Her Majesty's Treasury (HMT) distributed a link to the guidance document, which provides answers to 26 questions about Regulation (EU) No 833/2014. In the interest of space, and because there are logical sections in the FAQ, the questions will be spaced out over multiple posts.
Here's the first batch:
Financial assistance (Articles 2 and 4)
Q. Do the provision of payment services and issuance of letters of guarantee/creditconstitute financial assistance in the sense of Articles 2 and 4, and are therefore prohibitedfor the goods and technology subject to a ban?
A. Yes. In accordance with Article 4, payment services and issuance of letters ofguarantees/credit constitute financial assistance and are prohibited when linked to theunderlying commercial transaction subject to a ban under Article 2.
Q. How are banks expected to comply with the prohibition on financial assistance withinthe meaning of Article 4 for the goods and technology that are subject to a ban?
A. Banks acting on behalf or to the benefit of their client should exercise due diligence onpayments carried out by their customer and oppose to any payment made in breach of theRegulation. As regards banks acting as correspondent banks, they should oppose topayments when information on such a breach is available.
Link:
EU Guidance on Regulation (EU) No 833/2014
Posted with BlogsyFiled under: EU Updates, Frequently Asked Questions (FAQ), Guidance, Sanctions Regulations, Ukraine sanctions
