Law Society Guidance Sanctions

On September 30, 2022, the British government introduced a new sanctions package after Russia declared the illegal annexation of four regions of Ukraine, violating their territorial integrity and political independence. Call the practice consultation on 020 7320 5675 or envoyez-practiceadvice@lawsociety.org.uk an email. This article is compiled by the Law Society`s Practice Advisory Service. Comments on questions should be directed to practiceadvice@lawsociety.org.uk. For the purposes of section 46(1) of the 2007 Act, the term `practitioner` (against whom the penalties provided for in section 42ZA of the 1980 Act may be imposed) includes a solicitor, irrespective of whether he held a lawyer`s certificate in force on that date and notwithstanding the fact that, after that date, the name of the Solicitor has been removed or removed from the list, or the Solicitor has ceased operations or has been interrupted by the suspended Panel. It follows that the Sub-Committee on Professional Conduct may, where appropriate, impose sanctions on the UPC on a solicitor, whether or not the solicitor remains registered as such at the time of the Sub-Committee`s decision, provided that the solicitor was registered at the time of the UPC for which the Sub-Committee seeks to impose a sanction. It`s hard to simply categorize customers who may need to be screened by their nationality or country of residence. UK nationals and residents may be on sanctions lists, so you may be at risk even if you only work for local clients. In addition, there is a broader restriction; Practices must not „knowingly and intentionally engage in activities that would directly or indirectly circumvent financial restrictions or enable or facilitate the commission of sanctionable offences” The restrictions apply to a wide range of legal activities, both within the scope of the Anti-Money Laundering Regulation and outside the scope of the Anti-Money Laundering Regulation.

Examples of unregulated work that may affect the sanctions regime include: You can discuss the person`s sanctioned status with them without having to worry about a tip, as the sanctions list contains public information. There may be circumstances in which a report to the national competition authority is not required. For example, a person on the sanctions list may be suspected of terrorist involvement, but may not have benefited from or participated in these activities. The appeal to the SSDT against the penalty imposed is in any event competent both by the complainant (under Article 42ZA (10) in respect of a decision not to award compensation, or in respect of Article 42ZA (11) in respect of the amount of compensation awarded) and by the lawyer (pursuant to Article 42ZA paragraph 9(b) in respect of one of the penalties imposed on it). The Subcommittee should bear in mind that it is therefore essential that the reasons for imposing a sanction and the nature and amount of the sanction be fully explained and recorded. The sanctions regime imposes severe and far-reaching restrictions on the treatment of individuals or entities on the list of „designated persons”. Failure to comply with penalty requirements is a serious criminal offence that may result in criminal prosecution or a significant fine. You can stay informed of changes to the sanctions list by subscribing to OSFI`s website. In addition to OSFI`s reporting requirements, you should check if you suspect money laundering or terrorist financing that requires reporting to the National Crime Agency (NCA) and you can find more information and advice on our website.

The last point is important because the sanctions regime applies in addition to the reporting requirements under anti-money laundering and anti-terrorist financing legislation, including the 2011 regulations. For example, you need to consider whether you want to apply enhanced due diligence measures when dealing with a high-risk person or company from a third country. Read HM Treasury`s guidelines for obtaining a license to transact with or on behalf of financially restricted individuals or entities. The imposition of sanctions from the available spectrum should itself be specifically considered as follows: If you are at high risk of trading with clients on the sanctions list, you should also have processes in place to help you determine whether the primary beneficial owners or intended recipients of funds from a transaction you make are subject to restrictions. Our committee advises on all matters relating to anti-money laundering and sanctions. Phone: 020 7320 9544 Email: aml@lawsociety.org.uk Opening hours: 9am to 5pm, Monday to Friday Since the introduction of severely restrictive sanctions against Russian interests, law enforcement authorities have identified cases where current and future sanctioned persons or entities have appointed or transferred ownership of assets to non-sanctioned parties in order to circumvent sanctions restrictions. Take a look at the SRA`s guidelines on conflict and sanctions in Russia, Sir Thomas Bingham MR set out the Court`s view that „any lawyer who can prove that he has performed his professional duties with less than complete integrity, integrity and reliability will be subject to severe sanctions imposed by the SDT”. She noted that while a sanction imposed may contain a punitive element, since „. A sanction may be imposed on a lawyer. To punish him for what he has done and to deter any other lawyer tempted to behave in the same way”, a sanction is often not intended to be punitive, and the sentence is not appropriate at all in certain circumstances, for example where a criminal sanction has already been imposed and enforced. There are also lists of plans subject to financial penalties that can be useful in assessing risks. The U.S.

Office of Foreign Assets Control maintains sanctions lists, and there are regimes that are not on the U.K. list but may apply to your practice. The government has imposed a series of sanctions against Russia in response to the situation in Ukraine. Read our advice on the UK diet to find out what steps you and your business need to take to maintain and protect the reputation of the profession. If a customer appears as a possible sanction match, you should check all the customer identity information you have against the sanctions list to make sure you don`t have a false positive. The UK sanctions list contains information on: You can compare individual customers to sanctions lists. If your company has a low overall risk of working for clients on the sanctions list, but individual clients have higher risks, you can compare directly to the consolidated Treasury list by pressing Ctrl + F to search the page.