Seminar highlights need for an understanding of chemical weapons sanctions

Thursday 15 November 2018

The recent EU sanction and the new Guernsey Ordinance against those involved in chemical weapons has fuelled the debate over whether Guernsey will follow UK or EU sanctions regimes post-Brexit.

The EU has responded to concern about the proliferation and use of chemical weapons in the form of Council Regulation (EU) 2018/1542, a sanction imposing an asset freeze and financial restrictions on listed people who are responsible for, provide financial, technical or material support for, or have any involvement in chemical weapons or people who encourage these activities. Guernsey has adopted this latest EU sanction.

Nin Ritchie, Senior Associate in the Collas Crill Risk and Regulatory team, said: “This is a classic example of the EU deploying its powers to target those involved in chemical weapon atrocities. It is the EU showing that those behaviours can not be tolerated and must not be supported. Guernsey's implementation of this latest EU sanction demonstrates that, like the UK, Guernsey will continue to follow the EU's sanctions regime up until (Br)exit Day."

Collas Crill recently hosted international barrister, and sanctions specialist, Maya Lester QC at its 'Sanctions Explained' breakfast seminar.   

The event addressed a range of sanctions issues, including the UK's new legal sanctions framework, the impact of Brexit, Russian sanctions, the differences between EU and US sanctions, US secondary sanctions, Iran and the Blocking Regulation. 

The complexities and wide-reaching implications of penalties for financial services businesses and their clients both on a local and global scale were also highlighted. 

During her visit to Guernsey, Ms Lester commented: "Sanctions are increasingly complex and fast-moving, with often multiple overlapping and sometimes contradictory regimes and regulators. The recent divergence of US and EU sanctions on Russia and Iran, including US secondary sanctions and the EU Blocking Regulation, is just one example of the tremendous impact on business risk. 

“For Guernsey, there is likely to be a significant change as we get closer to Brexit day, with political consideration and decision-making needing to focus on whether Guernsey will follow the UK or the EU sanctions regimes, or a hybrid of both.”

Pictured top l to r: David Adkins (Partner Collas Crill), Maya Lester QC, Nin Ritchie