Sanctions are trade controls that can be (and are) imposed by the United Nations, the EU Council, or individual countries, for political or economic reasons. Sanctions are imposed in order to limit potential adverse consequences and to penalise those responsible.
The Charter of the United Nations refers to sanctions as ‘measures not involving the use of armed force', including a ‘complete or partial interruption of economic relations.'
Most sanctions will include a rationale as to why it has been imposed and its proposed aims. Sanctions can prohibit dealings with not only specific countries or companies, but also individuals and property.
Sanction lists will often include names of known terrorist organisations or individuals. The concerned regulatory body can impose a substantial financial and/or economic penalty if a sanction regulation is ignored or not applied to its full extent.
An interesting new development, as reported on 13 August 2018 in GTR magazine, highlights that the UK government will have the power to impose sanctions independently of the international community after Brexit.
The report reveals that the UK currently implements sanctions in accordance with its international obligations including the EU and the UN.
This is a very important topic and we will continue to monitor developments.