Sanctions 12 Oct, 2010

Iran Sanctions

We refer to Notice to Members No. 11 of 2010/11 issued in July this year about The Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010, HR 2194 (CISADA) which took effect on 1 July 2010 and to our news item reproducing an article by solicitors Hogan Lovells about this new Act.

We reproduce two further articles by kind permission of the solicitors Holman Fenwick Willan and Ince and Co.  They provide helpful additional overviews of sanctions legislation in the United States and Europe:

 Holman Fenwick Willan - Iran Sanctions Update

 Ince & Co - Trade Sanctions against Iran - an overview

US Sanctions – update

The US Government was scheduled to publish regulations under CISADA by the end of September 2010 setting out in more detail how the broadly described provisions of the Act would be applied. Those regulations have not yet been published. 

Industry representatives have underlined to the US Government the value of clarification as to how it will implement the Act. It is hoped such clarification will be forthcoming soon. 

European Sanctions – update

As described in the above mentioned articles the further sanctions to be applied in the EU are far reaching and are likely to include prohibition of insurance and reinsurance being provided to wholly or partly Iranian owned entities. The prohibition would apply when those insurance policies are next renewed.

The regulations imposing these further sanctions are still at the drafting stage. It remains to be seen whether they will be completed and come into force this month.

Other countries

Australia, Canada, Switzerland, Japan and South Korea have enacted sanctions legislation which broadly reflects a number of the features of current United Nations and European Union sanctions. They include prohibitions in respect of arms, nuclear technology and materials, Specially Designated Nationals and the conduct of business with or for IRISL as well as support for the petroleum refining industry.  

Further updates will be provided in due course. Members requiring further information on particular aspects of the new legislation may contact the Managers – Robert Searle robert.searle@westpandi.com or Tony Paulson tony.paulson@westpandi.com.