The UK government has made an Order in Council extending new grounds for licensing of specific divestments otherwise prohibited by the Russian sanctions regulations to British Overseas Territories, with effect from 14 March 2024. The order paves the way for British Virgin Islands (BVI) and Cayman Islands investment funds and other entities to divest their frozen assets in Russia, as well as remove sanctioned interests from their ownership structures. The divestment licensing grounds will apply to prohibitions in relation to asset freezing requirements, loans and credit arrangements and transferable securities or money market instruments correspondent banking relationships and processing payments. It also applies to provision of financial services relating to foreign exchange reserve and asset management and provision of trust services.
News Source：【Walkers 2024/03/14】