Harneys’ Post

There's some interesting reading this afternoon as the European Securities and Markets Authority (ESMA) has released its first consolidated report on sanctions... The report covers activity across 2023, with some standout facts including: ⚡ Roughly 1 in 3 fines under EMIR were due to transaction reporting issues ⚡ The countries with organisations that received fines related to article 9 of EMIR were: Finland, Iceland, Ireland, Italy and Luxembourg ⚡ Across EMIR and MiFID II, fines exceeded €18.6 million ⚡ Among the EMIR fines, Ireland received the biggest at €192,500 Learn more and download the report here - https://lnkd.in/eNFcKYmx #ControlNow #EMIR #EMIRREFIT #MiFIR #MiFIDII #RegTech #TransactionReporting #RegulatoryReporting #FinancialReporting #AssetManagers #FinancialServices #DerivativeMarkets #DataGovernance #RTS22

The UK's Office of Financial Sanctions Implementation (OFSI) today published an explanation about new reporting measures introduced last year to "strengthen transparency of frozen assets in the UK and assist HM Treasury in monitoring compliance with, and detecting evasion of, financial sanctions." Relevant firms are now required to inform OFSI of any funds or economic resources they hold for the Central Bank of Russia (CBR), Russian Finance Ministry, or Russian National Wealth Fund (NWF). This includes a person owned or controlled directly or indirectly by these entities, or a person acting on behalf of or at the direction of these entities. An additional reporting requirement has also been imposed on Russians sanctioned by the UK, requiring the designated individuals to proactively provide details of their UK assets to OFSI (or their worldwide assets if they are UK persons). The UK government intends for this measure to be extended to the Belarus regime in early 2024. The Institute for Financial Integrity continues to monitor regulatory developments and updates for you. Follow our LinkedIn page for more information. #financialintegrity #russia #sanctions #uk https://lnkd.in/ewNT7-yi

#SanctionClauseInLetterOfCredit A **sanction clause** in a Letter of Credit (LC) refers to a provision that excludes transactions with parties, countries, or goods subject to international sanctions. These clauses help banks comply with legal restrictions imposed by governments or international bodies like the United Nations or the European Union. For example, an LC might include a sanction clause stating that it is only valid if none of the parties involved are subject to U.S. or EU sanctions. If any party is found to be under sanctions, the LC could be considered invalid, and the bank will refuse to make payment. ### Example: **Sanction Clause:** _"This Letter of Credit is subject to all applicable sanctions regulations. The bank will not make any payments to any party that is sanctioned by U.S., EU, or other relevant authorities."_ ### 🛑 Why it's Important: - Ensures compliance with international laws - Protects banks from legal liabilities - Avoids penalties for dealing with sanctioned entities ### 🚫 What Happens if Ignored: - Payment refusal - Legal consequences - Risk of being blacklisted in the global financial system #ComplianceMatters 😊 #StaySafe

🇪🇺Big news from the European Parliament! The UAE is staying on the 'High-Risk Third Countries' list. 📝 Recent evidence suggests the UAE, Gibraltar, and Panama aren't doing enough to address or might even be helping to dodge sanctions on Russia. 😠 These places could be sneaky sanctuaries for getting around those sanctions, which totally messes with the Union's efforts to stop the Russian war machine! 🛑But hey, let's give credit where it's due! The UAE has been making strides in its AML/CFT framework, and that's awesome! 🙌 However, considering everything we just talked about, maybe delisting the UAE from the Union's 'high-risk third countries' list isn't the best move just yet. 🤔 The Union's financial system is pretty intertwined with the UAE as a hub for finance and trade, so we need to really look into the risks and see some solid reforms before making any big decisions. Here's the plan: ❌Rejects the Commission's delegated regulation! 📩 Tasks its President with conveying this resolution to the Commission, emphasizing its importance! 🔄Calls on the Commission to develop a new delegated act that considers the outlined concerns. 📜Instructs its President to share this resolution with the Council, as well as the governments and parliaments of the Member States, ensuring widespread awareness and collaboration. 🌍📨 #EU #Sanctions #FinancialIntegrity

On March 6, 2024, the US Department of the Treasury’s Office of Foreign Assets Control, the US Department of Justice and the US Department of Commerce published their latest in a series of Tri-Seal Compliance Notes in which they emphasized that foreign-based persons have an obligation to comply with US sanctions and export controls.     The Compliance Note does not reflect any policy change, but serves as a reminder that the Agencies have enforced sanctions and export controls against non-US persons, and highlights that non-US firms should implement measures to mitigate their risk of violating US laws.     Learn more about the key implications for non-US fund managers in this Alert: https://bit.ly/49nAYl8 Authors: Melissa Goldstein | Betty Santangelo | Anna Maleva-Otto | Greg Devaney       #SchulteLaw 

📣 HM Treasury Issues General Licence INT/2023/3781228 for Payments to Local Authorities On December 8, 2023, the UK Treasury's Office of Financial Sanctions Implementation (OFSI) issued General Licence INT/2023/3781228, amended on August 5, 2024. 🗓️ Effective immediately, the licence authorizes UK Designated Persons (UK DPs) to make payments to Local Authorities, including: - Council tax and non-domestic rates - Penalty fees, interest, and enforcement fees related to late or inaccurate filings - Business Improvement District levies ⚠️ Restrictions: Payments by UN-designated persons remain prohibited. Reporting and record-keeping are required. 📜 Relevant Regulations: Includes sanctions on countries like Belarus, Iran, and Russia under the UK Autonomous Sanctions Regulations listed in Annex I. Original source 👉: https://lnkd.in/g_tBPDew #UKsanctions #sanctionsupdate #sanctionscompliance #FinancialSanctions #GeneralLicence #Payments #Regulations #OFSI

On 29 April 2024, the EU published in the Official Journal the new Directive (EU) 2024/1226 which criminalises the violation and circumvention of EU sanctions. Want to learn more? Continue reading on our Regulatory Blog: https://lnkd.in/efDqmBzd Key contacts: Aki Corsoni-Husain, Vanessa Molloy, Elina Mantrali, Pierre-Luc Wolff, Angelos Lanitis, Neofytos Makris   Want to stay ahead of the regulatory curve? Head over to our Regulatory Blog (https://lnkd.in/dZK9cH5) to catch up on other developments from our jurisdictions. Recent posts include:   ✒️ Virgin Islands Government releases Mutual Evaluation Report and National Action Plan - https://lnkd.in/e6sSxxR5 ✒️ OFSI launches new financial sanctions FAQs - https://lnkd.in/exPE-dbm ✒️ Industry consultation: Enhancing beneficial ownership transparency in Cayman Islands - https://lnkd.in/es_UX7SS ✒️ BVI Financial Services Commission to host Meet the Regulator Forum in Hong Kong - https://lnkd.in/eFqZ-Uv4   👇 Don't want to miss out on our posts? Sign-up to our newsletter via the link in the comments to get new content delivered directly to your inbox.    #regulatoryblog #regulatoryupdates #regulatoryinsights

Financial Sanctions are a critical area of trade compliance that any business must consider. HM Treasury is the government’s economic and finance ministry. OFSI, the Office of Financial Sanctions Implementation, are part of HM Treasury. The role of OFS I is to ensure that financial sanctions are properly understood, implemented, and enforced in the UK. OFSI has now provided a list of FAQs as supplementary information to support their primary guidance. OFSI confirms that if a company is unsure about its obligations in a given case, it should seek independent legal advice. #finanicalsanctions #sanctions #internationaltrade #importexport

Important for any business that exports:

This article reports on how Latvia has turned round its anti-money laundering policies since investigations by the US Treasury in 2018. https://lnkd.in/efdCi8e8 #aml