Last month today: Sanctions skyrocket as Russia invades Ukraine, US, EU, UK banding together in global coalition, and more – CFCS

By Brian Monroe
[email protected]
March 4, 2022

Here is a recap of the CBCA and outside media coverage, along with links to government and related sites that unfolded in February, with a focus on the sanctions. Enjoy!

ACFCS coverage

Can Russia use crypto to evade sanctions?

An ACFCS interview on emerging risks

In the inaugural interview of the ACFCS Emerging Risks series, we sit down with Ari Redbord, Head of Legal and Government Affairs at TRM Labs, to explore a question of critical importance in the field of financial crime – entities and sanctioned Russian oligarchs use cryptocurrencies to evade asset freezes and move funds?

As the world tightens the financial net on Russia, will bad actors spill over into crypto?

The ACFCS Emerging Risks series features interviews with thought leaders and changemakers tackling the latest challenges and most pressing threats in the field of financial crime.

To see the video, click here.

In a mad scramble to comply with the flurry of new updated US and global Russian designations, don’t forget the tips for implementing five essential components of the sanctions compliance program

As companies try to keep sprinting with the historic degree of staggering sanctions related to the Russia-Ukraine crisis – replete with complex complexities such as updated general licenses, rescinded specific licenses, tempting exemptions and requirements to uncover hidden, opaque owners and slippery subsidiaries – they should realize that they may not be focusing on the biggest risk of all.

What is that? Not having a defined, empowered, and effective Sanctions Compliance Program (SCP) – the heart and foundation of any operation’s combined efforts to monitor blacklisted entities and jurisdictions, prevent them from becoming clients or seizing assets and report them when discovered as sanctions extend and contract.

Why is an SCP so important? Because OFAC has a strict liability standard for sanctions breaches – a single risk potentially costing hundreds of thousands of dollars – and the strength of your SCP is one of the very few things that can reduce or even nullify , your exposure to sanctions which, in recent years, have amounted to billions of dollars.

To read the full story click here.

As Russia knocks Ukraine to the ground, US and EU reluctance to unsheathe sanctions ‘nuclear option’ weakens SWIFT-ly

Russia’s invasion of Ukraine on Thursday, ostensibly to prevent further NATO expansion on the country’s doorstep, has caused the opposite – with allies across the world banding together in a way once thought nearly impossible. .

The United States, the United Kingdom, Canada, the European Union and others, after being reluctant at first, finally unsheathed what many have called the “nuclear option” for sanctions against Russia: removing a “selected” yet unknown number of Russian financial institutions from the Society for Worldwide Interbank Financial Telecommunications, or SWIFT. Why?

“If any of these de-SWIFTed Russian banks want to make or receive a payment with a bank outside of Russia, such as a bank in Asia, they will now have to use the phone or a fax,” an official said. American administration. . “In all likelihood, most banks in the world will simply stop transacting with Russian banks that are removed from SWIFT.”

To read the full story, click here.

As Russia officially invades Ukraine, sanctions, anti-money laundering and cyber risks cascade into global condemnation, uproar

After weeks of bluster and swordplay – and ignoring a cacophony of threats, formal sanctions and condemnations from world leaders – Russia invaded Ukraine on Thursday, sending shockwaves through geopolitical markets, energy and finance.

At the same time, the United States – in partnership with more than two dozen members of the European Union, including France, Germany and Italy, as well as the United Kingdom, Canada, Japan, Australia , New Zealand and others – extended escalating sanctions against Russian financial institutions and entities on Thursday.

The much-watched game of tightrope strategy and now actual military invasion has broad implications for financial crime compliance departments, from the perspective of sanctions compliance, anti-money laundering (AML), reporting duties and cybersecurity defense and resilience and the threat of cyber fraud. vectors.

To read the full story, click here.

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