Sanctions Lists: A Comprehensive Guide

What are Sanctions Lists?

A sanctions list is a publicly accessible directory of companies, organizations, or individuals upon whom economic and/or legal restrictions have been imposed.

Why Check Sanctions Lists?

Every company, regardless of its size or industry, is obliged to screen both their new relationships as well as existing relationships for sanctions. This is crucial to avoid any potential financial or legal repercussions.

What are the Consequences of Ignoring Sanctions Lists?

• Failure to carry out these checks may have legal consequences.
• If sanctions lists are ignored and sanctioned persons, companies, or organizations go on to receive financial or economic resources, this can lead to heavy fines or even imprisonment.

Which Sanctions Lists Need to be Checked?

According to EU regulations and the Foreign Trade and Payments Act, every company that is resident or economically active within the EU is obliged to check the European Common Foreign and Security Policy (CFSP) list.

Best Practices for Staying Compliant

To stay compliant with sanctions lists, businesses should:

• Use an Automated Solution: Utilize software like CleverKYC to perform batch checks against various sanctions lists.
• Raise Awareness: Educate employees about the importance of checking sanctions lists and the potential risks of non-compliance.
• Regularly Update Knowledge: Stay informed about changes to sanctions lists and adapt your compliance procedures accordingly.

By following these guidelines, businesses can ensure they are meeting their legal obligations and minimizing the risk of non-compliance.