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Revocation
     2. The Iraq and Kuwait (United Nations Sanctions) Order 1990[2], the Iraq and Kuwait (United Nations Sanctions) (No.2) Order 1990[3] and the Iraq (United Nations) (Sequestration of Assets) Order 1993[4] are hereby revoked.

Amendment
     3. The Iraq (United Nations Sanctions) Order 2000[5] continues in effect and is amended as set out in Schedule 1 with effect from the date on which the committee referred to in paragraph 19 of resolution 1483 adopted by the Security Council of the United Nations on 22nd May 2003 identifies any person as an individual or entity falling within paragraph 23 of that resolution, which date shall be notified by the Treasury in the London, Edinburgh and Belfast Gazettes.

Interpretation
     4. In this Order the following expressions have, except where otherwise expressly provided, the meanings hereby respectively assigned to them, that is to say - 

"body corporate" includes a Scottish partnership and, in relation to such a partnership, any reference to a director or other officer of a body corporate is a reference to a partner;

"commander", in relation to an aircraft, means the member of the flight crew designated as commander of the aircraft by the operator thereof, or, failing such a person, the person who is for the time being the pilot in command of the aircraft;

"Development Fund for Iraq" means the Development Fund for Iraq referred to in resolution 1483 of the Security Council of the United Nations adopted on 22nd May 2003;

"document" includes information recorded in any form, and in relation to information recorded otherwise than in legible form, references to its production include references to producing a copy of the information in legible form;

"export" includes shipment as stores;

"exportation" in relation to any ship, submersible vehicle or aircraft, includes the taking out of the United Kingdom of the ship, submersible vehicle or aircraft notwithstanding that it is conveying goods or passengers and whether or not it is moving under its own power; and cognate expressions shall be construed accordingly;

"master", in relation to a ship, includes any person (other than a pilot) for the time being in charge of the ship;

"operator", in relation to an aircraft or vehicle, means the person for the time being having the management of the aircraft or vehicle;

"owner", where the owner of a ship is not the operator, means the operator and any person to whom it is chartered;

"restricted goods" means the goods specified in Part III of Schedule 1 to the Export of Goods (Control) Order 1994[6];

"ship" has the meaning it bears in section 313 of the Merchant Shipping Act 1995[7];

"shipment" (and cognate expressions) and "stores" shall have the meanings they bear in the Customs and Excise Management Act 1979[8];

"vehicle" means a land transport vehicle.

restricted goods to any person in Iraq shall be guilty of an offence under this Order, unless he proves that he did not know and had no reason to suppose that the goods in question were to be supplied or delivered to a person in Iraq.

    (2) Nothing in paragraph (1)(b) or (c) shall apply where the supply or delivery of the goods to the person concerned is authorised by a licence granted by the Secretary of State under this article.

Exportation of restricted goods to Iraq
     6. Except under the authority of a licence granted by the Secretary of State under this article, restricted goods are prohibited to be exported from the United Kingdom to any destination in Iraq or to any destination for the purpose of delivery, directly or indirectly, to or to the order of any person in Iraq.

Use of ships, aircraft and vehicles: restricted goods
     7.  - (1) Without prejudice to the generality of article 5, and except under the authority of a licence granted by the Secretary of State under this article, no ship or aircraft to which this article applies, and no vehicle within the United Kingdom, shall be used for the carriage of restricted goods if the carriage is, or forms part of, carriage from any place outside Iraq to any destination therein.

    (2) This article applies to ships registered in the United Kingdom, to aircraft so registered and to any other ship or aircraft that is for the time being chartered to any person who is - 

(a) a British citizen, a British overseas territories citizen, a British Overseas citizen, a British subject, a British National (Overseas) or a British protected person; or

(b) a body incorporated or constituted under the law of any part of the United Kingdom.

    (3) If any ship, aircraft or vehicle is used in contravention of paragraph (1) then - 

(a) in the case of a ship registered in the United Kingdom or any aircraft so registered, the owner and the master of the ship or, as the case may be, the operator and the commander of the aircraft; or

(b) in the case of any other ship or aircraft, the person to whom the ship or aircraft is for the time being chartered and, if he is such a person as is referred to in paragraph (2)(a) or (b), the master of the ship or, as the case may be, the operator and the commander of the aircraft; or

(c) in the case of a vehicle, the operator of the vehicle,

shall be guilty of an offence under this Order, unless he proves that he did not know and had no reason to suppose that the carriage of the goods in question was, or formed part of, carriage from any place outside Iraq to any destination therein.

    (4) Nothing in paragraph (1) shall apply where the supply or delivery or exportation from the United Kingdom of the goods concerned to Iraq was authorised by a licence granted by the Secretary of State under article 5 or 6.

    (5) Nothing in this article shall be construed so as to prejudice any other provision of law prohibiting or restricting the use of ships, aircraft or vehicles.

Development Fund for Iraq
     9.  - (1) Except as provided in paragraph (2), the Development Fund for Iraq, its property and assets wherever located and by whomsoever held (including any rights or obligations owned by or to the Development Fund for Iraq), shall have the like privileges and immunities as the United Nations under Part II of the United Nations and International Court of Justice (Privileges and Immunities) Order 1974[9].

    (2) The Development Fund for Iraq shall not have immunity from suit and legal process concerning liability for damages in connection with an ecological accident, including an oil spill, which occurs after 22nd May 2003.

Petroleum, petroleum products and natural gas
     10. All petroleum, petroleum products and natural gas originating in Iraq shall have immunity from suit and legal process. Such immunity shall cease once title has passed to a purchaser.

and, if he fails to do so, he shall be guilty of an offence under this Order, unless he proves that he did not consent to or connive at the goods reaching any destination other than such a destination as aforesaid.

Offences in connection with applications for licences, conditions attaching to licences, etc.
     12.  - (1) If for the purpose of obtaining any licence under this Order any person makes any statement or furnishes any document or information which to his knowledge is false in a material particular, or recklessly makes any statement or furnishes any document or information which is false in a material particular, he shall be guilty of an offence under this Order.

    (2) Any person who has done any act under the authority of a licence granted by the Secretary of State under this Order and who fails to comply with any conditions attaching to that licence shall be guilty of an offence under this Order:

Provided that no person shall be guilty of an offence under this paragraph where he proves that the condition with which he failed to comply was modified, otherwise than with his consent, by the Secretary of State after the doing of the act authorised by the licence.

Declaration as to goods: powers of search
     13.  - (1) Any person who is about to leave the United Kingdom shall, if he is required to do so by an officer of Customs and Excise - 

(a) declare whether or not he has with him any restricted goods which are destined for Iraq or for delivery, directly or indirectly, to or to the order of any person in Iraq; and

(b) produce such goods as aforesaid which he has with him.

Any such officer, and any person acting under his direction, may search that person for the purpose of ascertaining whether he has with him any such goods as aforesaid:

Provided that no person shall be searched in pursuance of this paragraph except by a person of the same sex.

    (2) Any person who without reasonable excuse refuses to make a declaration, or fails to produce any goods, or refuses to allow himself to be searched in accordance with the foregoing provisions of this article shall be guilty of an offence under this Order.

    (3) Any person who under the provisions of this article makes a declaration which to his knowledge is false in a material particular, or recklessly makes any declaration which is false in a material particular, shall be guilty of an offence under this Order.

Investigation, etc. of suspected ships
     14.  - (1) Where any authorised officer has reason to suspect that any ship to which article 7 applies has been or is being or is about to be used in contravention of paragraph (1) of that article - 

(a) he may (either alone or accompanied and assisted by persons under his authority) board the ship and search her and, for that purpose, may use or authorise the use of reasonable force;

(b) he may request the master of the ship to furnish such information relating to the ship and her cargo and produce for his inspection such documents so relating and such cargo as he may specify; and

(c) in the case of a ship that is reasonably suspected of being or of being about to be used in contravention of paragraph (1) of article 7, any authorised officer (either there and then or upon consideration of any information furnished or document or cargo produced in pursuance of a request made under sub-paragraph (b)), with a view to preventing the commission (or the continued commission) of any such contravention, or in order that enquiries into the matter may be pursued, may take the further action specified in paragraph (2).

    (2) The further action referred to in paragraph (1)(c) is either - 

(a) to direct the master of the ship to refrain, except with the consent of any authorised officer, from landing at any port specified by the officer any part of the ship's cargo that is so specified; or

(b) to request the master of the ship to take any one or more of the following steps:


(i) to cause the ship not to proceed with the voyage on which she is then engaged or about to engage until the master is notified by an authorised officer that the ship may so proceed;

(ii) if the ship is then in port in the United Kingdom, to cause her to remain there until the master is notified by an authorised officer that the ship may depart;

(iii) if the ship is then in any other place, to take her to any such port specified by the officer and to cause her to remain there until the master is notified as mentioned in sub-paragraph (ii); and

(iv) to take her to any other destination that may be specified by the officer in agreement with the master.

    (3) Without prejudice to the provisions of article 17(3), where - 

(a) a master refuses or fails to comply with a request made under paragraph (2)(b); or

(b) an authorised officer otherwise has reason to suspect that such a request that has been so made may not be complied with,

any such officer may take such steps as appear to him to be necessary to secure compliance with that request and, without prejudice to the generality of the foregoing, may for that purpose enter upon, or authorise entry upon, that ship and use, or authorise the use of, reasonable force.

    (4) In this article "authorised officer" means an officer as is referred to in section 284(1) of the Merchant Shipping Act 1995.

Investigation, etc. of suspected aircraft
     15.  - (1) Where any authorised officer or authorised person has reason to suspect that any aircraft to which article 7 applies has been or is being or is about to be used in contravention of paragraph (1) of that article - 

(a) he may (either alone or accompanied and assisted by persons under his authority) board the aircraft and search it and, for that purpose, may use or authorise the use of reasonable force;

(b) he may request the charterer, the operator and the commander of the aircraft or any of them to furnish such information relating to the aircraft and its cargo and produce for his inspection such documents so relating and such cargo as he may specify; and

(c) if the aircraft is then in the United Kingdom, any authorised officer or authorised person may (either there and then or upon consideration of any information furnished or document or cargo produced in pursuance of a request made under sub-paragraph (b)) further request the charterer, operator and the commander or any of them to cause the aircraft and any of its cargo to remain in the United Kingdom until notified that the aircraft and its cargo may depart.

    (2) Without prejudice to the provisions of article 17(3), where an authorised officer or authorised person has reason to suspect that any request that has been made under paragraph (1)(c) may not be complied with, he may take such steps as appear to him to be necessary to secure compliance with that request and, without prejudice to the generality of the foregoing, may for that purpose - 

(a) enter, or authorise entry, upon any land and upon that aircraft;

(b) detain, or authorise the detention of, that aircraft and any of its cargo; and

(c) use, or authorise the use of, reasonable force.

    (3) Before or on exercising any power conferred by this article, an authorised person shall, if requested to do so, produce evidence of his authority.

    (4) In this article - 

"authorised officer" means any officer of the Customs and Excise;

"authorised person" means any person authorised by the Secretary of State for the purpose of this article either generally or in a particular case.

Investigation, etc. of suspected vehicles
     16.  - (1) Where any authorised officer or authorised person has reason to suspect that any vehicle in the United Kingdom has been or is being or is about to be used in contravention of article 7 - 

(a) he may (either alone or accompanied and assisted by persons under his authority) enter the vehicle and search it and, for that purpose, may use or authorise the use of reasonable force;

(b) he may request the operator and the driver of the vehicle or either of them to furnish such information relating to the vehicle and any goods contained in it and produce for his inspection such documents so relating and such goods as he may specify; and

(c) any authorised officer or authorised person may (either there and then or upon consideration of any information furnished or document or goods produced in pursuance of a request made under sub-paragraph (b)) further request the operator or the driver to cause the vehicle and any goods contained in it to remain in the United Kingdom until notified that the vehicle may depart.

    (2) Without prejudice to the provisions of article 17(3), where any authorised officer or authorised person has reason to suspect that any request that has been made under paragraph (1)(c) may not be complied with, he may take such steps as appear to him to be necessary to secure compliance with that request and, without prejudice to the generality of the foregoing, may for that purpose - 

(a) enter, or authorise entry, upon any land and enter, or authorise entry of, that vehicle;

(b) detain, or authorise the detention of, that vehicle and any goods contained in it; and

(c) use, or authorise the use of, reasonable force.

    (3) Before or on exercising any power conferred by this article, an authorised person shall, if requested to do so, produce evidence of his authority.

    (4) In this article - 

"authorised officer" means any officer of the Customs and Excise;

"authorised person" means any person authorised by the Secretary of State for the purpose of this article either generally or in a particular case.

Provisions supplementary to articles 14 to 16
     17.  - (1) No information furnished or document produced by any person in pursuance of a request made under article 14, 15 or 16 shall be disclosed except - 

(a) with the consent of the person by whom the information was furnished or the document was produced:

Provided that a person who has obtained information or is in possession of a document only in his capacity as servant or agent of another person may not give consent for the purposes of this sub-paragraph but such consent may instead be given by any person who is entitled to that information or to the possession of that document in his own right;

(b) to any person who would have been empowered under article 14, 15 or 16 to request that it be furnished or produced or to any person holding or acting in any office under or in the service of:


(i) the Crown in respect of the Government of the United Kingdom;

(ii) the Government of the Isle of Man;

(iii) the States of Guernsey or Alderney or the Chief Pleas of Sark;

(iv) the States of Jersey; or

(v) the Government of any territory listed in Schedule 2;



(c) on the authority of the Secretary of State, to any organ of the United Nations or to any person in the service of the United Nations or of the Government of any other country for the purpose of assisting the United Nations or that Government in securing compliance with or detecting evasion of measures in relation to Iraq decided upon by the Security Council of the United Nations; or

(d) with a view to the institution of, or otherwise for the purposes of, any proceedings - 



(i) in the United Kingdom, for an offence under this Order or, with respect to any of the matters regulated by this Order, for an offence relating to customs; or

(ii) for any offence under any law making provision with respect to such matters that is in force in any of the Channel Islands, the Isle of Man or any territory listed in Schedule 2 to this Order.

    (2) Any power conferred by article 14, 15 or 16 to request the furnishing of information or the production of a document or of cargo for inspection shall include a power to specify whether the information should be furnished orally or in writing and in what form and to specify the time by which and the place in which the information should be furnished or the document or cargo produced for inspection.

    (3) Each of the following persons shall be guilty of an offence under this Order, that is to say - 

(a) a master of a ship who disobeys any direction given under article 14(2)(a);

(b) a master of a ship or a charterer or an operator or a commander of an aircraft or an operator or a driver of a vehicle who:


(i) without reasonable excuse, refuses or fails within a reasonable time to comply with any request made under article 14, 15 or 16 by any person empowered to make it, or

(ii) furnishes any document or information which to his knowledge is false in a material particular, or recklessly furnishes any document or information which is false in a material particular to such a person in response to such a request;



(c) a master or a member of a crew of a ship or a charterer or an operator or a commander or a member of a crew of an aircraft or an operator or a driver of a vehicle who wilfully obstructs any such person (or any person acting under the authority of any such person) in the exercise of his powers under article 14, 15 or 16.

    (4) Nothing in articles 14 to 17 shall be construed so as to prejudice any other provision of law conferring powers or imposing restrictions or enabling restrictions to be imposed with respect to ships, aircraft or vehicles.

Obtaining of evidence and information
     18. The provisions of Schedule 3 shall have effect in order to facilitate the obtaining, by or on behalf of the Secretary of State or the Commissioners of Customs and Excise - 

(a) of evidence and information for the purpose of securing compliance with or detecting evasion of - 


(i) this Order in the United Kingdom; or

(ii) any law making provision with respect to any of the matters regulated by this Order that is in force in any of the Channel Islands or the Isle of Man or any territory listed in Schedule 2; and



(b) of evidence of the commission of - 



(i) in the United Kingdom, an offence under this Order or, with respect to any of the matters regulated by this Order, an offence relating to customs; or

(ii) with respect to any of those matters, an offence under the law of any of the Channel Islands or the Isle of Man or any territory listed in Schedule 2.

Investigations by the Commissioners of Customs and Excise
     19. Where the Commissioners of Customs and Excise investigate or propose to investigate any matter with a view to determining - 

(a) whether there are grounds for believing that an offence under this Order has been committed; or

(b) whether a person should be prosecuted for such an offence,

the matter shall be treated as an assigned matter within the meaning of section 1(1) of the Customs and Excise Management Act 1979.

Penalties and proceedings
     20.  - (1) Any person guilty of an offence under article 5, 7(3), 8(2) or 8(3) shall be liable - 

(a) on conviction on indictment to imprisonment for a term not exceeding seven years or to a fine or to both; or

(b) on summary conviction to imprisonment for a term not exceeding six months or to a fine not exceeding the statutory maximum or to both.

    (2) Any person guilty of an offence under article 17(3)(b)(ii) or paragraph 5(b) or (d) of Schedule 3 shall be liable - 

(a) on conviction on indictment to imprisonment for a term not exceeding two years or to a fine or to both;

(b) on summary conviction to imprisonment for a term not exceeding six months or to a fine not exceeding the statutory maximum or to both.

    (3) Any person guilty of an offence under article 12(1) or (2) or article 13(3) shall be liable - 

(a) on conviction on indictment to imprisonment for a term not exceeding two years or to a fine or to both;

(b) on summary conviction to a fine not exceeding the statutory maximum.

    (4) Any person guilty of an offence under article 17(3)(a), (b)(i) or (c), or paragraph 5(a) or (c) of Schedule 3, shall be liable on summary conviction to imprisonment for a term not exceeding six months or to a fine not exceeding level 5 on the standard scale or to both.

    (5) Any person guilty of an offence under article 11 or 13(2) shall be liable on summary conviction to a fine not exceeding level 5 on the standard scale.

    (6) Where any body corporate is guilty of an offence under this Order, and that offence is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any director, manager, secretary or other similar officer of the body corporate or any person who was purporting to act in any such capacity, he, has well as the body corporate, shall be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

    (7) Notwithstanding anything in section 127(1) of the Magistrates' Courts Act 1980[10], a summary offence under this Order may be tried by a magistrates' court in England and Wales if an information is laid at any time within three years after the commission of the offence and within 12 months after the date on which evidence sufficient in the opinion of the prosecutor to justify the proceedings comes to his knowledge.

    (8) Notwithstanding anything in section 136 of the Criminal Procedure (Scotland) Act 1995[11], summary proceedings in Scotland for an offence under this Order may be commenced at any time within 12 months after the date on which evidence sufficient in the Lord Advocate's opinion to justify the proceedings came to his knowledge; and subsection (3) of that section applies for the purpose of this paragraph as it applies for the purpose of that section:

Provided that such proceedings shall not be commenced after the expiration of three years from the commission of the offence.

    (9) Notwithstanding anything in article 19 of the Magistrates' Courts (Northern Ireland) Order 1981[12], summary proceedings in Northern Ireland for an offence under this Order may be instituted at any time within three years after the commission of the offence and within 12 months after the date on which evidence sufficient in the opinion of the prosecutor to justify the proceedings comes to his knowledge.

    (10) For the purposes of this article - 

(a) a certificate signed by or on behalf of the prosecutor or the Lord Advocate (as the case may be) as to the date on which such evidence as is referred to in paragraphs (7), (8) and (9) came to his knowledge shall be conclusive evidence of that fact; and

(b) a certificate purporting to be so signed shall be presumed to be so signed unless the contrary is proved.

    (11) Proceedings against any person for an offence under this Order may be taken before the appropriate court in the United Kingdom having jurisdiction in the place where that person is for the time being.

    (12) In England and Wales, subsection (2) of section 24 of the Police and Criminal Evidence Act 1984[13] shall apply to the offences under this Order that are not arrestable offences by virtue of the term of imprisonment for which a person may be sentenced in respect of them, as if they were mentioned in that subsection; and accordingly such offences shall be arrestable offences within the meaning of that Act.

    (13) In Scotland, where a constable reasonably believes that a person has committed or is committing an offence under this Order, he may arrest that person without a warrant.

    (14) In Northern Ireland, paragraph (2) of article 26 of the Police and Criminal Evidence (Northern Ireland) Order 1989[14] shall apply to the offences under this Order that are not arrestable offences by virtue of the term of imprisonment for which a person may be sentenced in respect of them, as if they were mentioned in that paragraph; and accordingly such offences shall be arrestable offences within the meaning of that Order.

    (15) No proceedings for an offence under this Order, other than for a summary offence, shall be instituted in England, Wales or Northern Ireland except by the Secretary of State or with the consent of the Attorney General or, as the case may be, the Attorney General for Northern Ireland:

Provided that this paragraph shall not prevent the arrest, or the issue or execution of a warrant for the arrest, of any person in respect of such an offence, or the remand in custody or on bail of any person charged with such an offence, notwithstanding that the necessary consent to the institution of proceedings for the offence has not been obtained.

Exercise of the powers of the Secretary of State
     21.  - (1) The Secretary of State may, to such extent and subject to such restrictions and conditions as he may think proper, delegate or authorise the delegation of any of his powers under this Order to any person, or class or description of persons, approved by him, and references in this Order to the Secretary of State shall be construed accordingly.

    (2) Any licences granted under this Order shall be in writing and may be either general or special, may be subject to or without conditions, may be limited so as to expire on a specified date unless renewed and may be varied or revoked by the authority that granted them.


A.K. Galloway
Clerk of the Privy Council

(a) before the definition of "body corporate", insert - 

" "the 2003 resolution" means resolution 1483 (2003) adopted by the Security Council of the United Nations on 22nd May 2003;";

(b) after the definition of "body corporate", insert - 

" "designated funds" means funds to which a direction under article 4(1) applies;
"designated person" means a person whose funds (including those held for him or on his behalf) are subject to a direction given by the Treasury under article 4(1);
"Development Fund for Iraq" means the Development Fund for Iraq referred to in paragraph 12 of the 2003 resolution;";

(c) after the definition of "funds", insert - 

" "immediate family member" means a parent, son, daughter, spouse or sibling of the whole or half blood;";

(d) after the definition of "relevant institution", insert - 

" "Sanctions Committee" means the committee referred to in paragraph 19 of the 2003 resolution;
"senior official" means any individual who, immediately before 20th March 2003 - 
(a) was a member of the Iraqi Ba'ath Party of a rank equivalent to any person identified as mentioned in article 4(1)(a) by the Sanctions Committee; or

(b) was entitled to exercise powers or functions equivalent to those of a person mentioned in paragraph (a); or

(c) exercised such powers or functions for the purposes of the government of the Republic of Iraq.".

    (2) After article 2(2) of the Order, add - 

    " (3) For the purposes of this Order, a body ("B") is controlled by a person or government ("P") if - 


(a) P, by virtue of his or its voting power in B or otherwise, is entitled to exercise determining influence over the management of B; or

(b) B carries on activities predominantly for the purposes of P, or subject to P's direction or approval.".

Making funds available to designated persons
     2. For article 3 of the Order, substitute - 

     " 3.  - (1) Any person who, except under the authority of a licence granted by the Treasury under article 5, makes any funds available to a designated person is guilty of an offence.

    (2) In proceedings for an offence under this article, it is a defence for the accused to show that he took all reasonable precautions and exercised all due diligence to avoid committing the offence.".

Freezing funds
     3. For article 4 of the Order, substitute - 

     " 4.  - (1) Where - 


(a) a person is identified by the Sanctions Committee in accordance with paragraph 19 of the 2003 resolution as an individual or entity falling within paragraph 23 of that resolution; or

(b) the Treasury have reasonable grounds for suspecting that a person is or may be - 


(i) a senior official;

(ii) an immediate family member of a senior official; or

(iii) an entity (wherever incorporated or constituted) that - 


(aa) immediately before 20th March 2003 was owned or controlled by the government of the Republic of Iraq; or

(bb) is owned or controlled by a person referred to in paragraph (1)(a) or (1)(b)(i) or (ii),



the Treasury may by notice direct that funds held by, for, or on behalf of that person are not to be made available to any person.



    (2) A notice under paragraph (1) must specify either - 



(a) the period for which the direction is to have effect; or

(b) that the direction is to have effect until it is revoked by notice under paragraph (3).



    (3) The Treasury may by notice revoke a direction given under paragraph (1) at any time.

    (4) The Treasury must publish a notice issued under paragraph (1) or (3) in the way appearing to them to be best calculated to bring it to the attention of the public.".

Licences
     4. In article 5(4) of the Order, for "3(a) or (b)", substitute "3(1)".

Transfer of designated funds
     5. After article 5 of the Order, insert - 

" Transfer of designated funds
     5A.  - (1) Within 28 days of the publication of a notice under article 4(1), any person who holds funds to which the notice applies - 


(a) must cause the transfer of those funds to the account of the Development Fund for Iraq held at the Federal Reserve Bank of New York; and

(b) notify the Treasury in writing of - 


(i) the identity of the person by, for, or on whose behalf he held the funds;

(ii) the amount transferred; and

(iii) the date the transfer took place.



    (2) A person who holds funds to which a notice under article 4(1) applies after the expiry of the period referred to in paragraph (1) must, as soon as possible after he becomes aware that he holds such funds - 



(a) cause the transfer of those funds to the account of the Development Fund for Iraq held at the Federal Reserve Bank of New York; and

(b) notify the Treasury in writing of - 


(i) the identity of the person by, for, on whose behalf he held the funds;

(ii) the amount transferred; and

(iii) the date the transfer took place.



    (3) Neither paragraph (1) nor (2) applies in respect of any funds that - 



(a) are required to be dealt with otherwise than in accordance with that paragraph by - 


(i) an order or judgment of a court or a final and binding arbitral award made on or before the day on which the amendments to this Order made by the Iraq (United Nations Sanctions) Order 2003[16] came into force; or

(ii) a binding determination made on or before that date by a public authority or under an enactment; or



(b) on or before that date were subject to a lien, charge or other like interest created or imposed as a means of enforcing an order or judgment of a court, a final and binding arbitral award or a binding determination made by a public authority or under an enactment;

(c) are authorised by a licence granted by the Treasury under article 5 to be dealt with otherwise than in accordance with that paragraph.



    (4) An obligation to transfer funds under paragraph (1) or (2) applies notwithstanding any right, obligation, restriction or immunity, whether imposed or conferred by statute or otherwise, in relation to those funds.

    (5) No person may be held liable in respect of any action taken for the purpose of complying with an obligation to transfer funds under paragraph (1) or (2).

    (6) Funds in respect of which paragraph (1) or (2) applies are immune from any legal process (including any measure of restraint, attachment, execution or detention) requiring them to be dealt with otherwise than in accordance with this Order.

    (7) Any person who fails to comply with paragraph (1) or (2) is guilty of an offence.

    (8) In proceedings for an offence under this article, it is a defence for the accused to show that he took all reasonable precautions and exercised all due diligence to avoid committing the offence.".

Facilitation of offences under article 3
     6. In article 6 of the Order, and the cross-heading before it, omit "or 4(8)".

Failure to disclose knowledge or suspicion of sanctions offences
     7.  - (1) For article 8(1)(a) of the Order, substitute - 

" (a) it knows or suspects that a person is a designated person, or has committed an offence under article 3, 5(4) or 5A;".

    (2) In article 8(2)(a) of the Order, for ", 4(8)", substitute "or 5A".

Penalties and proceedings
     8.  - (1) In article 11(1) of the Order - 

(a) in paragraph (1), omit ", 4(8)";

(b) in paragraph (2), before "7", insert "5A,";

(c) in paragraph (3), omit "4(9),".

[2] S.I. 1990/1651, as amended by S.I. 1990/1768, S.I. 1990/2144 and S.I. 1998/3163.back

[3] S.I. 1990/1987.back

[4] S.I. 1993/1244.back

[5] S.I. 2000/3241, as amended by S.I. 2001/3649.back

[6] S.I. 1994/1191. The relevant amending Orders are S.I. 1994/2711, which amended Schedule III and entry ML4; S.I. 1996/2663, which amended Schedule 1, Part III; S.I. 1997/323, which amended Schedule 3; S.I. 1997/2758, which amended Schedule 3 and Group 3, Part I, Schedule I and entries ML8 and ML10; S.I. 1999/63, which amended Schedule 1, Part III; S.I. 1999/1777, which amended Group 3, Part I, Schedule 1 and entry ML8; S.I. 1999/335, which amended Schedule 3; S.I. 1999/3411, which amended Group 3, Part I, Schedule 1; S.I. 2000/1239, which amended Schedule 1, Part III and entries PL5021, ML3, ML4, ML7, ML8, ML13, ML17, PL5033 and ML21; S.I. 2000/2264, which amended Schedule 1, Part III and entries PL5031 and PL5001; S.I. 2001/729, which amended entry ML4; and S.I. 2002/2059, which amended Schedule 1, Part III and certain definitions and entries ML4, ML8 and ML10.back

[7] 1995 c. 21.back

[8] 1979 c. 2.back

[9] S.I. 1974/1261, as amended by S.I. 2002/1828.back

[10] 1980 c. 43.back

[11] 1995 c. 46.back

[12] S.I. 1981/1675 (N.I. 26).back

[13] 1984 c. 60.back

[14] S.I. 1989/1341 (N.I. 12).back

[15] S.I. 2000/3241, as amended by S.I. 2001/3649.back

[16] S.I. 2003/.back

 

© Crown copyright 2003

Prepared 19 June 2003