S.I. No. 240/2000 - Financial Transfers (Governments of the Federal Republic of Yugoslavia and The Republic of Serbia) Order, 2000.

I, CHARLIE McCREEVY, Minister for Finance, in exercise of the powers conferred on me by section 4 of the Financial Transfers Act, 1992 (No. 27 of 1992), hereby order as follows:

1. This Order may be cited as the Financial Transfers (Governments of the Federal Republic of Yugoslavia and the Republic of Serbia) Order, 2000.

2. (1) In this Order—

“Central Bank” means Central Bank of Ireland;

“Council Regulation” means Council Regulation (EC) No. 1294/1999 of 15 June 1999¹ , as amended by Council Regulation (EC) No. 723/2000 of 6 April 2000² .

(2) A word of expression which is used in this Order has, unless the context otherwise requires, the same meaning that it has in the Council Regulation.

3. This Order applies to financial transfers—

(a) in respect of all funds held outside the territory of the Federal Republic of Yugoslavia and belonging to the government of the Federal Republic of Yugoslavia or to the government of the Republic of Serbia or to both, and which have been frozen in accordance with the Council Regulation;

(b) relating to the making available of funds to or for the benefit, either directly or indirectly, of—

(i) the government of the Federal Republic of Yugoslavia, or

(ii) the government of the Republic of Serbia; or

(c) in respect of the acquisition of any new interest in or the extension of any existing participation or interest in, ownership or control of real estate, or a company, undertaking, institution or entity

(i) located, registered or incorporated within the Republic of Serbia, or

(ii) wherever else located, registered or incorporated, and which is owned or controlled by the government of the Federal Republic of Yugoslavia or the government of the Republic of Serbia;

in exchange or not, for the supply or provision of tangible or intangible goods, services or technology (including patents), capital, debt relief or other financial resources;

(d) in respect of the engaging in or continuation of activities facilitating, promoting or otherwise enabling the acquisition or extension of a participation in, ownership of or control over such real estate, companies, undertakings, institutions or entities.

4. Subject to this Order and to Article 8 of the Council Regulation, a person shall not make a financial transfer to which this Order applies between the State and another country.

5. A person may make a financial transfer to which this Order applies in respect of funds to be used exclusively for the purpose of the matters referred to in Article 7(1) and (2) of the Council Regulation, subject to compliance with the conditions specified in that Article.

6. A person may make a financial transfer to which this Order applies in respect of funds to be used exclusively for the purpose of the acquisition of a new interest in or the extension of an existing participation or interest in, or ownership of, or control of real estate located in the European Community provided the transaction complies with conditions specified in Article 7(3) of the Council Regulation.

7. A person who makes a financial transfer to which Article 5 or 6 of this Order applies, shall keep evidence of having complied with the conditions of the Article concerned (including relevant conditions of the Council Regulation) for a period of 12 months from the date on which transfer was made for inspection by the Central Bank.

8. The Central Bank may give such directions or issue such instructions to a person as it sees fit for the administration and enforcement of this Order.

9. A person to whom a direction has been given or an instruction issued under Article 8 of this Order shall, unless the person has reasonable excuse, comply with such direction or instruction.

10. A person shall not do anything to promote a financial transfer to which this Order applies where the making of such transfer is prohibited by this Order.

11. The following are hereby revoked:

(a) the Financial Transfers (Republic of Serbia) (No. 2) Order, 1998 ( S.I. No. 346 of 1998 ), and

(b) the Financial Transfers (Governments of the Federal Republic of Yugoslavia and the Republic of Serbia) Order, 1998 ( S.I. No. 360 of 1998 ).

EXPLANATORY NOTE.

(This note is not part of the Instrument and does not purport to be a legal interpretation.)

The Statutory Instrument is made on foot of powers conferred on the Minister for Finance by section 4 of the Financial Transfers Act 1992 .

The Order provides for an extension of sanctions against the Federal Republic of Yugoslavia and the Republic of Serbia. In accordance with Council Regulation (EC) No. 1294/1999 of 15 June, 1999, as amended by Council Regulation (EC) 723/2000, of 6 April 2000, this Order prohibits financial transfers between the State and another country, in respect of—

(i) funds held outside the Federal Republic of Yugoslavia and belonging to the government of the Federal Republic of Yugoslavia and/or the government of the Republic of Serbia as well as persons and bodies acting for or on behalf of those governments and which have been frozen by virtue of the Council Regulation, and

(ii) new investment in the Republic of Serbia;

The Order provides for certain limited exceptions in accordance with the terms of the Council Regulation.

Companies, undertakings, institutions or entities, specified in Annex VI of the Council Regulation, are deemed not to be the subject of the financial sanctions against the Federal Republic of Yugoslavia and the Republic of Serbia. This list is approved by the European Commission under the criteria set out in Article 8 of the Council Regulation. Applications for inclusion in the list are made through the designated competent authorities of the Member States listed in Annex III of the Regulation. In Ireland, the Department of Foreign Affairs and the Central Bank of Ireland are the competent authorities for processing such applications.

This Order also revokes S.I. No.'s 346 and 360 of 1998.

¹ O.J. No. L153, 19.6.1999, p.63.

² O.J. No. L86, 7.4.2000, p.l.