Various trade sanctions were introduced by and against Southeast Asian countries in 2022. We discuss these below, and highlight that businesses operating in this part of the world must also be alert to trade sanctions that operate across the world, which are not discussed below.
In Singapore, trade sanctions are imposed on imports and exports via various legislation and regulation, including the Regulation of Import and Export Regulations ("RIER"). With effect from 16 March 2022, Singapore updated the RIER to ban exportation from, transhipment in, or transit through, Singapore of specified goods which destination is or is intended to be Russia. This involves certain Military Goods and certain Dual-use goods under the Strategic Goods (Control) Order. The ban was aimed at constraining Russian capacity to conduct war in Ukraine and to undermine Ukraine's sovereignty.
Pursuant to UNSCR 2624 (2022), the UN trade sanctions against Yemen was extended for another year. Further, the Houthis was added to its sanctions list on targeted arms embargo for engaging in acts to threaten the peace, security and stability of Yemen. In this regard, Singapore amended its sanctions regime against Yemen to give effect to UNSCR 2624 (2022) by amending its United Nations (Sanctions – Yemen) Regulations 2015 with effect from 22 March 2022.
In Philippines, the Department of Trade and Industry–Strategic Trade Management Office informed the public on 4 October 2022 that an individual has been added to the United Nations Security Council's Sanctions List concerning Yemen.
Commentary
Developments on trade sanctions are ever changing and it is important for businesses to stay updated given that violations can result in serious consequences arising from both domestic and international law. It has become a strong tool through which some countries seek to use to their advantage; yet a useful one to combat the likes of terrorism, amongst others.
For example, in Singapore, financial measures were implemented against Russian banks, entities and activities in Russia in 2022, applying to all financial institutions in Singapore, including banks, finance companies, insurers, capital markets intermediaries, securities exchanges, and payment service providers. Digital payment token service providers are also specifically prohibited from facilitating transactions that could aid the circumvention of the financial measures. Separately, on 21 October 2022, the Financial Action Task Force ("FATF") added Myanmar to a list of highrisk jurisdictions having significant deficiencies in countering money laundering, terrorist financing, and financing of proliferation. Myanmar is hence subject to a call to action and will remain on the list until the country has implemented an action plan. The FATF also recommended blacklisting Myanmar immediately and be subject to enhanced due diligence by member states; which can potentially have impact on business operations. These are not exhaustive.
Trade sanctions are not to be taken lightly, and does require a constant review.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
