In reaction to recent positive signals about a relaxation of international sanctions on Iran, John Westlake, Compliance Manager at Moore Stephens, urges insurance firms to remain vigilant in avoiding sanctions violations or risk facing severe penalties.
"The potential relaxation of a number of existing sanctions against Iran is a promising move for the London Insurance Market which is exposed to a high risk of violation. However, with talks still at early stages and the exact timings very much dependent of the length of the legislative process, insurance firms who might be at risk of sanctions violations should not lose focus on mitigating their exposure.
“Insurance firms have come under increasing scrutiny by regulatory authorities in recent years to ensure they are taking adequate steps to avoid violating sanctions. Violation can result in severe penalties, including imprisonment, as well as regulatory enforcement actions against companies and individuals.
“No insurance firm is free of the risk of sanctions violation, and firms should ensure that they have robust controls in place to mitigate this. It is imperative that boards of all firms have the issue on their radar, ensuring they know how their business is controlling the risk of violating sanctions, and by addressing areas where improvement is required, even if news from Iran continues to be optimistic.”
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