2022 Trust Forum Presentations

INTERNAL FR/OFFICIAL USE // SECURE EXTERNAL

• EO 14071 bans certain services, including services related to Russian seaborne crude oil starting December 5, 2022, and petroleum products starting February 5, 2023 • The ban will have an important exception – jurisdictions or actors that purchase the oil at or below a price cap will be able to receive services • The price exceptionwill rely on a recordkeeping and attestation process for compliance • Banks will be expected to obtain and share price information or obtain attestations as to a compliant price, as practicable • A safe harbor will exist for service providers (e.g., banks) that inadvertently deal in seaborne Russian oil above the price cap due to reasonable reliance on falsified records or material misrepresentations provided by others o Permitting a safe harbor from enforcement action for transactions that violate OFAC sanctions is a new concept and appears an attempt to reduce burden on banks, the institutions that commonly bear the brunt of compliance costs Seaborne Russian Oil Cap • High velocity of instant payments and increasing values and volumes led to questions on how best to implement sanctionsmeasures • This guidance - (i) reaffirms a risk-based approach to managing sanctions risks; (ii) highlights key factors that may be relevant in determining that risk-based approach; (iii) encourages development and deployment of innovative sanctions compliance approaches and technologies; and (iv) encourages developers of instant payment systems to incorporate sanctions compliance considerations as they develop new payment technologies • Risk factors to consider may include – banks geographic locations and the extent of its international presence; the location, nature, and transactional history of its customers and their counterparties; the specific products and financial services it offers; and its size and sophistication • Other considerations – domestic vs cross-border, nature and value of payment Instant Payment Guidance 11/3/2022 9

INTERNAL FR/OFFICIAL USE // SECURE EXTERNAL

11/3/2022

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