Moot Court on the 50% Rule and How to Interpret Ownership and Control

April 24, 2017 12:10pm

What is it about?

Brand new for the Advanced Forum on Economic Sanctions, ACI’s unique Moot Court format addresses one of the biggest sources of contention for Sanctions practitioners: how to apply OFAC’s 50% rule and the wider issue of determining ownership and control. The Moot Court will hear three separate imagined cases that illustrate the issues and pitfalls on this topic, with leading members of the Sanctions bar taking on opposing arguments before ACI’s Moot Court Judge. The audience will have the opportunity to play the role of “jury”, with polling
taken on voting devices at the end of each imagined scenario.

 

Scenarios to include:

  • A U.S. company is seeking to form a joint venture in Russia with an entity that is owned by a consortium of privately-owned investment firms, which are unwilling to share information on the identities of their beneficial owners and their relative ownership interests
  • A French subsidiary of a U.S. company is seeking to sell products to a BVI-incorporated entity operating in Malta, which information in the public domain suggests is 49 percent owned by an Iranian entity on OFAC’s SDN list and 51 percent owned by two individual Iranian national investors, one of whom resides in Iran, the other of whom resides in Malta and plays the role of Managing Director for the company
  • A Russian entity seeking to invest in real estate in the United States is 40 percent owned by an entity on the Sectoral Sanctions Identifications list, 40 percent owned by an entity on the SDN list, and 20 percent owned by the daughter of an individual on the SDN list