Ownership and Control in UK Sanctions

UK sanctions prohibit any transaction involving property owned either by a designated person or any person owned or controlled directly or indirectly by such designated person.

In this regard, specific ownership/control criteria are of utmost importance. The said criteria, along with formal and easily verifiable grounds (e.g., ownership of more than 50% of the shares of an entity), include any actual ability to determine how affairs of an entity are conducted.

The said criteria leave ample room for administrative and judicial discretion, and, given recent case law, UK courts are eager to construe them rather broadly. Accordingly, whenever participating in a sanctions-related dispute or contemplating a transaction directly or indirectly involving a designated person, it is crucial to carry out a comprehensive analysis of ties to the respective designated person to avoid sanctions.

Please read the attached alert for more details

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