On Thursday (30 March 2023), Baroness Penn, the UK Treasury Lords Minister, made a Written Ministerial Statement on HM Treasury’s internal review of applications for legal fees licences under sanctions regulations (see previous post). Baroness Penn said that:
- It is the Government’s view that in most cases, the use of frozen funds for payment of legal professional fees for defamation cases is not an appropriate use of funds, and in many cases will be against the public interest.
- Whilst still reviewing each individual application on a case-by-case basis, OFSI will take a presumption that legal fees relating to defamation and similar cases will be rejected.
- The Russian and Belarussian Legal Services General Licence will be amended so that it no longer authorises legal fees for defamation and similar cases. Anyone acting without a specific licence where the activity is not covered by the General Licence will be in breach of sanctions.
- The Government has updated the delegation framework to make clear when it is appropriate for Ministers to take licensing decisions personally, or where officials can take these decisions.
- The review confirmed that it is for the courts, not the Government, to decide whether legal claims against sanctions should be permitted to succeed.
- The Government will bring forward legislation to tackle Strategic Lawsuits Against Public Participation (SLAPPs), which will include a statutory definition, an early dismissal process and costs protection for SLAPPs cases.
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