INDIA Law and Practice Contributed by: Ayush Mehrotra, Upkar Agrawal and Varsha Goel, Khaitan and Co
Asset Freezes Immobilising financial assets and economic resources owned or controlled by designated persons or enti - ties, with financial institutions required to block any dealing with the frozen property, subject to specified exceptions. Blocking Access to the Financial System Directing financial institutions to deny designated per - sons the ability to open accounts, process payments, extend credit or access insurance and other financial services and requiring broader de-risking of relation - ships with sanctioned or high-risk parties. Suspension or Cancellation of Import-Export Licences Administrative measures against non-compliant trad - ers, including suspension of importer-exporter certifi - cates. Trade Prohibitions and Restrictions Import and export of goods and services to or from designated countries/persons or entities are either banned or subject to mandatory conditions. Such measures range from targeted goods/services-spe - cific sanctions to country-specific sanctions on trade in all goods/services, such as a ban on trade in all goods originating or transiting from Pakistan. Travel Bans Barring designated individuals from entering or trans - iting through Indian territory. 1.4.2 Scope of Sanctions Indian sanctions laws must be complied with by the following categories of persons and entities: • all Indian citizens; • entities or artificial juridical persons incorporated or registered in India; • persons on ships and aircraft registered in India, irrespective of their physical location; and • all persons and entities within India undertaking any transaction in India, regardless of their nation - ality.
Extraterritoriality Some relevant legislations have extra-territorial reach for situations such as terrorism financing, facilitation, support or conspiracies with sufficient nexus to India or an impact on India’s security or interests. The enti - ties involved can be subjected to sanction measures under national legislation, irrespective of their pres - ence within or outside India. 1.4.3 Domestic and/or Supranational Measures India implements both supranational sanctions meas - ures notified by the UNSC and domestic measures for safeguarding its national security and public order. These measures are implemented through the follow - India implements UNSC resolutions in line with its obligations as a member of the United Nations (UN) through orders (UNSCA Orders) issued under the United Nations (Security Council) Act 1947 (UNSC Act). India does not implement or enforce unilateral sanc - tions imposed by any regional body or countries such as the United States (US) or the European Union (EU). Autonomous/Domestic Measures Sanctions measures are implemented against spe - cific individuals organisations/ entities and coun - tries under the national framework comprising of the Unlawful Activities (Prevention) Act 1967 (UAPA), the Foreign Trade (Development and Regulation) Act 1992 (FTDR Act) read with the Foreign Trade Policy 2023 (FTP) and the Handbook of Procedures 2023 (HBP), the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act 2005 (WMD Act), the Customs Act 1962 (Customs Act), the Foreign Exchange Management Act, 1999 (FEMA) and PMLA. ing national framework. Supranational Measures 2. Overview of Regulatory Field 2.1 Primary Regulators The primary regulators for sanctions activity in India are as follows.
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