Iran Financial Restrictions Direction

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A decision made on 5 December 2011:

Decision Reference: MD-TR-2011-0150
Decision Summary Title:	Iran Financial Restrictions - Direction		Date of Decision Summary:	5 December 2011
Decision Summary Author:	International Relations		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Iran Financial Restrictions - Direction		Date of Written Report:	5 December 2011
Written Report Author:	International Relations		Written Report : Public or Exempt?	Public
Subject: Iran Financial Restrictions - Direction
Decision(s): The Minister, in pursuance of Article 23C of the Money Laundering (Jersey) Order 2008 decided to make the Iran Financial Restrictions Direction.
Reason(s) for Decision: This action arises from the recent calls from the Financial Action Task Force (FATF) for countries to apply effective counter-measures to protect their financial sectors from money laundering and financing of terrorism risks emanating from Iran. The FATF (the global standard setting body for anti-money laundering and combating the financing of terrorism) renewed these calls with urgency on 28th October 2011 and noted its particular and exceptional concern about Iran’s failure to address the risk of terrorist financing and the serious threat this poses to the integrity of the international financial system. In light of these risks to Jersey’s interests, it is considered a proportionate response to require the financial services sector to cease all business relationships and transactions with Iranian banks and their branches and subsidiaries, including the Central Bank of Iran. Experience under existing UN and EU financial sanctions against Iran demonstrates that targeting individual Iranian banks is not sufficient. Once one bank is targeted, a new one can step into its place. The measures will protect the financial services sector in Jersey from the risk of unwittingly being used to facilitate money laundering activities and financing of terrorism, and signals to Iran and the international community that we consider this risk to be significant. These actions are being taken in coordination with other countries, including a direct request from HM Treasury which strongly encourages Jersey to take action. In accordance with Article 23C(1) of the Money Laundering (Jersey) Order 2008, the Jersey Financial Services Commission has been consulted and is content with the direction.
Resource Implications: There are no resource implications arising from this decision.
Action required: The Minister is requested to approve and sign the Iran Financial Restrictions Direction as attached. The Treasury and Resources Department should – (a) forward the Direction to the Jersey Financial Services Commission and request that they publish the Direction for the information of the finance industry; (b) forward a copy of this decision to the States Greffe and request that notice of the Direction is published.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision: