The U.K. Financial Conduct Authority’s annual report last month included a more “pronounced” focus on sanctions compliance, including details on the government’s ongoing “assessments” of companies’ compliance programs, Baker McKenzie said in an August client alert. The firm said financial institutions operating in the U.K. should be aware that they may need to report potential sanctions violations to the FCA as well as to the country’s Office of Financial Sanctions Implementation, and firms should “re-review their sanctions compliance policies and procedures” due to the FCA’s “focus on the effectiveness of a bank’s financial crime systems and controls.”
A group of European countries not in the EU aligned with recent sanctions moves from the European Council regarding Iran's support for Russia's war in Ukraine, serious human rights abuses and the situation in Myanmar.
The U.K.'s Export Control Joint Unit on Aug. 11 issued a new general license under its Russia sanctions regime permitting the provision of certain legal advice and services. The license authorizes legal advisory services to any person or entity related to whether an "act or a proposed act complies with" sanctions, export and import controls on Russia. Parties may now provide legal advisory services surrounding the risk of "punitive measures" concerning sanctions on Russia, any Russian laws that "have as their object or effect the frustration of any laws specified [in any restrictive measures] including sanctions, export and import controls or other restrictive measures imposed by Russia"; or "any criminal law imposed by any jurisdiction."
The Moscow Arbitration Court in an Aug. 1 order froze shares of companies owned by Goldman Sachs Group, worth around $36 million, after Russian bank Otkritie filed a lawsuit against the U.S. banking giant, the Financial Times reported. State-owned Otkritie said Goldman refused to fulfill $6.4 million in debt obligations under derivatives deals between the two banks. Goldman said it was not able to settle the debt due to sanctions set against the Russian bank, FT reported.
The EU renewed the antidumping duties on tungsten carbide from China for another five years after an investigation showed the European industry would be harmed from dumped imports if the duties lapsed, the Directorate-General for Trade announced Aug. 9. Tungsten carbide is used to make hard metal tools in the "construction, mining, automotive and defence industries."
The European Commission doubled the antidumping duties on optical fiber cables from China following an investigation that found Chinese exporters "were attempting to impede the effects of the original measures," the Directorate-General for Trade announced Aug. 9. The commission said Chinese optical fiber cable exporters deliberately dropped their prices to bar the effects of the original duties, in place since November 2021. The new duties on optical fiber cable entering the EU from China will range from 39.4% to 88% -- twice the original duties and "the maximum increase allowed."
The U.K.'s Office of Financial Sanctions Implementation on Aug. 4 updated its reporting forms for the general licenses pertaining to the oil price cap and ban on Russian oil services. Details are available on how to submit the forms.
The U.K.'s Office of Financial Sanctions Implementation in a pair of Aug. 8 notices added 19 entries to its Russia sanctions regime and six entries to its Belarus restrictions regime. The Russia sanctions additions include 10 people and nine entities, most relating to Iran's support for the Russian military's war in Ukraine. Many of the people designated were employees or executives at one of the listed companies, Paravar Pars Co., an aerospace research and engineering firm in Iran.
Switzerland's State Secretariat for Economic Affairs on Aug. 3 added six people and one entity to its Myanmar sanctions regime following the EU's designation of the parties. The designations target Myanmar's Health and Sport Minister Thet Khaing Win; Quartermaster General Kyaw Swar Lin; Union Minister for Immigration and Population Myint Kyaing; and members of the State Administration Council. The listed entity is No 2 Mining Enterprise.
The European Council on Aug. 4 announced a humanitarian exemption for its Guinea-Bissau sanctions regime, which exempts certain restrictions from applying to the provision of funds where the "timely delivery" of humanitarian services is needed. The exemption can be used by various international organizations, including the U.N. or humanitarian organizations that have "observer status" with the U.N. General Assembly.