Belgravia Law has secured a first-of-its-kind interim measure in the Belgian Courts.
Belgravia Law (leading Partners: <a href="https://www.belgravia.law/team/benjamin-wells" target="_blank" class="news-text_link">Benjamin Wells FCIArb</a> & <a href="https://www.belgravia.law/team/stepan-puchkov" target="_blank" class="news-text_link">Stepan Puchkov</a>) is representing a major brokerage (not designated) whose own assets and assets of its customers to the value of USD 1.3 billion were blocked by Euroclear on the basis that a EU-designated entity the National Settlement Depository (NSD) was present in the chain of custody.
During the advanced stages of unfreezing proceedings new US sanctions on NSD came into force. Due to the US nexus of relevant assets the new sanctions had a practical implication in that even after obtaining a positive decision from the Belgium Regulator the Client would need to apply for OFAC licences in order to have the assets released.
Belgravia Law through its local partner applied to Francophone Tribunal of the First Instance of Brussels requesting an interim measure in the form of authorisation, with immediate effect, the transfer of the assets in issue to a segregated account thus removing NSD from the chain of custody and avoiding the necessity to apply for additional future licences.
On 8 August 2024 (only three weeks after the summons were served) the Court rendered an Order satisfying our Client’s request. The Defendant was ordered to transfer the assets in issue into a segregated account within 30 hours on the pain of a substantial fine and to pay our Client’s legal costs.
By way of obtaining the Order the Client was spared of substantial delay associated with applying for OFAC specific licences. With the assets in issue ready to be released immediately upon the final decision of the Belgian Regulator.
