Developments in Ukraine have highlighted the continuing need for robust systems and controls when dealing with actual or potential politically exposed persons. Firms should be aware of the possible impact these events may have on patterns of financial activity when they assess risks related to particular customers and flows of funds.
We expect firms to establish and maintain systems and controls to counter the risk they might be used to further financial crime. Firms must also comply with their legal obligations under the Proceeds of Crime Act 2002 and the Money Laundering Regulations 2007.
The regulations related to Politically Exposed Person (Regulations 14(4) and 20(2)) and transaction monitoring (Regulations 8 and 20) are particularly relevant in this context.
We expect firms to consider the impact of these developments on their anti-money laundering policies and procedures in a risk-based manner, and to take the steps necessary to ensure they continue to meet their legal and regulatory anti-money laundering and reporting obligations.
The EU has issued asset freezes against:
- certain members of the former Ukrainian government and their associates. The Treasury has full details of these sanctions
- certain individuals and entities 'in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine'. The Treasury has full details of these sanctions
On 31 July and 8 September 2014 the EU adopted further restrictive measures.
The sanctions are, amongst other things, intended to restrict access to EU capital markets for certain Russian State-owned institutions and impose restrictions on transferable securities (including depositary receipts) issued by a sanctioned entity, or by a legal person, entity or body acting on behalf or at the direction of such a sanctioned entity. Full details of these sanctions are provided on the Treasury website.
The European Commission has published a Commission Guidance Note on the implementation of certain provisions of Regulation (EU) No 833/2014. The full text of the Commission guidance note is available on the Treasury website.
More details on these and all other sanctions can be found on the Treasury website.