Sanctions: A Practical Perspective
Presentation to the ACAMS Cyprus Chapter 13 October 2016
Samantha J SheenAML Director - Europe, ACAMS
Presentation Outline
1. Introduction2. Current Challenges3. Mitigation of Sanctions Compliance Risks4. Regulatory Expectations5. Effective Screening Practices6. Key Takeaways
Part 1 - Introduction
Image: Magazine.owen.vanderbilt.edu
Types of EconomicSanctions:
• Diplomatic• Travel• Trade• Financial
• **Exemptions &
LicensedActivities
Part 1 - Introduction
Key Characteristics• Extraterritorial
Application (e.g. USA)• Prohibitions and
Restrictions• No minimum £
Thresholds• Immediate Effect
Image: Magazine.owen.vanderbilt.edu
Part 2 – Challenges
Ever-ChangingScope
• Iran• Cuba• Russia/Crimea• Myanmar• Cote I’voire• Disparity between
Sanction ListsImage: Animalia-life.com
Part 2 – ChallengesAvailable Data
• Legacy Systems• Changing customer data• Limited Customer Due Diligence Information
Image: henridomain.com
Part 2 – Challenges
Transparency• Ownership/Controllership• “Nature and Purpose”
Images: SEC.com
Part 2 – Challenges
Internal Communication and Prioritisation
Image: thedigitalattitude.com
Part 3 – Mitigation
Image: Medinaquality.com
Customer Due DiligenceOngoing Monitoring/ Assurance
Part 4 – Regulator Expectations
Part 5 – Effective Screening
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Part 5 – Effective Screening
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Screening Calibration
Image: pixabay.com
Part 5 – Effective ScreeningScreening Scope
• Parties and countries relating to:– Customers– Controllers– Beneficiaries– Counterparts– Vendors– Goods and Services– Vessels (along with shipment routes)
Part 5 – Effective ScreeningWhen to Screen
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Part 5 – Effective Screening
European CouncilCouncil of the European Union
Beneficial Ownership
Part 5 – Effective ScreeningAutomated Screening Process
Part 5 – Effective Screening AL-JABBARI, Deiman Alhasenben Ali (a.k.a. IZZAT,Dieman Abdulkadir), Adolf-Braun Street 6, Nuremberg90429, Germany; Fuerther Street 335, Nuremberg,Germany; Nuremberg Prison, Germany; DOB 04 Jul1965; POB Kirkuk, Iraq; nationality Iraq; TravelDocument Number A0141062 (Germany) (individual)[SDGT].
Verification
Part 5 – Effective Screening Organisation Name: SIMATEC DEVELOPMENTCOMPANYOther Information: EU listing. Not UN. Assisting designated entities to violate the provisions ofUN and EU sanctions on Iran. As of early 2010 Simatecwas contracted by UN-designated Kalaye ElectricCompany (KEC) to procure Vacon inverters to poweruranium enrichment centrifuges. As of mid-2012Simatec was attempting to procure EU-controlledinverters.
Verification
Part 5 – Effective Screening
Verification – Dual Use Goods
Part 5 – Effective ScreeningUse of Internal Lists
Exclusion Lists Inequalities or“White” Lists
Part 3 – Effective Screening
WorkflowsRecords Management
Source: business.lovetoknow.com
Part 3 – Effective Screening
TrainingEffectiveness Feedback Cycle
Key Takeaways•The sanctions landscape is constantly changing•There continue to be challenges•Key controls are CDD and monitoring andassurance•Regulatory expectations continue to increase•Effective screening comprises of a number offeatures•To remain effective, lessons learnt should beincorporated into training and system reviews.
Thank-you for ListeningAny Questions?
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Learn more about ACAMS SanctionsCompliance Certificate at:http://www.acams.org/sanctions-compliance-training/