Challenging a sanctions designation in the UK

Contents

1. Introduction
2. On what basis can someone be sanctioned?
3. What options are available to challenge a designation?
4. Ministerial review: the first step
5. Court challenges and judicial review
6. Evidential issues and closed material
7. Strategic considerations before challenging
8. Licensing while a challenge is ongoing
9. Frequently asked questions
10. How Gherson can help

1. Introduction

Being designated under the UK sanctions regime can have immediate and far-reaching consequences. Asset freezes, financial restrictions and reputational harm often follow swiftly.

As discussed in our article “What Happens If You Are Subject to UK Sanctions?”, designation can restrict access to funds, disrupt commercial relationships and expose individuals and businesses to significant operational risk.

However, designation is not beyond scrutiny. The UK sanctions framework provides mechanisms through which a designated person may seek review of or challenge the decision to sanction them.

Challenging a sanctions designation requires careful legal and strategic consideration. The process is not purely procedural – it often involves complex evidential issues, reputational sensitivities and cross-border implications.

For a broader overview of the UK sanctions regime and related advisory support, see our sanctions page: UK sanctions legal advisory services.

2. On what basis can someone be sanctioned?

Under the Sanctions and Anti-Money Laundering Act 2018, the UK Government may designate an individual or entity if it has reasonable grounds to suspect that the person meets the criteria set out in a specific sanctions regime.

Those criteria vary depending on the regime, but may include involvement in certain activities, association with designated persons or benefitting from or supporting proscribed conduct.

The threshold is not a criminal standard – it is based on reasonable suspicion rather than proof beyond reasonable doubt. This distinction is important when assessing whether a designation can be challenged successfully.

3. What options are available to challenge a designation?

A person designated under UK sanctions law generally has three potential routes:

1. Requesting a ministerial review of the designation;
2. Applying to vary or revoke specific restrictions; or
3. Challenging the designation before the courts.

The appropriate course depends on the circumstances, including the available evidence, urgency and wider strategic considerations.

4. Ministerial review: the first step

A designated person may request that the relevant Minister review the decision to designate.

The Minister must reconsider whether the designation criteria are met. This process allows representations to be made, evidence to be submitted and legal arguments to be advanced.

In practice, the effectiveness of a ministerial review depends on the strength of the representations and the nature of the evidence relied upon by the Government.

A carefully structured review request is critical. A reactive or poorly framed submission may entrench the existing position rather than prompt reconsideration.

5. Court challenges and judicial review

If a designation is maintained following review, or, in some cases, without awaiting review, a challenge may be brought before the High Court.

The court will consider whether the decision to designate was lawful. This may involve assessing:

• Whether the statutory criteria were properly applied;
• Whether the decision was rational and proportionate; and
• Whether procedural fairness was observed.

Judicial review proceedings can involve complex public law issues and, in some cases, sensitive national security material.

Litigation should not be approached purely as a technical exercise – it requires a clear assessment of legal merits, evidential strength and broader reputational impact.

6. Evidential issues and closed material

Sanctions designations may rely, at least in part, on confidential or intelligence-based material. In certain cases, this material may not be disclosed publicly.

Closed material procedures can complicate challenges. Special advocates may be appointed to review sensitive evidence, but communication restrictions may apply.

Understanding how evidential issues are likely to unfold is central to advising on prospects of success and overall strategy.

7. Strategic considerations before challenging

Not every designation should be challenged immediately.

Before initiating formal proceedings, it is important to consider:

• The strength of the available evidence;
• The likely duration and cost of proceedings;
• Reputational implications of public litigation;
• Interaction with parallel investigations; and
• The availability of interim licensing.

As noted in “What Happens If You Are Subject to UK Sanctions?”, designation often creates immediate financial pressure. In some circumstances, securing licences or stabilising commercial arrangements may be the immediate priority before litigation is pursued.

Strategic advice at an early stage is essential: strategic advice on UK sanctions.

8. Licensing while a challenge is ongoing

Even where a designation is under review or challenge, asset freezes and related restrictions typically remain in force.

It may therefore be necessary to apply for licences to permit:

• Living expenses;
• Specific business transactions; and
• Compliance-related costs.

Licence applications must be carefully framed and supported by appropriate documentation. The existence of a challenge does not guarantee that a licence will be granted.

9. Frequently asked questions

Is it possible to be removed from the UK sanctions list?
Yes. A designation can be revoked if the legal criteria are no longer met or if a successful challenge is brought.

How long does a sanctions challenge take?
Timeframes vary. Ministerial reviews may take several months, and court proceedings can extend significantly longer, depending on complexity.

Does challenging a designation increase publicity?
Court proceedings are generally public, although some aspects may remain confidential. Reputational considerations should form part of the strategy.

Can a challenge succeed if intelligence evidence is involved?
Yes, although such cases can be complex. The court will assess whether the statutory threshold for designation has been lawfully met.

10. How Gherson can help

Gherson advises individuals and businesses on challenging UK sanctions designations, including review requests, judicial proceedings and related strategic matters: UK sanctions dispute and challenge services.

• Assessing the legal basis of designation;
• Preparing ministerial review submissions;
• Advising on judicial review proceedings;
• Managing evidential and procedural complexity;
• Coordinating cross-border legal strategy; and
• Advising on licensing during ongoing restrictions.

Sanctions challenges require not only technical expertise, but careful judgement as to timing, positioning and risk. Our approach is measured, discreet and strategically focused.

If you have any questions arising from this blog, please do not hesitate to contact us for advice, send us an e-mail, or, alternatively, follow us on X, Facebook, Instagram, or LinkedIn to stay-up-to-date.

The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please do not hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.

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