Removal from sanctions lists

What is happening

A company was designated because of a shareholder who had left a year earlier. The statement of reasons still names him, and nobody told the regulator about the change in ownership.

An individual was listed as the head of a company although he had left long before the designation date. His accounts abroad are frozen, and the family cannot meet ordinary expenses.

A foreign bank has frozen funds of a company that is not on any list itself but is connected to a sanctioned person. It needs to be established whether the restrictions extend to it, and the bank shown the answer.

What the law says

• Each sanctions regime has its own review procedure: a petition to OFAC in the US, a request to the Council of the EU, an application for review in the UK. Designations in the EU and the UK can be challenged in court.
• Grounds for removal usually involve a change of circumstances (leaving the shareholding, stepping down, ceasing activity), mistaken identity or insufficient evidence on the regulator's side.
• The EU and the UK review their lists periodically, and it makes sense to prepare updated submissions ahead of the review dates.
• Separately from delisting, licences and authorisations can be sought for particular transactions: paying for legal services and basic needs, or winding down existing contracts.
• In Russia a sanctioned person has procedural safeguards, including the possibility of having its disputes heard by a Russian commercial court under Article 248.1 of the Commercial Procedure Code (APK).
• Representation before foreign authorities and courts is carried out by lawyers qualified in the country concerned; we prepare the case and evidence and coordinate their work.

What we do

• We analyse the grounds for designation and the published reasons and, through foreign colleagues, request the material available from the regulator.
• We gather evidence of changed circumstances: corporate documents, register extracts, documents on leaving the business or stepping down.
• We prepare the case and a draft request for review, and agree the strategy with foreign counsel.
• We select foreign lawyers experienced in such cases and coordinate their work so the position is consistent across jurisdictions.
• In parallel, we prepare licence applications for the transactions needed to live and do business.
• We support dealings with banks over frozen funds.

What we will need from you

• Details of the designation: which list, the date and the published reasons.
• Corporate documents on the ownership and management structure at the designation date and now.
• Any documents on leaving the shareholding, stepping down or ceasing activity.
• A list of frozen assets and accounts abroad.
• For an individual: a biography and details of business and public activities.
• Correspondence with banks and regulators.