Israel Desks - February 2020 Edition

8 required import approvals of the destination country. To successfully execute the export potential, companies must adhere to all applicable laws and regulatory requirements in the countries to which they intend to export. Israel joins Canada, Australia and the Netherlands in the right to export medical cannabis. In January 2020, Israeli medical cannabis cultivation and production company Together Pharma (Together) received approval to export medical cannabis to Germany and Malta , and last July signed a memorandum of understanding (MoU) to form a joint venture with a Chinese partner to launch operations in China . The Chinese company is to invest US$ 1 Million towards the establishment of the new venture. “Most of the regulatory challenges are also related to the specific activity of the company. One of them concerns foreign investors in Israeli cannabis companies. The regulations demand a police approval for every substantial shareholder. In addition, there are the security expenses in order to meet the regulator’s requirements and standards. Due to the unique status of the land in Israel, in the event that a farm is being established, founders should seek the approval of the Ministry of Agriculture as well, in order to use the land for the purpose of growing cannabis,” Shmueli adds. Inevitably, each country has different regulations and requirements which are subject to change, governing the import of cannabis into the country and the use of cannabis within the country. Fresh from its official January 31 exit from the EU, there are challenges to address in the UK. “There are two main challenges from a legal and regulatory perspective. Firstly, CBD [a key component of medical cannabis] and the regulatory status (or lack of it) in the UK, and the implications of EU Novel Food.Secondly, the implications of the Proceeds of Crimes Act 2002 (POCA). Under POCA, conduct which takes place in an overseas jurisdiction, which would be criminal conduct if it took place in the UK, can be money laundering and the parties involved subject to the sanctions under the Act, ” says solicitor Lauren Belmonte a t UK law firm Memery Crystal , a significant player in the medical cannabis sector. Challenges to address in the UK