Ownership and control

One of the most important sanctions concepts is ownership and control.

A person or entity may be subject to sanctions not only because it appears on a sanctions list, but because it is owned or controlled by a designated person.

Accordingly, lawyers must not restrict their enquiries to the immediate client alone.

When assessing sanctions risk, lawyers should seek to understand:

• who owns the client;
• who controls the client;
• who gives instructions;
• who benefits from the transaction;
• who ultimately benefits from the movement of funds or assets; and
• whether any third party is directing or influencing the matter.

considerations should be viewed alongside the wider ownership and control analysis undertaken as part of Client Due Diligence.