The last eighteen months have seen numerous new sanctions regimes introduced by the EU, UN and the U.S. Reed Smith has issued a series of Client Alerts already this year as and when new or changed sanctions regimes have been introduced. Amongst the energy and commodity trading and the shipping communities, there has naturally been a heavy focus on Iranian, Ivory Coast and Libyan sanctions. It is important to understand, however, that there are now a whole host of countries facing sanctions from the EU, UN and U.S. Whilst the sanctions position is fast moving, we thought it sensible to draw all of these together in one place.
The foundations of EU sanctions regimes are the lists of "designated persons". Those subject to the EU Regulations cannot make funds or economic resources directly or indirectly available to or for the benefit of designated persons, who are also subject to an asset freeze. The U.S. has also frequently updated its list of Specially Designated Nationals ("SDNs"). "U.S. persons" and non-U.S. financial institutions should not have any dealings with SDNs. "U.S. persons" is defined as U.S. citizens, permanent resident aliens, persons physically in the U.S., U.S. organised entities and foreign branches. Of course, even if not a "U.S. person", many entities take the view that they should not in any event have business dealings with SDNs.
The .PDF below identifies the various sanctions regimes and includes links to the relevant list of "designated persons" for that country.
It is, of course, the fact that the sanctions often go beyond the targeting of specific entities and individuals to focus also on particular sectors and activities.
Client Alert 2011-167