FullCircl Data: Navigating the rapidly evolving sanctions landscape
In response to Russia’s invasion of Ukraine, the UK, US, Europe, and many other countries around the world have imposed and enforced the largest ever set of economic sanctions on Russia and Belarus.
Complex, volatile and rapidly evolving, the current global sanctions landscape, with its vast range of country-specific regulations, is a huge compliance challenge for financial service institutions (FSIs).?Indeed, at the time of writing, the UK sanctions list covers more than 1,000 of Russia’s most significant and high-value individuals, entities, and subsidiaries, effectively shutting out huge sectors of the Russian Economy.
But while the recent spate of sanctions has drawn significant media attention, in addition to Russia and Belarus, the UK Government currently imposes a range of financial sanctions on some 22 other countries including Afghanistan, Democratic People's Republic of Korea, Iran, Libya, Myanmar, Syria, and Yemen. Keeping up with the implication of sanctions on business is a constant undertaking.
In this article we will explore, through analysis of FullCircl data, the scale of the impact in three ways;
Note on this analysis: the data presented here is intended to highlight the broader risk landscape impacting UK companies. Lists of sanctioned individuals and assets are available from various sources.
A complex geopolitical landscape
FSIs are required to ensure that the individuals, entities, and subsidiaries they do business with are not subject to sanctions. However, achieving compliance and then staying compliant is an incredibly complex process. Increasing regulatory scrutiny, as well as the inconsistent nature of global regimes, is putting intense pressure on FSIs to raise the bar for sanctions compliance and awareness.?
Whilst the vast number of UK companies are unaffected, FSIs need to be able to scrutinise their customer base:
Analysis of FullCircl data highlights the scale of the issue and the complexity FSIs face in responding to a rapidly changing sanctions landscape. We looked at three scenarios that could impact FSIs and their customers.
UK Companies with Directors who are a national of a country with sanctions against it
This data highlights the number of companies operating in the UK who may require deeper checks, represent a higher risk level, or where continual in-life monitoring for changes in company data or adverse media and news may be appropriate to respond in a timely and adequate way to new developments.
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UK Companies with at least one parent company based in a sanctioned country
This data highlights UK companies that are owned or controlled by entities based in a country with sanctions against it.?Whilst these entities may not themselves fall within the scope of sanctions lists, they could present an increased risk in regard to their partnerships, alliances, and supply chain.
Directors with nationality of a sanctioned country
The number of sanctioned individuals is growing at an unprecedented rate and therefore businesses need real-time screening to protect themselves against the regulatory, financial, and reputational implications of doing business with any existing or potential Politically Exposed Persons (PEPs). NB: this data shows the total number of directors working for UK companies with a particular nationality, not the number of sanctioned individuals within that country.
FullCircl is offering free assistance to customers navigating the rapidly evolving sanctions landscape
To assist our customers in navigating the increasingly complex yet highly critical sanctions challenge we are offering data extracts to FullCircl customers:
Simply get in touch with your Customer Success Manager or contact us via fullcircl.com/contact-us