Sanctioned countries, persons and activities


Why you need to know about these regulations By Karen Brain


Q. Do you know who you are dealing with? Q. Who is your client?


The client or entity at the end of a chain are often colloquially known as the “touch point”. It does not matter how many agents or entities are between you and the “touch point”. It is the “touch point” that is important if there are sanctions applicable to that “touch point”. It is vital that you check and know who/what is the end point of any chain of business and you need to be aware of potential sanctions for countries, persons and activities as there are penalties for breaching the sanction regulations that can be quite harsh. Also, do check where and from whom or what entity money is being paid to you as there may be trading sanctions.


The UK government publishes the UK Sanctions List, which provides details of those designated under regulations made under the Sanctions Act. For details go to https://bit.ly/3bT0wib.


The publications detail which sanctions measures apply, and these can be to the persons or ships, and in the case of UK designations, it provides a statement of reasons for the designation. HM Treasury’s Office for Financial Sanctions Implementation provides a consolidated list of persons and organisations under financial sanctions, including those under the Sanctions Act and other UK legislation.


The countries that the UK have placed on sanction are relevant to your insurance cover. The territorial limits of insurers are usually written as follows:


Example:


“… excluding any accident, situation or suit arising from Iran, Iraq, Yemen, Afghanistan, Pakistan, Somalia, Sudan, Syria, Belarus, Russia or North Korea”.


So, if for example you were sued in another country that did not have sanctions against Russia by a Russian, in the above example your insurance would exclude cover by virtue of the Territorial Limits Section and, also, it would have to because of UK regulations. This would mean that your insurers would not and could not pay a judgement against you.


Also, be aware that Courts in England and Wales must follow sanction regulations and so you may find


yourself at a financial loss on a transaction if sanctions apply, irrespective of any possible penalty that could be applied.


A final note:


Be aware of the sanction regulations and always know who or what entity is/are really your client(s) i.e. the “touch point”!


Matrix Insurance Services Ltd -


Provider of professional indemnity scheme for IIMS members Karen Brain


Managing Director – ACII, Solicitor non-practising


Tel: +44 1892 724060 enquiries@matrix-ins.co.uk


Matrix Insurance Services Ltd. and the author of these articles do not accept any liability for any errors or omissions in these articles. The information contained in these articles is for general use only and is not intended to constitute legal or insurance advice and should not be treated as a substitute for such advice.


122 | The Report • September 2022 • Issue 101


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124  |  Page 125  |  Page 126  |  Page 127  |  Page 128