In the latest TRACE podcast, Drago Kos joins the podcast to talk about the work of the OECD Working Group on Bribery, its ambitious Revised Recommendation, what he hopes the group will accomplish in his final year with the WGB and the search to find his replacement.
On 22 October, FATF published a report saying that enhancing cross-border payments is a key priority of the G20. FATF had initiated an industry survey in consultation with the Basel Committee on Banking Supervision (BCBS) to identify areas where divergent AML/CFT rules or their implementation cause friction for cross-border payments. The survey results highlight, among others, that lack of risk-based approach and inconsistent implementation of the AML/CFT requirements increases cost, reduces speed, limits access and reduces transparency. Inconsistent national approaches also create obstacles in identifying and verifying customer and beneficial owners, effective screening for targeted financial sanctions, sharing of customer and transaction information where needed, and establishing and maintaining correspondent banking relationships.
On 22 October, a briefing paper from the EU Institute for Strategic Studies is concerned with the extraterritorial effects of US sanctions and why they pose a challenge to the EU. It outlines the responses that have been activated or are being contemplated to counter them, explaining why an effective remedy remains elusive. It concludes by indicating possible ways forward.
On 19 October, an article from Wolters Kluwer Asia Pacific was said to be the first in a series of 3 concerned with the potential impact of economic sanctions on arbitral and financial institutions. They will address critical issues faced by such institutions as a result of restrictions on transfers of funds under primary and secondary sanctions programmes. Subsequent entries Subsequent articles will focus on US secondary sanctions against Iran and against Russia. The first discusses the potential effects of asset freezes. It points out that, in general, sanctions regimes do not prohibit the submission to arbitration of disputes involving one or more targeted parties. However, sanctions imposing an asset freeze usually prohibit making available to designated persons, directly or indirectly, any assets or economic resources. Hence, it might be unlawful to transfer back the unused portion of an advance on costs, and it may need to be placed in a frozen account instead.
On 20 October, an article from Doughty Street Chambers starts by asserting that the increased use of virtual currency as a payment method brings greater exposure to sanctions risks, whether in respect of UN and trade sanctions or listed individuals and entities. Taking as a starting point recent OFAC advice, it says that although directed to liability in the US, the considerations involved will also inform good compliance practices under the UK autonomous sanctions regime. It says that the advice from OFAC highlights sanctions compliance best practices tailored for the crypto-asset sector applying the 5 essential components of OFAC’s preferred sanctions compliance programme.