Head of Retail & Consumer | Head of Risk | Commercial
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The world has been watching the devastating events in Ukraine over recent weeks and how governments in the UK, EU, Switzerland and USA have responded with sanctions on individuals and businesses designed to put economic pressure on Russia and those benefitting from or supporting the Russian government.
If they have not already, businesses need to consider how sanctions might affect their business. From our work with businesses across the world in managing the risks and challenges sanctions bring, we have seen how the list of sanctions is complex, frequently updated and how the measures differ between countries.
A breach of sanctions rules risks:
Financial sanctions have been applied to named individuals to freeze their assets and prevent activity with them or their business interests.
Sanctions prohibit the export of certain goods for use in Russia. Since the sanctions apply even if Russia is not the first destination, you need to understand the ultimate destination. Certain imports are also covered depending on jurisdiction as is transportation and immigration.
New legislation has created a Register of Overseas Entities. This requires details of beneficial ownership of freehold and leasehold (<21 years) interests to be recorded at Land Registry. This includes all property acquired in England and Wales since 1999. Failure to do so may prevent the sale, leasing, or mortgaging of an interest in land. So, the questions to ask are:
The nature and extent of sanctions will continue to evolve, given the extent to which the global community has come together in recent weeks. This means developments must be monitored closely and your risks constantly assessed.
Every business is different, and the myriad of potential sanctions cannot be stated in a single note that applies to all. Foot Anstey's specialist lawyers work collaboratively across our practice groups and with international partners to make sure you receive the responsive and expert support your business needs in a fast-moving and volatile world. If you would like to discuss how your business may be impacted please get in touch.