Sanctions Check

A sanctions check is the process of checking or screening various global sanctions lists to ensure that the customer isn’t sanctioned. Regulated businesses, such as banks, must conduct such checks to ensure that all their potential customers (both individuals and other companies) don’t have any ties to sanctions against them. The goal is to check clients against official lists of sanctioned parties from governments or international organizations, reducing financial and legal risks.

Sanctions checks are part of a compliance process required by Anti-Money Laundering (AML) and counter-terrorist financing (CTF) laws. By screening these lists, companies aim to prevent partnering with dangerous entities, such as those involved in illegal activities like terrorism, drug trafficking, or human rights abuses. This makes the sanctions screening a number one defense against individuals and entities or countries considered a risk to peace and national security. 

Frequently asked questions

1

Why are Sanctions Checks Important?

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Performing a sanctions check is crucial because dealing with a sanctioned entity can damage a company’s reputation and pose national security risks. This is especially important when conducting due diligence before partnering with other companies or individuals. For example, getting involved with an entity from a sanctioned country involved in war crimes or funding mass weapon production is both illegal and dangerous. So, sanctions checks serve as a legal and ethical safeguard.

2

What is the Most Common Type of Sanctions?

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3

Who is Responsible for Imposing Sanctions?

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4

How Do I Know if My Business Needs a Sanctions Check?

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What is the Goal of a Sanctions Check?

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What is a Sanctions List?

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When Does a Sanction Check Take Place?

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