IRAN: Implementation of Economic and Financial Sanctions Relief for Iran

Tuesday January 19 2016

HM Treasury has announced Implementation Day, within the meaning of the Joint Comprehensive Plan of Action (JCPoA), occurred on 16 January 2016. Implementation Day was the date on which the International Atomic Energy Agency (IAEA) reported on the agreed measures taken by Iran under the JCPoA and as a result the EU simultaneously terminated (in some cases only suspended) nuclear related financial and economic sanctions

On the 18 October 2015 (‘Adoption Day’, within the meaning of the JCPoA), the EU adopted the legal acts to prepare for the lifting of nuclear-related economic and financial EU sanctions on Implementation Day. These regulations have now come into effect.

The key provisions of EU sanctions relief under the JCPoA are as follows:

• 34 individuals and 298 entities are no longer subject to an asset freeze. Full details can be found in the Annex to this Notice.
• The restrictions on financial transfers to and from non-listed Iranian entities have ended. The requirement to seek prior authorisation for, or notify HM Treasury of, transfers of funds sent to or received from Iran, is therefore no longer applicable. 
• Banking activities (such as the establishment of new correspondent banking relationships with Iranian Banks and the opening of branches, subsidiaries or representative office of Iranian Banks) in EU states are permitted. 
• The provision of insurance and reinsurance to non-listed entities Iranian entities is permitted. 
• The supply of specialised financial messaging services is permitted for non-listed Iranian financial institutions. 
• Transactions in public or public-guaranteed bonds with Iranian non-listed entities are permitted.

Click on the link above for further details.