International Sanctions and Restrictive Measures: A Guide for Banks and Companies

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International sanctions — or “restrictive measures” in EU terminology — have become a central concern for banks, companies and their advisers. Asset freezes, exclusion from the SWIFT system, sectoral embargoes, transaction bans: their legal and operational consequences are considerable. This page provides an overview and gathers our analyses on the subject.

The different sanctions regimes

Three main levels coexist and overlap: United Nations sanctions, adopted by the Security Council and implemented by States; European Union restrictive measures, adopted by the Council of the EU as regulations directly applicable in Belgium; and US sanctions, in particular those administered by OFAC (Office of Foreign Assets Control), whose extraterritorial reach affects many European players. To this are added national measures and the role of the Belgian authorities — the Treasury of the FPS Finance for asset freezes, and the CTIF for money laundering.

The main types of measures

Sanctions take various forms: asset freezes and prohibitions on making funds available to listed persons or entities; sectoral bans (energy, finance, dual-use goods); commercial embargoes; exclusion from financial messaging systems such as SWIFT; and restrictions on services and transactions.

The impact on banks and companies

For financial and economic operators, sanctions impose strict compliance obligations: screening of counterparties, blocking or suspending payments, reporting to the authorities, and managing the risk of “de-risking”. A failure can lead to heavy administrative and criminal penalties; conversely, excessive caution can engage the bank’s liability towards its clients. The balance is delicate and highly technical.

Challenging a sanction: listing litigation

Being placed on a sanctions list is not inevitable. Targeted persons and entities can challenge their listing and seek delisting, notably through an action for annulment before the General Court of the European Union. This high-stakes litigation focuses on the reasons and the factual basis of the Council’s decisions.

Our sanctions practice

Gilles Laguesse advises and assists banks, companies and individuals faced with restrictive measures, both in compliance (analysing the applicable regimes, securing operations) and in litigation (challenging listings, asset freezes, payment disputes). This practice draws on concrete experience of sanctions matters, including in relation to Russia and Syria.