AmCham Hungary organized its Compliance Conference on June 7 focusing on how and why sanctions are used and what effects they have on the global and state economies. The conference also addressed the practical aspects of complying with sanctions as a business.
The conference, began with the keynotes of Botond Feledy, Director of Tipping Point Consulting, Geopolitical Risk Analyst and EU Expert, and Ramsey Jurdi, Partner DLA Piper.
The keynotes were followed by two panel discussions, the first featuring the keynote speakers. The discussion was moderated by Dávid Kőhegyi (Partner, DLA Piper). The second panel discussing practical compliance questions moderated by Judit Budai (Szecskay Attorneys-at-law) who were joined by Tamás Nietsch (Hungarian Association of Customs Affairs) and Nicholas Sarvari (CNS Risk).
During the event we learned that sanctions are effectively economic/legal tools in the arsenal of foreign policy. There are few precedents for an organic or gradual lifting of sanctions, the path is long and difficult, and requires real change. Therefore, in the case of Hungary much of Russia's economy will continue to remain off-limits for the foreseeable future, as Hungary will have to comply with EU regulations and, from a trade perspective, with US ones as well.
During the discussions it was highlighted that different regimes might target different countries, entities, and sectors, making compliance with sanctions a complex and difficult process. It is however essential to be aware of these processes as violations of sanctions regimes can lead to severe penalties. To avoid and mitigate risks, it is important to have an internal reporting system and have procedures in place to promptly investigate and address any violations. It was also concluded that there is no one-size-fits-all solution, as the compliance process greatly varies sector-by-sector.
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