Judicial Interpretation Of US Sanctions Law

One of the main issues concerning sanctions regimes is the uncertainty as to where the boundary lies between prohibited and permitted activities. This issue is caused largely by the lack of precedent in this area of law. At the end of 2024, the Court of Appeal of the Dubai International Financial Centre (DIFC) issued a rare judgment providing an analysis of certain provisions of US sanctions law. The court acknowledged the lack of prior judicial interpretation of applicable sanctions legislation. It provides a unique opportunity to understand how sanctions regimes should be interpreted in the DIFC and how they may be interpreted by other jurisdictions.

Factual Background

Iranian nationals ordinarily resident in Iran were the owners ("UBO") of a company incorporated in Hong Kong ("Company"). The Company had a bank account in the UAE at United Arab Bank PJSC ("Bank"). The bank had indemnity insurance from the Dubai branch of Qatar Insurance Co ("Insurer"). The