The Iran (Restrictive Measures) (Overseas Territories) Order 2012

Offences related to restrictions on financing of certain enterprises

17.—(1) A person to whom this Order applies (“P”) commits an offence if P knowingly —

(a)grants any financial loan or credit to a relevant Iranian person, entity or body;

(b)acquires or extends a participation in a relevant Iranian person, entity or body;

(c)creates a joint venture with a relevant Iranian person, entity or body; or

(d)establishes cooperation with an Iranian person, entity or body engaged in the transmission of natural gas.

(2) Paragraph (1) does not apply if P is acting under the authority of a licence granted by the Governor under this Order.

(3) Paragraph (1)(b) and (c) do not apply to the granting of a financial loan or credit, or to the acquisition or extension of a participation, if the following conditions are met—

(a)the transaction is required by an agreement or contract concluded before the date on which this Order comes into force, and

(b)the Governor has been informed at least 20 working days in advance of the agreement or contract.

(4) A licence may be granted to authorise an investment through a transaction referred to in paragraph (1) if—

(a)the investment is for food, agricultural, medical or other humanitarian purposes, and

(b)in those cases where the investment is made in an Iranian person, entity or body engaged in the manufacture of goods or technology contained in the Nuclear Suppliers Group or Missile Technology Control Regime lists, the Sanctions Committee has determined in advance and on a case-by-case basis that the transaction would clearly not contribute to the development of technologies in support of Iran’s proliferation-sensitive nuclear activities, or to the development of nuclear weapon development delivery systems.

(5) The Governor must not grant a licence for an activity mentioned in paragraph (1), and may annul, suspend, modify or revoke a licence that has already been so granted, if the Governor reasonably believes that the activity is or may be intended for use in connection with—

(a)Iran’s enrichment-related, reprocessing or heavy water-related activities,

(b)the development of nuclear weapon delivery systems by Iran, or

(c)the pursuit by Iran of activities related to other topics about which the International Atomic Energy Agency has expressed concerns or has identified as outstanding.

(6) For the purposes of paragraph (1)—

“cooperation” means—

“exploration of crude oil and natural gas” includes the exploration for, prospection of and management of crude oil and natural gas reserves, as well as the provision of geological services in relation to such reserves;

“petrochemical industry” means production plants for the manufacturing of items in Annex V to the Council Regulation;

“production of crude oil and natural gas” includes bulk gas transmission services for the purpose of transit or delivery to directly interconnected grids;

“refining” means the processing, conditioning or preparation for the ultimately final sale of fuels;

“relevant Iranian person, entity or body” means an Iranian person entity or body engaged —