In brief

• UAE authorities have the power to shut down businesses and freeze funds/assets of UAE companies which violate United Nations sanctions in the course of doing business with entities in Iran.

• * UAE companies should regularly check their current and future Iranian contracting partners against the list provided by the Committee and Annex I, II and III of Resolution 1929.

• The banking and shipping industries attract additional scrutiny.

On 9 June 2010, the United Nations Security Council passed, by a vote of 12 to two, with Lebanon abstaining, their fourth round of sanctions against Iran, Resolution 1929 (2010) (the Resolution). Primarily, the Resolution deals with banning Iran from undertaking nuclear and missile investments abroad, purchasing heavy weapons and participating in ballistic missile activities. The Resolution is also likely to create significant burdens and additional red tape for UAE entities engaging in ordinary trade of non-prohibited items/merchandise with Iranian companies.