Compliance

You are a successful lawyer working in the New York office of a globallaw firm advising international clients all around the world oninternational commercial transactions and contracts as well as USeconomic and trade sanctions. One of your Swiss colleagues sitting inthe firm’s Geneva office calls you to explain that he has received arequest from a very good Swiss client, Red Gold SA, who is willing toget advice on the best way to enter into a strategical partnership withan Iranian partner active in the exploitation and packaging of Saffron.Red Gold SA aims indeed to make a significant investment to support theexploitation of Safran by its prospective Iranian partner and expects toexport the major part of the Saffron produced and packaged in Iran toSwitzerland.
Red Gold SA has provided the following factual information regarding theproject:
1. The name of the Iranian company which would be the main partner inthe project is Rowhani Saffron.
2. Rowhani Saffron works together with several local Iranian farmers whohave their own exploitation fields.
3. Red Gold SA would prefer to establish a direct presence on the groundto be able to keep control over the local operations in Iran. Red GoldSA remains flexible however to adopt an alternative way if theestablishment of a direct presence would not be recommended currently.
4. Red Gold SA is a Swiss company that has no subsidiaries in the US.
5. Red Gold SA aims to ask its main bank, HSBC in Geneva, for a creditto finance the project.
Your Swiss colleague asks you very kindly whether you could worktogether with him on that case advising the Swiss client on the best wayto implement its project and the associated risks. He has to providethe client with a high-level note of a maximum of two pages until theend of the week.
Note to the students: please present your answers in the form of ahigh-level note of a maximum of two pages including the advice to theSwiss client on the best way to implement the project and the associatedrisks.