Identifying securities related to a sanctioned domicile or company is a straightforward concept, but in practice, it is a far more challenging task for compliance professionals.
Receiving a list of sanctions isn’t enough. In order to accurately define and maintain your ‘do not trade’ list, you need to identify all the securities related to each sanctioned entity – including those issued by domestic or foreign subsidiaries. Then there is the challenge of verifying beneficial ownership by sanctioned individuals.
Getting it right is essential to avoiding significant fines and reputational damage, but also enables you to confidently exploit investment opportunities in non-sanctioned securities.
In this webinar we will discuss:
-Issues and challenges involved in building and managing lists of sanctioned securities
-Approaches to getting it right and ensuring you’re in compliance with global sanctions regimes
-Tactics for reducing data errors and avoiding fines related to sanctions violations
3. FROM
DataManagementReview.comNovember 15, 2016
Panel Member: David Savage, Senior Associate, Fraud and
Investigations Group, Eversheds LLP
Areas of Expertise:
• Advising global financial institutions on sanctions policy
and procedure
• Acting for shipping agencies, charterers and global
logistics companies in respect of their obligations pursuant
to various sanctions regimes
• Advising numerous entities on the commercial and legal
impact of the relaxation of Iranian sanctions
• Co-author of the Eversheds Global Sanctions Guide that
covers more than 75 jurisdictions
4. FROM
DataManagementReview.comNovember 15, 2016
Panel Member: Sean Friedly, Senior Manager, Head of
Financial Crimes Management Governance, Raymond
James Financial
Areas of Expertise:
• As a consultant for EY, performed independent
assessments of sanctions programmes at the direction of
various federal regulators
• As Raymond James’ Sanctions Officer, designed and
implemented an enterprise-wide economic sanctions
programme including sanctioned securities controls
• Responsibility for enterprise-wide governance of all
financial crimes management areas
5. FROM
DataManagementReview.comNovember 15, 2016
Panel Member: Alexander Dorfmann, Senior Product
Manager, SIX Financial Information
Areas of Expertise:
• Responsible for implementing an EGRC framework
• Consulting banks on implementing processes, organisation
and solutions to be compliant with regulatory standards on
governance and compliance, especially focusing on
financial crime and sanctions monitoring
• Accompanying students and leading research studies both
on technology and data analytics solutions specialising on
financial crime, fraud and sanctions monitoring
6. FROM
DataManagementReview.comNovember 15, 2016
A review of economic sanctions and what they typically cover
Sanctions specific to financial institutions and penalties for breaches
Challenges of identifying securities related to sanctioned entities
Solutions to identifying securities related to sanctioned entities
Maintaining an accurate and timely list of ‘do not trade’ securities
Best practice processes to ensure exceptions management
Benefits of successfully complying with global sanctions regimes
A forecast of how sanctions could develop over the next few years
Talking Points
7. FROM
DataManagementReview.comNovember 15, 2016
Why are economic sanctions imposed on
countries, companies and individuals, and
what can they cover?
The Office of Financial Sanctions
Implementation (OFSI) helps
ensure financial sanctions are
understood, implemented and
enforced in the UK Kingdom
9. FROM
DataManagementReview.comNovember 15, 2016
What are the potential penalties for financial
institutions that breach sanctions?
US Government Accountability Office,
April 2016: Since 2009, financial
institutions have been assessed at
about $12 billion for fines, penalties,
and forfeitures for violations of financial
crimes and sanctions requirements
12. FROM
DataManagementReview.comNovember 15, 2016
Challenges in identifying sanctioned securities
• Identifying the global authorities issuing sanctions directives
• Dedicating resources to consolidate and clean the official lists
• Discovering all securities related to sanctioned issuers and beneficial
owners
• Pinpointing the regimes under which each security is sanctioned
• Identifying daily changes
13. FROM
DataManagementReview.comNovember 15, 2016
How do firms typically respond to these
challenges?
US Department of the Treasury:
Office of Foreign Assets Control
(OFAC) encourages firms operating in
the securities industry to implement
measures that mitigate the risk of
providing services to parties subject to
US sanctions
15. FROM
DataManagementReview.comNovember 15, 2016
SIX Sanctioned Securities Monitoring Service
Sanctioned Securities Monitoring Service
Identify sanctioned domiciles, entities & persons
Daily list of issuers and securities linked to the domiciles,
companies and individuals sanctioned by the UN, EU, US
Treasury Department OPAC, HM Treasury and Hong Kong
Sanctions Regime.
>20 million
global financial
instruments
Domicile, entity &
beneficial owner
data
UN, EU, US, UK and Hong Kong
sanctions regimes
Automated matching,
validation & cleansing
22. FROM
DataManagementReview.comNovember 15, 2016
Upcoming A-Team Group Webinars
November 22nd
Shareholding
disclosure: Are
financial firms
on top of this
regulatory
challenge?
December 1st
How to establish
a sustainable
solution for data
lineage
December 6th
The missing
piece of the data
governance
puzzle
Visit webinars section of DataManagementReview.com
