Members will be aware of the recent developments in Ukraine and the ongoing imposition of further financial and trade sanctions on Russian and Belarusian officials and other named individuals and entities, by countries around the world, including the UK and US, as well as the EU.
As consequence of the financial and trade sanctions, several members have enquired about the impact on office holders, in particular the payment of dividends or transfer of assets in a Special Administration to Russian companies e.g. ‘Gazprom’, and the action required of them in these set of circumstances. R3 has passed these enquiries to the Insolvency Service and asked for some form of guidance or statement to be issued to the profession. The Service has acknowledged these concerns from the profession and is considering a response.
In the meantime, members will need to deal with each situation that they are faced with on its own unique set of circumstances. Given the potential implications for breach of sanctions then you may consider it prudent to take independent legal advice. These are not matters that R3 can advise on. We also recommend members refer to other professional guidance such as that below.
CCAB joint statement to the accountancy profession following recent and on-going developments in the Ukraine
On behalf of its five member bodies – ICAS, ICAEW, ACCA, CIPFA and Chartered Accountants Ireland – CCAB has issued a statement on the financial and trade sanctions and the professional obligations of members of these bodies together with guidance. The guidance is a reminder to these members of their professional obligations and relates specifically to sanctions imposed by the UK.
“Whether in practice or in business, members must comply fully with their legal and professional obligations relating to the sanctions regimes in their respective jurisdictions; the CCAB also expects that they will be willing to play their part in helping non-sanctioned companies across the economy cope with any consequent disruptions.”
Whilst some R3 members may not be members of the five member bodies mentioned above, the guidance is relevant and provides appropriate information on –
· Ethical Considerations and obligations under AML legislation,
· Sanctions, Politically Exposed Persons – PEPs,
· PII Considerations,
· Expert Advice and updated guidance on sanctions and lists of sanctions and sanctioned persons.
We suggest R3 members take the time to familiarise themselves with this guidance until the Insolvency Service provide an update.
The Technical Team will continue to monitor the situation and provide further updates.