News

Carry out proper due diligence on partners in high-risk countries

02 June 2021

HM Treasury amended the money laundering regulations in March in order to implement a new list of high-risk third countries (schedule 3ZA). The full list can be found on the Government's website. This change is a recognition of the Financial Action Task Force's list of jurisdictions with strategic deficiencies.

For clients or counter parties 'established in' these countries, you must undertake enhanced due diligence in compliance with the specific requirements of regulation 33(3A).

Changes to the UK's International Sanction regime?

The UK has recently implemented significant changes to its international sanctions regime. It is illegal to provide prohibited services to these individuals and organisations without a licence from the Office of Financial Sanctions Implementation (OFSI). Prohibited services usually include any financial transactions.

A new set of sanctions centred around asset freezes and travel bans have been introduced on 22 individuals under the Global Anti-Corruption Sanctions Regulations 2021. The individuals on this list are mainly associated with specific events in Russia and South Africa. Other individuals with ties to South Sudan, Nicaragua, Honduras and Guatemala are also featured.

The best way to keep up to date with current sanctions is to consult the consolidated sanctions list published by HM Treasury and keep up to date with guidance on the OFSI website.