Economic Sanctions and Arbitration: A Checklist for Counsel Presented by: Aníbal Sabater Partner UIA, Budapest, 29 October 2016 Copyright © 2016 Chaffetz Lindsey LLP

Sanctions & Arbitration?   Sanctions & Arbitration? The Oracle may know Copyright © 2016 Chaffetz Lindsey LLP

1. Stay current on Sanctions a. UN Security Council: Certain individuals and state-sponsored entities b. EU Sanctions (30+ states and entities): Afghanistan, Belarus, Russian Federation, etc. c. US Sanctions (25+ states, entities, organizations, and activities): Cuba, Iran, N Korea, S Sudan, Venezuela, Russia, Syria, etc. d. UK (20+ entities, organizations, and activities): Guinea, Somalia, Yemen, etc. Copyright © 2016 Chaffetz Lindsey LLP

2. Know whom to deal with: the “regulator” / “enforcer” Even if multilaterally imposed, sanctions tend to be unilaterally enforced by states In the U.S.: Office of Foreign Assets Control (OFAC) In the UK: Office of Financial Sanctions Implementation (OFSI) Copyright © 2016 Chaffetz Lindsey LLP

3. Consider your personal situation What is your citizenship? Where do you reside? Where are your offices? Where would your legal services be rendered? Remember: You may need to report to agencies in more than one country that you are taking the case Copyright © 2016 Chaffetz Lindsey LLP

4. Obtain regulatory approvals to take the case Provision of legal services is usually allowed (except if to circumvent sanctions or to affect sanctioned property) But payment of fees and expenses usually requires licensing Consequences for breach: disgorgement, fines, etc. Copyright © 2016 Chaffetz Lindsey LLP

5. Organize payment of your services Check that payment does not come from frozen funds, unless specifically licensed Consider retainer issues Consider possibility of third-party payment Copyright © 2016 Chaffetz Lindsey LLP

6. Check on payment of arbitrator, institution, and experts Usually not a problem . . . . Except if case involves U.S. counsel and arbitrators, institutions, or experts from Iran or Cuba Copyright © 2016 Chaffetz Lindsey LLP

7. Consider implications on client – attorney privilege How to report to regulator and zealously serve client? Copyright © 2016 Chaffetz Lindsey LLP

8. Consider travel issues upfront Potentially problematic if case involves U.S. and Iran or Cuba . . . Or if case involves war zone Copyright © 2016 Chaffetz Lindsey LLP

9. Keep basic resources at hand EU sanctions: http://eeas.europa.eu/sites/eeas/files/restrictive_measures-2016-10-11- clean.pdf US sanctions: https://www.treasury.gov/resource- center/sanctions/Programs/Pages/Programs.aspx UK sanctions: https://www.gov.uk/government/collections/financial- sanctions-regime-specific-consolidated-lists-and-releases UN sanctions: https://www.un.org/sc/suborg/en/sanctions/un-sc- consolidated-list OFAC (US): https://www.treasury.gov/about/organizational- structure/offices/Pages/Office-of-Foreign-Assets-Control.aspx For OFSI (UK): https://www.gov.uk/government/organisations/office-of- financial-sanctions-implementation Copyright © 2016 Chaffetz Lindsey LLP

Aníbal Sabater anibal.sabater@chaffetzlindsey.com Tel +1 212 257 6945 Presented by: Aníbal Sabater anibal.sabater@chaffetzlindsey.com Tel +1 212 257 6945 Copyright © 2016 Chaffetz Lindsey LLP