1489313 - Hogan Lovells FIS Horizons 2021 update - Flipbook - Page 11
Financial Institutions Horizons
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UK sanctions legislation post-Brexit:
Analysis of new statutory instruments
With only months to go until the end of the Brexit transition period, many of us are turning
our attention to what UK sanctions legislation will look like post-Brexit. EU sanctions have
previously been implemented in the UK through a patchwork of legislation under the
European Communities Act 1972 (the “ECA”). However, from 11pm on 31 December 2020,
sanctions previously introduced in this manner will be brought over into law under the
Sanctions and Anti-Money Laundering Act 2018 (“SAMLA”).
In preparation, the UK Government has been publishing a range of sanctions-related statutory
instruments (SIs) under SAMLA covering the different country and activity-based sanctions
programs that derive from EU law. Hogan Lovells, in partnership with UK Finance and other law
firms, has reviewed these newly-published statutory instruments made under SAMLA as
against the restrictions and obligations that previously have been in force, regime by regime.
Whilst the UK Government has stressed that current
compliance requirements are being maintained and
there is consensus that the UK’s approach towards
the imposition of sanctions will not change radically,
at least in the short term, the publication of new and
wide-ranging statutory instruments under SAMLA
to replace those made under the ECA has significant
potential to alter settled practice surrounding UK
sanctions compliance (including in the financial
services sector).
Whilst the new statutory instruments carry over
all of the existing European sanctions legislations
implemented through the ECA3, the effects are most
likely to be felt in relation to those countries that
are affected by the most complex and wide-ranging
sanctions measures, such as (for example) Iran,
Syria and North Korea. Some of the impacts affect
how to approach sanctions screening and beneficial
ownership checks as well as the scope of activities
that are likely to be caught by UK sanctions.
3
This in-depth review sets out the differences
between the previous and new positions which
could have those impacts.
The review will be updated as additional statutory
instruments are published under SAMLA, however
it should provide companies with a helpful starting
point in mapping out what impact Brexit will have
on their sanctions and export control obligations,
which in turn should inform how businesses
prepare for an altered post-Brexit sanctions
compliance environment.
Afghanistan, Belarus, Bosnia & Herzegovina, Burundi, Central African Republic, Chemical Weapons, China, Cyber Attacks, Democratic Republic of
the Congo, Egypt, Republic of Guinea, Global Human Rights, Guinea Bissau, Haiti, Iran (Human rights and WMD), Iraq, Lebanon, Libya, Mali,
Moldova, Montenegro, Burma/Myanmar, Nicaragua, North Korea, Russia, Serbia, Somalia, South Sudan, Sudan, Syria, Terrorism (inc. ISIL), Tunisia,
Turkey, Ukraine, United States, Venezuela, Yemen and Zimbabwe.
