1. Economic Sanctions and Arbitration: A Checklist for Counsel
Presented by:
Aníbal Sabater
Partner UIA, Budapest, 29 October 2016
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2. Sanctions & Arbitration?
Sanctions & Arbitration?
The Oracle may know
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3. 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.
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4. 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)
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5. 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
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6. 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.
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7. 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
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8. 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
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9. 7. Consider implications on client – attorney privilege
How to report to regulator and zealously serve client?
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10. 8. Consider travel issues upfront
Potentially problematic if case involves U.S. and Iran or Cuba . . .
Or if case involves war zone
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11. 9. Keep basic resources at hand
EU sanctions: clean.pdf US sanctions: center/sanctions/Programs/Pages/Programs.aspx UK sanctions: sanctions-regime-specific-consolidated-lists-and-releases UN sanctions: consolidated-list OFAC (US): structure/offices/Pages/Office-of-Foreign-Assets-Control.aspx For OFSI (UK): financial-sanctions-implementation
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12. Aníbal Sabater anibal.sabater@chaffetzlindsey.com Tel +1 212 257 6945
Presented by:
Aníbal Sabater
Tel
Copyright © 2016 Chaffetz Lindsey LLP