Sanction law issues can arise in property matters where there is a connection, directly or indirectly, with a sanction sensitive country.
It is important to be mindful of the presence of these sanction law issues and take specific sanction law advice in relation to the source of funds to protect yourself and your business.
Recent Cases
Recently, Rokhsareh Vahid was instructed to obtain approval from a UK bank in respect of the receipt of funds for a British Iranian individual who intended to purchase a property in the UK.
In this case, our client had sold a property in Iran and converted his funds into gold to protect his assets from depreciation. Our client wished to liquidate the gold and transfer funds into the UK. Importantly, the US has sanctioned the entire gold industry in Iran and UK banks are generally very much aligned with US sanctions to avoid heavy penalties.
We had to review the matter and consider whether there was a risk of sanctions violations, i.e. risks to our client’s banking services, if he liquidated the gold and received the funds into his UK bank account.
In matters such as this, a lot of property law professionals may be unaware of the potential for US sanction law violations. However, the potential violation of sanctions presents a significant risk for both the client and the law firm.
How to Avoid it?
Global sanctions are constantly changing, and it is often difficult to identify sanction law issues without a proper and detailed analysis at the time of the transaction. However, the first step is to monitor all matters for any direct or indirect link to sanction sensitive countries such as Russia, Iran, Syria, Cuba, Sudan, etc.
Where a link is found, it is important to refer the matter to a sanction law specialist in order to review and confirm the source of funds and the legality of the transfer.
Whilst it can be costly and difficult to deal with matters such as these, it is important to note that, in most cases, the risks can be mitigated.
Rokhsareh, together with our litigation team, have worked on hundreds of litigation cases involving UK banks and regularly obtain UK bank approvals for receipt of funds from sanction sensitive countries. Rokhsareh can assist and advise in relation to obtaining bank approvals in property matters involving sanction sensitive countries. You can contact Rokhsareh Vahid at r.vahid@rfblegal.co.uk.
About Us
Consistent with our core values, our firm has a real commitment to protecting your interest and providing you with the best possible advice.
For over seventy-five years, Ronald Fletcher Baker LLP has been providing expert advice from its offices in the City of London, the West End, Manchester, and internationally.
The firm has considerable experience acting for domestic and international governments, medium to large national and international companies, financial institutions, high net worth individuals and substantial corporate investors many of whom are based overseas.
Our service promises to be professional, responsive and competitive.
Disclaimer
The information provided in this article does not, and is not intended to, constitute legal advice; instead, all the information and content in this article is for general informational purposes only. The information on this website is provided without any representations or warranties, express or implied. We make no representations or warranties in relation to the information on this website. To learn more about your rights and the options available to you, please contact our Sanctions and Banking Specialist, Rokhsareh Vahid at r.vahid@rfblegal.co.uk.
Dr. Rokhsareh Vahid, MA, LLM
Sanctions and Banking Specialist
