US compliance experts discuss US sanctions, the case of Russia and the critical work of bank compliance units

The imposition of international sanctions is one of the most important tools in the modern geopolitical scene.

Although sanctions have the potential to act as a deterrent and put pressure on countries or organisations to comply with international norms, their implementation faces serious weaknesses and challenges.

A roundtable discussion entitled "International Sanctions Enforcement" at the 10th International Compliance Forum in Nicosia provided an overview of what is currently happening in the world of compliance amid sanctions against Russia.

The discussion was moderated by Marios Skandalis, Chief Compliance Officer - Bank of Cyprus Group, Chairman, Cyprus Integrity Forum, and joined by panelists Marshall S. Billingslea, Former Assistant Secretary, The United States Department of the Treasury, Senior Fellow, Hudson Institute; and Iris Pilika, Senior Compliance Officer, U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC).

Billingslea said sanctions are not a substitute for strategy. Rather, they must be part of a collective effort that includes diplomacy. But he stressed that sanctions must be imposed, and the authorities must be aggressive in doing so.

According to the US official, banking professionals should be able to detect any commercial moves aimed at potentially financing Russia’s war against Ukraine.

Pilika focused on the sanctions against Russia specifically and the restrictions imposed on the country.

She spoke of legal amendments needed whenever the situation is reviewed and discussed instances where, in retrospect, it appeared that Russia was seeking to raise revenue to bolster its military power in the context of the invasion of Ukraine.

Changes are also being made to the guidelines for the application of sanctions to organisations, based on the developments, which Pilika also made a brief reference to.

2024 marks a very special year for the International Compliance Forum as it celebrates its 10th anniversary with a prestigious event that has brought together the greatest professionals in the field.

The Compliance Forum, which has established itself as the leading forum for compliance issues in Cyprus, has attracted more than 400 participants from Cyprus and abroad.

Experts from globally recognised organisations, such as the Office of Financial Sanctions Implementation (OFSI) and the US Office of Foreign Assets Control (OFAC), arrived in Cyprus to share knowledge, views and developments.

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