Part IV Exchange Controls, Exchange Rates, and Sanctions, 17 Sanctions and Monetary Obligations

Subject(s):

Sanctions and monetary obligations — Bank of England — European Central Bank

This chapter focuses on economic sanctions. In general terms, sanctions will usually involve a ‘freeze’ over the assets of the target State, to the extent that such assets are held within the State or States which impose the sanctions concerned. In a monetary context, this will mean that debtors resident in the imposing State will be barred from making payments which are otherwise due to the target State or to companies or individuals resident within it. Thus, so long as the sanctions regime remains in place, a bank branch situated within the imposing State will be unable to repay deposits or operate accounts for the benefit of the target State or any of its residents. The chapter then considers the consistency of a sanctions regime with international law; the effect of sanctions adopted by supranational organizations; the effect of sanctions imposed by the European Union; the effect of sanctions unilaterally imposed by the United Kingdom; and the status of foreign sanctions before the English courts.