In June, the State Department published the draft International Sanctions Bill. With this bill, the government intends to replace and modernize the current Sanctions Act 1977.
From DUFAS, we recognize the importance of effective sanctions measures to protect international peace and security and stress the importance of proper legal enshrinement. For this reason, we submitted a response together with our members on August 9.
Coherence bill
In our response, we call attention to the consistency between the International Sanctions Bill, the 1977 Sanctions Act and the AML package. It is unclear why the Sanctions Act 1977 remains in force temporarily. We therefore advocate concentrating the relevant legislation as much as possible in one law, which seems more logical and orderly.
Administrative enforcement
We support the introduction of administrative enforcement alongside criminal enforcement and see that this will improve the effectiveness and proportionality of sanction compliance. However, it is essential that the disclosure of administrative sanctions be accompanied by appropriate safeguards. Regarding the new special enforcement powers, we note that financial institutions (Sanctions Act institutions) need clear guidance on how to deal with relationships covered by these powers.
Linking sanctions to public records
As DUFAS, we strongly support the addition of notes in public records that indicate whether there is a connection between a sanctioned natural person, legal person, entity or body and the registered object. These annotations increase awareness of sanctions and help gatekeepers meet their obligations.
Central Sanctions Compliance Hotline
In addition, we support the proposed central reporting point for sanctions compliance and emphasize that it can effectively resolve the current lack of clarity on where reporters should submit their information.
Adjustment supervision business operations
Finally, we underline the importance of involvement in the further development of business conduct rules under the European AML/CFT package, given the potential operational impact for the industry.
