UK Law and Practice Contributed by: John Binns, BCL Solicitors LLP
1. Trends and Overview 1.1 Sanctions Market
A new regime to tackle those involved in illegal immi - gration (including those facilitating arrivals of asylum seekers from France on “small boats”) has also been introduced, with various designations of individuals and entities allegedly involved. Broader Developments in UK Sanctions In addition to the developments noted above: • following the Supreme Court’s adverse ruling against Eugene Shvidler, the High Court dismissed a separate challenge from Sarvar Ismailov against the FCDO’s decision to maintain his listing, fol - lowing a ministerial review (refer to 3.1 Significant Court Decisions or Legal Developments ); and • the Office of Financial Sanctions Implementa - tion (OFSI) has continued its use of the monetary penalty regime, notably including a penalty of over GBP1 million against Sabre Global Technologies Limited for providing travel services to Ural Airlines, a designated entity under the Russia sanctions regulations. 1.3 Key Industries The impact of UK sanctions has been felt in various sectors; however, the financial services industry has undoubtedly been the most affected. Various profes - sional sectors, including accountants, lawyers and trustees, have been affected by the bans imposed as part of the UK’s response to Russia’s actions in Ukraine. 1.4 Overview The Sanctions and Anti-Money Laundering Act 2018 (SAMLA) empowers ministers to make sanctions reg - ulations for various purposes, including compliance with UN resolutions, advancing human rights, and furthering UK foreign policy objectives. Most regula - tions made under SAMLA relate to a specific country (such as Belarus, Iran, North Korea, Russia or Syria), while others relate to a specific issue (such as chemi - cal weapons, corruption, cyber-attacks, human rights or irregular migration). 1.4.1 Types of Sanctions Purposes of UK Sanctions
The UK’s sanctions sector continues to expand expo - nentially, principally as a result of measures taken in response to Russia’s continuing actions in Ukraine. Delays caused by under-resourcing in criminal enforcement have contributed to the UK’s sanctions enforcement landscape remaining relatively quiet, although this is beginning to change, with increased activity in both criminal prosecution and monetary penalties. 1.2 Key Trends Expanded Use and Provisions of the UK’s Sanctions Regimes The last 12 months or so have seen significant amend - ments to the UK’s sanctions regulations and to the lists of designated persons (DPs) under them, which have been designed: • to continue increasing the restrictions on the gov - ernment and economy of Russia, in the context of its ongoing hostile actions in Ukraine; • to delist (albeit, at the time of writing, in numbers that remain stubbornly low, and notably lower than the equivalent regimes in the EU and elsewhere) individuals and entities that (in the view of the Foreign, Commonwealth & Development Office, FCDO) should no longer be listed, for instance because of their conspicuous denunciation of the Russia regime or withdrawal from relevant busi - nesses; • to continue listing, under the “Magnitsky” human rights sanctions regime, allegedly violent settlers in Israel, as well as (at the time of writing) a small number of targeted members of the Israeli govern - ment itself, based on public pronouncements, the UK government considers to be unacceptable; • to deploy the same regime against those allegedly involved in overseas “scam centres”, which used forced labour to commit fraud; and • to continue and expand the use of anti-corruption sanctions (the second of the two sets of regula - tions attributed to the “Magnitsky” legacy) in the context of high-profile overseas corruption allega - tions.
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