Sanction List Policy
Introduction
1.1 This Sanction List Policy (hereinafter the “Policy”) is entered by IUX TRADING LIMITED (hereinafter the “Company,” “we,” “us,” and “our”) with a commitment to carrying on business in accordance with the highest ethical standards. This includes complying with all applicable trade sanctions regulations (“Sanctions Laws”) in the countries in which we operate.
1.2 The Company, the Board of Directors, and its management are committed to complying with all laws. Any employee who violates the rules in this Policy or who permits anyone to violate those rules may be subject to disciplinary action, up to and including dismissal, and may be subject to personal civil or criminal fines.
1.3 IUX TRADING LIMITED is incorporated under registration number 2023-00442 at Ground Floor, The Sotheby Building, Rodney Village, Rodney Bay, Gros-Islet, Saint Lucia. The physical address of the company is Office 2, 26 Pittalou St., P.C. 3117, Limassol, Cyprus.
1.4 The Policy shall supersede any other agreements, arrangements, express or implied statements made by the Company or any third-parties in relevance to Sanction List Policy.
Scope
2.1 The Policy shall apply to all employees, the Board of Directors, its management, its branches and subsidiaries, and any other persons or organizations who perform services for, or on behalf of, or are working for, the Company in any capacity, including employees at all levels, directors, officers, agency workers, seconded workers, volunteers, interns, agents, contractors, external consultants, third-party representatives, and business partners, sponsors, or any other person associated with us, in any location around the world.
2.2 This policy is not part of any contract of employment and does not create contractual rights or obligations. It may be amended by the Company at any time.
Purpose
3.1 It is the Company’s policy to comply with all Sanctions Laws in our operations worldwide. To this end, the Company will comply with all economic and trade sanctions applicable to our business activities.
3.2 This Policy is intended to help employees and any third party acting on the Company’s behalf to understand where breaches of Sanctions Laws might arise and to support them in making the right decisions in line with the corporate position as stated in this Policy.
3.3 No employee or third party shall suffer as a consequence of bringing to the attention of senior management or the Chief Legal and Compliance Officer, in good faith, a known or suspected breach of this Policy.
Role and Responsibilities
4.1 The board of directors has overall responsibility for ensuring this policy complies with our legal and ethical obligations and that all those under our control comply with it.
4.2 The Chief Legal and Compliance Officer has primary and day-to-day responsibility for implementing this policy, monitoring its use and effectiveness, dealing with any queries about it, and auditing internal control systems and procedures to ensure they are effective.
Risk factors
5.1 Violations may lead to severe civil and/or criminal penalties against companies and individuals, including significant monetary fines, imprisonment, extradition, blacklisting, revocation of licenses, and disqualification of directors.
5.2 In addition, violations of Sanctions Laws can lead to damaging political consequences, including harm to reputation and commercial relationships, restrictions in the way we can do business, and extensive time and cost in conducting internal investigations and/or defending against government investigations and enforcement actions.
5.3 Clients, being mindful of their own obligations, may also ask us about our policies and relationships with clients based in certain countries. Our replies, which must always be honest, may influence our appointment with those clients.
Sanctions
6.1 Sanctions are the regulatory restrictions applicable to dealings with certain countries/territories, governments, groups, entities, individuals, or controlled goods or services. The nature and extent of these restrictions may vary (i.e., limitations on import/export, controls on specific goods and services, restrictions on financial operations, etc.).
6.2 The following are examples of countries/territories that are the subject of the Office of Foreign Assets Control (OFAC) sanctions list at the date of this policy: Afghanistan, the Balkans, Belarus, the Central African Republic, Cuba, the Democratic Republic of Congo, Ethiopia, Hong Kong, Iran, Iraq, Lebanon, Libya, Mali, Myanmar, Nicaragua, the Democratic People’s Republic of Korea, Somalia, South Sudan, Sudan, Syria, Ukraine/Russia, Venezuela, and Yemen. This list is not exhaustive and is subject to change without notice. Companies and individuals may also be subject to sanctions, and these are listed on the US Treasury website.
6.3 The following are examples of countries/territories that are the subject of the Financial Action Task Force (FATF) sanctions list at the date of this policy: Democratic People’s Republic of Korea, Iran, and Myanmar. This list is not exhaustive and is subject to change without notice, and these are as listed on the FATF website.
6.4 The following are examples of countries/territories that are the subject of the United Nations (UN) sanctions list at the date of this policy: Central African Republic, Democratic People’s Republic of Korea, Democratic Republic of Congo, Eritrea, Iraq, Libya, Mali, Republic of Guinea-Bissau, South Sudan, and Sudan. This list is not exhaustive and is subject to change without notice. Companies and individuals may also be subject to sanctions, and these are listed on the UN website.
Application of Sanctions Laws
7.1 Given our presence in Saint Lucia, South Africa, Malaysia, Seychelles, and Mauritius, we are required to comply with all sanctions laws in the relevant territories where we operate.
7.2 For the Saint Lucia Company, Saint Lucia is obliged to comply with the United Nations Security Council Decisions and the FATF standards governing Targeted Financial Sanctions Related to Terrorism and Terrorist Financing. Thus, IUX TRADING LIMITED must comply with the UN and FATF sanctions regime.
7.3 For the South Africa company, we must comply with the FSCA sanctions regime and the OFAC sanctions list.
7.4 For the Mauritius company, we must comply with the FATF sanctions regime.
7.5 Similarly for other countries in which we operate, every legal body under the Company will need to comply with the UN, OFAC, and FATF sanctions regime and the relevant local sanctions regime.
7.4 For example, if there is an activity involving persons, companies, or countries subject to sanctions in South Africa but not subject to sanctions outside South Africa, the activity may be permitted provided no South African national, no person based in South Africa, or South African entities are involved in the activity.
Red Flag Review
8.1 There are a number of issues which should cause us to conduct further investigation into whether a particular transaction or relationship may present a potential economic trade sanctions regulatory issue.
8.2 All employees shall look for any red flags or suspicions that may indicate the direct or indirect involvement of a restricted territory, restricted party, controlled item, service, end use, or any other sanctions compliance concern.
8.3 Examples of red flags to be reported include:
- A lack of information as to the identity of the end-client involved parties and/or the reluctance of a party to provide such information;
- Unusual invoicing requests;
- Unusually favorable payment terms;
- Any suspicion or evidence to suggest the possible involvement of a restricted territory or restricted party.
8.4 The examples in 8.3 are not an exhaustive list. Any suspicion of the direct or indirect involvement of a restricted territory or party should alert you to further investigate the activity in accordance with this policy and report it to the Chief Legal and Compliance Officer.
Compliance Controls
9.1 In order to ensure compliance with this policy, the Chief Legal and Compliance Officer shall:
- Introduce appropriate controls when taking on a new client;
- Monitor economic trade sanctions regulations and update the business in the event of any material change.
- Determine and approve controls to be followed in specific regions where applicable;
- Provide legal advice and guidance on specific situations on request, including on the resolution of issues and red flag reviews;
- Conduct ad hoc risk assessments as required in high-risk regions and monitor any specific processes and controls.
Employee Responsibility
10.1 All employees have the obligation to read and comply with this policy, to understand and identify any red flags that may arise, and to escalate potential compliance concerns relating to sanctions to the Chief Legal and Compliance Officer. You should not take any actions prior to receiving advice and/or instructions.
Noncompliance
11.1 Any employee who violates this policy may be subject to disciplinary action in addition to any other potential actions or penalties resulting from a breach.
11.2 Any agent, intermediary, contractor, external consultant, third-party representative, business partner, sponsor, or any other third party who violates the terms of this policy, or knows of and fails to report potential violations to the Company’s management, or misleads investigators over potential violations, will face contract termination.
Updates and Review of the Policy
12.1 This Policy is subject to review and update from time to time. The Company shall monitor the effectiveness and review the implementation of this policy regularly.
12.2 The policy shall be reviewed on an annual basis or when there are significant changes in business, regulations, rules, or official requirements.
12.3 Any changes or updates of the policy shall be effective immediately upon posting on the Company’s website.