EU to launch legal action over UK plan to extend Brexit grace period
March 15, 2021, 12:23 pm

EU to launch legal action over UK plan to extend Brexit grace period

Inspection staff check freight at Larne port. The UK has signalled it will delay implementation of parts of the Northern Ireland protocol

Lisa O'CarrollLetter alleging infringement of Northern Ireland protocol expected to be issued on Monday

The EU is to launch legal action against the UK after the government unilaterally decided to delay the implementation of parts of the special Brexit arrangements for Northern Ireland.

A letter notifying the British government of infringement proceedings is expected to be issued at around midday on Monday. The European commission vice-president Maroš Šefčovič signalled 10 days ago that the action would be taken.

It comes two months after the UK sealed its Brexit trade deal and less than 14 months after the signing of the broader withdrawal agreement, of which the Northern Ireland protocol is a part.

The EU has two legal avenues open to it. It could launch proceedings under the withdrawal agreement, which would lead to a case in the European court of justice (ECJ). This would risk causing further damage to the fragile political relationship between the two sides, given the symbolism of the ECJ to Brexiters in the Tory party who fought for the fastest, hardest exit possible from the EU.

Sources in the EU confirmed that proceedings could also be launched under the dispute mechanisms in the trade and cooperation agreement sealed on Christmas Eve. This would take the dispute to an arbitration panel, which may result in a quicker and more politically motivated solution.

Disputes procedures brought under the trade deal can allow for retaliatory measures to be instigated by either side, including restrictions on market access if either side continues to breach the deal.

Under this scenario, the UK could face trade sanctions if it continued with its unilateral position after an arbitration panel decision in the EU’s favour.

The row was triggered a week after David Frost, who negotiated the trade deal, took over from Michael Gove as the UK chair of the EU-UK joint committee charged with implementing and enforcing the withdrawal agreement.

Šefčovič said Lord Frost’s decision to unilaterally extend grace periods for checks on goods crossing the Irish Sea into Northern Ireland from March until October was a violation of the Northern Ireland protocol.

The UK’s move came as a shock to the EU and to Irish political leaders as there had appeared to be progress on the row over checks on supermarket goods, parcels and plants during a meeting of the joint committee led by Šefčovič and Gove the week before.

source: Lisa O'Carroll

Levant

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.