It is only natural when any crisis unfolds that the economies and financial transactions in the countries directly involved will be affected. However, in this day and age where most “battles”, especially in undeclared wars, are not played out in the battlefield with conventional armaments but through “paper,” diplomacy and sanctions, then cases such as the battle over Crimea and the tensions between Ukraine and Russia, have repercussions that are far more wide reaching.
Within this framework, if you happened to be a forex or binary options broker operating from an EU member country and regulated by one of the regulating authorities in one such country, for example Cyprus or Malta, then you have to and check your client lists and report to your corresponding regulating authority. This is because the Council of the European Union has passed on 17 March 2014 Council Regulation (ΕU) No.269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine.
According to this regulation, as from 17 March 2014, all the funds and economic resources belonging to, owned, held or controlled by any natural persons or natural or legal persons, entities or bodies associated with them as listed in a particular list containing the names of 21 Russian and Ukrainian individuals who were deemed by the EU leaders as being “responsible for actions which undermine or threaten the territorial integrity, sovereignty and independence of Ukraine,” shall be frozen.
This decision by the EU has forced the regulating authorities to request all the regulated entities under their respective jurisdictions to immediately check whether they have as a client any of the persons named on the list of the Regulation and if so, to freeze immediately all funds and/or economic resources that are held, administered or managed on his behalf or on behalf of the persons associated with him. Moreover, investment firms are also requested to inform the regulatory authorities accordingly.
For a copy of the list of names against whom the sanctions were imposed, click here.
