The newly applied Regulation amended Article 30 of Council Regulation (EU) No. 267/2012 so that it now includes a prohibition affecting credit and financial institutions which is effectively the same as that contained in the Financial Restrictions (Iran) Order 2012. This prohibition means that businesses in the regulated sector involved in financial services activities cannot enter into, or continue, certain transactions or business relationships with Iranian banks (or branches or subsidiaries) or the Central Bank of Iran.
Whilst the Financial Restrictions (Iran) Order 2012 is to be revoked, as it is no longer required, this does not significantly change the effect of the prohibition - except that the restriction now also applies to all Iranian financial institutions (e.g. money transmitters) as well as banks.
The restrictions on the transfer of funds to and from Iranian financial institutions remain in place. However, there are some changes to the thresholds above which licences will be required -
- No licence is required for a transfer between a credit or financial institution here and one in Iran if the transfer is under €10,000.
- No prior authorisation is required for a transfer if it is a personal remittance and it is under €40,000 (but a prior notification must be sent to the Treasury if the transfer is over €10,000).
- Humanitarian payments are exempt from the prohibition on the transfer of funds if they are of €100,000 or less (but a prior notification must be sent to the Treasury if the transfer is over €10,000).
It remains prohibited to make funds or economic resources directly or indirectly available to any person, entity or body designated under the EU sanctions Regulations, including designated Iranian banks.
Prior notifications, applications for prior authorisations, and any queries about the prohibitions and restrictions imposed and involving Iran should be directed to the Sanctions Officer at Customs and Excise.
The following Table provides guidance on the notification and authorisation requirements for transfers of funds between credit and financial institutions in the Island and those in Iran. Sanctions Notice 24 (Iran) will be updated in due course with details of the changes made following the application of Council Regulation (EU) No. 1263/2012, and the application of Council Regulation (EU) No. 1245/2012 (which also came into operation in the Island on 31 January). The Supplement to Sanctions Notice 24, which contained frequently asked questions regarding funds transfers to and from Iran, has been withdrawn to be revised.
| Type of payment/relationship | Size of payment | Is prior notification required? | Is a licence required? |
|---|---|---|---|
|
Business relationship between a credit or financial institution in the Island and an Iranian bank or financial institution |
n/a |
No |
No. |
|
The EU Regulation does not prohibit business relationships with all Iranian credit and finanal institutions in the same way as the Order did. |
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|
However, some dealings (e.g. new correspondent accounts) with Iranian institutions continue to be prohibited, and transfers of funds to or from an Iranian institution are prohibited without prior notification or authorisation. |
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|
Humanitarian payments |
€10,000 to €100,000 |
Yes*. Prior notification is required for amounts over €10,000. |
No. |
|
Prior authorisation** is required for amounts over €40,000. |
Humanitarian payments under €100,000 are exempt from the prohibition on transfers. |
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|
Over €100,000 |
Prior authorisation** is required. |
Yes**. |
|
|
Personal remittances (including payments to students studying in the UK and Isle of Man) |
€10,000 to €40,000 |
Yes*. |
No. |
|
Personal remittances under €40,000 are exempt from the prohibition on transfers. |
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|
Over €40,000 |
Prior authorisation** is required. |
Yes**. |
|
|
Other payments (i.e. all licensable payments referred to in Article 30(2)) |
Under €10,000 |
No. |
No. |
|
Over €10,000 |
Prior authorisation** us required. |
Yes**. |
|
|
|
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*Apply for prior notification using Form CEM 62 MAN available on the Customs and Excise website. |
**Apply for prior authorisation using Form CEM 63 MAN available on the Customs and Excise website. |
