ICA Advanced Certificate in Managing Sanctions Risk

Global Sanctions Architecture – Political, Legal and Implementation Context

• Political Context - Sanctions as a Foreign Policy Tool
• Legal Context - The Collective Architecture of Financial Sanctions
• Sanctions Regimes – UN, OSCE, Arab league, EU and unilateral
• Implementation Context - Evolving Scope of Financial Tools in Responding to International Security Threats
• Economic and Trade Sanctions
• Financial Prohibitions
• Asset Freezes
• Emerging Political Challenges and Questions of Legitimacy
• General Insurance
• Money services businesses (MSBs) • Non-financial professionals (lawyers and accountants)
• Trusts and corporate services

Evolving Scope of Sanctions – a changing tool

• Human Rights – (Arab Spring, Libya, Egypt)

• Misappropriation of State Assets (case study Ukraine, Egypt)

• Chemical, Biological, Radiological and Nuclear sanctions (case study North Korea)

• Sanctioning of Terrorist Groups (case studies: Somalia piracy payments, ISIL territorial control, government versus terrorist actors i.e. Hamas/Hezbollah

• Russia Sectoral Sanctions – A New Type of Sanctions

• Case Study Russia/Crimea

Management of Global Exposure to Unilateral and Regional Sanctions

• Compliance with Foreign Unilateral Sanctions
• US extraterritoriality
• US Person Consideration (US person recusal case study)
• Non US bank use of US technology
• US Federal versus US State based
• Sanctions
• When a non-US person can become subject to US sanctions
• SEC 219 Reporting on Iran and Syria
• Lessons from Recent Global Enforcement Cases.
• Global Divergence and opposing sanction obligations (Case studies: Cuba anti blocking; participation in foreign clearing networks; Israeli obligations; Russian counter measures).
• Group wide sanction sharing designation restrictions

Identifying Higher Risk Jurisdictions and Activities

• Identification of High Risk Jurisdictions • Business Line and Customer
• Considerations
• Export and Trade Finance
• (grandfathering and prior contract) • Dual use good requirements (Case
• Study - new Iran procurement)
• Customer Considerations [Case Study, Family members of Designated Party, joint Accounts]
• Insurance and Securities Considerations • Maritime Sanctions Case Study
• Maritime Insurance
• Due Diligence re underwriting
• Due Diligence when a claim arises • Salvage
• Vessel
• Cargo Insurance

• Re-insurance
• Towing fees/port fees
• Direct versus in-direct Exposure
• Being Prepared – Sanction Forecasting

Transparency, Control and Ownership

• Transparency of payments and interrelationships
• Control and Ownership Considerations • Control Test and Validation
• Joint Venture exposure
• Syndicate Lending
• Circumvention considerations
• Iranian Shipping- case study
• Top 10 Common Questions on Transparency, Control and Ownership

Licensing and Permissible Payments

• Navigating Licensing Frameworks
• When to rely on General Licenses • How to deal with multiple licence
• processes etc.
• Factors influencing Licensing Decisions
• Supporting permitted activity i.e.
• humanitarian activity (case studies: Syria humanitarian payments, Iran business permitted under the nuclear deal)
• Getting Comfortable – Case Study on payment channels and due diligence

Developing the Control Framework

• Options for developing the control environment and screening assessment
• Screening Systems and Controls
• What to screen, fuzzy matching
• thresholds
• Dealing with non-exact matching
• Personal name variations and ownership
• Domestic versus non-domestic payments
• Screening Innovations
• Role of Technology
• Secondary screening Engines
• Case Study – Trade Finance Screening
• Managing Alert Investigations
• Top 10 Common Challenges in Screening

Incident Management and Holding of Sanction Funds

• Incident Management
• Reporting of Breaches
• Voluntary Self Disclosure
• How to report breaches and associated regulatory factors
• What and when to report
• Internal review and investigation
• Case Studies - Reporting of Cuban violation to OFAC,
• Freezing of Funds and Incoming Payments
• The holding of Sanctioned Funds – obligations, annual reporting responsibilities

Political Process of Sanctions Lifting and Roll Back
Legal nuances of Roll Back

• Temporary lifting versus outright Roll Back
• New or continued reporting obligations
• Scope of Roll Back versus remaining prohibitions
• Case Studies – Myanmar, Cuba and Sudan
• Risk management in case of Snap Back Case Study – Iran
• Preparing for post sanctions re-engagement
• Releasing funds previously frozen
• Due diligence factors
• Managing business opportunity risk