With the increase in UK sanctions on Iran, it is crucial for British Iranians to be aware of the potential complications that may arise and take steps to avoid being innocently caught in the political crossfire. In this article, Rokhsareh Vahid explains some of these challenges and offers practical guidance on how to address them.
Why Do Complications Arise?
When sanctions are imposed on a country, responsible businesses and authorities must ensure compliance to avoid violating the sanctions. However, the high cost of compliance often leads businesses to de-risk by simply rejecting customers. In other cases, a lack of familiarity with the relevant facts may result in incomplete or incorrect compliance reviews, leading to unwarranted suspicions.
As a result, innocent individuals may face significant issues, such as being refused goods or services, prosecutions for alleged money laundering, or similar offences. These complications can arise even if sanctions were not intentionally breached. Most often, it is unsuspecting individuals who are left shocked and traumatised by these unexpected challenges.
Rokhsareh Vahid and our litigation team have successfully supported hundreds of clients, handling their cases with empathy, professionalism, and diligence.
What Types of Issues Might Arise?
If you are a citizen of Iran or another sanction-sensitive country, such as Syria, Cuba, or Russia, you may encounter one or more of the following problems:
- Financial Restrictions: You may be refused mortgages or other financial products due to direct or indirect connections with a sanctioned country.
- Banking Issues: Your bank might restrict or close your accounts.
- Suspicious Listings: You could be added to internal or external databases by your bank under suspicion of wrongdoing.
- Transaction Barriers: Sending or receiving money between sanctioned countries, such as Iran and the UK, may be impossible due to a lack of banking channels.
- Legal Proceedings: You may face civil or criminal actions related to your bank account.
- Sanction Prosecutions: Authorities such as OFSI or US regulators may prosecute you for alleged sanctions breaches.
While the UK sanctions regime is intended to target specific individuals and entities, innocent people may inadvertently face these issues. With proper preparation, it is often possible to mitigate risks and resolve complications effectively.
Rokhsareh Vahid and the litigation team at Ronald Fletcher Baker LLP have successfully handled hundreds of such cases across all levels of complexity.
Possible Solutions
While sanctions-related challenges can be daunting, there are steps you can take to reduce risks and prevent escalation:
If you are conducting transactions involving a sanctioned country, such as Iran, it is essential to plan ahead.
- Bank Communication: For straightforward transactions, clear and complete communication with your bank may suffice. However, transactions involving sanctioned countries require extra care. Miscommunication or incorrect information could result in criminal liability.
- Expert Assistance: As detailed in our article, The Complexities of Transferring Funds from Iran to the UK, Rokhsareh Vahid can provide guidance for navigating these transactions.
2. Keep Comprehensive Documentation
It is your responsibility to demonstrate that you acted diligently and innocently. Maintain all relevant documentation, including:
- Evidence of the legitimate and lawful source of funds.
- Copies of communications with banks or money exchange companies.
- Written records relating to transactions.
3. Seek Legal Advice Early
Taking legal advice at an early stage is often critical. Directly communicating with opposing parties, such as banks, without guidance may inadvertently complicate matters.
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.
