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LexisNexis® Risk Solutions, the global information solutions provider, has today launched a guide to help businesses navigate the ever-growing complex global sanctions environment.
Over the last two years the sanctions environment has become increasingly more complex, and this has been further amplified through the US Government’s recent decision to re-impose sanctions on Iran following its decision to leave the Joint Comprehensive Plan of Action earlier this year. This change in approach by the US Government means that companies now need to be aware of yet another layer of sanctions, if not they could face fines by the US enforcement body, the Office of Foreign Assets Control (OFAC).
As part of its new guide, LexisNexis® Risk Solutions highlights that companies, regardless of sector, who trade in US dollars, use US goods or components, have a US parent subsidiary or work through a local agent or supplier with a US connection are at risk of being penalised. Historically, the financial services sector has been the key focus of sanctions, however in recent years the scope of those being scrutinised for breaches has widened. As a result, the guide seeks to raise awareness of the fact that any industry can be subject to OFAC sanctions, and following enforcement actions in recent years, calls out several in particular that should be scrutinising their controls: shipping and freight, electronic components, insurance, medical instruments, luxury goods, gas and oil, telecommunications and technology.
As part of its guide, LexisNexis® Risk Solutions recommends that businesses use a combination of the following to help identify and mitigate sanctions risks:
- Technology – to remain on the front foot, and ensure they are aware of all sanctioned individuals and entities, firms need to harness the power of technology to continually screen clients against all major sanctions’ lists and monitor for any changes such as additions, deletions or amendments
- Manage customer data – by ensuring their master customer data is as accurate and as complete as possible, firms are able to reduce false positives when sanction screening to ensure they are minimising risk without impacting on the experience of legitimate customers.
- Sanctions insight – with the sanctions landscape constantly evolving, it is critical that firms access up-to-date sanctions insight which reflects the listings of all significant sanctions regimes and changes to those listings in order to avoid breaching sanctions
Michael Harris, Director Financial Crime Compliance and Reputational Risk at LexisNexis® Risk Solutions says:
“In what is becoming an increasingly complex environment, and with such a significant change in position from the U.S., it’s now more important than ever for firms to be aware of the numerous sanctions regimes that are in place and leave no stone unturned when it comes to ensuring compliance. By undertaking regular sanctions screening, firms can ensure they are not facing unprecedented fines, reputational damage and potentially risking future business relations in the United States or any other jurisdiction by breaching these censures.”
