EU

On 2 September 2011, Council Implementing Regulation (EU) No. 872/2011 (the “September Regulation”) was published. By way of the September Regulation, 28 entities have been removed from the list annexed to Regulation 204/2011, with effect from 2 September 2011.

The entities which have been removed from the list are now no longer subject to the asset freeze imposed by Regulation 204/2011. Some of the key entities which have been removed are various Libyan banks (including the National Commercial Bank), and the Port Authorities of Al Khoms, Brega, Ras Lanuf, Tripoli, Zawia and Zuwara.

A full list of the entities which have been removed is annexed to the September Regulation, and is available online. The entities have been removed on the basis that the National Transitional Council of Libya has affirmed that it has control over these entities.

The September Regulation will have been brought into force in each Member State through implementing national legislation.

UN

UN Security Council Resolution 1970 (the “UN Resolution”), requiring member states to freeze all funds, other financial assets and economic resources owned or controlled, directly or indirectly, but certain listed persons has not been amended. This means that all national legislation which implemented that Resolution is unaffected and remains in force.

The persons listed in the UN Resolution are all members of the Qadhafi family. As such, in all countries which have implemented the UN Resolution into national legislation, an asset freeze continues to apply to all entities owned or controlled by those persons.

US

The US sanctions against Libya remain in force for the time being, but this situation could be subject to change.

Due diligence is still essential

It is still essential that investigations are carried out to ensure that any Libyan party with whom a Member wishes to do business is not owned or controlled by one of the individuals listed in the UN Resolution, or indeed is acting on behalf of or at the direction of such an individual. A party which may, on the face of it, be safe to do business with may in fact be a party against whom an asset freeze is in place and with whom financial dealings are prohibited. This is particularly the case given the Qadhafi family’s extensive influence in Libya.

The situation in Libya is still changing rapidly, and further updates will be provided as and when the various sanctions regimes are further amended.

Member Alert is published by The Swedish Club as a service to members. While the information is believed correct, the Club cannot assume responsibility for completeness or accuracy.