HM Treasury

Financial services

Counter Illicit Finance: policy and publications

Latest news

27 July 2010: Information on EU Council Decision of 26th July 2010 concerning restrictive measures against Iran

Council Implementing Regulation (EU) No 668/2010 adds further individuals and entities to the list of those subject to EU financial sanctions in respect of Iran.

In addition to the Regulation, the EU Council Decision of 26th July concerning restrictive measures against Iran sets out how UN Security Council Resolution 1929 will be implemented across the EU by extending the provisions of EU Regulations (EC) no 423/2007 and (EC) no 1110/2008. Additional restrictions on business between the EU financial services sector and Iran, as set out in the decision, will come into force through an EU Regulation later this year.

All UK financial and credit institutions should take this Decision into account when undertaking any business associated with Iran. Further detailed guidance will be provided when the regulation comes into force.

Bank Mellat and the Islamic Republic of Iran Shipping Lines (IRISL), together with all their branches and certain named subsidiaries, have today been designated for an asset freeze by the EU. The note below provides guidance on the interaction between EU asset freezes and financial restrictions against Bank Mellat and the Islamic Republic of Iran Shipping Lines.

General Licence 1 under the Financial Restrictions (Iran) Order 2009 has been revised following the EU asset freeze of Bank Mellat and the Islamic Republic of Iran Shipping Lines.

12 July 2010: Statement on Money Laundering controls in Overseas Jurisdictions

15 June 2010: Advisory on UNSCR 1929

30 October 2009: Further guidance on the cessation of business with Bank Mellat and Islamic Republic of Iran Shipping Lines

This note seeks to complement paragraphs 15 and 16 of the Treasury’s Interpretive Note regarding the above direction, issued on 12th October 2009.

12 October 2009: Financial Restrictions under the Counter-Terrorism Act 2008 - Bank Mellat and Islamic Republic of Iran Shipping Lines

The Treasury has issued a direction to the UK financial sector to cease all business relationships and transactions with Bank Mellat and Islamic Republic of Iran Shipping Lines (IRISL). The direction is contained in the Financial Restrictions (Iran) Order 2009. The restrictions come into force at 10.30am on 12 October 2009.

Some of the documents listed below are available in Adobe Acrobat Portable Document Format (PDF). If you do not have Adobe Acrobat installed on your computer you can download the software free of charge from the Adobe website. For alternative ways to read PDF documents and further information on website accessibility visit the HM Treasury accessibility page.

Detailed information on the restrictions and how to apply for licences of exemption can be found in HM Treasury’s Interpretive Note.

A licence application form is available.

If you have any queries on the restrictions or how to apply for a licence, please email ctact@hmtreasury.gsi.gov.uk or telephone 020 7270 4300.

Counter-Terrorism Act 2008, Schedule 7

The Treasury gained powers in the Counter-Terrorism Act 2008 to direct financial firms to undertake a graduated range of financial restrictions on business connected with jurisdictions of concern regarding money laundering, terrorist financing or the proliferation of Chemical, Biological, Radiological and Nuclear (CBRN) weapons.

Counter-Terrorism Act 2008, Schedule 7

11 March 2009: Press notice: 26/09 HM Treasury warns businesses of serious threats posed to the international financial system

03 July 2009: HM Treasury draws attention to the June 2009 meeting of the Financial Action Task Force (FATF)

11 November 2008: Restrictive Measures against Iran - A Guidance Note for Firms

The Treasury is today issuing guidance to firms about how they should implement EU Regulation 437/2007, as amended by EU Regulation 1110/2008, which comes into force on 12 November.

Council Regulation (EC) No 423/2007 has been amended to implement within the EU the vigilance requirements in United Nations Security Council Resolution (UNSCR) 1803, which was adopted on 3 March 2008 because of international concern about Iran’s nuclear development programme.

UNSCR 1803 calls upon all states to exercise vigilance over the activities of financial institutions in their territories with all banks domiciled in Iran and their branches and subsidiaries abroad, in particular with Bank Melli and Bank Saderat, in order to avoid such activities contributing to the proliferation-sensitive nuclear activities or the development of nuclear-weapon delivery systems referred to in UNSCR 1737. 

The attached guidance note explains the purpose of the amendments to Council Regulation (EC) No 423/2007 as they apply to credit and financial institutions.  Annex I gives details of the reporting arrangements associated with the regulation, and Annex II sets out sources of further information and examples of good practice.

Official Journal of the European Union link to Council Regulation (EC) No 1110/2008 of 10 November 2008 amending Regulation (EC) No 423/2007 concerning restrictive measures against Iran

Financial Sanctions

20 October 2008: Press notice: 107/08  HM Treasury warns businesses of serious threats posed to the international financial system

9 September 2008: HMRC have today published their Money Service Business action plan which aims to root out abuse of the money service sector for money laundering purposes. HMRC will work with MSBs to ensure compliance. For further information please refer to the HMRC link below.

HMRC Money Service Business action plan

12 May 2008: Money Laundering - Equivalence list announced

Member states participating in the EU Committee on the Prevention of Money Laundering and Terrorist Financing have agreed a list of equivalent third countries, for the purposes of the relevant parts of the Third Money Laundering Directive. The list is a voluntary, non-binding measure that nevertheless represents the common understanding of Member States.
Full text of the announcement

February 2008: HM Treasury press notice following FATF statement of 28 February 2008
Following the FATF statement about the higher risks of money laundering and terrorist financing in several jurisdictions, HM Treasury issued a press notice on 29 February 2008. The jurisdictions effected are -

November 2007:
The Treasury made a number of procedural or other changes to UK money laundering regulations in November 2007.
Regulations amending the Proceeds of Crime Act 2002, and the Terrorism Act 2000
The Money Laundering (Amendment) Regulations 2007

November 2007: The Treasury has announced the supervision and enforcement regime for the European ´Wire Transfer´ Regulations

Data Protection Act and Money Laundering Regulations guidance

Back to top