Statutory guidance

Iraq sanctions: statutory guidance

Updated 25 March 2026

Introduction

This guidance is about the financial and trade sanctions imposed by The Iraq (Sanctions) (EU Exit) Regulations 2020 (‘the Regulations’).

About the Regulations

The Regulations impose sanctions for the purpose of giving effect to the United Kingdom’s obligations under United Nations Security Council Resolutions:

• UNSCR 661 (1990)
• UNSCR 1483 (2003)

For more details see regulation 4: Purpose.

The legislation.gov.uk webpage tells you if the Regulations are up to date or if there are outstanding amendments. You can also view previous versions using the timeline and a list of the legislation that has affected the regulations.

About this guidance

As required by section 43 of the Sanctions and Anti-Money Laundering Act 2018 (‘the Sanctions Act’), the Secretary of State for Foreign, Commonwealth and Development Affairs has provided this guidance to support compliance with the Regulations.

This guidance is designed to give an overview of the prohibitions and requirements, the enforcement of these, and the circumstances in which exceptions and licences may be used. Where appropriate, it directs you to further detailed guidance to read alongside. See all updates to check this guidance is current.

1. Prohibitions and requirements

Sanctions regulations apply to: 

• any individual, business or organisation undertaking activities anywhere in the UK (including the territorial sea)
• any business or organisation incorporated or constituted under the law of any part of the UK undertaking activities anywhere in the world
• any UK national, wherever they are in the world

For full details see section 21 of the Sanctions Act. 

The maritime enforcement powers contained in Part 8 of the Regulations apply in relation to British ships in international or foreign waters, ships without nationality in international waters and foreign ships in international waters.

It is prohibited to intentionally participate in any activities if you know that the object or effect of them is directly or indirectly to circumvent the prohibitions imposed by the Regulations or to enable or facilitate a breach of those prohibitions.

If you are unclear about any aspects of the Regulations, in particular about whether action you are considering taking could breach the Regulations, you are advised to seek independent legal advice.

1.1 Designation of persons

Designation of persons provisions are contained in Part 2 of the Regulations.

The Regulations provide that each person for the time being named by the United Nations Security Council or Sanctions Committee as a person referred to in paragraph 23(a) of UNSCR 1483 is a designated person for the purposes of the partial asset-freeze in relation to the former Government of Iraq and its state bodies, corporations or agencies.

They also provide that each person for the time being named by the United Nations Security Council or Sanctions Committee as a person referred to in paragraph 23(b) of UNSCR 1483 is a designated person for the purposes of the asset freeze in relation to persons connected with the former Iraqi regime.

The UK Sanctions List contains the names of all designated persons (DPs) and the sanctions that have been imposed on them. Checking the UK Sanctions List is an essential part of due diligence for many firms and other organisations.

1.2 Financial sanctions

Financial sanctions provisions are contained in Part 3 of the Regulations.

Asset freeze and making available provisions

The Regulations impose financial sanctions through a partial asset freeze on the former Government of Iraq and its state bodies, corporations or agencies, as well as an asset freeze in relation to persons connected with the former Iraqi regime. The partial asset freeze only applies to ‘relevant funds and economic resources’ (as defined in the Regulations) owned, held or controlled by the Government of Iraq and its state bodies, corporations or agencies, i.e. those located outside Iraq on 22 May 2003. There are also prohibitions on making funds or economic resources available to persons connected with the former Iraqi regime.

These asset freezes and prohibitions involve the freezing of funds and economic resources (non-monetary assets, such as property or vehicles) of designated persons and ensuring that funds and economic resources are not made available to or for the benefit of designated persons, either directly or indirectly.

These prohibitions also apply in relation to entities owned or controlled by a designated person.

If you find out that a person or organisation you are dealing with is subject to the financial sanctions detailed in the Regulations, you must immediately:

• stop dealing with them
• freeze any assets you are holding for them
• inform OFSI as soon as possible

The Office of Financial Sanctions Implementation (OFSI) is the authority responsible for implementing the UK’s financial sanctions on behalf of HM Treasury. OFSI helps to ensure that financial sanctions are properly understood, implemented and enforced in the UK. See more about how OFSI implements financial sanctions.

1.3 Trade sanctions

Trade sanctions provisions are contained in Part 4 of the Regulations.

The Regulations impose trade prohibitions relating to military goods and technology (as specified in Schedule 2 to the Export Control Order 2008).

There are circumstances (set out in the relevant lists of controlled items) in which certain items are not controlled, for example when body armour or a helmet is accompanying a person for that person’s own protection. Please check the relevant lists as applicable.

The Regulations also impose trade prohibitions relating to illegally removed cultural property. It is also prohibited for a person to provide associated brokering services.

Further detail on these trade prohibitions, including key terminology used, is explained below. The Regulations contain full definitions of all terms.

Export of goods

The concept of ‘export’ is set out in customs legislation, but is further detailed in Paragraph 32 of Schedule 1 to the Sanctions Act, which clarifies that ‘export’ means export from the UK, but does not capture where goods are removed to the Isle of Man from the UK.

The export prohibition in the Regulations covers export to Iraq as well as exports that are for use in Iraq. This means that, even if the immediate destination is not Iraq, the prohibition may still apply. Exporters should check the ultimate end use of goods and may apply for a licence or contact the Export Control Joint Unit (ECJU) if they know or think the items may be used in Iraq.

Supply and delivery of goods

Supply and delivery prohibitions in the Regulations prohibit a person from directly or indirectly supplying or delivering goods from a third country to a place in Iraq. Regulation 18(4) specifies that a third country is a country that is not the UK, Isle of Man or Iraq.

Making goods and technology available

Prohibitions in the Regulations on making goods or technology available (e.g. through a sale) include directly or indirectly making them available for use in Iraq or to a person ‘connected with’ Iraq. Regulation 16(4) sets out when a person is to be regarded as ‘connected with’ Iraq (and this applies where the term is used in other trade prohibitions in this Part of the Regulations).

Transfer of technology

Prohibitions in the Regulations on the transfer of technology include transfer to a place in Iraq or a person ‘connected with’ Iraq.

The term ‘transfer’ is defined in Paragraph 37 of Schedule 1 to the Sanctions Act, which states that it ‘means a transfer by any means (or combination of means), including oral communication and the transfer of goods on which the technology is recorded or from which it can be derived, other than the export of such goods.’

Where military technology is contained within a good, it would be classified as a military good under the accompanying goods-related provisions. This includes information contained on USB memory devices, laptops, tablets and the like.

Brokering services

The definition of ‘brokering services’ is set out in regulation 16, which states that it means any service to secure, or otherwise in relation to, an arrangement, including (but not limited to):

• the selection or introduction of persons as parties or potential parties to the arrangement
• the negotiation of the arrangement
• the facilitation of anything that enables the arrangement to be entered into, and
• the provision of any assistance that in any way promotes or facilitates the arrangement

The Regulations prohibit the direct or indirect provision of brokering services where they relate to specific arrangements. Those arrangements are set out in regulation 21.

Cultural property

The definition of ‘illegally removed Iraqi cultural property’ is set out in regulation 15. The regulations prohibit the export and import and the direct or indirect supply, delivery, making available and acquisition of illegally removed Iraqi cultural property. They also prohibit the direct or indirect provision of financial services, funds or brokering services in connection with an arrangement whose object or effect is one of these prohibited acts. A person who holds or controls illegally removed Iraqi cultural property must secure its transfer to a constable.

Trade sanctions enquiries

The Department for Business and Trade (DBT) leads on trade sanctions. For help with export controls or trade sanctions, contact the Export Control Joint Unit, part of DBT, on: exportcontrol.help@businessandtrade.gov.uk or tradesanctions@businessandtrade.gov.uk 

Helpline: +44 (0)20 7215 4594

For general guidance on import controls and trade sanctions contact the Import Controls team on: importcontrols@businessandtrade.gov.uk

The Department for Digital, Culture, Media and Sport has overall responsibility for cultural property policy. For general enquiries on cultural property issues, contact the DCMS Cultural Property Unit on: culturalpropertymailbox@dcms.gov.uk

It is not possible to get a trade sanctions licence for cultural property. For enquiries and guidance on export licences for cultural property, contact the Export Licensing Unit at Arts Council England: elu@artscouncil.org.uk

1.4 Information and record-keeping

Information and record-keeping provisions, including financial sanctions reporting obligations, are contained in Part 7 of the Regulations.

Financial sanctions reporting obligations and information requests

For the purpose of the financial sanctions, the Regulations place obligations on relevant firms to report information to HM Treasury (in practice to the Office of Financial Sanctions Implementation (OFSI), part of HM Treasury) about known or suspected designated persons or about persons who may have breached a prohibition or failed to comply with an obligation under specified provisions of the Regulations.

OFSI has powers to request information from, among others, a designated person, including powers to request the production of documents. It is an offence to fail to comply with these requests or provide false information.

If you are unclear about your obligations or responsibilities, you are advised to seek independent legal advice.

See more guidance about OFSI’s reporting obligations.

Trade sanctions reporting obligations and information requests

The Trade, Aircraft and Shipping Sanctions (Civil Enforcement) (TASSCER) Regulations (2024) place obligations on relevant persons (providers of financial or legal services, or money service businesses, for example) in relation to suspected breaches of certain trade sanctions.

For details see Trade sanctions: reporting obligations.

The Regulations establish powers to request information in relation to the trade sanctions and record-keeping responsibilities for licences. It is an offence to fail to comply with any of these requirements or intentionally obstruct an official in the exercise of these powers.

See more details about information you must provide in response to a trade sanctions information request.

If you are unclear about your obligations or responsibilities, you are advised to seek independent legal advice.

2. Enforcement

Enforcement provisions are contained in Part 8 of the Regulations.

It is a criminal offence to breach sanctions, or to enable or facilitate a breach of, or to circumvent sanctions. The Regulations set out the mode of trial and penalties that apply to such offences.

In some cases, offences are contained in other legislation, such as the Customs and Excise Management Act 1979 (CEMA), or in the regulations made under the Sanctions Act that apply across regimes, such as the TASSCER regulations.

2.1 Financial sanctions enforcement

A breach of the main financial prohibitions or licensing provisions in the Regulations is an offence that is triable either way and carries a maximum sentence on conviction on indictment of 7 years’ imprisonment or a fine, or both.

Offences under the reporting obligations are summary offences and carry a maximum sentence of 6 months’ imprisonment or a fine, or both.

The Office of Financial Sanctions Implementation (OFSI), part of HM Treasury, is responsible for monitoring compliance with financial sanctions and for assessing suspected breaches. It also has the power to impose civil monetary penalties and refer cases to law enforcement agencies for criminal investigation and potential prosecution.

OFSI’s approach to compliance and enforcement is outlined in section 7 of OFSI’s general guidance.

For more information about how OFSI assesses suspected breaches and the possible enforcement outcomes, see OFSI’s enforcement guidance.

2.2 Trade sanctions enforcement

A breach of the trade sanctions prohibitions is triable either way and carries a maximum sentence on conviction on indictment of 10 years’ imprisonment or a fine, or both.

A breach of the trade sanctions licensing provisions is also triable either way and carries a maximum sentence on conviction on indictment of 2 years’ imprisonment or a fine, or both. 

Offences under the reporting obligations are summary offences and carry a maximum sentence of 6 months’ imprisonment or a fine, or both. 

HM Revenue and Customs (HMRC) is responsible for enforcing the licensing restrictions and investigating suspected offences.

If you discover that you have breached any of the trade prohibitions or licensing provisions, you should report the irregularity to HMRC (sometimes known as ‘voluntary disclosure’) as soon as possible. If the irregularity was found on an Export Control Joint Unit compliance audit, the compliance inspector will have informed HMRC and you are strongly advised to do the same. Guidance is available on how to make a voluntary disclosure.

 3. Exceptions and licences

Exceptions and licensing provisions are contained in Part 6 of the Regulations.

3.1 Exceptions

An exception gives an automatic exemption to an activity that would otherwise be prohibited under sanctions. It means you can carry out that activity as long as certain defined circumstances, set out in the Regulations, apply to your activity.

An exception applies automatically so you do not require a licence to carry out the proposed activity, but some exceptions have notification obligations.

To check the full legal wording of an exception, go to the regulations listed in Part 6. If you are unsure whether an exception applies in your circumstances, you are advised to seek independent legal advice.

General exceptions

Exception for authorised conduct in a relevant country (regulation 33)

This exception relates to prohibitions in regulations 8 to 13 and chapters 2 and 3 of Part 4 (Trade).

The exception applies if:

• conduct is authorised by a licence or other authorisation that is issued under the law of the Channel Islands, Isle of Man or any British Overseas Territory for the purpose of disapplying a prohibition in that jurisdiction which corresponds to the relevant prohibition

Exception for acts done for purposes of national security or prevention of serious crime (regulation 34)

This exception can be used in relation to any prohibition or requirement imposed by the Regulations.

The exception applies if:

• a responsible officer has determined the relevant actions to be in the interests of national security, or the prevention or detection of serious crime in the UK or elsewhere

Financial sanctions exceptions

Exceptions for crediting a frozen account (regulation 30)

These exceptions relate to the prohibitions in regulations 8 about partial asset freeze and 9 to 11 about asset freeze and dealing with the funds or economic resources of designated persons and making funds available to them.

The exceptions permit, in certain circumstances, frozen accounts to be credited by and transfers made to ‘relevant institutions’ – those with permission to carry out regulated activities under the Financial Services and Markets Act 2000 part 4A.

These exceptions apply to both the partial asset-freeze on the former Government of Iraq and its state bodies, corporations or agencies, as well as to the asset freeze in relation to persons connected with the former Iraqi regime.

See section 6 of OFSI’s general guidance for details about how to use these exceptions and the related reporting obligations for relevant institutions.

United Nations humanitarian exception (regulation 30A)  

This exception relates to the prohibitions in regulations 8 to 13 about dealing with the funds or economic resources of designated persons and making funds available to them.  

The exception applies if the activity is necessary to:

• ensure the timely delivery of humanitarian assistance, or  
• to support other activities that support basic human needs  

See section 9 of OFSI’s financial sanctions guidance for charities and non-governmental organisations (NGOs) to check the conditions for this exception and how to use it.

Exceptions for return of frozen funds to Iraq (regulation 31)

These exceptions relate to prohibitions in regulations 8 to 13 about the transfer of funds or economic resources owned, held or controlled by a designated person. 

The exceptions apply if: 

- the transfer and anything done in connection with the transfer is for a transfer being made to the successor account to the Development Fund for Iraq, put in place by the Government of Iraq under the conditions set out in UNSCR 1483 and UNSCR 1956 (2010)

Trade sanctions exceptions

Exception for the safe return of Iraqi cultural property (regulation 32)

This exception relates to the prohibitions in chapter 3 of part 4 about illegally removed Iraqi property.

The exception applies if the activity is:

• to facilitate the safe return of illegally removed Iraqi cultural property to Iraqi institutions, in accordance with the objectives of paragraph 7 of UNSCR 1483

An export licence may be required to return cultural property from the UK to Iraq.

3.2 Licensing for financial sanctions

A licence is a written permission from OFSI that allows an act that would otherwise be in breach of the financial sanctions prohibitions set out in the Regulations.  

In circumstances where there are no applicable exceptions from the prohibitions or general licences, any person (including a designated person) may apply for a licence from OFSI enabling them to deal with the frozen funds or economic resources of the designated person, or to allow these to be made available to or for the benefit of a designated person.

You should not assume that a licence will be granted or engage in any activities prohibited by financial sanctions until your licence has been granted.

Licensing grounds for financial sanctions

Those designated as persons connected to the former Iraq regime or a representative (on their behalf) may also apply for a licence from OFSI to have funds and economic resources made available to them. Schedule 2 to the Regulations sets out the purposes pursuant to which, or for which activities, OFSI may grant an individual licence. In summary these are:

For persons connected to the former Iraq regime:

• payment to satisfy a judicial decision made before 22 May 2003
• basic needs
• reasonable professional fees for or reasonable expenses associated with the provision of legal services
• reasonable fees or service charges arising from the routine holding or maintenance of frozen funds or economic resources
• extraordinary expenses

Where a person is subject to the partial asset-freeze (the former Government of Iraq and its state bodies, corporations or agencies), the designated person or a representative (on their behalf) may apply for a licence from OFSI to use their funds or economic resources which have been frozen for the purpose set out in Schedule 2, namely:

• in respect of a payment to satisfy a judicial decision made before 22 May 2003

OFSI may need to notify, or in some cases seek approval from the relevant United Nations Sanctions Committee before issuing a licence. These requirements are set out in the relevant UN Security Council Resolutions. These requirements will lengthen the processing time for such licence applications and may in some cases prevent a licence from being issued.

See section 6.6 of OFSI’s general guidance for the approach OFSI takes when deciding whether to grant a licence for each of these licensing grounds.

See OFSI’s licensing page for licence application forms and guidance.

3.3 Licensing for trade sanctions

Licences may also be issued for certain trade activities that would otherwise be prohibited by the Regulations. The Department for Business and Trade (DBT) has overall responsibility for trade sanctions licensing. The Secretary of State for Business and Trade is ultimately responsible for decisions to grant or refuse a trade sanctions licence in any individual case.

The Export Control Joint Unit (ECJU), part of DBT, is responsible for licensing the export of sanctioned goods, software and technology. The Office of Trade Sanctions Implementation (OTSI) can issue licences when a goods export involves UK companies or persons but does not physically cross the UK border. See guidance on applying for an export licence.

There are no licensing provisions for cultural property; the only permitted exception to the sanctions is for the return of unlawfully removed items.

In making decisions on whether to grant a licence to permit something which would otherwise be prohibited under Part 5 of the Regulations, the Secretary of State will consider each application on a case-by-case basis to determine whether granting a licence would be consistent with the stated purposes of the sanctions regime and any UN or other relevant international law obligations.

For some prohibitions there are some specific activities that DBT considers are likely to be consistent with the aims of the sanctions. These are set out in the table below. If you think that your proposed activity falls within one of these specific descriptions, you should make this clear and explain why you believe this to be the case in your application for a licence.

You should not assume that a licence will be granted or engage in any activities prohibited by trade sanctions until your licence has been granted.

Prohibitions	Type of consideration
17 to 20	Considerations for the export, making available, transfer, supply or delivery of military goods or military technology

A licence may be granted for the export, making available, transfer, supply, or delivery of military goods or military technology, other than items specified in paragraphs 8 and 12 of UNSCR 687 (1991) of 3 April 1991 or activities described in paragraph 3(f) of UNSCR 707 (1991) of 15 August 1991, if the goods or technology are required by the Government of Iraq or the multinational force in line with UNSCR 1546 (2004) of 8 June 2004 and other related resolutions or as otherwise permitted under the Written Ministerial Statement of 16 May 2019 as amended from time to time.

Prohibitions	Type of consideration
21	Considerations for the provision of brokering services relating to military goods or military technology

A licence may be granted for the provision of brokering services relating to military goods or military technology, other than items specified in paragraphs 8 and 12 of UNSCR 687 (1991) of 3 April 1991 or activities described in paragraph 3(f) of UNSCR 707 (1991) of 15 August 1991, if the brokering services are required by the Government of Iraq or the multinational force in line with UNSCR 1546 (2004) of 8 June 2004 and other related resolutions or as otherwise permitted under the Written Ministerial Statement of 16 May 2019 as amended from time to time.

When you export goods, you may need to submit an electronic export declaration: guidance is available on how to make an export declaration.

Overlap with strategic export licensing

Military goods and military technology

Please note that the export of and trade in military goods and military technology are also controlled under the Export Control Order 2008 and so you may also need a licence which is valid under that legislation.

This means that all licence applications relating to military goods and military technology will also need to be considered against the Strategic Export Licensing Criteria. A licence under the Regulations is unlikely to be granted if a licence is refused for the same activity under the Export Control Order 2008.

The way this will work in practice is that we will consider an application for a licence which relates to activities that are licensable under both the Regulations and the Export Control Order 2008 as an application under both pieces of legislation. This means that only a single licence application is required.

The application will be considered against the relevant licensing criteria. If a licence is granted it will be valid under both the Export Control Order 2008 and the Regulations.

Overlap between trade sanctions and financial sanctions

If you import or export goods, you need to consider if financial sanctions apply to you. You may need a licence from OFSI as well as from the Export Control Joint Unit or the Import Licensing Branch.

Transit control

Certain goods transiting the UK are still regarded as being exported when they leave the country and are therefore subject to control. Article 17 of the Export Control Order 2008 includes a transit and transhipment exception meaning that in many situations a licence is not required. This exception does not apply to goods destined for Iraq, meaning that a licence is required to transit goods through the UK or to tranship them in the UK with a view to re-exportation to Iraq.

4. Further information

The UK sanctions hub page is a central point for all sanctions content, including links to introductory guidance, sector-specific guidance, reporting obligations, blogs, and email alert services.

You can report a suspected breach of sanctions if you think you, or someone else, may have breached sanctions, or be attempting to circumvent sanctions.

For specific queries about this sanctions regime, email: fcdo.correspondence@fcdo.gov.uk

For other contact details, see Government departments and agencies responsible for sanctions.