Iraq - Regulation 1210/2003

Council Regulation (EC) No 1210/2003 of 7 July 2003 concerning certain specific restrictions on economic and financial relations with Iraq

Article 1

For the purpose of this Regulation, the following definitions shall apply:

1. ‘Sanctions Committee’ means: the Committee of the Security Council of the United Nations which was established pursuant to paragraph 6 of Resolution 661 (1990);

2. ‘funds’ means financial assets and economic benefits of every kind, including but not limited to:

(a) cash, cheques, claims on money, drafts, money orders and other payment instruments;

(b) deposits with financial institutions or other entities, balances on accounts, debts and debt obligations;

(c) publicly- and privately-traded securities and debt instruments, including stocks and shares, certificates representing securities, bonds, notes, warrants, debentures and derivatives contracts;

(d) interest, dividends or other income on or value accruing from or generated by assets;

(e) credit, right of set-off, guarantees, performance bonds or other financial commitments;

(f) letters of credit, bills of lading, bills of sale;

(g) documents evidencing an interest in funds or financial resources,

(h) any other instrument of export-financing;

3. ‘economic resources’ means assets of every kind, whether tangible or intangible, movable or immovable, which are not funds but can be used to obtain funds, goods or services;

4. ‘freezing of funds’ means preventing any move, transfer, alteration, use of or dealing with funds in any way that would result in any change in their volume, amount, location, ownership, possession, character, destination or other change that would enable the use of the funds, including portfolio management;

5. ‘freezing of economic resources’ means preventing their use to obtain funds, goods or services in any way, including, but not limited to, by selling, hiring or mortgaging them;

6. ‘Development Fund for Iraq’ means the Development Fund for Iraq held by the Central Bank of Iraq.

Article 2

All proceeds from all export sales of petroleum, petroleum products and natural gas from Iraq, as listed in Annex I, as of 22 May 2003 shall be deposited into the Development Fund for Iraq under the conditions set out in UNSC Resolution 1483 (2003) and in particular paragraphs 20 and 21 thereof.

Article 3

1.   The following shall be prohibited:

(a) the import of or the introduction into the territory of the Community of,

(b) the export of or removal from the territory of the Community of, and

(c) the dealing in, Iraqi cultural property and other items of archaeological, historical, cultural, rare scientific and religious importance including those items listed in Annex II, if they have been illegally removed from locations in Iraq, in particular, if:

(i) the items form an integral part of either the public collections listed in the inventories of Iraqi museums, archives or libraries' conservation collection, or the inventories of Iraqi religious institutions, or

(ii) there exists reasonable suspicion that the goods have been removed from Iraq without the consent of their legitimate owner or have been removed in breach of Iraq's laws and regulations.

2.   These prohibitions shall not apply if it is shown that either:

(a) the cultural items were exported from Iraq prior to 6 August 1990; or

(b) the cultural items are being returned to Iraqi institutions in accordance with the objective of safe return as set out in paragraph 7 of UNSC Resolution 1483 (2003).

Article 4

1.   All funds and economic resources of the previous Government of Iraq, or of any of the public bodies, corporations, including companies established under private law in which the public authorities have a majority or controlling stake, or agencies of that Government, identified by the Sanctions Committee and listed in Annex III, shall be frozen, if they were located outside Iraq on the date of 22 May 2003.

2.   All funds and economic resources belonging to, or owned or held by the following persons, identified by the Sanctions Committee and listed in Annex IV, shall be frozen:

(a) former President Saddam Hussein;

(b) senior officials of his regime;

(c) immediate members of their families; or

(d) legal persons, bodies or entities owned or controlled directly or indirectly by the persons referred to in (a), (b) and (c) or by any natural or legal person acting on their behalf or at their direction.

3.   No funds or economic resources shall be made available, directly or indirectly, to or for the benefit of natural or legal persons, bodies or entities listed in Annex IV.;

4.   Paragraphs 1, 2 and 3 shall not apply to the making available of funds or economic resources necessary to ensure the timely delivery of humanitarian assistance or to support other activities that support basic human needs where such assistance and other activities are carried out by:

(a) the United Nations, including its programmes, funds and other entities and bodies, as well as its specialised agencies and related organisations;

(b) international organisations;

(c) humanitarian organisations having observer status with the United Nations General Assembly and members of those humanitarian organisations;

(d) bilaterally or multilaterally funded non-governmental organisations participating in the United Nations Humanitarian Response Plans, Refugee Response Plans, other United Nations appeals or humanitarian clusters coordinated by the United Nations Office for the Coordination of Humanitarian Affairs (OCHA);

(e) the employees, grantees, subsidiaries, or implementing partners of the entities mentioned in points (a) to (d) while and to the extent that they are acting in those capacities; or

(f) appropriate other actors as determined by the Sanctions Committee.

Article 4a

The prohibition set out in Article 4(3) shall not give rise to liability of any kind on the part of the natural or legal persons or entities concerned, if they did not know, and had no reasonable cause to suspect, that their actions would infringe this prohibition.

Article 5

1.   Article 4 shall not prevent the crediting of frozen accounts by financial or credit institutions that receive funds transferred by third parties to the account of the listed person, entity or body, provided that any additions to such accounts are also frozen. The financial or credit institution shall inform the competent authorities about such transactions without delay.

2.   By way of derogation from Article 4(3), the competent authorities, as indicated on the websites listed in Annex V, may authorise the making available of certain funds or economic resources, under such conditions as they deem appropriate, after having determined that the funds or economic resources concerned are:

(a) necessary to satisfy the basic needs of natural or legal persons, entities or bodies listed in Annex IV, and dependent family members of such natural persons, including payments for foodstuffs, rent or mortgage, medicines and medical treatment, taxes, insurance premiums, and public utility charges;

(b) intended exclusively for payment of reasonable professional fees and reimbursement of incurred expenses associated with the provision of legal services;

(c) intended exclusively for payment of fees or service charges for routine holding or maintenance of frozen funds or economic resources; or

(d) necessary for extraordinary expenses, provided that the relevant competent authority has notified the grounds on which it considers that a specific authorisation should be granted to the competent authorities of the other Member States and to the Commission at least two weeks prior to authorisation.

3.   The Member States concerned shall inform the other Member States and the Commission of any authorisation granted under this Article.

Article 6

1.   By way of derogation from Article 4, the competent authorities indicated in the websites listed in Annex V, may authorise the release of frozen funds or economic resources, if all of the following conditions are met:

(a) the funds or economic resources are the subject of a judicial, administrative or arbitral lien established prior to 22 May 2003 or of a judicial, administrative or arbitral judgment rendered prior to that date;

(b) the funds or economic resources will be used exclusively to satisfy claims secured by such a lien or recognised as valid in such a judgment, within the limits set by applicable laws and regulations governing the rights of persons having such claims;

(c) satisfying the claim is not in breach of Regulation (EEC) No 3541/92; and

(d) recognising the lien or judgment is not contrary to public policy in the Member State concerned.

2.   In all other circumstances, funds, economic resources and proceeds of economic resources frozen pursuant to Article 4 shall only be unfrozen for the purpose of their transfer to the successor arrangements to the Development Fund for Iraq put in place by the Government of Iraq under the conditions set out in UNSC Resolutions 1483 (2003) and 1956 (2010).

Article 7

1.   The participation, knowingly and intentionally, in activities, the object or effect of which is, directly or indirectly, to circumvent Article 4(1) to (3) or to promote the transactions referred to in Articles 2 and 3, shall be prohibited.

2.   Any information that the provisions of this Regulation are being, or have been, circumvented shall be notified to the competent authorities of the Member States, as listed in Annex V, and, directly or through these competent authorities, to the Commission.

Article 8

1.   Without prejudice to the applicable rules concerning reporting, confidentiality and professional secrecy and to the provisions of Article 284 of the Treaty, natural and legal persons, entities and bodies shall:

(a) provide immediately any information which would facilitate compliance with this Regulation, such as accounts and amounts frozen in accordance with Article 4, to the competent authorities indicated in the websites listed in Annex V, in the Member State where they are resident or located, and, directly or through these competent authorities, to the Commission;

(b) cooperate with the competent authorities indicated in the websites listed in Annex V, in any verification of this information.

2.   Any information provided or received in accordance with this Article shall be used only for the purposes for which it was provided or received.

Article 9

The freezing of funds and economic resources, carried out in good faith that such action is in accordance with this Regulation, shall not give rise to liability of any kind on the part of the natural or legal person or entity implementing it, or its directors or employees, unless it is proved that the funds and economic resources were frozen as result of negligence.

Article 10

1. The following shall be immune from legal proceedings and shall not be subjected to any form of attachment, garnishment or execution:

(a) petroleum, petroleum products and natural gas originating in Iraq, until title to such goods has been passed to a purchaser;

(b) proceeds and obligations arising from the sale of petroleum, petroleum products and natural gas originating in Iraq, including payments for such goods deposited into the Development Fund for Iraq held by the Central Bank of Iraq;

(c) funds and economic resources frozen pursuant to Article 4;

(d) the Development Fund for Iraq held by the Central Bank of Iraq.

2.   By way of derogation from paragraph 1, the proceeds and obligations arising from the sale of petroleum, petroleum products and natural gas originating in Iraq, and the Development Fund for Iraq shall not be immune from claims made on the basis of Iraq's liability for damages in connection with any ecological accident occurring after 22 May 2003.

3.   Paragraph 1(a), (b) and (d) shall not apply to legal proceedings concerning any contractual obligation entered into by Iraq, including in particular its Interim Government, the Central Bank of Iraq and the Development Fund for Iraq, after 30 June 2004 nor to any final judgement arising out of such a contractual obligation.

Article 11

The Commission shall be empowered to:

(a) amend Annex II as necessary;

(b) amend or supplement Annexes III and IV on the basis of determinations made by either the United Nations Security Council or the Sanctions Committee; and

(c) amend Annex V on the basis of information supplied by Member States.

Article 12

Without prejudice to the rights and obligations of the Member States under the Charter of the United Nations, the Commission shall maintain all necessary contacts with the Sanctions Committee for the purpose of the effective implementation of this Regulation.

Article 13

The Commission and the Member States shall immediately inform each other of any measures taken pursuant to this Regulation. They shall supply each other with relevant information at their disposal in connection with this Regulation, in particular information received in accordance with Article 8 and information relating to breaches of the provisions of this Regulation, enforcement problems and judgements handed down by national courts.

Article 14

This Regulation shall apply notwithstanding any rights conferred or obligations imposed by any international agreement signed or any contract entered into or any licence or permit granted before the entry into force of this Regulation.

Article 15

1.   The Member States shall lay down the rules on sanctions applicable to infringements of the provisions of this Regulation and shall take all measures necessary to ensure that they are implemented. The sanctions provided for must be effective, proportionate and dissuasive.

2.   Pending the adoption, where necessary, of any legislation to that end, the sanctions to be imposed where the provisions of this Regulation are infringed shall, where relevant, be those determined by the Member States in order to give effect to Article 7(3) of Regulation (EC) No 2465/96.

3.   Each Member State shall be responsible for bringing proceedings against any natural or legal person, group or entity under its jurisdiction, in cases of breach of any of the restrictive measures laid down in this Regulation by any such person, group or entity.

Article 15a

1.   Member States shall designate the competent authorities referred to in Articles 6, 7 and 8 of this Regulation and identify them in, or through, the websites listed in Annex V.

2.  Member States shall notify the Commission of their competent authorities before 15 March 2008 and shall notify it of any subsequent changes.

Article 16

This Regulation shall apply:

(a) within the territory of the Community, including its airspace;

(b) on board any aircraft or any vessel under the jurisdiction of a Member State;

(c) to any person inside or outside the territory of the Community who is a national of a Member State;

(d) to any legal person, entity or body which is incorporated or constituted under the law of a Member State; and

(e) to any legal person, entity or body in respect of any business done in whole or in part within the Community.

Article 17

Regulation (EC) No 2465/96 is hereby repealed.

Article 18

1.   This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union .

2.   Save for Articles 4 and 6, it shall apply from 23 May 2003.

3.   Articles 2 and 10 shall apply until 30 June 2011.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Annex I - List of goods referred to in Article 2

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Annex II - List of goods referred to in Article 3

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Annex III - List of public bodies, corporations and agencie and natural and legal persons, bodies and entities of the previous government of Iraq referred to in Article 4

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Annex IV  - List of natural and legal persons, bodies or entities associated with the regime of former President Saddam Hussein referred to in Article 4(2), (3) and (4)

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Annex V - Websites for information on the competent authorities referred to in Articles 5, 6, 7 ad 8 and address fpr notifications to the European Commission

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