UK renews general banking licence re Russian sanctions and correspondent banking.

Search form

UK renews general banking licence re Russian sanctions and correspondent banking.

Monday, 2 October, 2023 - 04:11

The notice from UK Finance carries a government health warning at the top. "This licence is issued for the purpose of providing certainty and does not reflect a view that UK financial sanctions are engaged by the actions referred to in this licence," it says. Later it extends this caveat with "Any act which would otherwise breach the prohibitions in Regulations 11 to 15 of the Russia Regulations or Regulations 11 to 15 of the Belarus Regulations is exempt from those prohibitions to the extent required to give effect to the permissions in this licence."

What permission is granted by the licence? It is actually a very specific permission.

If a bank received money from a sanctioned entity, it may return that money to whence it came. That's it and that's all except that there are a couple of restrictions . If the receiving bank is itself subject to the Russian sanctions, it must not return the money.

"Under this licence, strictly subject to the conditions below, a Credit or Financial Institution
may return a Relevant Payment to the Credit or Financial Institution which sent the Relevant
Payment directly to it."

Further reading: https://assets.publishing.service.gov.uk/media/6516eed66dfda6000d8e3906…

A D V E R T I S E M E N T

Built with Drupal | Hosted by Siteground | Template by Alaa Haddad

Design by Vortex Centrum Limited | Some services provided by Google Workspace

Posters and other merch by ProjectLXX | Privacy and security services by Surfshark and Firetrust.

Nothing in this website is intended to be or shall be taken as legal advice.

You should always seek advice from a practitioner experienced in this area.

Everything on this website is copyright Nigel Morris-Cotterill and/or Vortex Centrum Limited for itself or one of its business units. No downloading, printing or other means of replicating or reusing is permitted. In particular, all bot access is denied and all scraping of content will result in the legal action set forth in the terms and conditions in this site. For legal, cookies and privacy see vortexcentrum.com.