Navigating Trade Compliance Jolyon Ellwood-Russell 26 April 2017
Agenda Xx x 1 / L_LIVE_APAC1:5642312v1
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_APAC1:5642312v1
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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_APAC1:5642312v1
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_APAC1:5642312v1
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_APAC1:5642312v1
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_APAC1:5642312v1
Bank Fines 8 / L_LIVE_APAC1:5642312v1
Focus is turning to Corporates Commodity Traders Telecoms Industry Beneficial Ownership Protectionism and International Co-operationTreaties 9 / L_LIVE_APAC1:5642312v1
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Best Trade Law Firm 11 / L_LIVE_APAC1:5642312v1
Our Contacts Jolyon Ellwood-Russell Partner T +852 2583 8298 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_APAC1:5642312v1
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