It is our absolute top priority to comply with regulators. Brave New World Investments has a compliance policy which contains the three sections; 1) Anti-Money Laundering, 2) Countering Terrorist Financing and 3) International Iran Sanctions. Find each section below:
1. Anti-Money Laundering
On 15 March 2009 a new money laundering law was instated in Sweden (SFS 2009: 62) in order to prevent banks and other financial companies to be involved in money laundering and terrorism financing. The law is based on the Third EU Money Laundering Directive, which applies in all EU countries.
To ensure that our counterparties are not involved in money laundering and / or terrorist financing, we control identities and relevant documentation of individuals and entities before dealing with them. According to the Money Laundering Act, we must also understand the purpose of our counterparties’ business relationships and transactions. Individuals are asked where their money comes from and the purpose of their transactions and business. Entities are asked about their operations, sales and ownership.
Money Laundering Act also requires that all customer information is updated and current. Brave New World Investments is therefore required to continuously acquire knowledge of counterparties. Special rules also apply to politically exposed persons. Then we need such know if you have a political post or a high position in the state or if you are a close family member of such a person. All customer information is treated confidentially in accordance with applicable law.
2. Countering Terrorist Financing
It is our duty under the Money Laundering Act to prevent that we are used for terrorist financing, which means we are forbidden to do business with people or organizations that are in various sanction lists. We are required to make checks against official lists of individuals and organizations that the authorities considers to be linked to terrorist activities. In addition to that, we work in a preventative manner against the financing of terrorism, notifying authorities about any suspicious activities.
3. International Iran Sanctions
On 14 July 2015, the P5+1, the EU and Iran reached a final agreement regarding Iran’s nuclear program, known as the Joint Comprehensive Plan of Action (“JCPOA”), which provides a long-term plan for limiting Iran’s uranium enrichment and related nuclear activities, extensive monitoring of those activities by the International Atomic Energy Agency (“IAEA”) and, in exchange, the suspension and eventual termination of nuclear-related UN, EU and US economic sanctions which apply to non-US persons.
On 16 January 2016 the IAEA confirmed that Iran had fully satisfied its obligations under the JCPOA. Accordingly, on the same day (referred to as “Implementation Day”), the United Nations, the European Union and the United States lifted the majority of their nuclear-related secondary sanctions. The JCPOA provides a dispute resolution mechanism that permits the parties to raise concerns about significant non-performance under the JCPOA and, if unresolved, allows for sanctions to “snap back”.
The changes in UN, EU and US sanctions against Iran were significant, particularly to the extent they previously related to non-US individuals and entities. US primary sanctions applicable to US persons (as defined below) remain largely in place. However, the European Union now permits most business with Iran, and there is no longer a general obligation to notify the EU authorities about payments to and from Iran or Iranian persons. However, such relief is partial (due to remaining sanctions) and provisional (due to the possibility of a snap- back).
3.1. EU Sanctions
EU sanctions apply to EU nationals wherever located, to any legal entity incorporated under the law of an EU Member State, to any person located in the territory of an EU Member State and to any business activities carried out in whole or part in an EU Member State. The primary measures of applicable EU sanctions against Iran after Implementation Day are asset freezes, particularly prohibitions on dealing with such frozen assets and on making funds or economic resources available to persons listed on the Consolidated List of Persons, Groups and Entities Subject to EU Financial Sanctions, and sector-specific limitations, for example restrictions on nuclear- or arms-related activities.
On Implementation Day, the EU lifted most of its economic and financial sanctions related to Iran’s nuclear program. All general restrictions on transfers of funds between EU individuals or entities and Iranian individuals or entities were terminated, and a significant number of individuals and entities were delisted. These persons are no longer subject to asset freezes, prohibitions on making funds available to such persons, or travel bans.
EU sanctions that relate to the human rights situation in Iran and support for terrorism remain in place. Certain individuals and entities designated under UN and EU sanctions continue to remain subject to an asset freeze and visa ban. Also remaining are EU bans on the export to Iran of arms and related materiel, missile technology, certain nuclear-related transfers and activities, certain metals and software, and equipment which could be used for internal repression or for monitoring telecommunications.
3.2. US Sanctions
US sanctions can be divided into primary sanctions and secondary sanctions. US primary sanctions apply to “US persons” (including US citizens and permanent residents, companies organised in the US and any persons located in the US) or activities that involve a US nexus. US secondary sanctions are applicable to non-US persons, even where there is no connection to the United States, so a US nexus is not required in order for the secondary sanctions to apply.
US persons are prohibited from undertaking essentially any type of transaction or dealing involving, directly or indirectly, Iran, its government (including government owned or controlled entities) and financial institutions, persons on the list of Specially Designated Nationals and Blocked Persons (the “SDN List”) administered by the US Department of Treasury’s Office of Foreign Assets Control (“OFAC”) and entities in which one or more SDNs directly or indirectly hold an aggregate 50% or greater ownership interest. US sanctions also prohibit any US person from approving, assisting, financing, guaranteeing or otherwise “facilitating” any business involving sanctioned countries or persons. US primary sanctions also apply where there is a US nexus, including the use of US dollars in transactions or taking or causing action in the US.
The JCPOA largely did not affect US primary sanctions, apart from limited exceptions, such as authorising non- US companies owned or controlled by US persons to engage in business with Iran (subject to certain conditions) under OFAC’s new “General License H”.
On Implementation Day, the United States lifted most secondary sanctions and removed over 400 individuals and entities from the SDN List. However, many Iranian entities and individuals remain on the SDN List, because they were designated for non-nuclear reasons (for example, terrorism, human rights abuses, affiliation with the Islamic Revolutionary Guard Corps (“IRGC”) or proliferation of weapons of mass destruction). Non-US persons can still be penalised under US secondary sanctions for engaging in significant transactions with, or providing material support to, Iranian entities or individuals remaining on the SDN List.
The penalties with respect to US secondary sanctions are aimed at prohibiting activity within the US or access to US financial markets. Penalties include targeted entities being barred from access to the US financial system and US financial institutions, visa denials for corporate officers or principals and controlling shareholders, and in extreme cases the inclusion of targeted persons and entities on US sanctions lists.
3.3. Compliance routines related to Iran sanctions
To ensure compliance with EU Sanctions, any Iranian individuals that we do any form of monetary transaction with are first checked against the Consolidated List of Persons, Groups and Entities Subject to EU Financial Sanctions. This is a list of individuals with frozen assets.
With regards to the compliance with US Sanctions, we follow a number of routines. When performing fund transfers, we will avoid contact with US dollars. We also ensure that no company employee or member of the Board of Directors is a US person, and no company personnel engages in any business activities related to the company while located in the US. In addition, to ensure that our investors do not subject the company to the application of US primary sanctions, we verify that potential investors are not US persons, by requesting passport copies from each prospective investor as well as assurances that no investor is or is acting on behalf of any US person.