Iran Business Symposium Renaissance Hotel, Amsterdam, February 21, 2017 Adib Y Tohme Arjan Capital, Partner
We deliver clarity Navigating banking, trade finance and payment with Iran
Photo: Art Konovalov / Shutterstock.com
We deliver clarity
Sanctioned activities Transacting with any individual or entity on List of SDN List, List of Foreign Sanctions Evaders, or any activity that would be prohibited by non-Iran sanctions administered by OFAC if engaged in by a US person or in the US Engaging in the trade of certain services and goods involving Iran that are subject to US export control (technology 20% US source) Transferring funds to, from, or through the US financial system Transacting with any military, paramilitary, intelligence, or law enforcement entity of the Government of Iran Any activity that is sanctionable in relation to proliferation of weapons of mass destruction and their means of delivery, including ballistic missiles, international terrorism, Syria, Yemen, Iran s commission of human rights abuses against its citizens Any nuclear activity involving Iran that is subject to the procurement channel that has not been approved through the procurement channel process.
Payment mechanisms +SM 100 banks India, Korea, China, High RRI Turkey, Italy, +25% Switzerland, Japan, Germany Evolving nature of Trade Finance sanctions and AML Internal compliance Training Not just programs (etc) sanctions (money laundering etc) L/C Reach of 180 days US payments sanctions
Payment Payment system system (Transaction fee) (Transaction fee) Correspondent Bank A Correspondent Bank B Correspondent banking and FX conversion fee) Correspondent banking fee) Local Laws International Exposure Application of Foreign Laws Local Laws Compliance policies of Intermediary Banks
Correspondent Compliance policies of Banks Intermediary Banks UE & US Local Banks Control, monitor, Create and maintain Global screen and tax relations with IB money flows/ Pressure Local Clients Authorities Need to do business Issues of Security, Sanctions and Sovereignty
Strategic Risk Management Compliance Trade Finance Compliance Sufficient policies & procedures to ensure Training and awareness: compliance with US sanctions AML procedures Sufficient due diligence to ensure that it is not knowingly engaged in transactions with SDN Governance and management guidelines Used non-transparent methods and practices to conduct US operations Conduct a financial crime risk assessment for trade finance business that gives appropriate Circumvent the control designed to detect weight to money laundering risks as well as potentially problematic payments: sanctions risks . Wire stripping Non-transparent cover payment Developing the appropriate policies and procedures Sanctions from fines to losing its $ clearing license Sufficient policies & procedures to ensure compliance with US sanctions
FATF Financial OFAC Action Task Force Office of Foreign on Assets Control Best Practices on money laundering Trade Based Money ACAB Act Laundering by FATF and principles of Wolfsberg Group FATCA FBAR and (FinCen)- Financial Crimes Enforcement Network CRS Local Double Taxation Country Conventions Measures BASLE III (DTC)/ Tax Information exchange Agreements IFRS 9 (TIEA)
Automatic Exchange of Information Local Laws AML/CTF/Anti -Corruption Bilateral Treaties Extra-territorial Laws and Sanctions (OFAC/Fin Cen) CRS-FATCA (Residents- Citizens) Global State Law At the International Level- OECD- Global Forum - FATF - FSRB
Scope of Compliance AML / Terrorism Financing/Trade Finance Sanctions Regulatory Compliance Goods Sanctions Parties/Clients Tax Evasion Cross-border Exposure Bank considerations Capital Markets Conformity Procedures Anti-bribery / Corruption Documents Control Consumer Protection Documents Control Cybercrime Documents Control
These are presentation slides only. The information within these slides does not constitute definitive advice and should not be used as the basis for giving definitive advice without checking the primary sources. Adib Y Tohme www.arjan.capital Partner ayt@arjancap.com Thank You
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