Evolving Sanctions Regimes and Their Impact on Global Business
DLA Piper partners and leading voices on global sanctions – John Forrest (head of international trade in the London office) and Ignacio Sanchez (chair of the firm’s national security and global trade group in Washington, DC) – discuss how the legal and regulatory framework of sanctions is affecting global business and what clients can do from their side. Patrick Rappo (global co-chair of compliance and investigations at DLA Piper in London) hosts the discussion.
Ignacio Sanchez
Businesses in the USA, UK and EU have no choice but to keep abreast of the many sanctions restricting trade and investment globally and to ensure that they comply fully with these restrictions, as the penalties for not doing so are extremely high.
John Forrest describes sanctions as being one of the top three risk areas for clients looking to trade and invest. Ignacio Sanchez quotes US Deputy Attorney General Lisa Monaco’s comment that “sanctions are the new FCPA [Foreign Corrupt Practices Act]”, explaining that those in the USA who do not comply with sanctions will soon face not only penalties, but also criminal enforcement.
...those in the USA who do not comply with sanctions will soon face not only penalties, but also criminal enforcement.
Many clients who engage in M&A deals discover, too late, that the firm they are merging with does business with companies in countries that are under embargo. To prevent this from happening, firms in the USA are now expected to do due diligence checks in advance of starting M&A negotiations.
Another way that firms can protect themselves is by running through the 5P check – the place, people, purpose, products and payments involved in any deal should be closely scrutinised before signing an agreement.
To find out more, listen to the podcast.
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