Iran Business Symposium Renaissance Hotel, Amsterdam, February 21, - - PowerPoint PPT Presentation

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

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. Transacting with any individual or entity on List of SDN List, List of Foreign Sanctions Evaders,

• r any activity that would be prohibited by non-Iran sanctions administered by OFAC if engaged

in by a US person or in the US

Payment mechanisms

High RRI +25%

L/C 180 days payments

+SM 100 banks India, Korea, China, Turkey, Italy, Switzerland, Japan, Germany

Evolving nature of sanctions

Not just sanctions (money laundering etc)

Reach of US sanctions Internal compliance programs

Training (etc)

Trade Finance and AML

Application of Foreign Laws International Exposure Local Laws

Correspondent Bank A Correspondent Bank B

Payment system Payment system

(Transaction fee) (Transaction fee) Correspondent banking fee) Correspondent banking and FX conversion fee)

Local Laws Compliance policies of Intermediary Banks

Global Pressure

Correspondent Banks Local Banks Local Authorities Clients UE & US

Compliance policies of Intermediary Banks Create and maintain relations with IB Issues of Security, Sanctions and Sovereignty Need to do business Control, monitor, screen and tax money flows/

Strategic Risk Management Compliance Trade Finance Compliance

Circumvent the control designed to detect potentially problematic payments: Wire stripping Non-transparent cover payment Sanctions from fines to losing its $ clearing license Governance and management guidelines Conduct a financial crime risk assessment for trade finance business that gives appropriate weight to money laundering risks as well as sanctions risks. Sufficient policies & procedures to ensure compliance with US sanctions Used non-transparent methods and practices to conduct US operations Sufficient due diligence to ensure that it is not knowingly engaged in transactions with SDN Developing the appropriate policies and procedures Sufficient policies & procedures to ensure compliance with US sanctions AML procedures Training and awareness:

FATF Financial Action Task Force

• n

money laundering

FATCA and CRS Local Country Measures BASLE III IFRS 9

Double Taxation Conventions (DTC)/ Tax Information exchange Agreements (TIEA)

OFAC

Office of Foreign Assets Control

FBAR

(FinCen)- Financial Crimes Enforcement Network

ACAB Act

Best Practices on Trade Based Money Laundering by FATF and principles of Wolfsberg Group

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 Regulatory Compliance Sanctions Tax Evasion Capital Markets Anti-bribery / Corruption Consumer Protection Cybercrime

Cross-border Exposure

Sanctions Goods Parties/Clients Bank considerations Conformity Procedures Documents Control Documents Control Documents Control

Thank You

Adib Y Tohme www.arjan.capital ayt@arjancap.com Partner

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.