Sanctions & export controls investigations

Sanctions and export controls are now a key risk for companies engaged in international trade. The risk of corporate fines and personal criminal liability, combined with constantly changing regimes reflecting changing political developments makes it a high-risk yet complex area of legal compliance.

Our sanctions team is frequently called upon to advise on the application of sanctions regimes and assist businesses engaged in international trade. We regularly advise on sanctions compliance and controls within a broad range of sectors and assist clients who are subject to investigations by sanctions authorities.

We provide practical strategies to navigate the complicated regimes as issues arise, guidance on risk assessment, screening and due diligence, monitoring and reporting. We have experience of liaising with HM Treasury, including submission of licence applications for derogations under the relevant European rules. Our sanctions team advises on the specific aspects of UK enforcement, and works alongside our colleagues across CMS to advise on enforcement at different national levels in the EU. We have established relationships with US firms who help us advise on US matters.

Our recent experience related to sanctions and export controls includes:

• Acting for bp on the sale of its interests in the Bruce, Keith and Rhum upstream interests to Serica plc, the listed North Sea focused E&P company. The Rhum field is co-owned by NIOC, the Iranian state owned oil and gas company, which became subject to US sanctions in the interim period between signing and completion. In order to complete the acquisition of the remaining 50% (from BP to Serica) it was necessary to structure a trust arrangement to warehouse the NIOC interest and navigate the sanctions issues. 
• Advising a National Oil Company on a USD 1.4bn dispute against the worlds largest supermajor in the context of increasing political tensions between the USA and Russia, including the forced withdrawal of a US supermajor from the Russian Arctic project due to sanctions. 
• Acting for Jaldhi Overseas, a Singapore based vessel company in the first reported case of a successful objection to the restoration of a Hong Kong company to the register of companies, where the applicants were representatives of IRISL, the Iranian national shipping corporation currently under US sanctions. 
• Advising an AIM-listed global company on an investigation by the FCA into potential criminal and civil offences of market abuse contrary to s.89/90 Financial Services Act 2012 (“FSA 2012”) and/or Articles 15 and 17 of the European Market Abuse Regulation (“MAR”). 
• Advising a significant UK automotive parts manufacturer who was subject to an investigation by the UK’s sanctions enforcement body, the Office for Financial Sanctions Implementation (OFSI). The investigation related to the supply of products to Iranian customers and the application of EU sanctions.  
• Acting for a leading international heavy transport and installation contractor in a bespoke compliance training programme for senior management in relation to EU sanctions, particularly the regime targeting Russia and Crimea. 
• Advising an automotive supplier in connection with an OFSI investigation relating to supplies of products to Iran. The matter was concluded successfully with OFSI taking no further action against the client. 
• Advising an energy company on issues arising from the EU Syrian sanctions regime, including dealing with HM Treasury. 
• Advising an industrial equipment manufacturer on the scope and application of EU and UK export control legislation on its supply and distribution chains.

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