Sanctions Consulting


What do you think of when you hear the word sanction?

“Sanction” stems from the Latin word sanctio, which means: a formal decree, to ratify or confirm, permission or approval.

In light of (Inter)national sanction laws and regulations, the meaning of “sanction” is derived from French, meaning: coercive measure, penalty.

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What could sanctions mean to your business?

Every business relationship (and/or the subject goods/services) in your import/export business could be targeted by International sanction laws and regulations. When starting a new business relationship, you should find out whether there is a risk regarding International sanction laws and regulations. If so, then we will gladly help you to control this risk. If you do not control this risk, then you run the chance of being prosecuted, business-wise and each individual employee, by the country that proclaimed the sanction laws and regulations. On the “Civil penalties and Enforcement” webpage of OFAC you will find a list of companies that were fined in the past, in this case by US authorities.

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Where can I find for what countries/subjects sanctions have been proclaimed?

I maintain a list of applicable sanctions on these pages:

What kind of sanctions should I think of in the International trade and fund transfers?

UN

The United Nations (UN) regularly discusses measures to interfere in (Inter)national conflicts. When they are of the opinion that countries need to be dealt with (like the human rights violations in Burma (Myanmar)), resolutions are issued. The member countries of the UN will usually have to adopt the resolutions in their own laws and regulations before they are legal.

(source: UN website)

EU

Resolutions of the UN, related to sanctions, are usually literally adopted by the EU in the sanction laws and resolutions and are valid for all EU memberstates. Beside these the EU, and each of her memberstates, has her own sanctions that may be directed against persons and companies. It is not common for the EU and her memberstates to have sanctions directed to entire countries since these sanctions would be of major consequence.

The effect of sanctions is that certain goods and/or services may not be made available to sanctioned parties. For this purpose a list is published containing targeted persons and companies (consolidated list of persons, groups and entities subject to EU financial sanctions).

The EU sanctions are applicable to all persons and companies located in the EU, all EU citizens, and branches of companies established in the EU.

If one does not comply with the sanctions, funds and/or goods may be confiscated and the infringed party will be fined.

(source: EU website)

US

Resolutions of the UN, related to sanctions, are usually literally adopted by the US. Beside these the US has her own sanctions that may be directed against persons, companies and countries.

The effect of the sanctions is that certain goods and/or services may not be made available to sanctioned parties. For this purpose a list is published containing targeted persons and companies (the SDN list).

Additionally (strategic/dual use) goods produced in the US, and goods based on (certain) US technology/products are also subject to US sanctions laws and regulations.

The US sanctions are applicable to all persons and companies in the US, all US persons (including people with a Green Card) wherever located, and branches and subsidiaries of US established companies.

If one does not comply with the sanctions, funds and/or goods may be confiscated and the infringed party will be fined.

(source: OFAC website, BIS website, Department of State)

Recently published changes to the US Sanctions policy:

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