Sanctions Law

by Richard Gordon Gordon, Michael Smyth, Tom Cornell

Overview

This book creates a user-friendly, accessible guide to the complex area of sanctions law. In particular, the book examines how sanctions restrictions work in practice, and what the implications are for multinational businesses operating across numerous sanctions regimes. To this extent, the book considers the interrelationship between sanctions at the supranational and national levels, including the impact of the far-reaching US sanctions regime. The book's aim is not to provide an exhaustive list of sanctions regulations, but rather a framework for engaging with the relevant legislation and the main issues arising therefrom. Reinforcing this practical and commercially-focused approach, each chapter is written in a format that enables easy reading and rapid assimilation. Where there are relevant materials, be they legislative or case-law, these are outlined at the start of each chapter. In addition, the chapters dealing with challenges to sanctions designations each include a section with key principles, providing the clearest possible treatment of the subject.

Product Details

ISBN-13:	9781509900145
Publisher:	Bloomsbury Academic
Publication date:	01/24/2019
Pages:	336
Product dimensions:	6.69(w) x 9.61(h) x 0.75(d)

About the Author

Richard Gordon KC is a Barrister at Brick Court Chambers and is widely recognised as one of the leading silks in Administrative and Public Law and Human Rights/Civil Liberties.

Michael Smyth CBE is a former partner at Clifford Chance and QC (honoris causa).

Tom Cornell is a barrister and associate at Debevoise & Plimpton.

Table of Contents

Foreword v

Preface ix

Brief Contents xi

Table of Cases xxi

Table of Legislation xxix

Introduction 1

What Do We Mean by 'Sanctions'? 1

The Sources of Sanctions Law 4

Sanctions Regimes 6

Using this Book 7

Part I Sanctions Regimes and How They Work

1 UN Sanctions 11

Introduction 11

The Legal Basis of UN Sanctions 12

UN Sanctions in International Law 12

Types of Sanctions Measures 17

Asset Freezes 17

Arms Embargoes 17

Commodity Interdictions 18

Travel Bans 18

Diplomatic Sanctions 18

Establishment of UN Sanctions Regimes 19

Implementation of Sanctions Measures 20

Interaction with Other Institutions 21

Content and Interpretation 22

Mechanics of Sanctions Regimes 22

Sanctions Committees 23

Listing 23

Exemptions 24

Monitoring Team/Group of Experts 25

Case Study: The 1718 Regime (North Korea/DPRK) 25

Interpretation of Security Council Resolutions 27

A Brief History of UN Sanctions 29

Key Resources 32

UN Sanctions Regimes 32

2 EU Sanctions 35

Introduction 35

The Legal Basis of EU Sanctions 36

Sanctions Under EU Law 36

Mechanics of Sanctions Implementation/Legislative Process 39

Amending and Updating EU Sanctions Measures 41

Amending Lists of Designated Persons 42

Substantive Amendments to Restrictive Measures 42

Implementation of UN Security Council Resolutions 43

Content and Interpretation 45

Common Provisions in EU Instruments Setting Out Restrictive Measures 46

Financial Sanctions 46

Arms Embargoes 48

Travel Bans 49

Derogations and Exemptions 49

Non-liability Clauses 50

No Claims Clauses 50

Circumvention 51

Interpretation of EU Instruments Setting Out Restrictive Measures 51

Jurisdiction of the EU Courts to Review and Interpret Restrictive Measures 52

General Principles of Interpretation 54

Key Resources 55

3 UK Sanctions 56

Introduction 56

Brexit 57

Financial Sanctions 62

Overview 62

Implementation 64

International Financial Sanctions 65

UN Financial Sanctions 65

EU Financial Sanctions 65

Domestic Financial Sanctions 66

Terrorism Asset-Freezing etc Act 2010 66

Counter-Terrorism Act 2008 68

Anti-Terrorism, Crime and Security Act 2001 69

Interpretation 69

Jurisdiction 70

Basic Prohibitions 71

Ownership and Control 73

Notification Requirements 73

Other Restrictions 74

Syria 74

Russia/Ukraine 75

Exemptions and Licensing 76

Licences 76

Licensing for EU Financial Sanctions 76

Licensing in Terrorism Cases 79

Penalties and Enforcement 80

Criminal Penalties 81

Civil Penalties 83

Trade Sanctions 84

Overview 84

Trade Sanctions: Export Controls 85

Implementation 85

Domestic Export Controls 87

Export Control Act 2002 87

Export Control Order 2005 87

Export of Radioactive Sources Control Order 2006 89

Customs and Excise Management Act 1979 89

Other Secondary Legislation 89

International Export Controls 90

Regulation (EU) No 428/2009 (the 'Dual-use Regulation') 90

Regulation (EU) No 1236/2005 (the 'Torture Regulation') 91

Licensing 91

Penalties and Enforcement 94

Criminal Penalties 94

Civil Penalties 95

Trade Sanctions: Import Controls 95

Domestic Import Controls 96

Import, Export and Customs Powers (Defence) Act 1939 96

UK Import Controls in Relation to Specific Goods 97

EU Import Controls 97

Regulation (EU) No 1236/2005 97

Council Decision 2014/512/CFSP 98

Regulation (EU) No 36/2012 98

Licensing 98

Penalties and Enforcement 99

Criminal Penalties 99

Civil Penalties 99

Trade Sanctions; Miscellaneous Provisions 99

Dealing in Cultural Objects 100

Trading with the Enemy 100

Travel Bans 101

Overview 101

Implementation 102

International Travel Bans 103

Travel Bans in Relation to North Korea 103

Travel Bans in Relation to Syria 104

Domestic Travel Bans 104

Exclusion of EEA Nationals 104

Exclusion of Non-EEA Nationals 105

Key Resources 106

4 US Sanctions 108

Introduction 108

The Legal Basis of US Sanctions 109

US Sanctions Programs 109

Implementation of International Measures 112

Jurisdiction 113

Extra-territoriality 114

Content and Interpretation 115

Financial Sanctions 115

Transaction Controls 116

Transshipment of US-origin Goods 117

Facilitation 118

Licensing and Exemptions 119

Penalties and Enforcement 120

Civil Penalties 120

Calculation of Penalty Amount 122

Settlement 122

Criminal Penalties 122

Key Resources 123

Part II Challenging Sanctions

5 Challenging Sanctions at the UN Level 127

UN Sanctions Regimes 127

Introduction 131

Reviewing UN Sanctions 134

Focal Point for De-listing 135

The Office of the Ombudsperson 137

The Future 140

6 Challenging Sanctions at the EU Level 143

Relevant European Legislation 143

The Cases 145

Overview 151

Preliminary Issues 154

Standing 154

Timing of Applications to the General Court 155

Essential Principles 156

Challenges to Targeted Measures 156

Effective Judicial Protection 157

Rights of Defence 157

Quality of Evidence Relied on and Disclosure to Relevant Persons 157

Obligation to State Reasons 158

Requirements of Statement of Reasons 158

Unjustified or Disproportionate Restriction of Fundamental Rights 159

Unsubstantiated Reasons and Manifest Error of Assessment 160

Infringement of the Applicant's Legitimate Expectations 161

Abuse of Powers 161

Challenges to General Measures 161

Procedural Issues 162

Closed Material Procedure 162

Re-listing 163

Interim Relief 164

Appeals 165

Damages Claims 165

Sufficiently Serious Breach 165

Actual Damage 166

Causal Link 166

The Future 167

Brexit 167

Joint Common Plan of Action (JCPOA) 168

Other Changes in EU Sanctions Policy 169

7 Challenging Sanctions at the UK Level 171

Relevant UK Legislation 171

The Cases 173

Overview 179

Preliminary Issues 181

Closed Material Procedures 182

Disclosure 183

Interim Relief 184

American Cyanamid Test 185

Zuckerfabrik Test 185

Unilateral Sanctions 186

Challenges to Designations Under CTA 2008 187

Substantive Grounds 188

Procedural Grounds 189

Challenges to Designations Under TAFA 2010 189

Challenges to Designations Under SAMLA 2018 191

Multilateral Sanctions 191

Challenging the Manner in which International Measures are Implemented in the UK 192

Challenging the UK's Contribution to International Decision-making Concerning Sanctions Measures 196

Brexit 198

Damages 198

Disclosure 199

Preconditions and General Principles 199

The Future 201

8 Challenging Sanctions at the ECHR Level 204

Relevant ECHR Provisions 204

The Cases 206

Overview 207

Jurisdictional Issues 209

Standing 209

Exhaustion of Domestic Remedies 210

Parallel International Proceedings 210

Timing 211

Jurisdiction 211

Ratione personae 211

Ratione materiae 212

Ratione loci 213

Ratione temporis 213

Interim Measures 213

Essential Principles 213

The Bosphorus Presumption 214

Competing Obligations in International Law 215

Interference with ECHR Rights 219

The Right to Property 219

The Right to an Effective Judicial Remedy 221

The Right to Private and Family Life 223

The Right to Liberty 224

The Right to Liberty of Movement 225

Damages 226

The Future 227

9 Challenging Sanctions in the US 228

Relevant US Legislation 228

The Cases 229

Introduction 231

Preliminary Issues 231

Standing 231

Constitutional Protection 232

Timing 233

Essential Principles 233

Administrative Reconsideration 233

Notice 234

Opportunity to be Heard 235

Judicial Review 236

Standard of Review 236

Administrative Record and Use of Classified Material 237

Remedies 238

Part III Sanctions and Business

10 Sanctions and Contracts 243

Introduction 243

Prohibitions 244

Contractual Disputes 246

Sanctions with Direct Effect in England and Wales 246

Non-liability Clauses 246

No Claims Clauses 247

Frustration and Illegality 248

Human Rights 251

Sanctions Implemented and Enforced by Third States 252

Sanctions Clauses 253

Force majeure 253

Drafting Sanctions Clauses 254

11 Private Sector Implementation of Sanctions 257

Introduction 257

Brexit 260

Financial Sanctions 261

Overview of UK Financial Sanctions 261

Who is Concerned by UK Financial Sanctions Law? 261

Basic Prohibitions 262

Other Prohibitions 264

Reporting Obligations 264

Compliance Obligations 266

Penalties and Enforcement in the UK 267

Export Controls 268

Overview of UK Export Controls 268

Who Does UK Export Control Law Apply To? 270

Compliance Obligations 270

Penalties and Enforcement of UK Export Control Law 271

US Sanctions for Non-US Businesses 272

Enforcement of US Sanctions Breaches by Non-US Persons 272

Processing US-dollar Transactions 273

Causing a Violation in the US 274

Index 277