UK Sanctions Weekly Update – Week of October 2, 2023

In this weekly update, we summarise the most notable updates in the UK sanctions world. If you have any questions in respect of any of the developments set out below, please do not hesitate to contact a member of our London Global and Government Trade team listed above.

1.  Russia Sanctions

• UK Government issues General Licence for payments to Companies House: On October 6, 2023, the UK Government issued General Licence INT/2023/3626884, which allows, among other things, designated persons to make permitted payments to Companies House and UK financial institutions to process such payments. (INT-2023-3626884_GL.pdf (publishing.service.gov.uk))
• UK Court of Appeal dismisses appeal in sanctions case, and comments on “control” test in obiter comments: On October 6, 2023, the Court of Appeal handed down judgment in Boris Mints & Ors v PJSC National Bank Trust & Anor [2023] EWCA Civ 1132, a case that concerns the interaction between the UK Russia sanctions regime and ongoing litigation involving designated persons.  Among other things, the Court of Appeal held that: (i) UK sanctions regulations do not preclude a designated person (“DP”) or the court from giving a money judgment (and so the appeal for a stay of proceedings was rejected), nor do they displace the right of a designated person’s access to the English court system; (ii) a cause of action is an economic resource, but not a fund; and (iii) OFSI can licence an adverse costs order both for or against a DP.  In its obiter, the Court of Appeal also made comments on the control test under UK sanctions regulations: among other things, it considered that the court at first instance was incorrect in stating that there was a carve out from the control test for control by political office and that the concept of control covered any persons who, for whatever reason, is able to exercise control over another company irrespective of whether the DP has an ownership interest in the other company, economic or otherwise.  (https://www.judiciary.uk/wp-content/uploads/2023/10/Mints-v-PJSC-judgment-061023.pdf; https://www.judiciary.uk/wp-content/uploads/2023/10/Mints-v-PJSC-summary-061023.pdf)
• UK Government issues general licence for correspondent banking payments: On September 29, 2023, OFSI issued General licence INT/2023/3566356, which authorises a Credit or Financial Institution to return a “Relevant Payment” subject to certain conditions.  The general licence appears to be addressing a scenario where a DP bank is not a direct counterparty to a UK financial institution, but further upstream in the payment chain. (Correspondent_Banking_General_Licence_Publication_Notice.pdf (publishing.service.gov.uk))

2.  Iran Sanctions

• UN and UK revokes one entry under the UN Iraq sanctions regime: On October 5, 2023, both the UN and the UK Government made one revocation to the sanctions list, de-listing Walid Hamid Tawfiq Al-Tikriti, a former member of the Saddam Hussein administration. He is no longer subject to an asset freeze or travel ban. (Security Council 1518 Sanctions Committee Removes One Entry from Its Sanctions List | UN Press; https://assets.publishing.service.gov.uk/media/651fd8fe79fc580014639717/Notice_Iraq_061023.pdf)