Insights | Kobre & Kim — Disputes and Investigations

The United States and its allies continue to use sanctions to attack adversarial governments and their perceived allies, putting companies and individuals with tenuous or merely alleged ties at risk.
Recent sanctions have targeted Russia, but PRC companies were designated in the February 2024 round, signaling increasing risk to PRC individuals and business if China-U.S. relations deteriorate.
At-risk individuals and business should take proactive steps to prepare.

As governments increasingly use sanctions as a geopolitical tool, ultra-high-net-worth individuals – including those with connections to Cyprus – are at risk.
Cypriot officials and financial institutions have already taken steps to target certain individuals, even those who are not sanctioned.
We explain pre-emptive steps at-risk individuals and their advisors can take to mitigate the risks and protect themselves.

The U.S., UK and their allies are continuing to find tools to exert pressure on China.
Businesspeople in Greater China with global interests could become targets of financial sanctions if diplomatic relations between China and the U.S. deteriorate further.
We explain how financial and wealth advisors can mitigate the risks these clients face if they act early and decisively.

Governments have increased focus on third parties – including offshore trustees – as they look to enforce their sanctions regimes.
This increases the risk trustees could become embroiled in an accusation of violating sanctions.
Trustees should take proactive, globally comprehensive measures to reduce their risk and avoid a cross-border crisis.

Global sanctions targeting, among others, Russian individuals and entities are layering on top of anti-money laundering measures.
These will directly impact players in the art market, raising their litigation and enforcement risks.
We explain two particular triggers stakeholders should be aware of.

As geopolitical tensions heighten, Chinese ultra-high-net-worth individuals may become increasingly at risk of becoming the target of forfeiture by hostile foreign governments.
Governments around the world have shown increasing willingness to go after assets owned by those in disfavored jurisdictions.
By deploying a coordinated global strategy, Chinese UHNWIs can lawfully defend their legitimately earned wealth.

The United Kingdom and the European Union are two critical jurisdictions that have implemented influential sanctions regimes against Russian entities.
Given the UK’s departure from the EU, key differences exist that outside stakeholders must be attuned to.
Learn the subtle yet consequential details in this reference guide, put together by Kobre & Kim’s International Private Client team.

Prices of Russian and other sovereign debt are falling as their economies buckle, presenting both opportunities and challenges for investors.
Enforcing the debt against sovereign entities is already difficult, more so when sanctions are involved.
As our Claim Monetization & Dilution team explains, non-traditional strategies may go further in putting maximum pressure on sovereigns and maximizing returns.

Relations between India and the U.S. have recently experienced a few blows, including the termination of the former's preferential trading status with the U.S.
For future Indian defendants, it will be of paramount importance to understand the strategies and tactics of U.S. enforcement agencies in charge of bribery, national security and fraud investigations.
When regulators come knocking, those who choose to sit idly by will find themselves at a disadvantage.

The web of U.S. sanctions across the globe is dynamic and complex, and it can affect companies doing business in any corner of the world, even those with limited ties to the U.S.
Inadvertent sanctions violations can be considered “egregious” by OFAC and subject violators to significant fines.
Secondary sanctions are an often unwitting risk.