The Isle of Man authority responsible for foreign sanctions (Customs and Excise) has recently issued a General Licence that streamlines the way in which Advocates can be permitted to receive payment for their legal fees when working for sanctioned entities and individuals.
Provided certain conditions are met, Advocates can now use the new General Licence to obtain payment for their fees rather than need to apply for a special licence based on the circumstances of an individual case.
Customs and Excise has issued General Licence IOM/2024/RUS043 under Regulation 64 of The Russia (Sanctions) (EU Exit) Regulations 2019 ("the Regulations") as they have effect in the Isle of Man by the Sanctions (Implemental of UK Sanctions) Regulations 2024 which remain under the Sanctions Act 2024.
Previously, where an Advocate was approached by a sanctioned individual to provide advice, an Advocate would not likely be able to provide such advice and receive payment for his or her services owing to the Regulations, and in particular the asset freeze provisions, which prevent money belonging to a sanctioned individual or entity being used in any way including for legal advice.
A sanctioned individual commonly might, for example, wish to receive advice as to how to keep companies in good standing, notwithstanding sanctioned status, or to receive payment for basic needs to enable living expenses to be paid (as is potentially possible pursuant to a special licence). An Advocate might only previously be able to assist if a special licence were obtained to enable payment to be made from the sanctioned entity.
Although Customs and Excise are generally very efficient, obtaining such a licence could be a cumbersome task as the precise number of hours might need to be justified and licences might also be required in other jurisdictions. Therefore, the ability to speed up payment represents a significant saving in terms of time and cost and enables advice to be provided more simply. Access to legal advice is a basic right and a sanctioned entity or individual should be able to use its funds to have access to appropriate legal advice.
It is therefore encouraging that the new General Licence enables Advocates to provide legal advice and simply report the fact of payment to Customs and Excise after the event. The General Licence permits payments up to an hourly rate of £650 plus VAT for legal advisors in the Isle of Man with over eight years' experience.
Chris Brooks has acted in respect of a number of sanctions matters and is potentially able to provide advice under this General Licence. Please contact him to discuss your requirements if you have questions as a sanctioned individual or entity or have contracted with a sanctioned individual or entity.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
