Alan M. Dunn, a partner with the Washington, D.C. based international trade law firm of Stewart and Stewart, recommends frequent review of relevant government lists of sanctioned entities to ensure that business dealings do not involve sanctioned persons
President Obama’s March 6th executive order authorizing economic sanctions related to Ukraine, targeting persons who undermine Ukrainian democratic processes and institutions, was unusual in that it did not name any specific individuals or organizations, according to a former assistant commerce secretary.
“Instead the sanctions were a warning to individuals and entities subject to U.S. jurisdiction doing business with Ukraine, Russia, or individuals in those countries,” said Alan M. Dunn, a partner with the Washington, D.C.-based international trade law firm of Stewart and Stewart. “In light of this, we recommend frequent review of relevant government lists of sanctioned entities to ensure that business dealings do not involve sanctioned persons.”
A former U.S. assistant secretary of commerce who focuses on import and export control issues, Dunn said there are two government lists those who might be affected by the sanctions should monitor:
- the Treasury Department’s SDN List (http://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/default.aspx) and
- the Consolidated Export Screening List (http://export.gov/ecr/eg_main_023148.asp).
“In light of the implication that there will be persons named under the new executive order, companies should regularly check these lists to make sure persons with whom they are doing business have not become subject to sanctions,” Dunn said.
In addition, a recent Treasury Department advisory reminds financial institutions that they have ongoing obligations to implement a due diligence program and to monitor, detect, and report suspicious transactions relating to senior foreign political figures, including former Ukrainian President Yanukovych and other former Ukrainian officials, that may involve funds derived from corruption or other illicit activity, Dunn said.
The President’s sanction were issued pursuant to the International Emergency Economic Powers Act and other statutes.
Dunn said, "The U.S. is targeting specific persons who threaten Ukraine’s peace, security, stability, sovereignty, and territorial integrity, including misappropriating assets from Ukraine. The order authorizes blocking the assets of persons, making the individuals ineligible for visas and blocking donations by, to, or for their benefit."
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