{"id":39157,"date":"2025-11-05T09:56:48","date_gmt":"2025-11-05T09:56:48","guid":{"rendered":"https:\/\/www.cdr-news.com\/?p=39157"},"modified":"2025-11-06T17:13:51","modified_gmt":"2025-11-06T17:13:51","slug":"iba-toronto-browder-calls-for-secondary-sanctions-as-enforcement-expands","status":"publish","type":"post","link":"https:\/\/www.cdr-news.com\/categories\/competition-business-crime\/iba-toronto-browder-calls-for-secondary-sanctions-as-enforcement-expands\/","title":{"rendered":"IBA Toronto: Browder calls for secondary sanctions as enforcement expands"},"content":{"rendered":"\n<p><strong>Secondary sanctions are the new foreign policy front line and could make a major impact on both the war in Ukraine and on business in Latin America, according to experts at the IBA conference.<\/strong><\/p>\n\n\n\n<p>Introducing secondary sanctions on Russian allies could end the war in Ukraine, according to Sir Bill Browder, the driving force behind the sanctioning of human rights abusers in Russia.<\/p>\n\n\n\n<p>Speaking at <a href=\"https:\/\/www.cdr-news.com\/categories\/litigation\/iba-toronto-justice-and-rule-of-law-under-pressure\/\">the annual conference of the International Bar Association (IBA)<\/a> in Toronto on Monday (3 November), Browder said that targeting the small handful of refineries in India, China and Turkey which buy Russian oil would force Vladimir Putin to negotiate.<\/p>\n\n\n\n<p>Browder\u2019s comments came on the same day that a group of lawyers said that secondary sanctions are just one way in which enforcement is continuing to expand internationally, creating ever-more complex compliance risks for international banks and businesses.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Making an impact<\/strong><\/h3>\n\n\n\n<p>With the Russian war in Ukraine still in full flow, <a href=\"https:\/\/www.cdr-news.com\/categories\/competition-business-crime\/lidw-russia-sanctions-require-more-strategic-execution\/\">some legal observers have suggested<\/a> that three-and-a-half years of sanctions have had little impact on Russia\u2019s war machine or its economy. However, Browder argued that sanctions on individuals can, and have been, effective.<\/p>\n\n\n\n<p>Named for Sergei Magnitsky, the tax adviser who investigated a fraud perpetrated on Browder\u2019s Russian business and who was arrested and killed for his investigation in 2009, the Magnitsky Act and the Magnitsky Accountability Act gave the US government the power to sanction foreign officials responsible for human rights abuses.<\/p>\n\n\n\n<p>Speaking in conversation with IBA executive director Mark Ellis, Browder said the impact of this legislation was shown by Putin\u2019s outraged response, passing laws that penalised US citizens, and offering to let the US interview Russian intelligence agents implicated in election interference, in return for handing Browder over to Russia \u2013 a deal described by President Donald Trump as an \u201cincredible offer\u201d before backtracking.<\/p>\n\n\n\n<p>One US lawyer, speaking separately at the conference, described the Magnitsky Act as \u201ca very potent tool\u201d. The seriousness with which it is treated was again highlighted following the 2018 murder of Saudi journalist Jamal Khashoggi, when Browder was approached by intermediaries for Saudi parties, concerned that they would be sanctioned.<\/p>\n\n\n\n<p>Browder, US-born-and-raised but now a UK citizen, believed that if Congress passed the Sanctioning Russia Act of 2025, which would make it possible to apply secondary sanctions against the refineries which buy Russian oil, Russia would run out of money and be forced to end the war.<\/p>\n\n\n\n<p>The Trump administration recently used the Magnitsky Act to sanction the Brazilian judge overseeing the trial of former President Jair Bolsonaro, a Trump ally. \u201cThe use of this law in its context has been criticised by many\u201d said the US lawyer, and Browder was disheartened that \u201cthe work of my life\u201d was being used in this way, but insistent that it did not ruin the Act\u2019s overall legacy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Secondary sanctions<\/strong><\/h3>\n\n\n\n<p>Secondary sanctions are a key part of the US administration\u2019s war on Latin American drug cartels, creating new complexities for businesses which do business in the region. Identifying which companies and individuals are connected to cartels can be very difficult, and even then, there may be no choice but to do business with them, either due to threats or just the lack of an alternative.<\/p>\n\n\n\n<p>Speaking under the Chatham House Rule during the IBA conference, one US lawyer pointed out that despite these realities, there is no legal defence for parties who have been extorted or who are ignorant. Unlike in the Foreign Corrupt Practices Act (FCPA) \u201cthe required jurisdictional nexus is actually incredibly low\u201d, so the sanctions are far-reaching and the Department of Justice \u201cis likely going to be making a broad jurisdictional link\u201d when assessing ties to cartel business.<\/p>\n\n\n\n<p>\u201cThere are clear indications that this is going to be an area of sustained focus,\u201d said the US lawyer, a risk that major financial centres and institutions around the world have not yet got to grips with, according to one Luxembourg-based practitioner.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Flooding the system<\/strong><\/h3>\n\n\n\n<p>Although \u201csanctions have grown tremendously\u201d, as one lawyer put it, multiple observers reported that enforcement had been limited until now. That appears set to change in some major jurisdictions, including Canada and France, where there is an expectation that prosecutors will become more proactive in the near future.<\/p>\n\n\n\n<p>One side effect of sanctions enforcement, and the intense legal and political risk involved, is that financial institutions have responded by over-reporting suspicious transactions, flooding the reporting system. Expansion of the regime, whether by secondary sanctions or other means, will create more activity, new uncertainties and compliance risks. \u201cThis landscape is constantly evolving\u201d warned the US lawyer.<\/p>\n\n\n\n<p>The IBA conference continues until Friday 7 November.<\/p>\n\n\n\n<p><em>For more coverage from the International Bar Association 2025 conference in Toronto, click here:<\/em><\/p>\n\n\n\n<p><a href=\"https:\/\/www.cdr-news.com\/categories\/litigation\/iba-toronto-justice-and-rule-of-law-under-pressure\/\"><em>IBA Toronto: Justice and rule of law under pressure<\/em><\/a><\/p>\n\n\n\n<p><em><a href=\"https:\/\/www.cdr-news.com\/categories\/litigation\/iba-toronto-browder-calls-for-secondary-sanctions-as-enforcement-expands\/\">IBA Toronto: Browder calls for secondary sanctions as enforcement expands<\/a><\/em><\/p>\n\n\n\n<p><em>Photo: courtesy of the International Bar Association\u00ae<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Secondary sanctions are the new foreign policy front line and could make a major impact on both the war in Ukraine and on business in Latin America, according to experts at the IBA conference.<\/p>\n","protected":false},"author":14,"featured_media":39158,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[31],"tags":[350,12092,722,12096,1774,2020,2386,593],"class_list":["post-39157","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-competition-business-crime","tag-canada","tag-iba-toronto","tag-international-bar-association","tag-magnitsky-act","tag-public-international-law","tag-russia-ukraine-war","tag-russian-sanctions","tag-sanctions"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>IBA Toronto: Browder calls for secondary sanctions as enforcement expands - CDR 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