United Nations Sanctions (Iraq) Regulations, 2003

L.N. 229 of 2003

NATIONAL INTEREST (ENABLING POWERS) ACT

(CAP. 365)

United Nations Sanctions (Iraq) Regulations, 2003

IN exercise of the powers conferred by article 3 of the National

Interest (Enabling Powers) Act, the Prime Minister has made the

following regulations:-

The title of these regulations is the United Nations Sanctions

(Iraq) Regulations, 2003.

(Regulation 3)

Resolution 1483 (2003) adopted by the Security Council of the United Nations

at its 4761st meeting, on the 22 nd May, 2003

The Security Council,

Recalling all its previous relevant resolutions,

Reaffirming the sovereignty and territorial integrity of Iraq,

Reaffirming also the importance of the disarmament of Iraqi weapons of mass

destruction and of eventual confirmation of the disarmament of Iraq,

Stressing the right of the Iraqi people freely to determine their own political future

and control their own natural resources, welcoming the commitment of all parties

concerned to support the creation of an environment in which they may do so as soon

as possible, and expressing resolve that the day when Iraqis govern themselves must

come quickly,

Encouraging efforts by the people of Iraq to form a representative government

based on the rule of law that affords equal rights and justice to all Iraqi citizens without

regard to ethnicity, religion, or gender, and, in this connection, recalls resolution 1325

(2000) of 31 October 2000,

Welcoming the first steps of the Iraqi people in this regard, and noting in this

connection the 15 April 2003 Nasiriyah statement and the 28 April 2003 Baghdad

statement,

Resolved that the United Nations should play a vital role in humanitarian relief,

the reconstruction of Iraq, and the restoration and establishment of national and local

institutions for representative governance,

Noting the statement of 12 April 2003 by the Ministers of Finance and Central

Bank Governors of the Group of Seven Industrialized Nations in which the members

recognized the need for a multilateral effort to help rebuild and develop Iraq and for the

need for assistance from the International Monetary Fund and the World Bank in these

efforts,

Welcoming also the resumption of humanitarian assistance and the continuing

efforts of the Secretary-General and the specialized agencies to provide food and

medicine to the people of Iraq,

B

Welcoming the appointment by the Secretary-General of his Special Adviser on

Iraq,

Affirming the need for accountability for crimes and atrocities committed by the

previous Iraqi regime,

Stressing the need for respect for the archaeological, historical, cultural, and

religious heritage of Iraq, and for the continued protection of archaeological, historical,

cultural, and religious sites, museums, libraries, and monuments,

Noting the letter of 8 May 2003 from the Permanent Representatives of the United

States of America and the United Kingdom of Great Britain and Northern Ireland to

the President of the Security Council (S/2003/538) and recognizing the specific

authorities, responsibilities, and obligations under applicable international law of these

states as occupying powers under unified command (the “Authority”),

Noting further that other States that are not occupying powers are working now

or in the future may work under the Authority,

Welcoming further the willingness of Member States to contribute to stability and

security in Iraq by contributing personnel, equipment, and other resources under the

Authority,

Concerned that many Kuwaitis and Third-State Nationals still are not accounted

for since 2 August 1990,

Determining that the situation in Iraq, although improved, continues to constitute

a threat to international peace and security,

Acting under Chapter VII of the Charter of the United Nations,

1. Appeals to Member States and concerned organizations to assist the people of

Iraq in their efforts to reform their institutions and rebuild their country, and to contribute

to conditions of stability and security in Iraq in accordance with this resolution;

2. Calls upon all Member States in a position to do so to respond immediately to

the humanitarian appeals of the United Nations and other international organizations

for Iraq and to help meet the humanitarian and other needs of the Iraqi people by

providing food, medical supplies, and resources necessary for reconstruction and

rehabilitation of Iraq’s economic infrastructure;

3. Appeals to Member States to deny safe haven to those members of the previous

Iraqi regime who are alleged to be responsible for crimes and atrocities and to support

actions to bring them to justice;

4. Calls upon the Authority, consistent with the Charter of the United Nations and

other relevant international law, to promote the welfare of the Iraqi people through the

effective administration of the territory, including in particular working towards the

restoration of conditions of security and stability and the creation of conditions in

which the Iraqi people can freely determine their own political future;

5. Calls upon all concerned to comply fully with their obligations under

international law including in particular the Geneva Conventions of 1949 and the Hague

Regulations of 1907;

6. Calls upon the Authority and relevant organizations and individuals to continue

efforts to locate, identify, and repatriate all Kuwaiti and Third-State Nationals or the

remains of those present in Iraq on or after 2 August 1990, as well as the Kuwaiti

archives, that the previous Iraqi regime failed to undertake, and, in this regard, directs

the High-Level Coordinator, in consultation with the International Committee of the

Red Cross and the Tripartite Commission and with the appropriate support of the people

of Iraq and in coordination with the Authority, to take steps to fulfil his mandate with

respect to the fate of Kuwaiti and Third-State National missing persons and property;

7. Decides that all Member States shall take appropriate steps to facilitate the safe

return to Iraqi institutions of Iraqi cultural property and other items of archaeological,

historical, cultural, rare scientific, and religious importance illegally removed from the

Iraq National Museum, the National Library, and other locations in Iraq since the

adoption of resolution 661 (1990) of 6 August 1990, including by establishing a

prohibition on trade in or transfer of such items and items with respect to which

reasonable suspicion exists that they have been illegally removed, and calls upon the

United Nations Educational, Scientific, and Cultural Organization, Interpol, and other

international organizations, as appropriate, to assist in the implementation of this

paragraph;

In these regulations, unless the context otherwise requires -

“the Act” means the National Interest (Enabling Powers) Act;

“the Authority” means such States working under unified

command;

“the Committee” means the Committee mentioned in

paragraph 19 of the Resolution referred to in regulation 3 hereof.

For the purpose of article 3 (4) of the Act, Resolution number

1483 (2003) adopted by the Security Council of the United Nations on

the 22 nd May, 2003 is published in the English language in the Schedule

to these regulations.

Notwithstanding any other law, the trading or transfer, in any

manner whatsoever, by any person in Malta or by any citizen or

of cultural property.

permanent resident of Malta, whether in Malta or elsewhere, or by using

their flag vessels or aircraft, of Iraqi cultural property and other items

of archaeological, historical, cultural, rare scientific and religious

importance, illegally removed or suspected to have been illegally

removed from the Iraq National Museum, the National Library or other

locations in Iraq, is prohibited.

Notwithstanding any other law, the sale or supply, in any

manner whatsoever, by any person in Malta or by any citizen or

permanent resident of Malta, whether in Malta or elsewhere, or by using

their flag vessels or aircraft, of arms and related materiel to Iraq, other

than those arms and related materiel required by the Authority, is

prohibited.

(1) Where any provision of any regulation made under the Notification

freezing of assets.

Act requires any person or any other entity, hereinafter “a subject

person”, to carry out the identification of funds or assets belonging to

or in the possession of persons or entities as may be identified or are

identifiable under any regulations made in terms of the Act, or the

freezing or blocking of such funds or assets, any subject person whose

activities are subject to a licence, as described in subregulation (2) hereof,

shall without delay notify in writing any relevant information it may

have regarding persons, entities, assets or funds affected by the

requirements of identification or freezing and blocking of funds to its

licensing authority within the meaning of subregulation (2) hereof; and

such licensing authority shall pass such relevant information to the

Sanctions Monitoring Board established under the Act, or to such other

public authority as may be prescribed, for the purposes of the Act.

(2) In this regulation –

(a) “licence” means any licence or other form of

authorisation required to be issued under the Banking Act, the

Investment Services Act, the Insurance Business Act, the Insurance

Brokers and Other Intermediaries Act, the Financial Markets Act

and such other licence or authorisation as may be prescribed from

time to time; and

(b) “licensing authority” means the competent authority or

other regulatory body authorised to issue any of the licences

mentioned in paragraph (a) hereof.

(3) The disclosure of any information within the terms and

requirements of this regulation shall not constitute a breach of the

Professional Secrecy Act, where applicable, or of any other

confidentiality obligation arising from a contract or any other law.

(4) Any funds or other financial assets or economic

resources of the previous Government of Iraq or its state bodies,

corporations, or agencies, located outside Iraq on the 22 nd May, 2003 or

funds or other financial assets or economic resources that have been

removed from Iraq, or acquired by Saddam Hussein or other senior

officials of the former Iraqi regime and their immediate family members,

including entities owned or controlled, directly or indirectly, by them

or by persons acting on their behalf or at their direction, as designated

by the Committee, are immediately frozen and cannot be in any way

transferred to the person or entities herein before referred to.

Any person found guilty of an offence against these regulations Penalty.

shall, on conviction, be liable to a fine (multa) not exceeding fifty

thousand Maltese liri.

Requests the Secretary-General to appoint a Special Representative for Iraq

whose independent responsibilities shall involve reporting regularly to the Council on

his activities under this resolution, coordinating activities of the United Nations in

post-conflict processes in Iraq, coordinating among United Nations and international

agencies engaged in humanitarian assistance and reconstruction activities in Iraq, and,

in coordination with the Authority, assisting the people of Iraq through

(a) coordinating humanitarian and reconstruction assistance by United

Nations agencies and between United Nations agencies and non-governmental

organizations<

(b) promoting the safe, orderly, and voluntary return of refugees and

displaced persons<

(c) working intensively with the Authority, the people of Iraq, and others

concerned to advance efforts to restore and establish national and local institutions

B

for representative governance, including by working together to facilitate a process

leading to an internationally recognized, representative government of Iraq<

(d) facilitating the reconstruction of key infrastructure, in cooperation with

other international organizations<

(e) promoting economic reconstruction and the conditions for sustainable

development, including through coordination with national and regional

organizations, as appropriate, civil society, donors, and the international financial

institutions<

(f) encouraging international efforts to contribute to basic civilian

administration functions<

(g) promoting the protection of human rights<

(h) encouraging international efforts to rebuild the capacity of the Iraqi

civilian police force< and

(i) encouraging international efforts to promote legal and judicial reform<

Supports the formation, by the people of Iraq with the help of the Authority and

working with the Special Representative, of an Iraqi interim administration as a

transitional administration run by Iraqis, until an internationally recognized,

representative government is established by the people of Iraq and assumes the

responsibilities of the Authority;

Decides that, with the exception of prohibitions related to the sale or supply to

Iraq of arms and related materiel other than those arms and related materiel required

by the Authority to serve the purposes of this and other related resolutions, all

prohibitions related to trade with Iraq and the provision of financial or economic

resources to Iraq established by resolution 661 (1990) and subsequent relevant

resolutions, including resolution 778 (1992) of 2 October 1992, shall no longer apply;

Reaffirms that Iraq must meet its disarmament obligations, encourages the

United Kingdom of Great Britain and Northern Ireland and the United States of America

to keep the Council informed of their activities in this regard, and underlines the intention

of the Council to revisit the mandates of the United Nations Monitoring, Verification,

and Inspection Commission and the International Atomic Energy Agency as set forth

in resolutions 687 (1991) of 3 April 1991, 1284 (1999) of 17 December 1999, and

1441 (2002) of 8 November 2002;

Notes the establishment of a Development Fund for Iraq to be held by the

Central Bank of Iraq and to be audited by independent public accountants approved by

the International Advisory and Monitoring Board of the Development Fund for Iraq

and looks forward to the early meeting of that International Advisory and Monitoring

Board, whose members shall include duly qualified representatives of the Secretary-

General, of the Managing Director of the International Monetary Fund, of the Director-

General of the Arab Fund for Social and Economic Development, and of the President

of the World Bank;

Notes further that the funds in the Development Fund for Iraq shall be disbursed

at the direction of the Authority, in consultation with the Iraqi interim administration,

for the purposes set out in paragraph 14 below;

Underlines that the Development Fund for Iraq shall be used in a transparent

manner to meet the humanitarian needs of the Iraqi people, for the economic

reconstruction and repair of Iraq’s infrastructure, for the continued disarmament of

Iraq, and for the costs of Iraqi civilian administration, and for other purposes benefiting

the people of Iraq;

Calls upon the international financial institutions to assist the people of Iraq

in the reconstruction and development of their economy and to facilitate assistance by

the broader donor community, and welcomes the readiness of creditors, including those

of the Paris Club, to seek a solution to Iraq’s sovereign debt problems;

Requests also that the Secretary-General, in coordination with the Authority,

continue the exercise of his responsibilities under Security Council resolution 1472

(2003) of 28 March 2003 and 1476 (2003) of 24 April 2003, for a period of six months

following the adoption of this resolution, and terminate within this time period, in the

most cost effective manner, the ongoing operations of the “Oil-for-Food” Programme

(the “Programme”), both at headquarters level and in the field, transferring responsibility

for the administration of any remaining activity under the Programme to the Authority,

including by taking the following necessary measures

(a) to facilitate as soon as possible the shipment and authenticated delivery

of priority civilian goods as identified by the Secretary-General and representatives

designated by him, in coordination with the Authority and the Iraqi interim

administration, under approved and funded contracts previously concluded by

the previous Government of Iraq, for the humanitarian relief of the people of Iraq,

including, as necessary, negotiating adjustments in the terms or conditions of

these contracts and respective letters of credit as set forth in paragraph 4 (d) of

resolution 1472 (2003)<

(b) to review, in light of changed circumstances, in coordination with the

Authority and the Iraqi interim administration, the relative utility of each approved

and funded contract with a view to determining whether such contracts contain

items required to meet the needs of the people of Iraq both now and during

reconstruction, and to postpone action on those contracts determined to be of

questionable utility and the respective letters of credit until an internationally

recognized, representative government of Iraq is in a position to make its own

determination as to whether such contracts shall be fulfilled;

B

(c) to provide the Security Council within 21 days following the adoption of

this resolution, for the Security Council’s review and consideration, an estimated

operating budget based on funds already set aside in the account established

pursuant to paragraph 8 (d) of resolution 986 (1995) of 14 April 1995, identifying>

(i) all known and projected costs to the United Nations required to ensure

the continued functioning of the activities associated with implementation

of the present resolution, including operating and administrative expenses

associated with the relevant United Nations agencies and programmes

responsible for the implementation of the Programme both at Headquarters

and in the field<

(ii) all known and projected costs associated with termination of the

Programme<

(iii) all known and projected costs associated with restoring Government

of Iraq funds that were provided by Member States to the Secretary-General

as requested in paragraph 1 of resolution 778 (1992)< and

(iv) all known and projected costs associated with the Special

Representative and the qualified representative of the Secretary-General

identified to serve on the International Advisory and Monitoring Board, for

the six month time period defined above, following which these costs shall

be borne by the United Nations<

(d) to consolidate into a single fund the accounts established pursuant to

paragraphs 8 (a) and 8 (b) of resolution 986 (1995)<

(e) to fulfil all remaining obligations related to the termination of the

Programme, including negotiating, in the most cost effective manner, any necessary

settlement payments, which shall be made from the escrow accounts established

pursuant to paragraphs 8 (a) and 8 (b) of resolution 986 (1995), with those parties

that previously have entered into contractual obligations with the Secretary-General

under the Programme, and to determine, in coordination with the Authority and

the Iraqi interim administration, the future status of contracts undertaken by the

United Nations and related United Nations agencies under the accounts established

pursuant to paragraphs 8 (b) and 8 (d) of resolution 986 (1995)<

(f) to provide the Security Council, 30 days prior to the termination of the

Programme, with a comprehensive strategy developed in close coordination with

the Authority and the Iraqi interim administration that would lead to the delivery

of all relevant documentation and the transfer of all operational responsibility of

the Programme to the Authority<

Requests further that the Secretary-General transfer as soon as possible to the

Development Fund for Iraq 1 billion United States dollars from unencumbered funds

in the accounts established pursuant to paragraphs 8 (a) and 8 (b) of resolution 986

(1995), restore Government of Iraq funds that were provided by Member States to the

Secretary-General as requested in paragraph 1 of resolution 778 (1992), and decides

that, after deducting all relevant United Nations expenses associated with the shipment

of authorized contracts and costs to the Programme outlined in paragraph 16 (c) above,

including residual obligations, all surplus funds in the escrow accounts established

pursuant to paragraphs 8 (a), 8 (b), 8 (d), and 8 (f) of resolution 986 (1995) shall be

transferred at the earliest possible time to the Development Fund for Iraq;

Decides to terminate effective on the adoption of this resolution the functions

related to the observation and monitoring activities undertaken by the Secretary-General

under the Programme, including the monitoring of the export of petroleum and

petroleum products from Iraq;

Decides to terminate the Committee established pursuant to paragraph 6 of

resolution 661 (1990) at the conclusion of the six month period called for in paragraph

16 above and further decides that the Committee shall identify individuals and entities

referred to in paragraph 23 below;

Decides that all export sales of petroleum, petroleum products, and natural

gas from Iraq following the date of the adoption of this resolution shall be made

consistent with prevailing international market best practices, to be audited by

independent public accountants reporting to the International Advisory and Monitoring

Board referred to in paragraph 12 above in order to ensure transparency, and decides

further that, except as provided in paragraph 21 below, all proceeds from such sales

shall be deposited into the Development Fund for Iraq until such time as an

internationally recognized, representative government of Iraq is properly constituted;

Decides further that 5 per cent of the proceeds referred to in paragraph 20

above shall be deposited into the Compensation Fund established in accordance with

resolution 687 (1991) and subsequent relevant resolutions and that, unless an

internationally recognized, representative government of Iraq and the Governing

Council of the United Nations Compensation Commission, in the exercise of its authority

over methods of ensuring that payments are made into the Compensation Fund, decide

otherwise, this requirement shall be binding on a properly constituted, internationally

recognized, representative government of Iraq and any successor thereto;

Noting the relevance of the establishment of an internationally recognized,

representative government of Iraq and the desirability of prompt completion of the

restructuring of Iraq’s debt as referred to in paragraph 15 above, further decides that,

until December 31, 2007, unless the Council decides otherwise, petroleum, petroleum

products, and natural gas originating in Iraq shall be immune, until title passes to the

initial purchaser from legal proceedings against them and not be subject to any form of

attachment, garnishment, or execution, and that all States shall take any steps that may

be necessary under their respective domestic legal systems to assure this protection,

and that proceeds and obligations arising from sales thereof, as well as the Development

B

Fund for Iraq, shall enjoy privileges and immunities equivalent to those enjoyed by the

United Nations except that the above-mentioned privileges and immunities will not

apply with respect to any legal proceeding in which recourse to such proceeds or

obligations is necessary to satisfy liability for damages assessed in connection with an

ecological accident, including an oil spill, that occurs after the date of adoption of this

resolution;

Decides that all Member States in which there are

(a) funds or other financial assets or economic resources of the previous

Government of Iraq or its state bodies, corporations, or agencies, located outside

Iraq as of the date of this resolution, or

(b) funds or other financial assets or economic resources that have been

removed from Iraq, or acquired, by Saddam Hussein or other senior officials of

the former Iraqi regime and their immediate family members, including entities

owned or controlled, directly or indirectly, by them or by persons acting on their

behalf or at their direction,

shall freeze without delay those funds or other financial assets or economic resources

and, unless these funds or other financial assets or economic resources are themselves

the subject of a prior judicial, administrative, or arbitral lien or judgement, immediately

shall cause their transfer to the Development Fund for Iraq, it being understood that,

unless otherwise addressed, claims made by private individuals or non-government

entities on those transferred funds or other financial assets may be presented to the

internationally recognized, representative government of Iraq< and decides further that

all such funds or other financial assets or economic resources shall enjoy the same

privileges, immunities, and protections as provided under paragraph 22<

Requests the Secretary-General to report to the Council at regular intervals on

the work of the Special Representative with respect to the implementation of this

resolution and on the work of the International Advisory and Monitoring Board and

encourages the United Kingdom of Great Britain and Northern Ireland and the United

States of America to inform the Council at regular intervals of their efforts under this

resolution;

Decides to review the implementation of this resolution within twelve months

of adoption and to consider further steps that might be necessary;

Calls upon Member States and international and regional organizations to

contribute to the implementation of this resolution;

Decides to remain seized of this matter.