In the US and around the world, there is an extraordinary
increase in focus on global compliance, especially in light of
recent changes to the Iran sanctions landscape. The reach of
emerging sanctions programs now extends to a much wider range of
industry sectors, transaction types and companies. This expansion
of sanctions and concern about enforcement is unlikely to recede at
any point in the near term, absent a dramatic intervening event,
such as Iran's development of a nuclear weapon or a military
strike on that country. Accordingly, to mitigate potential
exposure, now is the time for companies to implement global risk
management best practices.
A growing recognition of the danger posed by a nuclear Iran and
the fluid nature of the Iran sanctions environment have
significantly raised the stakes for any company with a potential
nexus to Iran. The nature of risk management has changed in the
wake of recently enacted international and national Iran sanctions
regimes, and the unprecedented regulatory, political, media,
shareholder and stakeholder group focus on adherence to these
sanctions. Addressing this risk requires more expansive
understanding of these dimensions on an enterprise-wide basis,
given the increasing emphasis within the sanctions regimes on both
direct and indirect exposure to Iran or entities doing business in
Iran. Running afoul of Iran sanctions, or being perceived to have
run a foul of the sanctions, carries with it potential
investigations or legal penalties, as well as potential profile
risk to the public image of a company. Violations or perceived
violations also pose business risk that can dissuade consumers and
counterparties, and the risk of policy and political consequences
from government attention.
While legal risk often has a directly measurable financial
consequence, profile risk, business risk, and policy and political
risk can have just as much impact on the bottom line and market
position of a business, even where these other aspects of risk are
not as readily quantifiable. Examples of the consequences of
exposure to these types of risk include Congressional oversight
investigations and hearings, enhanced regulatory supervision, bad
press and negative publicity, and activist shareholders. Profile,
business, and policy and political risk are also manifested through
increased counterparty due diligence. Regulators are actively
approaching private sector parties to identify indirect exposure to
Iran, and seeking support from the private sector in ensuring
sanctions are effective. Having advance warning of these potential
areas of risk (including indirect exposure to sanctioned parties)
is a necessary first step to managing the growing business
In this environment of heightened focus on Iran, it is critical
that companies understand the sanctions landscape: the rules of the
road, enforcement trends, and tools for navigating the current
environment. Much as the creation of FinCEN and post-9/11 changes
to the regulation of financial institutions through the PATRIOT Act
shaped a new compliance posture, the growing awareness of the
danger of a nuclear Iran and the dynamic nature of the Iran
sanctions landscape counsels in favor of a new approach to global
Contractors and banks intending to enter construction contracts or financing transaction for projects in the Middle East are faced with the questions of the application of Islamic Law and the compliance of certain provisions of their contracts with Sharia.
Under the Financial Restrictions (Iran) Order 2012 of 21 November 2012, no UK bank may have dealings with an Iranian bank subject to a number of exceptions where licences will allow payment to be received.
On 23 November 2012, the South African Revenue Service (SARS) published draft legislation for the Automotive Production and Development Programme (APDP) intended for implementation from 1 January 2013.
On 9 June 2010 the UN Security Council extended the scope of its existing arms embargo and restrictions on financial and shipping companies related to proliferation sensitive activities by extending the assets freeze to 40 additional Iranian companies and organisations.
The Standards Organisation of Nigeria (SON) is the government agency responsible for setting and maintaining standards for products imported into and manufactured in Nigeria.
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