Governments and international authorities publish lists to combat persons engaged in illegal activities. Sanction lists include sanctioned people, organizations, or governments. Firms control individuals, organizations, or governments on these lists as they may pose a high risk. Economic sanctions are an important part of the fight against financial crime for AML regulators. There are serious penalties for breaching sanctions.
Therefore, companies have to apply sanction control to their customers during the customer account opening process. Also, the sanction screening list is among Customer Due Diligence procedures. Companies must also implement sanction control to their existing customers at certain time intervals after the customer onboarding process. Therefore organizations must carefully consider their compliance status.
What is The Purpose?
Financial crimes reduce confidence and economic stability in their financial systems. Sanctions became even more important with Anti Money Laundering laws or rules. Companies that have to comply with international law follow these sanction lists regularly. Blocked persons are prohibited from making financial transactions. I mposed sanctions are aimed at increasing financial stability and confidence.
Another purpose the based on the conflict of interests of the countries. While countries want to succeed in their foreign policies, they may have problems with these other countries. When these problems cannot be solved, countries find the solution by imposing international sanctions on the other country, such as trade restrictions . As a result of these, it restricts its citizens' and companies' cooperation with that country. Some of the them imposed by countries are:
- The US imposed economic and political sanctions against Iran in 1979.
- In 1950, the US imposed diplomatic sanctions on North Korea because of North Korea's nuclear program. (US Sanctions)
- In 2022 the US, Canada, Japan, EU, and another country imposed economic and diplomatic sanctions on Russia because of Russia- the Ukraine war.
Who Can I Find these Lists?
Many Sanction Screening Lists include targets for criminal financing of terrorist activities. Those lists include individuals, organizations, or all nations involved in criminal financing of the following activities:
- Terrorism
- Drug trafficking
- Terrorist financing
- Human rights violations
- Money laundering
- International contract violation
- Weapon proliferation
What Are The Sanction Lists?
Governments and financial authorities around the world keep public lists of sanctions. Some of these lists are:
- United Nations Sanctions (UN)
- US Consolidated Sanctions (US Sanction Lists)
- OFAC — Specially Designated Nationals (SDN)
- Office of the Superintendent of Financial Institutions (Canada)
- Bureau of Industry and Security (US)
- Department of State, AECA Debarred List (US)
- Department of State, Nonproliferation Sanctions (US)
- EU Financial Sanctions
- UK Financial Sanctions (HMT)
- Australian Sanctions
- Consolidated Canadian Autonomous Sanctions List
- Consolidated Sanctions List Of The Kyrgyz Republic
- EEAS Consolidated List
- SDFM Terror List
- Us Cia World Leaders Pep List
- World Presidents Pep List
- CoE Assembly Pep List
- Every Politician Pep List
- Switzerland Consolidated List
- Capital Market Board Of Turkey Operation Banned List
- Interpol Wanted List
- Turkish Terror Wanted List
- Interpol Yellow Wanted List
- Interpol UN Wanted List
Sanctions on Russia Following the Russo-Ukrainian War
The Importance of US Sanctions in The Russia-Ukraine Crisis
What Is Swift Banking and How It Can Be Used To in Sanctions Against Russia
Sanction Lists Screening for AML Compliance
Sanction lists screening is one of the Anti-Money Laundering and Customer Due Diligence procedures. Companies have to implement AML risk assessment in customer onboarding and customer monitoring processes. AML regulators impose heavy AML fines on companies that fail to comply with CDD procedures. That's why companies have to sanction their customers to avoid legal penalties and comply with coercive measures.
The Sanction Scanner database contains more than a thousand lists from more than two hundred countries. AML Name Screening Software makes the sanction screening processes of businesses fast and automatic.
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