Sanctions have been a key tool in the fight against terrorism for many years and the Law Society has raised awareness among solicitors about sanctions across all of its anti-money laundering and counter-terrorist financing (AML/CTF) outreach initiatives comprising guidance, resources and training. The Society’s AML webpage contains links for solicitors to access the websites of Ireland’s competent authorities for sanctions.

Sanctions compliance arises in the context of AML compliance. The 4 and 5 AML Directives (Annex III), transposed by Schedule 4 of the Criminal Justice Act lists sanctions as a high risk factor. Combined with geographic risk factor generally, this requires designated bodies to consider potential sanctions as part of the firm-wide and client/legal service risk assessments.

The Law Society monitors compliance with sanctions as part of its the Solicitors Acts 1954 to 2015, Solicitors Accounts Regulations and AML supervision activities. The Regulation Department expects solicitors to have due regard for the recently announced sanctions against Russia and Belarus. A solicitor should not facilitate any client or any third party to circumvent the sanctions. If it came to the attention of the Society, during the course of an inspection that a solicitor had acted in any way to facilitate a client or a third party to circumvent these sanctions the matter would be reported to the appropriate authorities. The solicitor would also face disciplinary action.

In the future, the Law Society’s Investigating Accountants, during inspections, will review the steps taken by firms with regard to sanctions compliance. By documenting the steps your firm takes under each of the 5 suggested key steps in the ‘Recommended approach’ section is the best way to demonstrate risk-appropriate compliance to your supervisor or An Garda Siochana should someone else make a report in relation to a client.