Understanding Sanctions and Sanction Lists

Sanctions Lists

• Sanctions lists are compiled by governments and international organizations to restrict individuals, entities, and countries due to human rights violations, terrorism, proliferation of weapons of mass destruction, or other security and policy issues.
• The most well-known sanctions lists include those of the United Nations, European Union, U.S. OFAC, and United Kingdom.

UN Sanctions

• UN sanctions aim to support international peace and security and can be imposed on countries, organizations, or individuals involved in activities such as proliferation of weapons of mass destruction, terrorism, or gross violations of human rights.
• The UN sanctions regime is unique in that it is the only sanctions list administered by an international organization and supported by almost every country in the world.
• Examples of UN sanctions include: North Korea, Iran, Somalia, and Eritrea.

European Union Sanctions

• The European Union produces its own sanctions lists that are binding on all member states, usually related to human rights violations, weapons proliferation, or destabilization of regions.
• Examples of EU sanctions include: Russia, Syria, Iran, and Belarus.

U.S. OFAC Sanctions

• The Office of Foreign Assets Control (OFAC) is responsible for implementing and enforcing economic and trade sanctions based on U.S. foreign policy and national security objectives.
• OFAC's main tools include the SDN list (Specially Designated Nationals list) and the FSE list (Foreign Sanctions Evaders list).
• The SDN list contains names of individuals, groups, and entities covered by sanctions programs, and U.S. citizens and businesses are prohibited from dealing with these parties.
• The FSE list identifies and punishes individuals and companies that actively ignore sanctions against sanctioned countries, such as Iran and Syria.
• OFAC also has other lists, including the Sectoral Sanctions Identifications list (SSI), which targets specific sectors of the Russian economy.

U.K. Sanctions

• After Brexit, the United Kingdom developed its own independent sanctions regime, administered by the Office of Financial Sanctions Implementation (OFSI), a division of the British Treasury.
• The U.K. sanctions list is an integral part of the country's foreign and security policy, aiming to promote international security, prevent terrorism, and support human rights.
• The UK government publishes regular updates to the list of sanctioned parties, which is essential for businesses and financial institutions to ensure compliance.