In this video we discuss a discrete procedural defence in the UK sanctions’ civil litigation set out in section 44 of UK Sanctions and Anti-Money Laundering Act of 2018 (“SAMLA“).
The section, in essence, provides that a person holding a reasonable belief that its actions are compliant with the sanctions would not be liable to civil proceedings, in case the Courts eventually find such a belief was inaccurate and the resulting act would (but for the defence) make a person liable.
The provision is believed to be an important pillar of sanctions’ compliance structure, because it encourages persons to err on the restrictive side of interpreting sanctions’ laws.
SAMLA, section 44 has been recently considered in detail by each of the UK High Court, the Court of Appeal and the Supreme Court in the litigation between Celestial Aviation Services and Constitution Aircraft Leasing vs. UniCredit and is instructive of how the Courts approach the matter. This case law is also illustrative of the practicalities which are likely to be involved in a similar litigation.
Thank you for watching!