About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

How to Manage Dual Sanctions Compliance Post Brexit Addition of UK Regime to EU Regulation

Subscribe to our newsletter

Brexit created a number of regulatory compliance challenges for financial institutions in the UK, not least a change to sanctions regulation that is set out in the Sanctions and Anti-Money Laundering Act 2018, and is fundamentally different to EU sanctions regulation. If your organisation falls within scope of the new UK sanctions regime or both the UK and EU regimes, how can you ensure compliance and avoid punitive fines for breaching sanctions?

This question and many more will be answered in A-Team Group’s 11 March 2021 webinar,  The post-Brexit UK sanctions regime – how to stay safe and compliant. Haider Mannan, regulatory specialist at SIX, and a participant in the webinar, notes the need to reengineer systems and processes to ensure UK sanctions information published by the Office of Financial Sanctions Implementation (OFSI)) is ingested, monitored and acted on as necessary by investment firms.

He says: “We now have a dual sanctions process, with two decision points based on two regulatory frameworks with divergent data points. It is a firm’s responsibility to ensure that wherever it is doing business it complies with relevant regulation. In many cases, firms will be affected by both the UK and EU regulations.”

Firms in the EU doing business in the UK will be subject to the UK sanctions regime, while firms in the UK doing business in the EU will be subject to both regimes. Adding to the complexity, firms must carry out ongoing due diligence on all new and existing instruments, whether traded directly or indirectly, to ensure they know who is materially in control of the instruments. “These linkages are very important to deciding whether an instrument is prohibited from trading,” comments Mannan.

With so much at stake, firms need to move on from manual processes used to identify sanctioned securities – which can lead to erroneous decisions, trading sanctioned securities and criminal penalties – to automated services that provide a watertight process of identification. With automated sanctions solutions in place, firms can gain business benefits beyond compliance.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Best practice approaches to trade surveillance for market abuse

Breaches of market abuse regulation can lead to reputational damage, eye-watering fines and, ultimately, custodial sentences of up to 10 years. Internally, market abuse triggers scrutiny of traders and trading behaviours; externally it can undermine confidence in markets and cause financial instability. This webinar will discuss market abuse of different types, such as insider trading...

BLOG

DMI Webinar Preview: How to Maximise the use of Data Standards and Identifiers Beyond Compliance and in the Interests of the Business

Data must be consistent, accurate and interoperable to ensure financial institutions can use it in their investment, risk, regulatory compliance and other processes. Without those attributes, they won’t achieve the efficiencies, surface the insights, action decisions or realise the many other benefits of digitalisation. Identifiers and standards ensure those attributes can be met. The challenge...

EVENT

RegTech Summit London

Now in its 8th year, the RegTech Summit in London will bring together the RegTech ecosystem to explore how the European capital markets financial industry can leverage technology to drive innovation, cut costs and support regulatory change.

GUIDE

Trading Regulations Handbook 2022

Welcome to the third edition of A-Team Group’s Trading Regulations Handbook, a publication designed to help you gain a full understanding of regulations that have an impact on your trading operations, data and technology. The handbook provides details of each regulation and its requirements, as well as ‘at-a-glance’ summaries, regulatory timelines and compliance deadlines, and...