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Sanctions: the UK's Treasury has clarified the position relating to pre-existing obligations

Thursday, 25 May, 2023 - 03:03

More than a year after the imposition of the first sanctions relating to Russia's attack on Ukraine, the UK's Office of Financial Sanctions Implementation, part of the HM Treasury, has issued a notice clarifying the Prior obligations General Licence.

Distributed only on the 24th May, the notice is dated 22 May.

The full notice can be downloaded here: https://assets.publishing.service.gov.uk/government/uploads/system/uplo…

We like this: "Economic Resources" means " assets of every kind, whether tangible or intangible, movable, or immovable, which are not funds but can be used to obtain funds, goods, or services."

And this: "Funds" means "financial assets and benefits of every kind, including (but not limited to)—
(a)cash, cheques, claims on money, drafts, money orders and
other payment instruments;
(b)deposits, balances on accounts, debts and debt obligations;
(c)publicly and privately traded securities and debt instruments,
including stocks and shares, certificates representing securities,
bonds, notes, warrants, debentures and derivative products;
(d)interest, dividends and other income on or value accruing from or generated by assets;
(e)credit, rights of set-off, guarantees, performance bonds and
other financial commitments;
(f)letters of credit, bills of lading and bills of sale;
(g)documents providing evidence of an interest in funds or
financial resources;
(h)any other instrument of export financing

It's the "(but not limited to)" bit that's so important. Without that the list would be, under the rules of interpretation, exhaustive and that would mean that crypto-assets of every kind would not have been included. But those four words change everything and given that crypto is reported to be widely used to evade the Russian sanctions, their inclusion is a very good thing.

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