Sanctions Policy of Estratos Digital GmbH
This Sanctions Policy is designed to ensure we comply with applicable sanctions laws.
What are sanctions?
Sanctions are restrictions on activity with targeted countries, governments, entities, individuals and industries ('targets') that are imposed by bodies such as the United Nations (UN), the European Union (EU), individual countries or groups of countries.
Breaching a sanctions regime can constitute an offence under the law
We must not:
Deal with funds or economic resources owned, held or controlled by a target (or where we know or have reasonable grounds to suspect that a target is holding or controlling those funds or economic resources)
Make funds, financial services or economic resources available, directly or indirectly to targets
Make funds, financial services or economic resources available, directly or indirectly for the benefit of targets
Knowingly and intentionally participate in activities that would directly or indirectly circumvent the financial restrictions imposed by the sanctions regime or enable or facilitate the commission of any of the above
Breaching a sanctions regime carries heavy criminal penalties.
2. Sanctions Regime basic elements
Important points to note:
Prevents the use of all financial resources by or for the benefit of a designated person, entity or regime (the target); it is irrelevant that the funds and purpose of the transaction are legal.
Requires a licence from the responsible authority to deal with a transaction involving a target (see Our procedures below).
No tipping-off offences relating to sanctions compliance — the lists of designated persons, entities and regimes are public documents.
No distinction between regulated and non-regulated sectors or activities — the sanctions regime applies to all organisation and all services.
It is important to remember that there is no distinction in the sanctions regime between regulated and non-regulated sectors or activities. The sanctions regime applies to all the services we offer.
3. Responsibility for the Sanctions Policy
The Nominated Officer, Viktor Szigetvári has overall responsibility for this policy. They are responsible for ensuring this policy is adhered to by all staff.
The Nominated Officer, Viktor Szigetvári is responsible for maintaining a register of all reports they receive under this policy (see below: What to do if you think there is a match)
4. Our procedures
We screen all clients on the EU, US and UK sanctions list when there is a reasonable doubt* they may be subject to sanctions. We conduct screening before we:
a. Undertake any work for or on behalf of the individual or entity, or
b. Receive or transfer any funds to, from or on behalf of the individual or entity
EU sanctions: https://www.sanctionsmap.eu/#/main
US sanctions : https://sanctionssearch.ofac.treas.gov/
UK sanctions: https://sanctionssearchapp.ofsi.hmtreasury.gov.uk/
In addition to screening our clients, we follow the above screening procedures for:
a. Directors and beneficial owners of corporate clients
b. Intended recipients of funds in transactional and litigation matters, where we have reason to believe that they may be subject to sanctions
What to do if you think there is a match
Any potential match identified through our screening process must be properly investigated before we can take any further steps.
You are responsible for reporting any potential matches immediately to the Nominated Officer.
The Nominated Officer will investigate whether there is an actual match and liaise with the authorities. In case of a potential match no further action should be taken to conclude any contract or transaction with the client concerned.
Where there is a positive match against the sanctions lists we will:
Decline to act
Cease to act
Inform the authorities
Apply for a licence for the target where appropriate. Note that if we have already received funds from the target we will need a licence in any event to deal with those funds
It is not for you to decide whether there is a positive match and if so, whether we should act. Your responsibility is simply to inform the Nominated Officer.
Where you are concerned that:
Your matter involves a target, or
Someone has committed an offence under a sanctions regime
You must raise your concern with the Nominated Officer.
Remember, there are no tipping-off offences in the sanctions legislation—the lists of targets maintained by the public authorities are public and complete.
We will not therefore commit an offence if we tell our client that we are obtaining a licence or that we will not act for them because they are on the sanctions list.
The Nominated Officer will advise you on communicating with the client in the event that a sanctions issue is raised.
*“Reasonable doubt” or suspicion is defined and understood within this Policy as a feeling or thought that the concrete client may be subject to sanctions is possible, likely, or certain based on facts, information and/or intelligence, such as, but not limited to, geographical location or status, or any other justifiable reason that would lead any reasonable person to the same conclusion.
All staff will receive training to understand this policy and new joiners will receive this policy as part of the induction process.
Further training will be provided at least every two years or whenever there is a substantial change in the law or our policy and procedure.
Training will cover:
The law relating to the sanctions regime
Our sanctions policy and procedures
6. Monitoring and review
Compliance with this policy will be continually monitored.
We will review this policy at least annually as part of our overall risk management process.
We will also review this policy if:
There are any major changes in the law or practice
We identify or are alerted to a weakness in the policy
There are changes in the nature of our business, our clients or other changes which impact on this policy
7. Consequences of non-compliance
Failure to comply puts both you and the company at risk.
You may commit a criminal offence if you fail to comply with this policy. The law relating to sanctions carries severe penalties.
We take compliance with this policy very seriously and because of the importance of this policy, failure to comply with any requirement may lead to disciplinary action under our procedures, which may result in dismissal.
If you have any questions or concerns about anything in this policy, do not hesitate to contact the Nominated Officer.
Nominated Officer: Viktor Szigetvári