Find out why businesses are scrambling for sanctions compliance advice!

As the world navigates through the complexities of sanctions and compliance advice, the surge in demand for monitoring services is palpable. The recent escalation in tensions due to the war in Ukraine has led to a significant rise in the need for screening services. The implications of sanctions on investments are far-reaching, and financial institutions are scrambling to stay ahead of the curve.

Here are some key points to consider in understanding the current landscape of sanctions monitoring and compliance advice:

• The SIX Sanctioned Securities Monitoring Service has seen a sharp increase in demand for its services, indicating a growing concern in the industry.
• More than 10,000 ETFs are being assessed by the service, with 7.7% of them found to include sanctioned securities.
• The complexity of assessing exposure in ETFs is highlighted by the varying rules and regulations across different jurisdictions.

Navigating the intricate web of sanctions can be challenging for both issuers and investors:

• ETF issuers must stay abreast of sanctioned securities not just in their own jurisdiction, but also in the jurisdictions of their investors.
• Investors need to ensure they are not breaching any regulations by investing in funds that hold sanctioned securities.

The implications of sanctions can be severe, with potential legal consequences:

• Different jurisdictions have varying standards when it comes to sanctions violations, making it crucial for all parties involved to conduct thorough due diligence.
• The penalties for sanctions violations can be significant, as exemplified by the case of EFG International.

In conclusion, the landscape of sanctions monitoring and compliance advice is evolving rapidly, and stakeholders must be proactive in mitigating risks. The repercussions of sanctions violations can have lasting effects on investments and financial institutions. It is imperative for asset managers and investors to have a comprehensive understanding of the regulatory environment to safeguard their interests. Vigilance and diligence are paramount in navigating the complex world of sanctions compliance.