Regulations, 2007

L.N. 116 of 2007

NATIONAL INTEREST (ENABLING POWERS) ACT

(CAP. 365)

United Nations Sanctions (Iran) (Further Sanctions)

Regulations, 2007

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

(Iran) (Further Sanctions) Regulations, 2007.

In these regulations, unless the context otherwise requires -

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

Act;

“Annex I” means Annex I to the Resolution referred to in

regulation 3 hereof;

“the Committee” means the Committee of the Security

Council of the United Nations referred to in the United Nations

Sanctions (Iran) Regulations, 2007;

“Iran” means the Islamic Republic of Iran;

“the Resolution” means the Resolution referred to in

regulation 3 hereof;

“the Security Council” means the Security Council of the

United Nations.

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

1747 (2007) adopted by the Security Council of the United Nations

on the 24 th March 2007 is published in the English language in the

Schedule to these regulations.

(1) The entry into or transit through the territory of Malta

of persons referred to in sub-regulation (1) of regulation 9 of the

United Nations Sanctions (Iran) Regulations, 2007, or of persons

designated in Annex I, as well as of additional persons designated

by the Security Council or the Committee as being engaged in,

directly associated with or providing support for Iran’s proliferation

sensitive nuclear activities or for the development of nuclear weapon

delivery systems, shall be prohibited.

(2) Nothing contained in sub-regulation (1) hereof shall

oblige Malta from refusing entry into its territory to any of its own

citizens.

(3) The measures imposed by sub-regulation (1) hereof

shall not apply where the Committee determines that such travel is

justified on the grounds of humanitarian need, including religious

obligations, or where the Committee concludes that an exemption

would further the objectives of the Resolution.

(1) Any funds, other financial assets and economic resources Freezing of funds

which are in Malta on or after the 24 th March 2007 and that are owned and assets.

or controlled directly or indirectly by the persons or entities

designated in Annex I, as well as those of additional persons or

entities designated by the Security Council or by the Committee as

being engaged in, directly providing support for Iran’s proliferation

sensitive nuclear activities or the development of nuclear weapon

delivery systems, or by persons or entities acting on their behalf or

at their direction, or by entities owned or controlled by them, shall

be immediately frozen and shall remain so frozen until such time as

the Security Council or the Committee removes such persons or

entities from Annex I.

(2) It shall be unlawful for any citizen of Malta or any

persons or entities in Malta to make available any funds, financial

assets or economic resources to or for the benefit of the persons and

entities mentioned in sub-regulation (1) hereof.

(3) The provisions of this regulation do not apply to funds,

other financial assets and economic resources that have been

determined by the authorities of Malta

(a) to be necessary for basic expenses, including payment

for foodstuffs, rent or mortgage, medicines and medical

treatment, taxes, insurance premiums, and public utility charges

or exclusively for payment of reasonable professional fees and

reimbursement of incurred expenses associated with the

provision of legal services, or fees or service charges for routine

holding or maintenance of frozen funds, other financial assets

and economic resources, after notification to the Committee of

the intention to authorize, where appropriate, access to such

funds, other financial assets or economic resources and in the

absence of a negative decision by the Committee within five

working days of such notification;

(b) to be necessary for extraordinary expenses, provided

that such determination has been notified to the Committee and

has been approved by the Committee; or

(c) to be the subject of a judicial, administrative or arbitral

lien or judgement, in which case the funds, other financial assets

and economic resources may be used to satisfy that lien or

judgement

Provided that the lien or judgement was entered into prior

to the 24 th March 2007 and is not for the benefit of a person or entity

designated pursuant to regulation 4 or sub-regulation (1) hereof, and

that it has been notified to the Committee.

(4) Nothing contained in sub-regulation (1) hereof shall

prevent a designated person or entity from making payment due under

a contract entered into prior to the listing of such a person or entity,

provided that

(a) the contract is not related to any of the prohibited

nuclear weapon- related items, assistance, training, financial

assistance, investment, brokering or services referred to in

regulations 4 and 6 of the United Nations Sanctions (Iran)

Regulations, 2007; and

(b) the payment is not directly or indirectly received by a

person or entity designated pursuant to sub-regulation (1) hereof.

The procurement by citizens of Malta, or using Malta’s flag

vessels or aircraft, of any arms, or related materiel, from Iran, and

whether or not originating in the territory of Iran, shall be prohibited.

The direct or indirect supply, sale or transfer from Malta or

by citizens of Malta, using Malta’s flag vessels or aircraft to, or for

the use in or benefit of, Iran, and whether or not originating from

Malta, of any battle tanks, armoured combat vehicles, large calibre

artillery systems, combat aircraft, attack helicopters, warships,

missiles or missile systems, shall be prohibited.

(2) The provision to Iran of any technical assistance or

training, financial assistance, investment, brokering or other services,

and the transfer of financial resources or services, related to the

supply, sale, transfer, manufacture or use of the items referred to in

sub-regulation (1) hereof shall be prohibited.

B

It shall be unlawful for international financial institutions Prohibition

of

entering into new

to enter into new commitments for grants, financial assistance, and commitments for

concessional loans, to the Government of Iran, except for grants, etc.

humanitarian and developmental purposes.

Any person found guilty of an offence against these Penalty.

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

exceeding fifty thousand Maltese liri.

Resolution 1747 (2007)

Adopted by the Security Council at its 5647th meeting on

24 March 2007

The Security Council,

Recalling the Statement of its President, S/PRST/2006/15, of 29 March 2006,

and its resolution 1696 (2006) of 31 July 2006, and its resolution 1737 (2006) of

23 December 2006, and reaffirming their provisions,

Reaffirming its commitment to the Treaty on the Non-Proliferation of Nuclear

Weapons, the need for all States Party to that Treaty to comply fully with all their

obligations, and recalling the right of States Party, in conformity with Articles I and

II of that Treaty, to develop research, production and use of nuclear energy for

peaceful purposes without discrimination,

Recalling its serious concern over the reports of the IAEA Director General as

set out in its resolutions 1696 (2006) and 1737 (2006),

Recalling the latest report by the IAEA Director General (GOV/2007/8) of

22 February 2007 and deploring that, as indicated therein, Iran has failed to comply

with resolution 1696 (2006) and resolution 1737 (2006),

Emphasizing the importance of political and diplomatic efforts to find a

negotiated solution guaranteeing that Iran’s nuclear programme is exclusively for

peaceful purposes, and noting that such a solution would benefit nuclear

non-proliferation elsewhere, and welcoming the continuing commitment of China,

France, Germany, the Russian Federation, the United Kingdom and the United

States, with the support of the European Union’s High Representative to seek a

negotiated solution,

Recalling the resolution of the IAEA Board of Governors (GOV/2006/14),

which states that a solution to the Iranian nuclear issue would contribute to global

non-proliferation efforts and to realizing the objective of a Middle East free of

weapons of mass destruction, including their means of delivery,

Determined to give effect to its decisions by adopting appropriate measures to

persuade Iran to comply with resolution 1696 (2006) and resolution 1737 (2006) and

with the requirements of the IAEA, and also to constrain Iran’s development of

sensitive technologies in support of its nuclear and missile programmes, until such

B

time as the Security Council determines that the objectives of these resolutions have

been met,

Recalling the requirement on States to join in affording mutual assistance in

carrying out the measures decided upon by the Security Council,

Concerned by the proliferation risks presented by the Iranian nuclear

programme and, in this context, by Iran’s continuing failure to meet the

requirements of the IAEA Board of Governors and to comply with the provisions of

Security Council resolutions 1696 (2006) and 1737 (2006), mindful of its primary

responsibility under the Charter of the United Nations for the maintenance of

international peace and security,

Acting under Article 41 of Chapter VII of the Charter of the United Nations,

1. Reaffirms that Iran shall without further delay take the steps required by

the IAEA Board of Governors in its resolution GOV/2006/14, which are essential to

build confidence in the exclusively peaceful purpose of its nuclear programme and

to resolve outstanding questions, and, in this context, affirms its decision that Iran

shall without further delay take the steps required in paragraph 2 of resolution 1737

(2006);

2. Calls upon all States also to exercise vigilance and restraint regarding the

entry into or transit through their territories of individuals who are engaged in,

directly associated with or providing support for Iran’s proliferation sensitive

nuclear activities or for the development of nuclear weapon delivery systems, and

decides in this regard that all States shall notify the Committee established pursuant

to paragraph 18 of resolution 1737 (2006) (herein “the Committee”) of the entry

into or transit through their territories of the persons designated in the Annex to

resolution 1737 (2006) or Annex I to this resolution, as well as of additional persons

designated by the Security Council or the Committee as being engaged in, directly

associated with or providing support for Iran’s proliferation sensitive nuclear

activities or for the development of nuclear weapon delivery systems, including

through the involvement in procurement of the prohibited items, goods, equipment,

materials and technology specified by and under the measures in paragraphs 3 and 4

of resolution 1737 (2006), except where such travel is for activities directly related

to the items in subparagraphs 3 (b) (i) and (ii) of that resolution;

3. Underlines that nothing in the above paragraph requires a State to refuse

its own nationals entry into its territory, and that all States shall, in the

implementation of the above paragraph, take into account humanitarian

considerations, including religious obligations, as well as the necessity to meet the

objectives of this resolution and resolution 1737 (2006), including where Article XV

of the IAEA Statute is engaged;

4. Decides that the measures specified in paragraphs 12, 13, 14 and 15 of

resolution 1737 (2006) shall apply also to the persons and entities listed in Annex I

to this resolution;

5. Decides that Iran shall not supply, sell or transfer directly or indirectly

from its territory or by its nationals or using its flag vessels or aircraft any arms or

related materiel, and that all States shall prohibit the procurement of such items

from Iran by their nationals, or using their flag vessels or aircraft, and whether or

not originating in the territory of Iran;

6. Calls upon all States to exercise vigilance and restraint in the supply, sale

or transfer directly or indirectly from their territories or by their nationals or using

their flag vessels or aircraft of any battle tanks, armoured combat vehicles, large

calibre artillery systems, combat aircraft, attack helicopters, warships, missiles or

missile systems as defined for the purpose of the United Nations Register on

Conventional Arms to Iran, and in the provision to Iran of any technical assistance

or training, financial assistance, investment, brokering or other services, and the

transfer of financial resources or services, related to the supply, sale, transfer,

manufacture or use of such items in order to prevent a destabilizing accumulation of

arms;

7. Calls upon all States and international financial institutions not to enter

into new commitments for grants, financial assistance, and concessional loans, to

the Government of the Islamic Republic of Iran, except for humanitarian and

developmental purposes;

8. Calls upon all States to report to the Committee within 60 days of the

adoption of this resolution on the steps they have taken with a view to implementing

effectively paragraphs 2, 4, 5, 6 and 7 above;

9. Expresses the conviction that the suspension set out in paragraph 2 of

resolution 1737 (2006) as well as full, verified Iranian compliance with the

requirements set out by the IAEA Board of Governors would contribute to a

diplomatic, negotiated solution that guarantees Iran’s nuclear programme is for

exclusively peaceful purposes, underlines the willingness of the international

community to work positively for such a solution, encourages Iran, in conforming

to the above provisions, to re-engage with the international community and with the

IAEA, and stresses that such engagement will be beneficial to Iran;

Welcomes the continuous affirmation of the commitment of China,

France, Germany, the Russian Federation, the United Kingdom and the United

States, with the support of the European Union’s High Representative, to a

negotiated solution to this issue and encourages Iran to engage with their June 2006

proposals (S/2006/521), attached in Annex II to this resolution, which were

endorsed by the Security Council in resolution 1696 (2006), and acknowledges with

appreciation that this offer to Iran remains on the table, for a long-term

comprehensive agreement which would allow for the development of relations and

cooperation with Iran based on mutual respect and the establishment of international

confidence in the exclusively peaceful nature of Iran’s nuclear programme;

Reiterates its determination to reinforce the authority of the IAEA,

strongly supports the role of the IAEA Board of Governors, commends and

encourages the Director General of the IAEA and its secretariat for their ongoing

professional and impartial efforts to resolve all outstanding issues in Iran within the

framework of the IAEA, underlines the necessity of the IAEA, which is

internationally recognized as having authority for verifying compliance with

safeguards agreements, including the non-diversion of nuclear material for

non-peaceful purposes, in accordance with its Statute, to continue its work to clarify

all outstanding issues relating to Iran’s nuclear programme;

Requests within 60 days a further report from the Director General of the

IAEA on whether Iran has established full and sustained suspension of all activities

mentioned in resolution 1737 (2006), as well as on the process of Iranian

B

compliance with all the steps required by the IAEA Board and with the other

provisions of resolution 1737 (2006) and of this resolution, to the IAEA Board of

Governors and in parallel to the Security Council for its consideration;

Affirms that it shall review Iran’s actions in light of the report referred to

in paragraph 12 above, to be submitted within 60 days, and

(a) that it shall suspend the implementation of measures if and for so long as

Iran suspends all enrichment-related and reprocessing activities, including research

and development, as verified by the IAEA, to allow for negotiations in good faith in

order to reach an early and mutually acceptable outcome;

(b) that it shall terminate the measures specified in paragraphs 3, 4, 5, 6, 7

and 12 of resolution 1737 (2006) as well as in paragraphs 2, 4, 5, 6 and 7 above as

soon as it determines, following receipt of the report referred to in paragraph 12

above, that Iran has fully complied with its obligations under the relevant

resolutions of the Security Council and met the requirements of the IAEA Board of

Governors, as confirmed by the IAEA Board;

(c) that it shall, in the event that the report in paragraph 12 above shows that

Iran has not complied with resolution 1737 (2006) and this resolution, adopt further

appropriate measures under Article 41 of Chapter VII of the Charter of the United

Nations to persuade Iran to comply with these resolutions and the requirements of

the IAEA, and underlines that further decisions will be required should such

additional measures be necessary;

Decides to remain seized of the matter.

Entities involved in nuclear or ballistic missile activities

1. Ammunition and Metallurgy Industries Group (AMIG) (aka Ammunition

Industries Group) (AMIG controls 7th of Tir, which is designated under resolution

1737 (2006) for its role in Iran’s centrifuge programme. AMIG is in turn owned and

controlled by the Defence Industries Organisation (DIO), which is designated under

resolution 1737 (2006))

2. Esfahan Nuclear Fuel Research and Production Centre (NFRPC) and Esfahan

Nuclear Technology Centre (ENTC) (Parts of the Atomic Energy Organisation of

Iran’s (AEOI) Nuclear Fuel Production and Procurement Company, which is

involved in enrichment-related activities. AEOI is designated under resolution 1737

(2006))

3. Kavoshyar Company (Subsidiary company of AEOI, which has sought glass

fibres, vacuum chamber furnaces and laboratory equipment for Iran’s nuclear

programme)

4. Parchin Chemical Industries (Branch of DIO, which produces ammunition,

explosives, as well as solid propellants for rockets and missiles)

5. Karaj Nuclear Research Centre (Part of AEOI’s research division)

6. Novin Energy Company (aka Pars Novin) (Operates within AEOI and has

transferred funds on behalf of AEOI to entities associated with Iran’s nuclear

programme)

7. Cruise Missile Industry Group (aka Naval Defence Missile Industry Group)

(Production and development of cruise missiles. Responsible for naval missiles

including cruise missiles)

8. Bank Sepah and Bank Sepah International (Bank Sepah provides support for

the Aerospace Industries Organisation (AIO) and subordinates, including Shahid

Hemmat Industrial Group (SHIG) and Shahid Bagheri Industrial Group (SBIG),

both of which were designated under resolution 1737 (2006))

9. Sanam Industrial Group (subordinate to AIO, which has purchased equipment

on AIO’s behalf for the missile programme)

10. Ya Mahdi Industries Group (subordinate to AIO, which is involved in

international purchases of missile equipment)

Iranian Revolutionary Guard Corps entities

1. Qods Aeronautics Industries (Produces unmanned aerial vehicles (UAVs),

parachutes, para-gliders, para-motors, etc. Iranian Revolutionary Guard Corps

(IRGC) has boasted of using these products as part of its asymmetric warfare

doctrine)

2. Pars Aviation Services Company (Maintains various aircraft including MI-171,

used by IRGC Air Force)

3. Sho’a’ Aviation (Produces micro-lights which IRGC has claimed it is using as

part of its asymmetric warfare doctrine)

B

Persons involved in nuclear or ballistic missile activities

1. Fereidoun Abbasi-Davani (Senior Ministry of Defence and Armed Forces

Logistics (MODAFL) scientist with links to the Institute of Applied Physics,

working closely with Mohsen Fakhrizadeh-Mahabadi, designated below)

2. Mohsen Fakhrizadeh-Mahabadi (Senior MODAFL scientist and former head of

the Physics Research Centre (PHRC). The IAEA have asked to interview him about

the activities of the PHRC over the period he was head but Iran has refused)

3. Seyed Jaber Safdari (Manager of the Natanz Enrichment Facilities)

4. Amir Rahimi (Head of Esfahan Nuclear Fuel Research and Production Center,

which is part of the AEOI’s Nuclear Fuel Production and Procurement Company,

which is involved in enrichment-related activities)

5. Mohsen Hojati (Head of Fajr Industrial Group, which is designated under

resolution 1737 (2006) for its role in the ballistic missile programme)

6. Mehrdada Akhlaghi Ketabachi (Head of SBIG, which is designated under

resolution 1737 (2006) for its role in the ballistic missile programme)

7. Naser Maleki (Head of SHIG, which is designated under resolution 1737

(2006) for its role in Iran’s ballistic missile programme. Naser Maleki is also a

MODAFL official overseeing work on the Shahab-3 ballistic missile programme.

The Shahab-3 is Iran’s long range ballistic missile currently in service)

8. Ahmad Derakhshandeh (Chairman and Managing Director of Bank Sepah,

which provides support for the AIO and subordinates, including SHIG and SBIG,

both of which were designated under resolution 1737 (2006))

Iranian Revolutionary Guard Corps key persons

1. Brigadier General Morteza Rezaie (Deputy Commander of IRGC)

2. Vice Admiral Ali Akbar Ahmadian (Chief of IRGC Joint Staff)

3. Brigadier General Mohammad Reza Zahedi (Commander of IRGC Ground

Forces)

4. Rear Admiral Morteza Safari (Commander of IRGC Navy)

5. Brigadier General Mohammad Hejazi (Commander of Bassij resistance force)

6. Brigadier General Qasem Soleimani (Commander of Qods force)

7. General Zolqadr (IRGC officer, Deputy Interior Minister for Security Affairs)

Elements of a long-term agreement

Our goal is to develop relations and cooperation with Iran, based on mutual

respect and the establishment of international confidence in the exclusively peaceful

nature of the nuclear programme of the Islamic Republic of Iran. We propose a fresh

start in the negotiation of a comprehensive agreement with Iran. Such an agreement

would be deposited with the International Atomic Energy Agency (IAEA) and

endorsed in a Security Council resolution.

To create the right conditions for negotiations,

We will

• Reaffirm Iran’s right to develop nuclear energy for peaceful purposes in

conformity with its obligations under the Treaty on the Non-Proliferation of

Nuclear Weapons (hereinafter, NPT), and in this context reaffirm our support

for the development by Iran of a civil nuclear energy programme.

• Commit to support actively the building of new light water reactors in Iran

through international joint projects, in accordance with the IAEA statute and

NPT.

• Agree to suspend discussion of Iran’s nuclear programme in the Security

Council upon the resumption of negotiations.

Iran will

• Commit to addressing all of the outstanding concerns of IAEA through full

cooperation with IAEA.

• Suspend all enrichment-related and reprocessing activities to be verified by

IAEA, as requested by the IAEA Board of Governors and the Security Council,

and commit to continue this during these negotiations.

• Resume the implementation of the Additional Protocol.

Areas of future cooperation to be covered in negotiations on a

long-term agreement

1. Nuclear

We will take the following steps

Iran’s rights to nuclear energy

• Reaffirm Iran’s inalienable right to nuclear energy for peaceful purposes

without discrimination and in conformity with articles I and II of NPT, and

cooperate with Iran in the development by Iran of a civil nuclear power

programme.

• Negotiate and implement a Euratom/Iran nuclear cooperation agreement.

B

Light water reactors

• Actively support the building of new light water power reactors in Iran

through international joint projects, in accordance with the IAEA statute and

NPT, using state-of-the-art technology, including by authorizing the transfer of

necessary goods and the provision of advanced technology to make its power

reactors safe against earthquakes.

• Provide cooperation with the management of spent nuclear fuel and

radioactive waste through appropriate arrangements.

Research and development in nuclear energy

• Provide a substantive package of research and development cooperation,

including possible provision of light water research reactors, notably in the

fields of radioisotope production, basic research and nuclear applications in

medicine and agriculture.

Fuel guarantees

• Give legally binding, multilayered fuel assurances to Iran, based on

◦ Participation as a partner in an international facility in Russia to provide

enrichment services for a reliable supply of fuel to Iran’s nuclear

reactors. Subject to negotiations, such a facility could enrich all uranium

hexaflouride (UF 6 ) produced in Iran.

◦ Establishment on commercial terms of a buffer stock to hold a reserve of

up to five years’ supply of nuclear fuel dedicated to Iran, with the

participation and under supervision of IAEA.

◦ Development with IAEA of a standing multilateral mechanism for

reliable access to nuclear fuel, based on ideas to be considered at the next

meeting of the Board of Governors.

Review of moratorium

The long-term agreement would, with regard to common efforts to build

international confidence, contain a clause for review of the agreement in all its

aspects, to follow

• Confirmation by IAEA that all outstanding issues and concerns reported by it,

including those activities which could have a military nuclear dimension, have

been resolved;

• Confirmation that there are no undeclared nuclear activities or materials in

Iran and that international confidence in the exclusively peaceful nature of

Iran’s civil nuclear programme has been restored.

2. Political and economic

Regional security cooperation

Support for a new conference to promote dialogue and cooperation on regional

security issues.

International trade and investment

Improving Iran’s access to the international economy, markets and capital,

through practical support for full integration into international structures, including

the World Trade Organization and to create the framework for increased direct

investment in Iran and trade with Iran (including a trade and economic cooperation

agreement with the European Union). Steps would be taken to improve access to

key goods and technology.

Civil aviation

Civil aviation cooperation, including the possible removal of restrictions on

United States and European manufacturers in regard to the export of civil aircraft to

Iran, thereby widening the prospect of Iran renewing its fleet of civil airliners.

Energy partnership

Establishment of a long-term energy partnership between Iran and the

European Union and other willing partners, with concrete and practical applications.

Telecommunications infrastructure

Support for the modernization of Iran’s telecommunication infrastructure and

advanced Internet provision, including by possible removal of relevant United States

and other export restrictions.

High technology cooperation

Cooperation in fields of high technology and other areas to be agreed upon.

Agriculture

Support for agricultural development in Iran, including possible access to

United States and European agricultural products, technology and farm equipment.

B