Sanctions are restrictive measures imposed by governments or international bodies — such as the European Union, the United Nations, or individual countries — against specific individuals, companies, organisations, or entire countries. They can take many forms, including asset freezes (preventing a designated person from accessing their money or property), travel bans, trade restrictions, and prohibitions on providing financial services. Sanctions are used as a foreign policy tool, typically in response to serious human rights violations, acts of aggression, terrorism, or the proliferation of weapons of mass destruction.
For financial institutions and other businesses, sanctions compliance is an important obligation that runs alongside (but separate from) AML obligations. Businesses are legally required to screen their customers, transactions, and counterparties against EU and other applicable sanctions lists before conducting business. Providing funds or economic resources to a sanctioned party — even unknowingly — can result in severe civil and criminal penalties. The EU maintains and regularly updates its own Consolidated List of persons and entities subject to EU financial sanctions. Similarly, USA maintains its consolidated sanctions lists under OFAC.
You can check Free Screening Tools page for links to government run sanctions screening tools.
