Legal Architecture of International Financial Compliance

2023/2024

Учебный год

ENG

Обучение ведется на английском языке

3

Кредиты

Кто читает:

Департамент международного права

Статус:

Курс по выбору

Когда читается:

1-й курс, 3 модуль

Преподаватели

Линников Александр Сергеевич

Мешалкин Сергей Валерьевич

Середа Алексей Валерьевич

Course Syllabus

Abstract

In the current challenging period, international financial compliance takes the stage in context of ever-expanding restrictive measures and sanctions imposed by the European Union, United States, United Kingdom and other states on Russian nationals and entities, with a particular emphasis on financial institutions. In order to contain risks of forfeiture of substantial funds, it is necessary to implement the best compliance practices elaborated by leading national and multinational banks and to monitor the constant evolution of sanctions laws and regulations in different jurisdictions, as it appears to be the most dynamic legal field over the last few years. However, even strict adherence to the most advanced state-of-the-art compliance practices and procedures does not eliminate risks of exposure of companies, banks and individual clients to restrictive measures due to their Delphic language and highly complex nature. Therefore, in-depth knowledge of sanctions laws and regulations and clear understanding of possible legal methods and strategies is of paramount importance for being able to limit exposure to sanctions and avoid adverse effects of restrictive measures on business. In order to assure sustainability of international financial relations and stable flow of cross-border payments, it is also important to coordinate compliance rules and procedures with the peculiarities of specific national legal systems and un-uniform and, at times, controversial administrative practices and approaches to enforcement of restrictive measures of different states, banks and other financial institutions. The course will introduce students to theoretical and practical aspects of financial compliance by bringing them to the frontlines of the so-called sanctions wars through the study of the complex regulatory landscape of financial compliance and detailed analysis of actual professional experiences of its authors and will navigate them through the raging ocean of legal risks and challenges to real-life business of credit institutions.

Learning Objectives

• The primary aim of this course is to provide students with theoretical knowledge and practical understanding of legal aspects of international financial compliance with an emphasis on legal means and methods of limiting exposure of banks and their clients to international and unilateral financial sanctions. The course covers a wide range of general and specific legal aspects of financial compliance rules and procedures, offers an overview of best practices of international financial compliance and introduces students to the most efficient strategies of protection of rights and lawful interests of financial institutions and their clients in the traumatizing context of increasing sanctions pressure on international financial operators and the cross-border payments’ market.

Expected Learning Outcomes

• Develop the following skills and abilities: • Free use of specific terms and sources of international sanctions law; • Practical study of international sanctions legislation, as well as national laws and regulations governing unilateral sanctions; • Practical legal skills required to advise clients on international financial compliance rules and procedures and represent parties in disputes involving the application of international sanctions.
• Gain knowledge on the following issues: • International and national laws and regulations governing financial compliance and restrictive measures (sanctions); • Procedural framework for resolving disputes regarding compliance and financial sanctions.
• Master the following competencies: • Ability to work with relevant information (search, evaluate, criticize, systematize and use verified information to perform educational and professional tasks); • Ability to carry out professional activities in the international legal environment; • Ability to search, analyze and use relevant information using discretionary, comparative and other specific academic and practical research methods.

Course Contents

• 1. Introduction to International Financial Compliance: Fundamental Concepts & Principles;
• 2. Anti-Corruption Compliance in a Credit Institution: Risks Assessment, Key Policies & Best Practices;
• 3. Corporate Ethics: From ‘Wild World’ to the Culture of Compliance;
• 4. Know Your Customer (KYC) Principle and its Practical Aplication;
• 5. Anti-Money Laundering and Prevention of Financing of Terrorism (AML/CFT) Rules and Procedures – Risk Management and Implementation Practices;
• 6. International Financial Sanctions: General Overview & Classification;
• 7. International Financial Sanctions: Efficient Compliance & Challenging Strategies;
• 8. Investment Compliance Rues & Procedures;
• 9. Consumers’ Rights Protection;
• 10. Liaison with Domestic & Foreign Financial Authorities.

Assessment Elements

• Attendance, active participation and in-class discussion
  Each student is required to attend all sessions, having reviewed the assigned learning materials, including questions and practical tasks problems, media reports, podcasts, etc. All students are expected to actively participate in class discussions, ask questions, take and defend positions on matters discussed, comment on current assignments and contribute motivated opinions. Sessions will be structured as a mix of lectures, seminars, workshops and master-classes aimed at encouragement of teamwork and stimulation of active class discussions – all participants are expected to process the assigned materials in advance for each class.
• Essay
  The essay is envisaged in the form of a case comment consisting in the assessment of merits of a real-life compliance case and/or sanctions dispute in the context of challenging compliance judgements of financial institutions and/or contesting the UN/EU/US/UK restrictive measures (sanctions) by states, natural or legal persons. The essay should address strengths and weaknesses of the case on its merits, any jurisdictional or admissibility objections and other issues relevant to the case in question. The essay is expected to be 3-7 pages long. Particular cases are either chosen by the students themselves or distributed to the students by the course leader well in advance of the deadline.
• Mock Legal Opinion
  Students are invited to prepare mock legal opinions for abstract or specific clients. The legal opinion should contain the full-fledged analysis of the client’s sanctions status and provide detailed to questions raised by the client. The legal opinion is expected be up to 10 pages long. The course leader will provide the preferable structure (template) of the legal opinion well in advance of the deadline.

Interim Assessment

• 2023/2024 3rd module
  0.2 * Attendance, active participation and in-class discussion + 0.3 * Essay + 0.5 * Mock Legal Opinion

Bibliography

Recommended Core Bibliography

• Unilateral sanctions in international law, , 2021

Recommended Additional Bibliography

• Marossi, A. Z., & Bassett, M. R. (2015). Economic Sanctions Under International Law : Unilateralism, Multilateralism, Legitimacy, and Consequences. The Hague, The Netherlands: T.M.C. Asser Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=961168

Authors

• Starzhenetskii Vladislav Valerevich
• Smirnova Svetlana Anatolevna