CIArb: Note on the effects of sanctions
In managing its services and, in particular, ADR cases, the CIArb treats all parties alike, regardless of nationality. Where, however, parties are subject to sanctions the CIArb will need to take this into account.
While being subject to sanctions may not prevent the CIArb from offering services, where parties believe that a sanctions regime may apply to them, they must inform the CIArb in advance, before paying any fee so that suitable advice may be given. To ensure compliance with the requirements of the regulatory authorities, the CIArb may seek further information from parties, where one of the parties or a related entity is included in a sanctions regime, or the subject matter of the case is included in a sanctions regime, or if any of the parties wish to nominate an arbitrator who is subject to sanctions or from a country subject to sanctions. In particular, the CIArb may seek further information on ultimate beneficial ownership.
Parties should also note that the CIArb’s banker, HSBC Bank plc, will also have to comply with sanctions regimes and may not be able to make or receive payments from parties or others such as arbitrators should they be included in such a regime, without formal clearance from the regulatory authorities. So in the absence of such clearance, the CIArb cannot guarantee to make or accept payments.
Parties in doubt of whether they might be affected by a sanctions regime may wish to consult the consolidated list maintained by HM Treasury’s Office of Financial Sanctions Implementation.