SANCTIONS COMPLIANCE: PROBLEMATIC ISSUES OF REGULATORY FRAMEWORK ADEQUACY

The article discusses the actual problems of exercising sanctions compliance in the banking sector in Russia and foreign countries based on Russian legislation, legislation of foreign countries and international law along with controversial issues, connected with the necessity of internal regulations management and its actualization. As the history of such a procedure does not appear to be rich, there exists a list of problematic issues in this sphere to remain understudied which predetermined the writing of this article. The present article highlights both theoretical aspects related to the need to improve domestic as well as international legislation in the context of formalizing a number of definitions, in particular, such as “international sanctions”, “restrictive measures”, “sanctions compliance”, “principle of extraterritoriality” and practical issues related to the provision of recommendations for financial organizations to improve internal documentation, as well as recommendations to further improve the internal processes of the organization in the context of the actual implementation of the rules and regulations declared in the local regulations of financial organizations in reality. It is proposed to improve local regulations of financial organizations with account of international practice which includes the practice of international bodies initiating sanctional restrictions. International bodies provide clarifications which contain certain principles proposed to be implemented in the internal documentation of financial organization so that such documentation could comply not only with the domestic, foreign and international legislation, but also with the conventional standards and practice. The provided theoretically grounded recommendations are proposed for inclusion in the internal documentation not only of financial organizations operating in the Russian Federation, but also for foreign financial organizations which operate globally.

sanctions, special economic measures, international sanctions, compliance control, sanctions compliance, extraterritoriality, OFAC of the USA, IRS of the USA, financial organizations, banks, IRR.

Daradonov K. V. Sanctions compliance: problematic issues of regulatory framework adequacy. Business. Education. Law, 2021, no. 2, pp. 263—268. DOI: 10.25683/VOLBI.2021.55.280.