The events unfolding over the last few days in the Ukraine are alarming on every level. The humanitarian impact of Russia’s actions is visible on every news channel and being uploaded onto social media in growing opposition to Putin’s actions.
The response from the West and other countries around the world is to impose an “economic war” on Russia via an unprecedented number of economic sanctions. Although Russia is already under sanctions from the EU and the US, these recent sanctions are more wide-reaching and cover: Banks and financial institutions; individuals including associates of the Russian President Vladimir Putin; oligarchs; industry and transport, exports and sporting events. Furthermore, the UK has imposed a £50,000 limit on bank accounts held by Russian nationals in the UK.
Due to the seriousness of this situation, and increasing condemnation of Putin’s regime it is imperative when having any dealings with Russian companies that Due Diligence (DD) is undertaken on the company/partners/suppliers. DD can ensure that Russian business partners are not affected by any sanctions and crucially, ascertain if they are linked in any way to any key personnel in Putin’s regime. Failure to be diligent with these checks could impact both financially through fines imposed as well as compromise the reputation of your business, possibly making it a target of any backlash against cooperation with Putin’s Russia. To claim ignorance of any business partner’s interests is not enough. The Office of Financial Sanctions Implementation (OFSI) is getting tougher on those in breach of sanctions and the onus is on every business to know who they are dealing with.
Please Contact us for further information on our due diligence services.
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