Sanctions Policy

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HKIAC Policy on Proceedings Affected by Sanctions

  1. Introduction and Scope of Application 

    1.1 This Policy sets out HKIAC’s general practice in respect of proceedings in Hong Kong under HKIAC’s auspices (“Proceedings”) which are affected by a sanctions regime or involve a sanctioned individual or entity.
     

    1.2 This Policy applies to Proceedings where:

    1. any of the parties is listed under a sanctions regime; or
       
    2. any individual or entity that (i) directly or indirectly owns or controls a party; (ii) is directly or indirectly owned or controlled by a party; or (iii) is affiliated to a party in any other way, is listed under a sanctions regime; or
       
    3. the subject matter of the dispute falls within the scope of a sanctions regime; or
       
    4. an arbitrator, mediator, adjudicator, domain name panelist or HKIAC-appointed expert (“neutral”) is a national or resident of a country affected by a sanctions regime.
       
  2. General Provisions  

    2.1. HKIAC’s provision of dispute resolution services in Hong Kong is subject to any sanctions legislation in Hong Kong. Hong Kong has not imposed sanctions against any entities or individuals. Nor has it given effect to sanctions imposed by any States.

    2.2. This Policy does not affect the applicability of any sanctions regime on the activity of a sanctioned individual or entity in the Proceedings.

    2.3. HKIAC does not treat any party listed under a sanctions regime differently from any other parties in the Proceedings.

    2.4. HKIAC shall not be liable for (i) any breach of any sanctions regime by any party, counsel, neutral or any other participants in the Proceedings; or (ii) any failure of or delay in payment by HKIAC’s banks to any party or neutral.

    2.5. HKIAC may interpret, supplement or amend this Policy as it considers appropriate.
     
  3. Administrative Measures in Proceedings 

    3.1. Following the commencement of the Proceedings, any party that is affected by a sanctions regime shall provide the following information:
     
    1. the involvement of any party, individual, entity and/or subject matter referred to in paragraph 1.2(a)-(c) above and information regarding the relevant sanctions regime;
       
    2. confirmation and explanation as to whether and how the sanctions regime affects the ability of HKIAC to administer the Proceedings or perform certain functions assisting the conduct of the Proceedings;
       
    3. confirmation and explanation as to whether and how the sanctions regime affects the ability of any neutral to participate in the Proceedings;
       
    4. confirmation and explanation as to whether and how the sanctions regime affects any party to make payments in the Proceedings; and
       
    5. any other information required by HKIAC.
       

3.2 HKIAC will provide any information received under paragraph 3.1 above to a potential neutral to ascertain his or her ability to act in the Proceedings.

3.3 Where HKIAC is to appoint a neutral, it will either (i) seek to appoint an individual who is not a national or resident of a country that is affected by the sanctions regime if that is prohibitive to his or her so acting; or (ii) provide administrative assistance to a neutral in respect of applying for any necessary exemption to act in the Proceedings if required by the sanctions regime. 

3.4 HKIAC generally receives and makes payments in the Hong Kong Dollar. HKIAC may use or avoid a certain currency to facilitate payments.

3.5 HKIAC generally uses the services of the Hong Kong and Shanghai Banking Corporation Limited (“HSBC”) in Hong Kong for payments in the Proceedings. Where banking operations are affected by a sanctions regime, HKIAC will provide any relevant administrative assistance to a party to assist it in obtaining relevant clearance from a regulatory authority if required by the sanctions regime.

3.6 If HKIAC’s role in the Proceedings, including processing any payments, triggers a requirement by HKIAC to notify any authority or bank under a sanctions regime, HKIAC will comply with the requirement to the extent permitted by the confidentiality requirements under the applicable rules and law.

3.7 Where applicable, HKIAC may provide relevant assistance to parties and neutrals in advance of the issuance of any decision or award that may be affected by a sanctions regime.

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