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These Regulations implement EU sanctions against the Federal Republic of Yugoslavia (FRY) by creating criminal offenses for breaches of EC Regulation 1294/1999, which imposed a freeze on funds and ban on investment in relation to FRY. The Regulations also contain provisions for information gathering by the Treasury/Bank of England, criminal penalties (up to 2 years imprisonment on indictment), and corporate liability. They revoked earlier 1998 Regulations and were themselves a response to the Kosovo conflict.
The FRY no longer exists as a state; Serbia is now a separate nation with normalized relations. These 1999 sanctions targeted the Milošević regime during the Kosovo conflict—a regime that ended 25 years ago. The regulation is obsolete, its object country having dissolved and successor states having long since been integrated into normal international commerce. Keeping dead sanctions law on the books serves no current economic or security purpose while maintaining compliance burdens on financial institutions and restricting capital movement unnecessarily.