Legal and Regulatory Frameworks for Sanctions
Expert-defined terms from the Advanced Certificate in Sanctions and Trade Embargoes in International Business course at London School of Business and Administration. Free to read, free to share, paired with a globally recognised certification pathway.
**Anti #
Money Laundering (AML)**
: A set of laws, regulations, and procedures designed to prevent criminals from… #
AML efforts aim to detect and report suspicious activity, including sanctions evasion.
**Autonomous Sanctions** #
**Autonomous Sanctions**
: Sanctions imposed by a country on its own accord, without the backing of the U… #
Autonomous sanctions allow countries to respond quickly to emerging threats and situations.
**Comprehensive Sanctions** #
**Comprehensive Sanctions**
: A type of sanction that restricts all trade and financial transactions between… #
Comprehensive sanctions aim to exert maximum pressure on a target country's economy.
**Designated Persons** #
**Designated Persons**
: Individuals or entities specifically named in a sanctions list, who are subjec… #
: Individuals or entities specifically named in a sanctions list, who are subject to restrictions and prohibitions as outlined in the legal and regulatory frameworks for sanctions.
**Embargo** #
**Embargo**
: A government-imposed restriction on commerce and trade with a specific country… #
Embargoes can be comprehensive or targeted, and they aim to influence or change the behavior of the targeted entity.
**Export Controls** #
**Export Controls**
: Regulations designed to restrict the export of specific goods, technologies, o… #
Export controls aim to prevent the proliferation of weapons of mass destruction and support national security and foreign policy objectives.
**Financial Action Task Force (FATF)** #
**Financial Action Task Force (FATF)**
: An intergovernmental organization founded in 1989 to develop policies to comba… #
FATF sets international standards and guidelines for AML and Countering the Financing of Terrorism (CFT) efforts.
**Foreign Corrupt Practices Act (FCPA)** #
**Foreign Corrupt Practices Act (FCPA)**
: A United States federal law that prohibits American corporations, citizens, an… #
The FCPA also mandates accurate record-keeping and reporting by publicly traded companies.
**Freeze and Seizure** #
**Freeze and Seizure**
: A sanctions measure that restricts access to and the use of assets owned or co… #
Freeze and seizure orders aim to prevent sanctioned parties from accessing resources that could be used to support illicit activities.
**Know Your Customer (KYC)** #
**Know Your Customer (KYC)**
: A due diligence process that financial institutions and other regulated entiti… #
KYC procedures are a critical component of AML and CFT efforts.
**Listed Entities** #
**Listed Entities**
: Individuals, entities, or organizations included in sanctions lists maintained… #
Listed entities are subject to specific restrictions and prohibitions under sanctions regimes.
**Money Laundering** #
**Money Laundering**
: The process of disguising the illicit origin of funds obtained through crimina… #
Money laundering typically involves three stages: placement, layering, and integration.
**Office of Foreign Assets Control (OFAC)** #
**Office of Foreign Assets Control (OFAC)**
: The United States Department of the Treasury agency responsible for enforcing… #
S. foreign policy and national security goals. OFAC maintains and updates sanctions lists, issues
**Primary Sanctions** #
**Primary Sanctions**
: Sanctions imposed by a country on its own citizens, residents, and companies,… #
: Sanctions imposed by a country on its own citizens, residents, and companies, restricting them from engaging in certain activities or transactions with a sanctioned country, entity, or individual.
**Prohibited Parties** #
**Prohibited Parties**
: Individuals, entities, or organizations that are subject to specific restricti… #
Prohibited parties are typically included in sanctions lists maintained by national governments, international organizations, or regional bodies.
**Sanctions Committees** #
**Sanctions Committees**
: Committees established by the United Nations Security Council to monitor and i… #
Sanctions committees are responsible for maintaining sanctions lists, reviewing implementation, and promoting compliance.
**Sanctions Evasion** #
**Sanctions Evasion**
: The act of circumventing or violating sanctions regulations, often through com… #
Sanctions evasion is a criminal offense and can result in penalties for individuals and entities involved.
**Secondary Sanctions** #
**Secondary Sanctions**
: Sanctions imposed by a country on non-citizens, non-residents, and foreign com… #
Secondary sanctions aim to extend the reach of primary sanctions beyond a country's borders.
**Sectoral Sanctions** #
**Sectoral Sanctions**
: Sanctions that target specific sectors of a sanctioned country's economy, such… #
Sectoral sanctions aim to limit a country's access to critical resources or technologies, without imposing a comprehensive trade embargo.
**Specially Designated Nationals (SDN)** #
**Specially Designated Nationals (SDN)**
: Individuals, entities, or organizations included in OFAC's sanctions lists, su… #
S. persons' prohibition from engaging in transactions with them.
**Targeted Sanctions** #
**Targeted Sanctions**
: A type of sanction that focuses on specific individuals, entities, or sectors… #
Targeted sanctions aim to minimize the impact on innocent civilians while exerting pressure on the targeted entity.
**Terrorist Financing** #
**Terrorist Financing**
: The process of providing or collecting funds with the intention of using them,… #
Terrorist financing is a criminal offense and a critical area of focus for AML and CFT efforts.
**Trade #
Based Money Laundering (TBML)**
: A method of money laundering that involves disguising the proceeds of criminal… #
TBML methods include over- or under-invoicing, multiple invoicing, or false descriptions of goods.
**United Nations (UN) Sanctions** #
**United Nations (UN) Sanctions**
: Sanctions imposed by the United Nations Security Council, targeting countries,… #
UN