Sanctions extended against Russian clients

The Jersey authorities are continuing to follow the UK government’s sanctions changes with regard to Russian clients.  A ban on accountancy services was brought in recently and further work requires licences to be obtained in order to exit services provided.  Next up is the ban on trust company business services which are likely will follow the UK which will follow the EU’s Article 5m of EU Regulation (EU) No 833/2014.

Article 5m(1) prohibits the registration of, provision of a registered office, business or administrative services as well as management services to, a trust or any similar legal arrangement having as a settlor or a beneficiary a Russian national or a Russian legal entity, among others.  These sanctions also prohibit service providers from acting, or arranging for another person to act, as a trustee, nominee shareholder, director, secretary or a similar position for such persons.

While the UK regulations have yet to come into effect, or be articulated by the government, Trust Companies should review their client roster and anticipate for sanctions to be imposed in the near future.

Sanctions matters are complicated and if you have any questions it is best to seek legal advice.