Governments and international authorities publish sanctions lists to combat persons engaged in illegal activities. Sanction lists include sanctioned people, organizations or governments. Individuals, organizations or governments on these lists are controlled by firms as they may pose a high risk. Financial 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 processes. Also, sanction screening is among Customer Due Diligence procedures. In addition, companies must 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 of Sanctions?
Financial crimes reduce economic stability and confidence in the financial systems of all countries. Governments impose sanctions on people and countries who pose a threat to their country and block their actions. Sanctions became even more important with Anti Money Laundering regulations. Companies that have to comply with the regulations follow these sanction lists regularly. Blocked persons are prohibited from making financial transactions. Imposed sanctions are aimed at increasing financial stability and confidence.
Another purpose of the sanctions is 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 sanctions on the other country. As a result of these sanctions, it restricts the cooperation of its citizens and companies in the country with that country. Some of the sanctions 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.
Who can I find in Sanction Lists?
Many of the sanctions lists include targets for criminal financing of terrorist activities. Sanctions lists include individuals, organizations or all nations involved in criminal financing of the following activities:
- 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 lists of sanctions. These lists are public. Some of these lists are:
- United Nations Sanctions (UN)
- US Consolidated Sanctions
- 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
Sanction Lists Screening for AML Compliance
Sanction lists screening is one of AML and CDD procedures. Companies have to implement risk assessment in customer onboarding and customer monitoring processes. AML regulators impose heavy fines on companies that fail to comply with CDD procedures. Therefore, companies must implement sanction screening to their new and existing customers in order to avoid regulatory penalties.
Sanction Scanner database contains more than a thousand sanctions lists from more than two hundred countries. Our AML Name Screening Software makes the sanction screening processes of businesses fast and automatic. You can contact us to get information about our most suitable AML solutions for your company.