Changes to the Iran Regulations as of 9 August 2018 

Iran Regulations

09 August 2018

COMMISSION IMPLEMENTING REGULATION (EU) 2018/1101 of 3 August 2018 laying down the criteria for the application of the second paragraph of Article 5 of Council Regulation (EC) No 2271/96 protecting against the effects of the extra-territorial application of legislation adopted by a third country, and actions based thereon or resulting therefrom.

To help EU operators with the implementation of the updated Blocking Statute the Commission published a Guidance Note and supporting documents to facilitate understanding of the relevant legal acts.

16 January 2016 Implementation Day.

The EU has produced an Information Note on the lifting of certain nuclear sanctions against Iran under the Joint Comprehensive Plan of Action JCPOA.    

This is outlined in the final version of the EU Information Note on the lifting of certain nuclear sanctions.

The purpose of this Information Note is to provide practical information to all interested parties on the commitments contained in the JCPOA concerning the lifting of the sanctions, the measures adopted at the EU level to meet those commitments and the various practical stages in this process.

This Information Note is organised as follows:

• Section 1 introduces the structure of the JCPOA.
• Section 2 describes the timelines for the implementation of the sanctions-related commitments under the JCPOA (Implementation plan).
• Section 3 presents a detailed description of the sanctions lifted under the JCPOA on Implementation Day.
• Section 4 contains an overview of the relevant EU legislative framework.
• Section 5 details the EU sanctions or restrictive measures that will remain in place after Implementation Day. This section also includes an outline of the procurement channel.
• Section 6 presents EU non-nuclear related sanctions that remain in place as they are not concerned by the JCPOA.
• Section 7 is to address practical issues with regard to the JCPOA through questions and answers. Input for this section was provided by EU Member States, business community and other interested parties.
• Section 8 lists the main reference documents and provides relevant links.

The Q and A in Section 7 has a section for Financial, banking and insurance measures. These measures will be very relevant for Financial Institutions.

We draw your attention in particular to Q23 
Is it still necessary to file notifications and requests for authorisations relating to the transfer of funds pursuant to Articles 30, 30a of Council Regulation 267/2012 as currently applicable? Is there any limitation in relation to the amount of funds that can be transferred? 

As of Implementation Day, there is no requirement to file notifications and requests for authorisations relating to the transfer of funds to and from Iran as these articles are removed from Council Regulation 267/2012. Equally, restrictions linked to the amount of funds to be transferred no longer apply in accordance with the JCPOA.

October 2015

The EU Council recently agreed to the lifting of some of the sanctions currently in place against Iran. At present it is still necessary to file notifications for authorisations relating to certain transfers of funds pursuant to Articles 30, 30a of Council Regulation 267/2012. 

As of Implementation Day, there will be no requirement to file notifications and requests for authorisations relating to the transfer of funds to and from Iran as these articles are removed from Council Regulation 267/2012. Equally, restrictions linked to the amount of funds to be transferred will no longer apply in accordance with the Joint Comprehensive Plan of Action (JCPOA).

Outlined below are some changes to the Iran regulations along with the JCPOA timelines. 

Timelines

Annex V of the JCPOA contains the Implementation plan describing the sequence and the steps to be carried out under the provisions of the JCPOA. There are five main events to distinguish in this process: Finalisation Day, Adoption Day, Implementation Day, Transition Day and UN Security Council Resolution Termination Day. These are outlined in brief below along with the recent changes to the regulations.

 1. Finalisation Day

This event took place on 14 July 2015 when the negotiations on the JCPOA were successfully concluded and endorsed by E3/EU+3 and Iran. Following this event the UN Security Council adopted Resolution 2231(2015) on 20 July 2015. The Council of the European Union expressed its full support for UN Security Council resolution 2231(2015) on the same day with the adoption of Conclusions.

2. Adoption Day

On Adoption Day, which occurred on 18 October 2015, the JCPOA came into effect. Iran started the implementation of its nuclear-related commitments. The European Union and the United States began to make the necessary preparations for the lifting of nuclear-related sanctions as laid down in the JCPOA.

The European Union adopted the necessary legal acts to lift all EU economic and financial sanctions taken in connection with the Iranian nuclear programme as laid down in the JCPOA. The EU legislative package adopted on 18 October 2015 will only come into effect on Implementation Day.

3. Implementation Day

Implementation Day will occur upon the IAEA-verified implementation by Iran of the nuclear-related measures and simultaneously, the E3/EU+3 taking the actions to which they have committed under the JCPOA.

The exact date of Implementation Day will depend on when Iran completes its nuclear-related commitments under the JCPOA. As soon as the Director-General of the IAEA has presented a report to the IAEA Board of Governors and to the United Nations Security Council which confirms that Iran has taken the measures specified in paragraphs 15.1 to 15.11 of Annex V to the JCPOA, EU economic and financial sanctions taken in connection with the Iranian nuclear programme will be lifted. On that same day the European Union will publish in the Official Journal of the European Union legal acts intended exclusively to confirm that the legislation adopted on Adoption Day shall apply. The details of the sanctions to be lifted will be described in section 4 of the "Information Note" once published.

On Implementation Day, the limited sanctions relief provided to Iran under the 2013-interim agreement (JPOA) is superseded by the lifting of all economic and financial sanctions taken in connection with the Iranian nuclear programme in accordance with the JCPOA.

4. Transition Day

Transition Day is in 8 years after Adoption Day (18 October 2023) or at an earlier moment based upon a report from the Director General of the IAEA to the IAEA Board of Governors and in parallel to the UN Security Council stating that the IAEA has concluded that all nuclear material in Iran remains in peaceful activities (Broader Conclusion). On this day, the EU will lift proliferation–related sanctions, including arms and missile technology sanctions and related designations. All provisions in Council Decision 2010/413/CFSP suspended on Implementation Day will be terminated on Transition Day.  

5. UN Security Council resolution Termination Day

UN Security Council resolution Termination Day will occur 10 years from Adoption Day. On Termination Day all the provisions of UN Security Council resolution 2231(2015) will terminate and the UN Security Council will conclude consideration of the Iranian nuclear issue; the EU will lift all remaining nuclear-related restrictions and terminate the legal acts.

Revised Regulations  

18 October 2015 

Council Regulation (EU) No 267/2012 (2) gives effect to the measures provided for in Decision 2010/413/CFSP.

On 18 October 2015, the Council adopted Decision (CFSP) 2015/1863 (3) amending Decision 2010/413/CFSP, providing for certain measures in accordance with United Nations Security Council Resolution (UNSCR) 2231 (2015) endorsing the Joint Comprehensive Plan of Action of 14 July 2015 (‘JCPOA’) on the Iran nuclear issue and providing for actions to take place in accordance with the JCPOA.

UNSCR 2231 (2015) determines that upon verification by the International Atomic Energy Agency (IAEA) of the implementation of Iran's nuclear-related commitments as set out in the JCPOA, the provisions of UNSCRs 1696 (2006), 1737 (2006), 1747 (2007), 1803 (2008), 1835 (2008), 1929 (2010) and 2224 (2015) are to be terminated.

UNSCR 2231 (2015) further determines that States are to comply with the relevant provisions contained in Annex B to UNSCR 2231 (2015) aimed at promoting transparency and creating an atmosphere conducive to the full implementation of the JCPOA.

In accordance with the JCPOA, Decision (CFSP) 2015/1863 provides for the termination of all Union nuclear-related economic and financial restrictive measures simultaneously with the IAEA-verified implementation by Iran of the agreed nuclear-related measures. Furthermore, Decision (CFSP) 2015/1863 introduces an authorisation regime for reviewing and deciding on nuclear-related transfers to, or activities with, Iran not covered by UNSCR 2231 (2015) in full consistency with the JCPOA.

The commitment to lift all Union nuclear-related restrictive measures in accordance with the JCPOA is without prejudice to the dispute-resolution mechanism specified in the JCPOA and to the reintroduction of Union restrictive measures in the event of significant non-performance by Iran of its commitments under the JCPOA.

In case of reintroduction of Union restrictive measures, adequate protection for the execution of contracts concluded in accordance with the JCPOA while sanctions relief was in force will be provided consistent with previous provisions when sanctions were originally imposed.

The power to amend the lists in Annexes VIII, IX, XIII and XIV to Regulation (EU) No 267/2012 should be exercised by the Council, in view of the specific threat to international peace and security posed by Iran's nuclear programme, and to ensure consistency with the process for amending and reviewing Annexes I, II, III and IV to Decision 2010/413/CFSP.

Regulatory action at the level of the Union is necessary in order to implement the measures, in particular with a view to ensuring their uniform application by economic operators in all Member States.

Regulation (EU) No 267/2012 should therefore be amended accordingly

Council Regulation (EU) 2015/1861 of 18 October 2015 amending Regulation (EU) No 267/2012 concerning restrictive measures against Iran

18 October 2015

On 23 March 2012, the Council adopted Regulation (EU) No 267/2012.

On 14 July 2015, China, France, Germany, the Russian Federation, the United Kingdom and the United States, supported by the High Representative of the Union for Foreign Affairs and Security Policy, reached an agreement with Iran on a long-term comprehensive solution to the Iranian nuclear issue. The full implementation of the Joint Comprehensive Plan of Action (JCPOA) will ensure the exclusively peaceful nature of the Iranian nuclear programme, and provide for the comprehensive lifting of all nuclear-related sanctions.

In accordance with the JCPOA, the Council has decided to suspend the restrictive measures applying to individuals and entities set out in Annexes V and VI to Decision 2010/413/CFSP simultaneously with the IAEA-verified implementation by Iran of agreed nuclear-related measures. These individuals and entities should be removed from the list of persons and entities subject to restrictive measures set out in Annexes VIII and IX to Regulation (EU) No 267/2012 simultaneously with the IAEA-verified implementation by Iran of agreed nuclear-related measures.

Regulation (EU) No 267/2012 should be amended accordingly