Navigating Trade Compliance. Jolyon Ellwood-Russell

Transcription

1 Navigating Trade Compliance Jolyon Ellwood-Russell 26 April 2017

2 Agenda Xx x 1 / L_LIVE_APAC1: v1

3 Supply Chain International Trade A Origin Custom Procedures Destination B Transport Chain Decomposition A Composition Rail Transshipment Maritime Customs Road B Physical Flows Port Distribution Center A B Rail Yard Transshipment Hub 2 / L_LIVE_APAC1: v1

4 3 / L_LIVE_APAC1: v1

5 Structures & Solutions in Trade Finance 1. Invoice Fraud 2. Underinvoicing 3. Overinvoicing 4. Tax and Transfer Pricing 5. U-Boating Shipments 6. Hawala Payment Systems 7. Black Market Currency Exchange 8. Sanctions Circumvention 4 / L_LIVE_APAC1: v1

6 Regulatory Focus - TBML Third category of money laundering Economist 2014 weakest link in fight against dirty money the process of disguising the proceeds of crime and moving value through the use of trade transactions in an attempt to ligitimise their illegal and illicit origin or finance their activities (Financial Action Task Force, 2008) 5 / L_LIVE_APAC1: v1

7 Trade Compliance Sanctions Countries, Ports & PEPs Vessel Flag of convenience & links to Sanctions Export Controls Dual use & controlled goods International Trade operations unilateral policy impositions Local requirements and documents Unusual approvals Custom duties 6 / L_LIVE_APAC1: v1

8 Sanctions and Export Control Sanctions Often hidden Sanctions risks inherent in International Trade Sanctions lists Export Controls & Dual Use Goods Certain goods can be used for dual purposes Normally used for civilian purposes but may, for example, have military applications Graphite, Potassium Fluoride, ball bearings and switches 16 different DUG lists - China has a 236 page list; EU has 280 page list 7 / L_LIVE_APAC1: v1

9 Bank Fines 8 / L_LIVE_APAC1: v1

10 Focus is turning to Corporates Commodity Traders Telecoms Industry Beneficial Ownership Protectionism and International Co-operationTreaties 9 / L_LIVE_APAC1: v1

11 Trade Navigator What is it Sector-leading online subscription service, covering key areas of financial services and tax regulation Since 2007, we ve built a reputation as a globally trusted regulatory resource with content spanning over 130 jurisdictions Who is using it individual users around the globe 330+ global financial services groups What our clients say The Google for international solicitation Simple, logical, a progression from a clear outline of a country s rule to its application to typical facts. You know your next steps by the time you log out 10 / L_LIVE_APAC1: v1

12 Best Trade Law Firm 11 / L_LIVE_APAC1: v1

13 Our Contacts Jolyon Ellwood-Russell Partner T E jolyon.ellwood-russell@simmons-simmons.com Jolyon is a finance lawyer with a wide variety of experience in banking and finance transactions and in particular is a specialist in Structured Trade and Commodity Finance. He works on products such as trade receivables, trade finance, asset based and borrowing base facilities across Asia covering a diverse portfollio of underlying soft and hard commodities. Jolyon is qualified in England & Wales and Hong Kong and is author of (i) the Banking Volume of the Hong Kong Encyclopedia of Forms and Precedents and (ii) Structures and Solutions in Trade Finance. 12 / L_LIVE_APAC1: v1

14 simmons-simmons.com elexica.com This document is for general guidance only. It does not contain definitive advice. SIMMONS & SIMMONS and S&S are registered trade marks of Simmons & Simmons LLP. Simmons & Simmons is an international legal practice carried on by Simmons & Simmons LLP and its affiliated practices. Accordingly, references to Simmons & Simmons mean Simmons & Simmons LLP and the other partnerships and other entities or practices authorised to use the name Simmons & Simmons or one or more of those practices as the context requires. The word partner refers to a member of Simmons & Simmons LLP or an employee or consultant with equivalent standing and qualifications or to an individual with equivalent status in one of Simmons & Simmons LLP s affiliated practices. For further information on the international entities and practices, refer to simmonssimmons.com/legalresp. Simmons & Simmons LLP is a limited liability partnership registered in England & Wales with number OC and with its registered office at CityPoint, One Ropemaker Street, London EC2Y 9SS. It is authorised and regulated by the Solicitors Regulation Authority. A list of members and other partners together with their professional qualifications is available for inspection at the above address. 13 / L_LIVE_APAC1: v1