What should be done?

The solution can be divided into several stages.

Stage 1. Preparation and submission of an application for relief from the restrictions imposed by EU sanctions regulations to the Belgian Treasury

Step 1. Submission of an application to the Belgian Treasury

1. Audit: review of the documents provided by the individual, development of the approach and structure of the possible arguments in the application (from 3 business days to 1 week).

2. Notice to Euroclear: draft notice to Euroclear challenging its position on the application of restrictions, followed by correspondence with Euroclear (service commencement: from 3 business days to one week after the audit).

3. Submission of the application to the Belgian Treasury: preparation and filing of the request with the General Treasury Administration, followed by correspondence and disputes (service commencement: from 3 business days to one week after the audit).

The Treasury’s response to the application may be: a waiver allowing the securities to be unfrozen (in whole or in part); a request for additional information; or a refusal to grant the waiver.

Step 2. Challenging the actions of the Treasury and Euroclear in court

Filing a claim in court may be necessary if submitting an application to the Treasury does not produce the desired result. This is possible in 3 scenarios:

I.   No response from the local Treasury

The Treasury is not bound by any deadline for responding to applicants, so waiting for a response may take a significant amount of time. The principle of good administration may be applied, under which the applicant may seek a court order requiring the Treasury to respond to the request. The time limit for challenging the Treasury’s actions in court is from 3 months.

II.  Receipt of a refusal from the Treasury

In the event of a refusal, the Treasury’s decision may be challenged in court by filing a claim to overturn the Treasury’s decision refusing to grant the waiver. If the decision is made in favor of the individual, the Treasury will be obliged to reconsider its decision regarding the application submitted. The time limit for challenging the Treasury’s decision in court is from 3 months.

III.  Euroclear’s failure to comply with the Treasury’s decision granting a waiver from the blocking of the individual’s assets

If Euroclear fails to comply with the Treasury’s decision to grant the waiver, Euroclear may be compelled to comply with the decision through the courts. The company will be ordered by a court decision to comply with the public authority’s decision and a penalty will be imposed for each day of delay in complying with the decision. The time limit for challenging the company’s actions in court is at least 3 weeks.

Stage 2. Support in lifting restrictions on the individual’s securities

Please note that one of the conditions for most European lawyers is KYC due diligence, including verification of the sources of funds used by clients to purchase the securities subject to unblocking.

To create a favorable client profile and build a strong position regarding the individual’s sources of income, we offer the following services:

1. Analysis of the individual’s documents, statements, and filed tax returns for the purpose of verifying the completeness of the information provided to Belgian lawyers;

2. Providing explanations in the event of additional requests from the lawyers;

3. Communication and coordination of the lawyers’ actions in Belgium.

Please contact us to arrange the work!