Last week Europe and the US imposed a fresh round of sanctions on Russia. These latest moves reflect international outrage about atrocities in Ukraine, while reviving longstanding expert debates about whether sanctions are an effective deterrent to international aggression and humanitarian emergencies.
Efficacy disputes aside, the clear signal from US and European authorities is that they are committed to wield the sanctions stick and pursue sanctions evaders. US Treasury Secretary Janet Yellen last month expanded sanctions authorities under Section 1(a) of Executive Order 14024 to include Russia’s marine, electronic, and aerospace sectors.
- Regulatory and enforcement authorities’ commitment is reflected in upcoming enforcement and regulatory agency budget requests. The US Treasury Department is seeking a 14.5 percent budget increase for 2023 to supersize its sanctions process and upgrade its operational architecture. Meanwhile, a FinCEN budget increase request is intended to help expand staffing by more than 47 percent.
This means escalating complications for compliance officers and underscores the necessity of up-to-date, contextualized sanctions and third-party supply chain screening. The co-chair of the legal and regulatory affairs committee at the Financial & International Business Association (FIBA) trade group told the Wall Street Journal last month that specific challenges include validating the names of individuals and entities, staying up to date on executive orders and licenses that permit selected activities, and scrutinizing correspondent banking relationships.
IntegrityRisk Stands Ready to Help.
We have longstanding, extensive, hands-on experience supporting businesses and financial institutions that are navigating the complexities of risk and compliance in Russia.
- Our sanctions screening goes beyond cursory database and watchlist checks to provide critical analysis and context.
- Our enhanced due diligence (EDD) utilizes Russian language research as part of our open-source research and link analysis.
- We can provide support with local source inquiries and investigations to determine the status, connections, and reputation of Russia-based individuals and corporations.
Reach out today with any questions or to inquire about our Russia sanctions screening, EDD, and open-source intelligence gathering capabilities.