Bifurcation of Sanctions Lists Based on Individual Concerns

Bifurcation of Sanctions Lists Based on Individual Concerns

Money laundering cases can be controlled by adhering to sanctions screening. The sanctions list is defined on different grounds, which helps countries keep unusual activities at bay.

Money laundering is becoming a pressing concern amidst the growing economy. The time during the pandemic has been tough for all business sectors. Time has been a huge challenge for most people and has intruded on their finances too. 


Financial crises are part and parcel of everyone. From established organizations to start-up businesses, no one is immune to unidentified and uncertain financial attacks. The only way to be prepared for such invasions is to be careful with drawing the outer line and setting boundaries. 


Financial intrusions are not only external but, in most cases, are reported to be internal. Financial institutions or businesses are attacked by their own customers and clients. Now, is there a way to eliminate such customers and clients? 


Well, money laundering cases have no blocking walls. The only solution is to make the right use of sanction screening tools. Since the problem is getting chronic by the day, financial institutions and businesses require effective measures to avoid such financial leaks. 


Read along to understand how AML sanction screening can help eradicate or at least control the intensity and frequency of money laundering cases. 

What are Sanctions?


To explain the sanction screening process, we should get into the details of sanctions. 

Sanctions are the restrictive measures taken or imposed on entities or individuals to curtail their activities and deploy their influence. 


These restrictive operations include-


  • Trade sanctions
  • Financial sanctions
  • Restrictions on travel
  • Civil aviation restrictions

 The UN and EU issue financial sanctions. These are included in the sanctions lists. All the entities and legal persons are expected to comply with the financial sanctions

What are the Penalties Imposed on Sanctions Breach?


All entities and individuals must comply with the sanctions lists to protect their reputations and finances. In case of any violation of the rules, they are liable for tackling penalties. The finance authorities have exclusively distinguished the type of outcomes applied while breaching the standard rules. 


To adhere to the sanctions list, the companies should know the different types of sanctions lists. 

Bifurcation of Sanctions to be Noted


Sanctions lists are not limited to one sector. Since every business vertical has the danger of getting financially attacked, sanctions lists have different restrictions. 


Let’s start with the type of sanctions list to be followed by the entities and individuals


  • Economic Sanctions: Economic sanctions are majorly focused on trade barriers, restrictions on financial transactions, and tariffs. These sanctions are levied on import duties. These sanctions impose substantial costs on the target countries to demand a change in policies. The economic sanctions are challenged because of their acute effects. These impacts somehow harm the general public instead of the target regimes.
  • Diplomatic Sanctions: Diplomatic sanctions are the political rules or measures accepted to convey the disapproval of a specific action instead of impacting military relations. The measures taken involve the elimination of high-level government visits.
  • Military Sanctions: Military sanctions range from targeted military strikes to demeaning a nation’s non-conventional and conventional abilities. It includes the less violent or peaceful form of the arms embargo in order to cut off the dual-use items or supplies. 
  • Sports Sanctions: Sports sanctions are leveraged to break the morale of the targeted country. These sanctions were levied as a share of international sanctions. Taking the most recent example, in the 2022 Russian invasion of Ukraine, most of the sporting entities leveraged sports sanctions to oppose Russia and Belarus. 
  • Environment Sanctions: Environmental sanctions constitute economic and political issues. This can include the trades since they are interdependent. The trade that is engaged in threatening the well-being of endangered species, use of ozone-depleting chemicals, and environmental laws. Even though environmental sanctions were recently brought into use, the negative effect on the environment has inspired individuals and the government to deal with the problems. 


Sanctions lists are issued with the purpose of controlling the illicit steps that countries or individuals take. The sanctions lists are to be adhered to by different countries and entities to keep the frauds at bay.  

AML Sanctions Screening


Anti-money laundering screening is effectively and accurately done using AML software or systems. The screening process aims to prune the red flags and control the risk factors. 


Financial institutions and businesses are always in danger of getting financially exploited. This somehow impacts their overall productivity and leads to reduced revenue. The finances' alterations are common yet allowed only in certain circumstances. 


Businesses and financial institutions must follow the sanctions list and adhere to the listed rules. This protects them from money laundering. The AML software like AML-TRACE recognizes unusual activities and screens through the contacts to identify the blacklisted contacts. The software lays down the contacts with a history of fraud and is involved in current unusual transactions. It helps block upcoming deals with them and protect the business image. 


Money laundering cases can directly or indirectly connect to illicit activities or terrorist financing. It can risk the reputation of the business or financial institutions. Accessing AML software for AML sanctions screening can be the wisest decision to protect the public interests.