injury or damage to property or to endanger the safety of any ship.

The officer may use reasonable force, if necessary, in the exercise of any power conferred by this regulation.

This regulation applies if a maritime enforcement officer is lawfully on a relevant ship (whether in exercise of the powers conferred by regulation 61 (power to stop, board, search etc.) or otherwise).

The officer may use reasonable force, if necessary, in the exercise of any power conferred by this regulation.

In relation to a British ship in foreign waters other than the sea and other waters within the seaward limits of the territorial sea adjacent to any relevant British possession, the Secretary of State may give authority under paragraph (1) only if the State in whose waters the power would be exercised consents to the exercise of the power.

Subject to paragraph (2), any expression used in this Part and in section 19 or 20 of the Act has the same meaning in this Part as it has in section 19 or (as the case may be) section 20 of the Act.

For the purpose of interpreting any reference to “prohibited goods” or “relevant goods” in this Part, any reference in section 19 or 20 of the Act to a “relevant prohibition or requirement” is to be read as a reference to any prohibition specified in regulation 59(2)(a) to (c) (exercise of maritime enforcement powers).

This regulation applies in relation to a notice required by regulation 37 (licences: general provisions) to be given to a person.

The notice may be given to the person by other means, including by electronic means, with the person's consent.

In this regulation—

• “proper officer”—

  1. a

     in relation to a body other than a partnership, means the secretary or other executive officer charged with the conduct of the body's general affairs, and

  2. b

     in relation to a partnership, means a partner or a person who has the control or management of the partnership business;

• “registered company” means a company registered under the enactments relating to companies for the time being in force in the United Kingdom.

Council Regulation (EC) No 1210/2003 of 7 July 2003, concerning certain specific restrictions on economic and financial relations with Iraq and repealing Regulation (EC) No 2465/96M51 is revoked.

The Iraq (Asset-Freezing) Regulations 2012 M52 are revoked.

The Iraq (United Nations Sanctions) Order 2003 M53 is revoked.

The Iraq (United Nations Sanctions) (Amendment) Order 2011 M54 is revoked.

An existing financial sanctions licence which authorises an act which would otherwise be prohibited has effect on and after the relevant date as if it had been issued by the Treasury under regulation 35 (Treasury licences).

Any reference in an existing financial sanctions licence to the EU Iraq Regulation, the 2000 Order or the 2012 Regulations is to be treated on and after the relevant date as a reference to these Regulations.

The application is to be treated on and after the relevant date as an application for a licence, or for the variation of a licence (as the case may be), under regulation 35(1).

In this regulation—

• “the 2000 Order” means the Iraq (United Nations Sanctions) Order 2000 M57;

• “the 2012 Regulations” means the Iraq (Asset-Freezing) Regulations 2012;

• “the relevant date” means—

  1. a

     where regulations under section 56 of the Act provide that Part 3 comes into force at a specified time on a day, that time on that day;

  2. b

     otherwise, the date on which Part 3 comes into force.

An existing trade sanctions licence has effect on and after the relevant date as if it were a licence which had been issued by the Secretary of State under regulation 36.

Any reference in an existing trade sanctions licence to a provision of the Iraq (United Nations Sanctions) Order 2003 or the Export Control Order 2008 is to be treated on and after the relevant date as a reference to the corresponding provision of these Regulations (if any).

Any reference in an existing trade sanctions licence to a prohibition in the EU Iraq Regulation is to be treated on and after the relevant date as a reference to the corresponding prohibition in Part 4 (Trade).

The application is to be treated on and after the relevant date as including an application for a licence under regulation 36 (trade licences).

The application is to be treated on and after the relevant date as an application for a licence under regulation 36.

Where, immediately before the relevant date, a person was named by the Security Council or the Committee for the purposes of paragraph 23(b) of resolution 1483, any reference in regulation 30(5) to the date on which a person became a designated person is to be read as a reference to the date on which the person was so named.

In this regulation—

• “designated person” has the same meaning as it has in regulation 6(2);

• “the relevant date” means—

  1. a

     where regulations under section 56 of the Act provide that Part 3 comes into force at a specified time on a day, that time on that day;

  2. b

     otherwise, the date on which Part 3 comes into force.