Facing sanctions enforcement actions, navigating delisting procedures, or resolving contractual disputes triggered by sanctions requires specialized legal counsel. Georgian entities and individuals may find themselves subject to domestic enforcement actions by Georgian authorities (like the National Bank or Revenue Service) implementing foreign sanctions, or they may need to challenge a listing directly with foreign regulators (like OFAC or the EU Council). Furthermore, sanctions frequently disrupt commercial contracts, creating complex disputes. Legal Sandbox Georgia provides expert legal representation across this entire spectrum, defending clients' interests before both Georgian and international bodies and in alternative dispute resolution forums.
Defense and Representation in Sanctions Enforcement Proceedings
This service involves providing formal legal defense when a Georgian entity faces investigation or penalties for alleged non-compliance with sanctions. Domestically, the National Bank of Georgia (NBG) actively supervises financial institutions, imposing significant fines (up to 1% of regulatory capital) for breaches of US/EU/UK financial sanctions. The Revenue Service enforces trade sanctions, particularly regarding re-export controls. We represent clients during NBG audits or Revenue Service investigations, prepare formal responses to regulatory inquiries, challenge the legal basis of any proposed penalties, and negotiate potential settlements. Our representation ensures that your rights are protected throughout the enforcement process and that any penalties are legally justified and proportionate.
Appeals and Challenges Against Sanctions Listings
If a Georgian individual or entity is designated under a foreign sanctions regime (e.g., placed on the US OFAC SDN List or an EU sanctions list), the appeal process is directed towards the foreign authority, not Georgian courts. We manage this complex international legal process on behalf of our clients. For OFAC listings, this involves preparing and submitting a formal Petition for Removal (Delisting Request) directly to OFAC, presenting evidence and legal arguments challenging the basis for designation. For EU listings, the challenge involves submitting a request for review to the EU Council or initiating legal action before the General Court of the European Union in Luxembourg. We act as your authorized legal representative throughout these multi-stage processes, handling all correspondence and advocacy with the foreign regulators.
Representation Before Georgian and International Authorities
Our representation extends beyond formal enforcement or delisting proceedings. We act as your legal counsel in all interactions related to sanctions compliance. This includes representing your interests before the National Bank of Georgia regarding compliance frameworks, particularly navigating the complex NBG regulation concerning the applicability of sanctions to Georgian citizens only after a Georgian court conviction. We also represent clients before international bodies like OFAC, the EU Council, or the UK's OFSI during licensing applications, voluntary self-disclosures, or informal inquiries, ensuring that communications are legally precise and strategically sound.
Strategic Litigation for Unjustified Sanctions Inclusion
Where administrative appeals (delisting requests) to foreign authorities are unsuccessful, the next step may involve strategic litigation in the relevant foreign jurisdiction. This typically means initiating legal action against OFAC in a US federal court or against the EU Council before the General Court of the EU. This is a highly specialized legal action arguing that the designation was legally flawed, based on insufficient evidence, or violates fundamental rights. We coordinate and manage this complex international litigation, working with specialized co-counsel in the US or EU as necessary, to build the strongest possible legal case for overturning an unjustified sanctions listing.
Mediation and Arbitration of Sanctions-Related Disputes
Sanctions often trigger commercial disputes by rendering contractual performance impossible or illegal. This service focuses on resolving these contractual disputes through alternative dispute resolution (ADR) mechanisms in Georgia, such as mediation or arbitration at the Georgian International Arbitration Centre (GIAC). Common disputes involve claims of force majeure (arguing sanctions constitute an unforeseeable event excusing performance under Georgian Civil Code concepts like Article 401 or 398), breach of contract due to non-payment (if payments are blocked), or disputes over sanctions clauses. We represent clients in these ADR proceedings, presenting legal arguments and evidence to either enforce contractual rights or defend against claims based on the impact of sanctions.
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