News and developments
Litigation arising from sanctions: Global sanctions regimes increasing impact on international business
Given the reliance of New Zealand’s economy on importing and exporting goods and services, businesses are constantly having to grapple with the implications of dealings with overseas counterparts in an increasingly fractious world. With geopolitical tensions continuing to rise and geoeconomic fragmentation in the face of slow economic recovery, we predict that sanctions compliance and enforcement will continue to be a hot topic in the year ahead.
- The rise of sanctions regimes at home and abroad
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- it creates compliance obligations and exposure for any business or individual interacting with Russian interests; and
- it potentially signals a new direction in New Zealand's foreign policy and the potential growth of an autonomous sanctions regime, rather than the historical approach of keeping in step with the UN.
- Relevance of international events to businesses down under
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- high-risk sectors: financial institutions, investors, importers, exporters and logistics providers, defence and aerospace businesses, technology and telecommunications companies; energy and natural resources companies; multinationals; and professional services firms; or
- high-risk jurisdictions: Belarus, Cuba, Iran, Myanmar, North Korea, Russia, Sudan, Syria, Venezuela and the Ukrainian regions of Crimea, Donetsk, and Luhansk.
- A recent illustration: New Zealand’s Russian “oligarch” litigation
- Crystal ball gazing for managing compliance and enforcement risk