The Iran (Sanctions) Regulations 2023

Made: 11th December 2023

Laid before Parliament: 13th December 2023

Coming into force: 14th December 2023

The Secretary of State[^f00001], in exercise of the powers conferred by sections 1(1)(c) and (3)(b), 3(1)(a), (b)(ii), (d)(i) and (ii), 3A(1), 4, 5, 7(1) to (5) and (8), 9(2)(a), 10(2) to (4), 11, 12, 14, 15, 16, 17, 19, 20, 21(1), 45(1)(a), 54(1) and (2), 62(4) to (6) of, and paragraphs 2(b), 4(b) and (c), 5(a)(ii) and (b), 6(a)(ii) and (b), 11(a)(ii) and (iii), 13(b), (h), (k), (l), (m), (n) and (w), 14(a), (f) and (k), 17(a), 19(a), 20 to 23 and 27 of Schedule 1 to, the Sanctions and Anti-Money Laundering Act 2018[^f00002] makes the following Regulations:

PART 1 — General

Citation, commencement and extent

1

• (1) These Regulations may be cited as the Iran (Sanctions) Regulations 2023.

• (2) These Regulations come into force on 14th December 2023.

• (3) These Regulations extend to England and Wales, Scotland and Northern Ireland.

Interpretation

2

In these Regulations—

• “the Act” means the Sanctions and Anti-Money Laundering Act 2018;

• “armed group backed by the Government of Iran” includes any armed group which— is being or has been armed, trained or funded by the Government of Iran, is taking or has taken direction from the Government of Iran, or is acting or has acted for the benefit of the Government of Iran;

• “arrangement” includes any agreement, understanding, scheme, transaction or series of transactions, whether or not legally enforceable (but see paragraph 12 of Schedule 1 for the meaning of that term in that Schedule);

• “CEMA” means the Customs and Excise Management Act 1979[^f00003];

• “the Commissioners” means the Commissioners for His Majesty’s Revenue and Customs;

• “conduct” includes acts and omissions;

• “director disqualification licence” means a licence under regulation 61;

• “document” includes information recorded in any form and, in relation to information recorded otherwise than in legible form, references to its production include producing a copy of the information in legible form;

• “the Dual-Use Regulation” means Council Regulation (EC) No 428/2009 of 5 May 2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items;

• “the Government of Iran” includes its public bodies, corporations or agencies, its armed forces or any person acting on its behalf or at its direction;

• “serious human rights violation or abuse” means a serious violation or abuse of any of the human rights specified in regulation 4;

• “trade licence” means a licence under regulation 62;

• “Treasury licence” means a licence under regulation 60(1);

• “United Kingdom person” has the same meaning as in section 21 of the Act.

Application of prohibitions and requirements outside the United Kingdom

3

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

• (2) Any person may contravene a relevant prohibition by conduct in the territorial sea.

• (3) In this regulation a “relevant prohibition” means any prohibition imposed—

• (a) by regulation 11(2) or 13(2) (confidential information),

• (b) by Part 3 (Finance),

• (c) by Part 6 (Trade),

• (d) by or under Part 7 (Ships), or

• (e) by a condition of a Treasury licence or a trade licence.

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

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

• (6) In this regulation a “relevant requirement” means any requirement imposed—

• (a) by or under Part 9 (Information and records), or by reason of a request made under a power conferred by that Part,

• (b) by a condition of a Treasury licence or a trade licence, or

• (c) by a direction under regulation 48 (movement of ships).

• (7) 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.

Purposes

4

• (1) The purposes of the regulations contained in this instrument that are made under section 1 of the Act are—

• (a) to encourage the Government of Iran to comply with international human rights law and to respect human rights, including in particular, to—

• (i) respect the right to life of persons in Iran, for example by refraining from the execution of juvenile offenders in all circumstances;

• (ii) respect the right of persons not to be subjected to torture or cruel, inhuman or degrading treatment or punishment in Iran, including—

• (aa) torture or other inhuman or degrading treatment with a view to extracting information from detained persons,

• (bb) inhuman and degrading conditions in prisons, and

• (cc) forms of punishment such as flogging and amputation;

• (iii) respect the right to liberty and security, including refraining from the arbitrary arrest and detention of persons in Iran;

• (iv) afford persons in Iran charged with criminal offences the right to a fair trial;

• (v) afford journalists, human rights defenders and other persons in Iran the right to freedom of expression and peaceful assembly;

• (vi) secure the human rights of persons in Iran without discrimination, including on the basis of a person’s sex, race, colour, language, religion, political or other opinion, national or social origin, association with a national minority, property, birth or other status;

• (b) to deter the Government of Iran or an armed group backed by the Government of Iran from conducting hostile activity against the United Kingdom or any other country.

• (2) For the purposes of paragraph (1)(b), “hostile activity” means activity falling within regulation 8(3).

PART 2 — Designation of persons

Power to designate persons

5

• (1) The Secretary of State may designate persons by name for the purposes of any of the following—

• (a) regulations 15 to 19 (asset-freeze etc.);

• (b) regulation 21 (director disqualification sanctions);

• (c) regulation 22 (immigration);

• (d) regulations 46 and 48 to 50 (ships: prohibition on port entry etc.).

• (2) The Secretary of State may provide that persons of a description specified by the Secretary of State are designated persons for the purposes of any of the following—

• (a) regulations 15 to 19 (asset-freeze etc.);

• (b) regulation 22 (immigration);

• (c) regulations 46 and 48 to 50 (ships: prohibition on port entry etc.).

• (3) The Secretary of State may designate different persons for the purposes of different provisions mentioned in paragraph (1) or (2).

• (4) For the purposes of these Regulations, persons “designated under regulation 5” for the purpose of a particular regulation means—

• (a) persons who are designated by name under paragraph (1) for the purposes of that particular regulation, and

• (b) where the Secretary of State makes provision under paragraph (2) that persons of a specified description are designated persons for the purposes of that particular regulation, persons of that description.

Conditions for the designation of persons by name

6

• (1) This regulation applies to a person designated under regulation 5(1) (power to designate persons by name).

• (2) The Secretary of State may choose whether to designate a person under—

• (a) the standard procedure, or

• (b) the urgent procedure.

• (3) Paragraph (4) applies where the Secretary of State chooses to designate a person under the standard procedure.

• (4) The Secretary of State may not designate a person except where condition A is met.

• (5) Paragraphs (6) to (8) apply where the Secretary of State chooses to designate a person under the urgent procedure.

• (6) The Secretary of State may designate a person where condition A is not met, but conditions B and C are met.

• (7) A person ceases to be a designated person at the end of the period of 56 days beginning with the day following the day on which the person became a designated person unless, within that period, the Secretary of State certifies that—

• (a) condition A is met, or

• (b) conditions B and C continue to be met.

• (8) Where the Secretary of State makes a certification under paragraph (7)(b), the designation ceases to have effect at the end of the period of 56 days beginning with the day immediately following the period mentioned in paragraph (7), unless within that period the Secretary of State certifies that condition A is met.

• (9) Condition A is that the Secretary of State has reasonable grounds to suspect that that person is an involved person.

• (10) Condition B is that relevant provision (whenever made) applies under the law of—

• (a) the United States of America;

• (b) the European Union;

• (c) Australia;

• (d) Canada.

• (11) Condition C is that the Secretary of State considers that it is in the public interest to designate a person under the urgent procedure.

• (12) For the purposes of Condition B, “relevant provision” is provision that the Secretary of State considers—

• (a) corresponds, or is similar, to the type of sanction or sanctions in these Regulations, or

• (b) is made for purposes corresponding, or similar, to any purpose of any type of sanction or sanctions in these Regulations.

• (13) In this regulation “involved person” has the meaning given in regulation 8 (designation criteria: meaning of “involved person”).

Conditions for the designation of persons by description

7

• (1) This regulation applies to persons designated under regulation 5(2) (power to designate persons by description).

• (2) The Secretary of State may choose whether to designate persons under—

• (a) the standard procedure, or

• (b) the urgent procedure.

• (3) Paragraph (4) applies where the Secretary of State chooses to designate persons under the standard procedure.

• (4) The Secretary of State may not designate persons except where conditions A and C are met.

• (5) Paragraphs (6) to (8) apply where the Secretary of State chooses to designate persons under the urgent procedure.

• (6) The Secretary of State may designate persons where condition C is not met, but conditions A, D and E are met.

• (7) The persons cease to be designated persons at the end of the period of 56 days beginning with the day following the day on which the persons became designated persons unless, within that period, the Secretary of State certifies that—

• (a) conditions A and C are met, or

• (b) conditions A, D and E continue to be met.

• (8) Where the Secretary of State makes a certification under paragraph (7)(b), the designation ceases to have effect at the end of the period of 56 days beginning with the day immediately following the period mentioned in paragraph (7), unless within that period the Secretary of State certifies that conditions A and C are met.

• (9) Condition A is that the description of persons specified is such that a reasonable person would know whether that person fell within it.

• (10) Condition C is that the Secretary of State has reasonable grounds to suspect—

• (a) in a case where the specified description is members of a particular organisation, that the organisation is an involved person, or

• (b) in the case of any other specified description, that any person falling within that description would necessarily be an involved person.

• (11) Condition D is that the description of persons specified is of persons (or some persons) to which, or in relation to which, relevant provision (whenever made) applies under the law of—

• (a) the United States of America;

• (b) the European Union;

• (c) Australia;

• (d) Canada.

• (12) Condition E is that the Secretary of State considers that it is in the public interest to designate persons under the urgent procedure.

• (13) For the purposes of condition D, “relevant provision” is provision that the Secretary of State considers—

• (a) corresponds, or is similar, to the type of sanction or sanctions in these Regulations, or

• (b) is made for purposes corresponding, or similar, to any purpose of any type of sanction or sanctions in these Regulations.

• (14) In this regulation—

• “involved person” has the meaning given in regulation 8 (designation criteria: meaning of “involved person”);

• “organisation” includes any body, association or combination of persons.

Designation criteria: meaning of “involved person”

8

• (1) For the purposes of regulations 6(9) (conditions for the designation of persons by name) and 7(10) (conditions for the designation of persons by description), an “involved person” means a person who—

• (a) is or has been involved in—

• (i) the commission of a serious human rights violation or abuse in Iran;

• (ii) hostile activity by the Government of Iran;

• (iii) hostile activity by an armed group backed by the Government of Iran,

• (b) is owned or controlled directly or indirectly (within the meaning of regulation 9) by a person who is or has been so involved,

• (c) is acting on behalf of or at the direction of a person who is or has been so involved, or

• (d) is a member of, or associated with, a person who is or has been so involved.

• (2) Any reference in this regulation to being involved in the commission of a serious human rights violation or abuse in Iran includes being so involved in whatever way and wherever any actions constituting the involvement take place, and in particular includes—

• (a) being responsible for, engaging in, providing support for, or promoting, any serious human rights violation or abuse in Iran;

• (b) providing financial services, or making available funds or economic resources, that could contribute to any serious human rights violation or abuse in Iran;

• (c) being involved in the supply to Iran of restricted goods or restricted technology or of material related to such goods or technology, or in providing financial services relating to such supply;

• (d) being involved in the supply to Iran of goods or technology which could contribute to any serious human rights violation or abuse in Iran, or in providing financial services relating to such supply;

• (e) being involved in assisting the contravention or circumvention of any relevant provision.

• (3) Any reference in this regulation to being involved in hostile activity by the Government of Iran or hostile activity by an armed group backed by the Government of Iran includes being so involved in whatever way and wherever any actions constituting the involvement take place, and in particular includes—

• (a) threatening, planning or conducting attacks against persons and assets in the United Kingdom or any other country including—

• (i) assassination, kidnap, threats to life, physical threat, assault, harassment, intimidation;

• (ii) sabotage of assets;

• (b) threatening, planning or conducting attacks against ships including the detention and sabotage of ships;

• (c) threatening, planning or conducting activity which is intended to cause the destabilisation of the United Kingdom or any other country including—

• (i) activity which undermines or is intended to undermine—

• (aa) the integrity, prosperity or security of the United Kingdom or any other country;

• (bb) the resolution of any armed conflict or the protection of civilians in conflict zones;

• (ii) activity which aids or facilitates serious organised crime in the United Kingdom or any other country;

• (d) planning or conducting espionage for the Government of Iran;

• (e) carrying on business in the Iranian defence sector;

• (f) a person, other than an individual, which falls within sub-paragraph (e);

• (i) owning or controlling directly or indirectly (within the meaning of regulation 9), or

• (ii) working as a director (whether executive or non-executive), trustee, or other manager or equivalent, of, or

• (iii) holding the right, directly or indirectly, to nominate at least one director (whether executive or non-executive), trustee or equivalent of,

• (g) any conduct which facilitates (or is intended to facilitate) or gives support or assistance to activity falling within sub-paragraphs (a) to (e);

• (h) being involved in assisting the contravention or circumvention of any relevant provision.

• (4) In paragraph (1)(d), being “associated with” a person includes—

• (a) obtaining a financial benefit or other material benefit from that person;

• (b) being an immediate family member of that person.

• (5) In paragraphs (2), (3) and (4) (as the case may be)—

• “asset” means an asset of any kind whether tangible or intangible and includes in particular real and personal property, electronic systems and information, and ships;

• “carrying on business in the Iranian defence sector” includes— supplying and exporting controlled goods and controlled technology to Iran; developing and stockpiling controlled goods and controlled technology in Iran; importing controlled goods and controlled technology into Iran;