Sanctions & trade compliance

Sanctions do not only apply to designated companies and individuals, such as oligarchs. The main purpose of sanctions is to stop or disrupt the flow of goods and technology, including through export and import embargoes, whether or not they are purchased by a sanctioned entity. Bans have been imposed on many categories of goods, including chemicals, electronics, food, and luxury goods. There are many others, some of which are non-obvious, so until you check, you cannot assume that your item is not sanctioned.

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In the world of globalized supply chains, you or your company can be held liable if your restricted items end up in a place where they should not have been delivered under current regulations. Sometimes it doesn't matter whether you delivered the goods directly or your distributor did, even without your involvement. Lack of knowledge is no excuse, especially when due diligence has not been exercised. You will also bear the responsibility when you facilitate prohibited transactions, such as acting as a freight forwarder or being a financial institution processing the transaction. 

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​Surveillance of the movement of goods has become the main focus of public authorities responsible for enforcing sanctions, as evidenced by the increasing number of fines imposed on companies that have knowingly or unintentionally engaged in prohibited trade. This underscores the importance of robust compliance programs to manage these risks.

Sanctions, export control, and trade compliance are the new business realities. Adapt to them before it is too late. Failure to comply can lead to criminal liability, severe financial penalties, reputational harm, and operational disruptions