EXTRAORDINARY

OFFICIAL GAZETTE

THE BAHAMAS

PUBLISHED BY AUTHORITY

NASSAU 14th May, 2019

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INTERNATIONAL OBLIGATIONS (ECONOMIC AND ANCILLARY MEASURES) (IRAN) ORDER, 2019

Arrangement of Paragraphs

Paragraph

PART I- PRELIMINARY

1. Citation.................................................................................................................. 2
2. Interpretation.......................................................................................................... 2

PART II – RESTRICTIONS, FREEZING OF FUNDS AND EXEMPTIONS 3. Restrictions on supply, sale or transfer of equipment, goods and technology, etc. ................................................................................................................. 3 4. Freezing of funds, etc. of designated individuals and entities................................ 4 5. Exemptions............................................................................................................. 5

PART III - APPOINTMENT OF FOCAL POINTS AND PROCEDURES 6. Appointment of focal points................................................................................... 6 7. Proposals to permit the supply, sale or transfer of equipment, goods and technology, etc......................................................................................................... 6 8. Reporting, etc. of funds, financial assets or economic resources of individuals or entities.................................................................................................................... 6 9. Procedure for unfreezing of funds, financial assets or economic resources or related services.......................................................................................................... 8 10. Procedure for grant of exemptions......................................................................... 9 11. Procedure for communication of compliance......................................................... 9 12. False positive or mistaken identity......................................................................... 9

PART IV - MISCELLANEOUS 13. Acts done in good faith.......................................................................................... 9 14. Strict compliance.................................................................................................... 9 15. Revocation of S. I. No. 105 of 2008..................................................................... 9

SCHEDULE ........................................................................................................... 10

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OFFICE OF THE GOVERNOR-GENERAL

S.I. No. 36 of 2019

INTERNATIONAL OBLIGATIONS (ECONOMIC AND ANCILLARY MEASURES) ACT (CHAPTER 16)

INTERNATIONAL OBLIGATIONS (ECONOMIC AND ANCILLARY MEASURES) (IRAN) ORDER, 2019

The Governor-General, in exercise of the powers conferred by section 3 of the International Obligations (Economic and Ancillary Measures) Act, makes the following Order —

PART I- PRELIMINARY

1. Citation. This Order may be cited as the International Obligations (Economic and Ancillary Measures) (Iran) Order, 2019.

2. Interpretation. In this Order — "funds and other financial assets or economic resources" mean — (a) any type of fund or asset, corporeal or incorporeal, moveable or immoveable, tangible or intangible, however acquired, and a legal document or instrument in any form, including electronic or digital, evidencing title to, or interest in, such asset or fund and any interest, dividend or other income on or value accruing from or generated by such fund or asset;

(b) cash, any other type of financial asset, economic resource, whether tangible or intangible, movable or immovable, however acquired, and a legal document or instrument in any form, including electronic or digital, evidencing title to, or interest in, such fund or other asset, including but not limited to, bank credit, travellers cheque, bank cheque, money order, share, security, bond, draft, or letter of credit, and any interest, dividend or other income on or value accruing from or generated by such fund or other asset which is located inside or outside The Bahamas; and (c) those used for the provision of internet hosting or related services, and for the support of the designated individuals and entities; "JCPOA" means Joint Comprehensive Plan of Action; "Minister" means the Minister of Foreign Affairs; "S/RES" means the United Nations Security Council Resolutions.

PART II – RESTRICTIONS, FREEZING OF FUNDS AND EXEMPTIONS

3. Restrictions on supply, sale or transfer of equipment, goods and technology, etc. No person in The Bahamas and no Bahamian outside The Bahamas shall directly or indirectly — (a) except with the prior approval of the Security Council, on a case-by-case basis — (i) supply, sell or transfer to, or for the use in or benefit of, Iran by, way of a Bahamian registered vessel or aircraft of — (aa) all items, materials, equipment, goods and technology set out in S/2015/546, INFCIRC/254/Rev.12/Part 1 and INFCIRC/254/Rev.9/Part 2 and any further items if the Minister determines that such items could contribute to reprocessing or enrichment-related or heavy water-related activities inconsistent with the JCPOA or to the development of nuclear weapon delivery systems;

(bb) any battle tanks, armoured combat vehicles, large caliber artillery systems, combat aircraft, attack helicopters, warships, missiles or missile systems, as defined for the purpose of the United Nations Register of Conventional Arms, or related materiel, including spare parts; (ii) provide to Iran — (aa) any technical assistance or training, financial assistance, investment, brokering or other services, and the transfer of financial resources or services, related to the supply, sale, transfer, manufacture or use of the items, materials, equipment, goods and technology described in subparagraph (a)(i)(aa); (bb) any technical training, financial resources or services, advice, other services or assistance related to the supply, sale, transfer, manufacture, maintenance, or use of arms and related materiel described in subparagraph (a)(i)(bb); (b) except with the prior approval of the Minister, on a case-by-case basis, supply, sell or transfer to Iran — (i) equipment covered by B.1 of INFCIRC/254/Rev.12/Part 1 when such equipment is for light water reactors; (ii) low-enriched uranium covered by A.1.2 of INFCIRC/254/Rev.12/Part 1 when it is incorporated in assembled nuclear fuel elements for such reactors; and (iii) items, materials, equipment, goods and technology set out in INFCIRC/254/Rev. 9/Part 2 only when for exclusive use in light water reactors.

4. Freezing of funds, etc. of designated individuals and entities. Subject to paragraph 5, no funds, other financial assets and economic resources held in banks or financial institutions licensed in The Bahamas that are owned or controlled, directly or indirectly, by — (a) designated individuals or entities listed in the Schedule; and (b) any additional individual or entity designated by the Security Council under paragraph 6(c) of S/RES/2231 (2015), shall be made available to an individual or entity referred to under subparagraphs (a) and (b), or to an individual or entity acting on behalf of, or at the direction of an individual or entity referred to under subparagraphs (a) and (b).

5. Exemptions. This Order does not prohibit an individual or entity specified in the Schedule — (a) from accessing funds, other financial assets and economic resources that are determined by the Minister, based on the conditions specified in paragraph 6(d) of S/RES/2231 (2015), to be — (i) necessary for basic expenses, including payment for foodstuffs, rent or mortgage, medicines and medical treatment, taxes, insurance premiums, and public utility charges, or exclusively for payment of reasonable professional fees and reimbursement of incurred expenses associated with the provision of legal services, or fees or service charges, in accordance with the laws of The Bahamas for routine holding or maintenance of frozen funds, other financial assets and economic resources; (ii) necessary for extraordinary expenses; (iii) the subject of a judicial, administrative or arbitral lien or judgment, provided that the lien or judgment was entered into prior to the date of adoption of S/RES/1737 (2006); is not for the benefit of a designated individual or entity; and has been notified to the Security Council; (iv) necessary for the civil nuclear cooperation projects described in Annex III of the JCPOA; (v) necessary for activities directly related to the items specified in paragraph 2 of Annex B of S/RES/2231 (2015), or to any other activity required for the implementation of the JCPOA; (b) from making payments due under a contract entered into prior to the listing of that individual or entity, if the Minister determines that — (i) the contract is not related to any of the prohibited items, materials, equipment, goods, technology, assistance, training, financial assistance, investment, brokering or services referred to in Annex B of S/RES/2231 (2015); (ii) the payment is not directly or indirectly received by a designated individual or entity.

PART III - APPOINTMENT OF FOCAL POINTS AND PROCEDURES

6. Appointment of focal points. The following persons shall be the focal points for the implementation of the United Nations Security Council Resolutions — (a) the Director of Legal Affairs; (b) the Director-General of the Ministry of Foreign Affairs; (c) the Permanent Secretary with responsibility for National Security; (d) the Permanent Secretary with responsibility for Tourism and Civil Aviation; (e) the Permanent Secretary with responsibility for Transport; (f) the Director of Immigration; (g) the Financial Secretary; (h) the Director of the Financial Intelligence Unit; and (i) the National Identified Risk Coordinator.

7. Proposals to permit the supply, sale or transfer of equipment, goods and technology, etc. The Minister may submit to the Security Council Facilitator, proposals to permit the activities referred to under paragraph 3.

8. Reporting, etc. of funds, financial assets or economic resources of individuals or entities. (1) The following process shall apply to all funds, financial assets or economic resources or related services of individuals and entities held in, or through, financial institutions — (a) the financial institutions shall maintain and update the list of designated individuals and entities in electronic form and regularly check the United Nations’ website to verify whether individuals or entities designated by the Security Council are holding any funds, financial assets or economic resources or related services or any form of relations with them;

(ii) inform the result of the verification and the particulars of the frozen property to the Financial Intelligence Unit who shall immediately issue a temporary freeze order and advise the Director of Legal Affairs so as to support a permanent freeze on such property by a court order. (2) For the purposes of this Part, "financial institution" has the same meaning ascribed to it under the Financial Transactions Reporting Act, 2018 (No. 5 of 2018).

9. Procedure for unfreezing of funds, financial assets or economic resources or related services. (1) An individual or entity with evidence to prove that the freezing of funds, financial assets or economic resources or related services, owned or held by the individual or entity has been inadvertently frozen, shall make application to the financial institution or to the Attorney-General giving the requisite evidence, in writing. (2) The financial institution shall inform the Attorney-General of the application made under subparagraph (1) and forward a copy of that application together with full details of the frozen funds, financial assets or economic resources or related services to the Attorney-General. (3) The Attorney-General shall cause such verification as may be required on the basis of the evidence provided by the individual or entity and if satisfied, the Director of Legal Affairs shall apply for an order, within 15 working days, for unfreezing the funds, financial assets or economic resources or related services, owned or held by such applicant, with notice to the financial institution. (4) If it is not possible to issue instructions for the unfreezing of the assets within 15 working days, the Attorney-General shall inform the applicant. (5) If the Attorney-General is not convinced by the supporting documents or information, the Attorney-General shall forward the documents or information to the Royal Bahamas Police Force for investigation and follow up, and the results of such investigation shall be reported to the Attorney-General. (6) The results of the investigation specified under subparagraph (5) and the application shall be submitted to the Security Council for their determination and the decision received shall be communicated to the financial institution or the applicant.

10. Procedure for grant of exemptions. The Attorney-General — (a) may receive requests from designated individuals or entities for the exemptions referred to under paragraph 5; (b) shall transmit such requests to the Security Council for a decision and direct the Security Council to consider such requests; and (c) shall communicate the decision of the Security Council to the designated individuals and entities.

11. Procedure for communication of compliance. The Director of Legal Affairs shall provide details of funds, financial assets or economic resources or related services of designated individuals or entities frozen by an order to the Director-General of the Ministry of Foreign Affairs for onward communication to the Security Council.

12. False positive or mistaken identity. Upon request by any of the designated individuals or entities, the Attorney-General may allow the funds and other financial assets or economic resources of an individual or entity with the same name as a designated individual or entity (for example, a false positive or mistaken identity) to be unfrozen pursuant to a court order, provided that the Attorney-General is satisfied that the individual or entity is not the actual designated individual or entity.

PART IV - MISCELLANEOUS

13. Acts done in good faith. No suit or prosecution or administrative measures or any other legal proceedings shall lie against any individual or entity for action taken in good faith when enforcing this Order.

14. Strict compliance. A financial institution shall file an annual declaration, signed by at least two Directors of its Board of Directors or its compliance officers, certifying that the operations of the financial institution are in compliance with this Order, and the declaration shall be filed within ninety days of the calendar year end.

15. Revocation of S. I. No. 105 of 2008. The International Obligations (Economic and Ancillary Measures) (Iran) Order, 2008 is revoked.

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SCHEDULE

(paragraphs 4 and 5)

LIST ESTABLISHED AND MAINTAINED PURSUANT TO SECURITY COUNCIL RESOLUTION 2231 (2015)

(Specified Below)

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[The document continues with the list of individuals and entities, ending with:]

Made this 14th day of May, 2019.

Signed MARGUERITE PINDLING Governor-General