Challenges Posed by New Sanctions
SIX’s Oliver Bodmer discusses difficulties companies face in navigating compliance matters associated with the flurry of U.S. sanctions posed this year. He shares insights in particular on challenges within the M&A space, as well as on the complexities when pursuing and closing transactions with companies with unique holdings.
We’re only part of the way through 2018, but this year has already presented a whirlwind of challenges for sanctions compliance. So far, the U.S. Treasury has announced sanctions on six of the 92 powerful Russian oligarchs originally identified under CAATSA section 241 as potentially sanctioned individuals, as well as additional sanctions following the alleged cyber hacking of the U.S. presidential election. The complications are felt across the board, but perhaps most keenly by the teams attempting to broker mergers and acquisitions who will no doubt be seeing levels of necessary due diligence sky rocket.
Governments find sanctions to be effective foreign policy tools for targeting powerful institutions, corporations and individuals operating in specific economic sectors of any given country. But global financial institutions say complying with the proliferation of U.S. sanctions activity is burdensome and demanding. Compliance…
