Passport to Proficiency on U.S. Economic Sanctions - DS

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EARN CLE/CPE CREDITS

CALENDAR-ALT February 2–25, 2022 (EST)

Virtual Series

U.S. ECONOMIC SANCTIONS Join this immersive, practical 4-week Economic Sanctions masterclass

Your 1 Month Passport to U.S. Economic Sanctions Proficiency:

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Convenient and easy-to-follow: 4 weeks, 2 sessions/week

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Build your network and meet your sanctions peers

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Flexible schedule for attendance in multiple time zones

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Substantive, speaker-prepared resource materials

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7 in-depth modules, 24 hours of professional development

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Hands-on practical sessions using hypothetical scenarios

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8 session recordings for future reference

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Actionable takeaways for your work

Certificate of completion & CLE credits

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Dedicated Q&A sessions with expert faculty

AmericanConference.com/Proficiency-Sanctions • 888 224 2480

Real-World Guidance with Leading Sanctions Experts from: y Bank of the West y Carrier Corporation y eBay y HSBC USA y Interactive Brokers y LyondellBasell y Qurate Retail Group

Part of ACI’s PROFICIENCY SERIES


ECONOMIC SANCTIONS DEEP DIVE Your Building Blocks for Economic Sanctions Proficiency WEEK ONE: February 2 & 4

WEEK TWO: February 9 & 11

WEEK THREE: February 16 & 18

WEEK FOUR: February 23 & 25

Your U.S. Economic Sanctions Roadmap — Key Concepts, Agencies, Their Jurisdictions and Roles — and Who to Contact for What

A Deep Dive into Russia and Iran Sanctions

Deciphering More Country-Specific Sanctions Restrictions: Cuba, Venezuela, Syria, North Korea, Afghanistan, Belarus

How to Submit an Application to the OFAC Licensing Division: Practical Guidance for Preparing Your Submissions

The Essentials of an Effective Sanctions Compliance and Screening Program

A Comprehensive Discussion of the New China Blocking Statute and Recent OFAC Guidance

Compliance Weaknesses and Penalties Under the Microscope: Lessons from Key and Recent Enforcement Actions

Review of Proficiency Assignment and Q & A

Professional Development to Help You Succeed on the Job Your Blueprint to Proficiency: Immersive and Practical

Connect: Build Your Network and "Brain Trust"

y Interactive format that encourages dialogue with attendees and speakers

y Build Your “Brain Trust” by connecting with likeminded professionals

y Convenient and easy to follow: Fits around your schedule, 2 times per week in easy-to-follow blocks focused on what you really need for your work

y Develop your sounding board and global network of community peers

Real Life, Not Textbook

y Access a highly respected, diverse faculty with verified subject-matter expertise and track records y Join dedicated Q&A sessions with expert faculty

y Expert speakers will take you through concrete experiences and “war stories” y Actionable takeaways for your work: Sharpen your knowledge and skills for success on the job

WHO SHOULD ATTEND? Vice Presidents, Directors, Managers and Counsel working in y OFAC Compliance

y Regulatory Compliance

y Global Sanctions

y International Trade

y AML

y International/Global Compliance

y Financial Crime

2 | #SanctionsProficiency

Outside Counsel Specializing in y y y y y

Economic Sanctions OFAC International Trade Financial Services AML and Financial Crime

twitter: @ACI_IntTrade @ACI_Sanctions linkedin: ACI: Economic Sanctions Compliance and Enforcement Exchange


EXPERT INSTRUCTORS

Real-Life Benefits of Attending:

Rachel Alpert Partner Jenner & Block LLP

Margaret Mousoudakis Assistant Compliance Officer LyondellBasell

Cristina Brayton-Lewis Partner White & Case LLP

Jeanette Miller U.S. Head of Sanctions Risk HSBC Bank USA

Donna Brown Director of Ethics & Compliance Qurate Retail Group

David Mortlock Partner Willkie Farr & Gallagher LLP

Darshak Dholakia Partner Dechert LLP

Robert Slack Partner Kelley Drye & Warren LLP

Maeva Donlin Senior Manager, Sanctions Compliance, VP Bank of the West

Rachelle Sorg Associate General Counsel AML & Sanctions Interactive Brokers LLC

Erich Ferrari Founder Ferrari & Associates

David Stetson Partner Steptoe & Johnson LLP

Annie Simpson Froehlich Director and Senior Counsel, Sanctions and Export Carrier Corporation

Nabeel Yousef Partner Freshfields Bruckhaus Deringer LLP

AmericanConference.com/Proficiency-Sanctions • 888 224 2480

ĉ ADVANCE your career and professional development by becoming proficient in the essentials of U.S. Economic Sanctions. ĉ ADD VALUE to your organization with a practical roadmap for compliance, screening, licensing and risk management ĉ CONNECT with a global community of economic sanctions peers

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Part of ACI’s PROFICIENCY SERIES


WEEK ONE February 2, 2022 | 1:30–4:30 (EST) Module 1: Your U.S. Economic Sanctions Roadmap — A Review of Key Concepts, Agencies, Their Jurisdictions and Roles — and Who to Contact for What Rachel Alpert Partner Jenner & Block LLP

Annie Simpson Froehlich Director and Senior Counsel, Sanctions and Export Carrier Corporation

During this practical opening session, the expert instructors will take you through the key agencies involved in U.S. sanctions implementation and enforcement and discuss the evolving framework of U.S. Secondary Sanctions and Human Rights-related actions including: • Basics of sanctions law: e.g., TWEA, IEEPA, Executive Orders, and Designations

• Introduction to OFAC’s 50% Rule

• Introduction to OFAC, BIS, DOJ, State Department, Congress and how they work together

• Key Licenses and Exemptions

• U.S. Sanctions Jurisdiction: Extra-Territoriality

• Sources of Guidance: Alerts, FAQs, and Enforcement Actions

• What are Primary, Sectoral, and Secondary Sanctions?

• Intersection of Economic Sanctions, Export Controls and ore National Security Areas

Secondary Sanctions • Scope: Menu-based versus Designations • Application in Practice • Financial Institution Considerations

Human Rights and Supply Chain Considerations • Sanctions in Context: Import Controls, Export Controls, and Sanctions to Target Human Rights Violations and Abuses • Human Rights-related Sanctions: e.g., Global Magnitsky, Burma, Belarus, Xinjiang, and Hong Kong

4 | #SanctionsProficiency

twitter: @ACI_IntTrade @ACI_Sanctions linkedin: ACI: Economic Sanctions Compliance and Enforcement Exchange


WEEK ONE February 4, 2022 | 1:30–4:30 (EST) Module 2: The Essentials of an Effective Sanctions Compliance and Screening Program Margaret Mousoudakis Assistant Compliance Officer LyondellBasell Framework for OFAC Compliance Commitments • Management Commitment

Cristina Brayton-Lewis Partner White & Case LLP

• Core Elements of Sanctions Screening

• Testing and Auditing

» Creating culture of compliance

» Need for independent testing

» Need to review customers and transactions

» Ensuring sufficient resources, authority, and autonomy

» Key audit procedures to follow

» What lists to screen against?

» Determining what is a potential violation

» Frequency of testing

» How to screen for different geographies

» How to resolve an apparent violation

» Identification of root causes

» Rules and exceptions

» Working with internal audit

» What is (and isn’t) a “hit”

» How to fix internal weaknesses

» How to clear a hit

• Risk Assessment » How to perform a holistic risk-based assessment » Documenting the review » What are the key risk metrics? • Internal Controls » Need for written policies and procedures » How often to perform the review? » What type of documentation is required? » Recordkeeping policy

» Common screening mistakes to avoid

• Training » Periodic scheduled training » Different levels for different employee types

» Hypothetical scenarios to test your screening knowledge

» Should the training be live, or computer based? » Modifying for different geographies or languages » Who should develop the training? » Documenting the training process

» Review of common weakness areas

Join Our Email List to Stay Connected SIGN UP TO RECEIVE EXCLUSIVE DISCOUNTS, OFFERS AND PROGRAM UPDATES AmericanConference.com/join-our-email-list/

AmericanConference.com/Proficiency-Sanctions • 888 224 2480

Part of ACI’s PROFICIENCY SERIES


WEEK TWO February 9, 2022 | 1:30–4:30 (EST) Module 3: A Deep Dive into Russia and Iran Sanctions Robert Slack Partner Kelley Drye & Warren LLP

Rachelle Sorg Associate General Counsel AML & Sanctions Interactive Brokers LLC

The 50% Rule • How OFAC’s blocking requirements apply in the real world

• The challenge posed by sanctioned government ownership stakes in companies

• Hypothetical exercises: practical application of the 50% Rule to various scenarios

• Due diligence expectations and screening system issues

• What to do when sanctioned persons control, but do not own a business partner

Russia Sanctions • Why and how did these sanctions come into force?

• Secondary sanctions: » CAATSA 226 & 228 “significant” transactions

• Crimea embargo: » Scope of the OFAC and EAR embargo on Crimea

» Energy: Nord Stream 2 & others

» Common compliance challenges: Unique nature of a subnational embargo

» Military/Defense

» Diversion risks: Due diligence expectations and strategies for identifying potential diversion

» What about “material assistance”?

» Frequently used general licenses • Sectoral sanctions: » Directives 1-3: Financial restrictions » Directive 4: Frontier energy (& the 33% rule) » Overlapping export control sectoral sanctions restrictions • Blocking authorities: Crimea, government, metals, energy, corruption, human rights abuses, cyber, election interference, defense, and others

• CBW Act sanctions » Export control restrictions on Russia: Dual use EAR and military ITAR controls Licensing policies 22 C.F.R. 126.1 implications The space industry • Ransomware & cryptocurrency • Enforcement actions

Iran • Evolution of the U.S. embargo and impact of JCPOA withdrawal

• Frequently used general licenses and their practical limitations

• Part 560: How the embargo works today

• Broad array of secondary sanctions authorities

• Other, overlapping sanctions: IRGC, SDGT, NPWMD, etc.

• Section 13(r) of the Exchange Act: SEC reporting requirements for public companies

6 | #SanctionsProficiency

twitter: @ACI_IntTrade @ACI_Sanctions linkedin: ACI: Economic Sanctions Compliance and Enforcement Exchange


WEEK TWO February 11, 2022 | 1:30–4:30 (EST) Module 4: A Comprehensive Discussion of the New China Blocking Statute and Recent OFAC Guidance David Mortlock Partner Willkie Farr & Gallagher LLP

Donna Brown Director of Ethics & Compliance Qurate Retail Group

Background on U.S. Sanctions on China • 2005 Section 311 designation of Banco Delta Asia

• CMIC sanctions

• DPRK and Iran-related designations of Chinese entities

» Biden v. Trump regimes

• Use of Entity List

» Limitations on scope

» Huawei and most non-U.S.-affiliates • Xinjiang and human rights-related designations

CMIC-listed entities only U.S. facilitation of foreign investments

Chinese Blocking Statute (passed January 2021) • Precedent in the EU » Enforcement and effectiveness of the EU blocking statute • Content of China blocking statute

• Current status » Pending identification of “extraterritorial” laws » Potential for aggressive enforcement compared with the EU

» Reporting requirement on Chinese companies » Prohibition on compliance with “foreign law” » Private right of action » Identification of “extraterritorial” laws

Chinese Retaliation • China’s Anti-Foreign Sanctions Law (passed June 2021) » Risk retaliatory measures for compliance with foreign sanctions in China

• China’s Unreliable Entity List • Chinese consumer backlash

» Exposure to countersanctions by Beijing against persons or entities instigating or implementing sanctions » Retaliation for U.S. and EU sanctions over Xinjiang and Hong Kong

Chinese Data Security (passed June 2021) • New data security law, effective September 1, requires all companies in China to classify data • New rules regarding “critical information infrastructure”

AmericanConference.com/Proficiency-Sanctions • 888 224 2480

• Ambiguous classification and handling requirements • How will these new rules be enforced?

Part of ACI’s PROFICIENCY SERIES


WEEK THREE

February 16, 2022 | 1:30–4:30 (EST)

Module 5: Deciphering More Country-Specific Sanctions Restrictions: Cuba, Venezuela, Syria, North Korea, Afghanistan, Belarus Dave Stetson Partner Steptoe & Johnson LLP

Darshak Dholakia Partner Dechert LLP

Cuba • Different statutory authority — TWEA instead of IEEPA • Crucial difference in scope: Cuba regulations are binding on “persons subject to U.S. jurisdiction” which includes foreign subsidiaries owned or controlled by US persons » Other OFAC programs bind only “U.S. persons” unless extra steps are taken to make them binding on foreign subsidiaries (e.g., in Iran program)

• Differences in exemptions (no travel exemption under TWEA) and civil penalties (TWEA’s statutory maximum penalties are lower) • Broad prohibitions — all property in which Cuba or any Cuban national has an interest is blocked • General licenses allowing dealings with Cuban nationals permanently residing outside of Cuba

Venezuela • Among the more complicated OFAC sanctions programs » Not a full embargo, but the Government of Venezuela (GoV) and state-owned entities including PdVSA are blocked » Various other sanctions apply to Venezuelan bonds, new debt (similar to sectoral sanctions on Russia), purchases of securities from the GoV, pledges of collateral by the GoV, and transfers of equity interests owned by the GoV » Blocking sanctions have been imposed on persons operating in certain sectors

• Wide range of general licenses, including broad authorizations for CITGO-related transactions • Dealings in many PdVSA and GoV bonds are authorized by general licenses • Bondholder issues related to large CITGO stake previously pledged as collateral for certain PdVSA bonds

Syria • Government of Syria and state-owned entities are blocked

• Prohibited imports of petroleum products from Syria

• Which investments in and exports to Syria are generally prohibited by OFAC or BIS?

North Korea • Government of North Korea and state-owned entities are blocked

• Investment in, exports to, and imports from North Korea are prohibited

• Foreign subsidiaries of US financial institutions are prohibited from transacting with the • Significant secondary sanctions authorities to block property of those who are found to have Government of North Korea or certain North Korean SDNs: How does this play out in practice? engaged in certain sanctionable activities (including some broadly defined activities)

Afghanistan • With the Taliban in control of the government, what is required for a sanctions program? (government is blocked because the Taliban are on the SDN list, but the country is not subject to a broad trade and investment embargo)

• General licenses authorizing certain humanitarian activity by NGOs and international organizations • The scope of limits on fund transfers to the Taliban and the Haqqani Network, even in relation to authorized humanitarian activity

Belarus • Increasing use of targeted SDN designations and coordination with the UK and EU • Increased use of sanctions to respond to human rights violations

8 | #SanctionsProficiency

• Major companies (e.g., Belneftekhim, Belaruskali) that are designated as SDNs; 50% rule brings more entities in scope • Risk of SDN designation for entities operating in other sectors of the Belarusian economy

twitter: @ACI_IntTrade @ACI_Sanctions linkedin: ACI: Economic Sanctions Compliance and Enforcement Exchange


WEEK THREE

February 18, 2022 | 1:30–4:30 (EST)

Module 6: Compliance Weaknesses and Penalties Under the Microscope: Lessons from Key and Recent Enforcement Actions Nabeel Yousef Partner Freshfields Bruckhaus Deringer LLP

Maeva Donlin Senior Manager, Sanctions Compliance, VP Bank of the West

Understanding sanctions enforcement is critical for effective compliance and avoiding common pitfalls. Our experienced instructors explain how U.S. sanctions enforcement works and what you can learn from it, including the reasons companies disclose (or choose not to disclose) to OFAC, the potential consequences of an OFAC enforcement action, and key lessons from recent enforcements.

How Sanctions Enforcements and Disclosures Arise » Internal investigations and notices from other parties » Considerations for whether to make a voluntary self-disclosure » Preparing a voluntary self-disclosure

» Preparing a directed disclosure, responding to OFAC requests for information, and responding to subpoenas » Ongoing violations

Potential Enforcement Outcomes » Penalties, settlements, no action letters, cautionary letters, closeout letters

» OFAC’s enforcement guidelines and penalty calculations

» Public v. private dispositions

» Civil versus criminal enforcement / liability

» Sanctions enforcements as punishment as well as policy

Recent Key Enforcements and Lessons Learned » Voluntary foreign subsidiaries continuing Iran-related activities after being acquired by U.S. companies

» U.S. facilitation and back-office support

» Minor U.S. touch points creating US sanctions jurisdiction

» Geofencing and IP restrictions

» USD and non-USD transactions that clear through the United States

» Insufficient counterparty screening, due diligence, and/or compliance procedures » Parent liability and successor liability

Hypothetical Exercises, Q & A and Review on the Do’s and Don’ts Toward solidifying your understanding of the enforcement process, the instructors will take you through a series of hypothetical scenarios to help you apply and take advantage of voluntary disclosure best practices. at the end of this module, instructors will provide additional clarification and guidance, and take your questions.

AmericanConference.com/Proficiency-Sanctions • 888 224 2480

Part of ACI’s PROFICIENCY SERIES


WEEK FOUR

February 23, 2022 | 1:30–4:30 (EST)

Module 7: How to Submit an Application to the OFAC Licensing Division: Practical Guidance for Preparing Your Submissions Jeanette Miller U.S. Head of Sanctions Risk HSBC Bank USA Former Deputy Assistant Director for Licensing, OFAC

Erich Ferrari Founder Ferrari & Associates

How to Submit a Specific License Application for Transactional Requests • The information necessary for OFAC to consider the application “complete”

• The role of an OFAC Statement of Licensing Policy or FAQs in a license application

• Differences and similarities between a specific license application and a request for interpretive guidance on general licenses

• The interagency process – the roles of the State Department and/or Commerce Department in certain types of applications

How to Submit a License Application for the Release of Blocked Funds • How does this type of license application differ from a Transactional Request?

• What is the process for these types of applications?

• Types of information required for OFAC to process the application

Other Types of OFAC Licensing Communications • General License Guidance Letters – what do these do?

• Denial Letters – what happens if your license application is denied

How to Contact OFAC • Understanding the timing of getting an OFAC response • The difference between a formal OFAC determination and the OFAC Compliance hotline

WEEK FOUR

February 25, 2022 | 1:30–4:30 (EST)

Module 8: Review of Proficiency Assignment and Q & A Robert Slack Partner Kelley Drye & Warren LLP

Cristina Brayton-Lewis Partner White & Case LLP

Review of Proficiency Assignment In advance of this last unit, participants will complete an assignment on various sanctions scenarios. The questions will be based on real-world case studies. During this last session, participants will share their responses to the assignment questions, followed by in-depth feedback from the expert instructors.

Award of “Passport to Proficiency” Participants who have completed all Units will receive a certificate reflecting their proficiency in the essentials of the U.S. Economic Sanctions.

10 | #SanctionsProficiency

twitter: @ACI_IntTrade @ACI_Sanctions linkedin: ACI: Economic Sanctions Compliance and Enforcement Exchange


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American Conference Institute is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of Continuing Professional Education (CPE) on the National Registry of CPE Sponsors. State Boards of Accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org Course objective: To provide a comprehensive understanding of economic sanctions restrictions, essential elements of a compliance program, screening, licensing country specific programs including Russia, China, Venezuela, Cuba, Iran, secondary sanctions, enforcement action and voluntary disclosures. Field of Study: Business Law Prerequisite: None. Level of knowledge: Basic Advanced Preparation: None Who should attend: Accountants Auditors Risk Managers Chief Financial Officer © American Conference Institute, 2021

TEACHING METHOD: Group Internet Based DELIVERY METHOD: Group Internet Based Group Internet Based Participants will earn up to 25.5 CPE credits. To be awarded full credits, you must actively participate in activities (such as polling) and submit the verification codes presented in the chat. For more information and to submit your CPE request visit: CPE for Livestream Refunds and Cancellations: Requests for refunds less the cancellation fee must be received in writing by January 21, 2021. For more information regarding refund, complaint, and/or program cancellation policies please contact our offices at 1-888-224-2480.

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Accreditation will be sought in those jurisdictions requested by the registrants which have continuing education requirements. This course is identified as nontransitional for the purposes of CLE accreditation. ACI certifies this activity has been approved for CLE credit by the New York State Continuing Legal Education Board. ACI certifies this activity has been approved for CLE credit by the State Bar of California. ACI has a dedicated team which processes requests for state approval. Please note that event accreditation varies by state and ACI will make every effort to process your request. For more information on ACI’s CLE process for virtual events visit: www.americanconference.com/accreditation-instructions-forvirtual-attendance/


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