Inside this Topic Guide
Economic and financial sanctions seek to prevent the targeted individuals or entities from dealing with their funds and accessing financial services, and are backed by civil and criminal penalties. Compliance is not always straightforward, particularly where different sanctions programmes collide and impose conflicting obligations.
Over the last ten years or so, sanctions have become an increasingly hot topic for the global financial markets: several banks have been subject to significant financial penalties for failure to comply with financial sanctions programmes and there have also been some recent high profile developments in relation to certain countries such as Iran and Ukraine. It is therefore vital for companies, especially financial institutions engaging in a multitude of different transactions every day, to monitor their compliance with sanctions, ensure that they are not in breach of the relevant sanctions legislation and take advice on how sanctions should be specifically addressed in transaction documentation.
Recent important developments in the area of sanctions have included the amendment of the EU Blocking Regulation - see client briefings Between a rock and a hard place? The EU expands its Blocking Regulation following the US announced withdrawal from the Iran nuclear deal and Back to the Future... Secondary Sanctions Return as White House Withdraws United States from JCPOA; Reinstates 'Highest' Sanctions on Iran, the Sanctions - shifting sands presentation and the UK Finance section under Commentary and official documentation below for more information.
In the event of a no-deal Brexit, the UK will no longer be subject to EU sanctions laws on its departure from the EU. However, the European Union (Withdrawal) Act 2018 (the "EUWA") provides for the domestication of most EU law in effect at that time. Consequently, in a "no deal" scenario, much of the existing EU sanctions law will be retained, including the EU Blocking Regulation, so that it forms part of UK domestic law after the UK has left the EU. See the Office of Financial Sanctions Implementation and UK government sections under Commentary and official documentation below for more information.
This Topic Guide has a limited selection of content on US sanctions, please contact our experts in Washington listed below for further information.
|Ali Burney (Singapore)||Rae Lindsay (London)|
|Ekaterina Hazard (Washington)||Michael Lyons (London)|
|George Kleinfeld (Washington)||Nicholas Turner (Hong Kong)|
|Jacqueline Landells (Washington)||Wendy Wysong (Hong Kong)|