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Sanctions and CDD due

process
DR ANNA BRADSHAW, PARTNER, PETERS & PETERS

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About the Speaker
Dr Anna Bradshaw, Partner, Peters & Peters
Dr Anna Bradshaw is a Partner in the business crime team at Peters & Peters
Solicitors LLP in London, where she advises on sanctions compliance and
enforcement action as well as sanctions-related litigation. She holds a
doctorate in anti-money laundering regulation and sits on the EU Committee
of the Law Society of England and Wales.

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Sanctions compliance
Anna Bradshaw
Partner, Business Crime
Overview

• The legal framework


– Current regime
– Post-Brexit
• Key features from a sanctions compliance perspective
– Internal controls
– Reporting obligations
• Horizon scanning
– Obligations on persons of a prescribed description

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Current legal framework

• UK anti-terrorism legislation
– Terrorist Asset-Freezing etc Act 2010
• EU restrictive measures
– European Communities Act 1972, Export Control
Act 2002, United Nations and European Union
Financial Sanctions (Linking) Regulations 2017
• EU blocking legislation
– Extraterritorial US Legislation (Sanctions against
Cuba, Iran and Libya) (Protection of Trading
Interests) (Amendment) Order 2018
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Sanctions compliance obligations

• FCA Handbook
– SYSC 3.2.6: Systems and controls for countering
the risk that the firm might be used to further
financial crime
• Money Laundering, Terrorist Financing and Transfer of Funds
(Information on the Payer) Regulations 2017
– Regulation 19: Policies, controls and procedures
to mitigate and manage the risks of money
laundering and terrorist financing

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Sanctions screening

• Office for Financial Sanctions Implementation (OFSI)


– Consolidated list of all asset freeze targets
• Legal Affinity Group (LAG) AML Guidance for the Legal
Sector
– Your CDD measures should, following a risk-
based approach, be able to ascertain whether
your client, key beneficial owners or the intended
recipient of funds from a transaction you are
undertaking are subject to financial restrictions
(UN, EU, UK)

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Financial sanctions reporting obligations

• European Union Financial Sanctions (Amendment of


Information Provisions) Regulations 2017
– Relevant institutions and relevant businesses or
professions (firms or sole practitioners)
– Knowledge or reasonable cause to suspect that a
person is a designated person or has breached
financial sanctions
• Interaction with AML/CTF reporting obligations
• The Sanctions (Overseas Territories) (Amendment of
Information Provisions) Order 2018

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Post-Brexit legal framework

• The Sanctions and Anti-Money Laundering Act 2018


– (Commencement No.1) Regulations 2018/1213
– Sanctions Review Procedure (EU Exit)
Regulations 2018/1269
– Sanctions (Amendment) (EU Exit) Regulations
2019

• Designations by description
• Penalties

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Obligations on persons of a prescribed description
• To inform an appropriate authority of • To identify and assess risks relating
prescribed matters to money laundering, terrorist
financing or other threats to the
• To create and retain registers or integrity of the international financial
records system

• To have prescribed and appropriate


policies, controls and procedures for
mitigating and managing risks

• To take prescribed measures in


relation to customers in prescribed
circumstances

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TO CONTACT ANNA PLEASE CALL:
+44 (0)20 7822 7751

Peters & Peters Solicitors LLP


15 Fetter Lane
London
EC4A 1BW
Email: abradshaw@petersandpeters.com

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THANK YOU

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