Sanctions Policy

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 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 administrative services in Proceedings is subject to its compliance with the legal obligations that affect its ability to provide such services. 
   
   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.
   
   2.6 This Policy may be used to supplement, regulate, and implement HKIAC rules for the purposes of facilitating its administration of Proceedings.
    

3. Administrative Measures in Proceedings 

   
   Obtaining Information

3.1. Following the commencement of the Proceedings, any party that is affected by a sanctions regime shall provide the following information:

a. 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;

b. confirmation and explanation as to whether and how the sanctions regime may affect the ability of (i) HKIAC to provide administrative services in the Proceedings; (ii) any neutral to participate in the Proceedings; and (iii) any party to make payments in the Proceedings; and

c. any other information required by HKIAC.
 

Constitution of the Tribunal

3.2 HKIAC may 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. 
 

Banking Operations

3.4 HKIAC generally receives and makes payments in the Hong Kong Dollar.

3.5 Where sanctions affect Proceedings and may affect HKIAC’s banking operations, HKIAC may:

a. use or avoid a certain currency to facilitate payments;

b. provide case information to a bank where HKIAC’s role in the Proceedings triggers such a requirement or where HKIAC wishes to obtain information from the bank. Any information provided will be limited to what is strictly necessary.
 

Other Administrative Matters

3.6 Where applicable, HKIAC will provide assistance to parties and neutrals in obtaining clearance from regulatory authorities if required by a sanctions regime as necessary during the Proceedings.