Sanctions

IPA Insolvency Practitioner newsletter AML Digest, November 2022

Contents

• David Holland, Chief Inspector and IPA Money Laundering Reporting Officer
• AML 2021/22 Annual Report and 2022/23 Sector Risk Assessment
• Awareness of CEO fraud and impersonation frauds
• Amendments to the 2017 Money Laundering Regulations
• SARs Reporter Booklet
• Ongoing monitoring and review of a business relationship – Reg 28(11) Money Laundering Regulations 2017
• Accountancy AML Supervisors’ Group alerts
• SAR Reform Programme
• SAR Glossary Codes
• Renewals
• Supervisory work for 2022/23
• ISS AML training and IPA Learning

The sanctions regimes are moving at pace – with OFSI publishing new sanctions against individuals in response to the situation in Ukraine on an almost daily basis. The Russia (Sanctions) (EU Exit) (Amendment) (No.14) Regulations 2022 came into force on 21 July 2022. This followed on from the 13^th amendment on 18 July 2022.  The UK government has indicated it will continue to issue new sanctions. This will inevitably increase the risk that one of an IP’s existing appointments, or prospective clients, may be hit by sanctions. It is important that you are alert to the risks and behaviours that may result. Those who have already been sanctioned, or fear they will be next, may be attempting to disguise ownership of assets held in the UK/EU and US. It is important to cast a critical eye over your existing portfolio of appointments to identify patterns of behaviour that may suggest that assets are, or have been, restructured to avoid sanctions. Be alert to the risk that new clients may approach you for help in restructuring their asset portfolio.

If dealing with US$ transactions, IPs need also to be aware of the reach of OFAC and the recent court case relating to the wind down of VTB Capital plc.  

The risks of non-compliance with sanction is exceptionally high, with fines and or imprisonment. The IPA expect its IPs to be able to demonstrate evidence of systems and procedures for sanctions checking in relation to appointments, transactions and distributions.