Sanctions

Campbells’ advises on the impact of international economic sanctions on offshore entities, structures and transactions. Our team has deep experience in claims arising out of economic sanctions and government corruption involving Cayman and BVI entities and assets. We assist clients in navigating the complex interplay between sanctions regimes and offshore structures, advising on compliance, risk mitigation and the resolution of disputes where sanctions issues arise. 

Our Experience

The Cayman Islands, as a British Overseas Territory, takes its sanctions regime from the United Kingdom.  Under the Sanctions and Anti-Money Laundering Act 2018 (SAMLA), sanctions in relation to particular nations, entities or individuals are enacted through secondary regulations and transposed to the British Overseas Territories via Orders in Council.  While UK sanctions are generally faithfully transposed to the Overseas Territories, there can be differences between the two regimes which prove to be traps for the unwary.   

Our sanctions practice is at the forefront of this rapidly evolving area of law, advising clients on the full range of sanctions-related issues, including: 

• Asset freezes and economic resources – We advise on the implications of asset freezing measures for Cayman and BVI entities, including the complex questions of ownership and control that determine whether an entity is caught by sanctions restrictions.  
• Fund structures and designated investors – We have particular expertise in advising investment funds and fund managers on the challenges posed by designated investors, including redemption restrictions, corporate actions and ongoing compliance obligations.  
• Licensing applications – We assist clients in preparing and submitting applications for specific and general licences to the Cayman Islands Governor, enabling activities that would otherwise be prohibited under sanctions regulations. 
• Restructuring and divestment – We advise on the legality and structuring of reorganisations involving sanctions touchpoints, including the new divestment licensing grounds available under the Russia sanctions regime. 
• Compliance frameworks – We help clients establish robust sanctions compliance programmes, including screening procedures, risk assessments and reporting obligations. 
• Contentious sanctions matters – We have significant experience in disputes where sanctions issues arise, including advising on the interpretation and application of sanctions provisions in complex, cross-border litigation. 
• Our team regularly engages with the Financial Reporting Authority and other relevant authorities on sanctions matters, and we have been at the forefront of developments in this area, with Paul Kennedy having advised up to Privy Council level in the leading Cayman case on sanctions as well as advising on the implications of the General Licences issued by the Governor for the Cayman funds industry.