The most frequently asked questions about the sanctions list

The most frequently asked questions about the sanctions list include:

 

Back to the instruction Sanctioned party list screening

What is a sanctioned party list?

A sanctioned party list is a publicly accessible list of persons, associations or companies that have been subjected to economic and/or legal restrictions imposed by states or communities of states. In some cases, sanctioned party lists also include lists of goods, which in turn prohibit the delivery of certain goods to named persons and/or states.


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Why does the sanctioned party lists need to be checked?

It began by examining persons suspected of terrorism in response to the attacks of 11 September 2001.
The legal basis for this in the EU are the regulations:

In addition, there are other general or country-specific EU embargo regulations, which list in the annexes persons and organisations for which restrictions exist. Export restrictions on certain goods are currently in place, particularly against institutions in Iran, North Korea, South Sudan, Russia and Ukraine. According to § 4 paragraph 2 of the German Foreign Trade and Payments Act (AWG), the obligations to act resulting from the decisions of the Council of the European Union must be implemented. In the event of a violation, up to 10 years imprisonment and substantial fines for managing directors and export managers are threatened.


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Who has to check sanctioned party lists?

According to the applicable EU regulations and the AWG, every company resident or economically active in the EU is obliged to make an economically and technically justifiable effort to check all business partners against the published European Common Foreign & Security Policy (CFSP) list. This means that not only exporting companies, but also companies doing business only in Germany must check all business partners, suppliers, customers and also employees against the sanctioned party lists.


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When must sanctioned party lists be checked?

Even if your company only does business within Germany, the management is obliged to check whether the business partner is on a sanctioned party list or an anti-terrorist list. In this case, this contact must not receive any economic resources or financial aid. If this is not observed, this can be punished with fines and imprisonment. In the first place the company is liable, but the persons affected are almost always the managers and possibly the person responsible for exports. Furthermore, there are also concrete economic risks, especially in connection with the US lists. If, for example, an employee or the company is on the SDN list simply because it maintains business relations with Iran legally under German law, this can lead to the company no longer being supplied by American manufacturers.


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How often shall sanctions lists be checked?

There is no binding statement as to how often and in what way the test must be performed. An economically and technically justifiable effort must be made to prevent the listed person from receiving goods, services or financial support. Whether this was sufficient is decided by a judge in case of dispute. Most companies check according to the following frequency:

  • min. 1x per month all addresses – address master check
  • ongoing with address creation or change of address – online check
  • continuously with the pure address use, e.g. for an offer – document check

TIP If an entry is not found, it is important to be able to prove with a test protocol that a test was carried out in principle.


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Which sanctioned party lists have to be checked?

The following is an overview of all currently relevant sanctioned party lists and the corresponding declaration of when which list must be checked. You can also read about the consequences of a hit in the sanctioned party lists.

Which sanctioned party lists exist? Where can I find the correct sanctioned party list?

Overview

Name Details Homepage
EU_CFSP Consolidated list of persons, groups and entities subject to EU financial sanctions, Published by: European Union External Action: Common Foreign and Security Policy Link
EU_RUSD Russia Embargo on Dual-use Goods, Published by: European Commission / Council of the European Commission Link
EU_RUSK Russia Embargo for the Capital Market, Published by: European Commission / Council of the European Commission Link
EU_IRAN Iran Embargo, Published by: European Commission / Council of the European Commission Link
GB_HMT Consolidated list of Financial Sanctions Targets in the UK, Published by: HM Treasury, Office of Financial Sanctions Implementation Link
CH_SECO Consolidated List, Published by: State Secretariat for Economic Affairs SECO Link
JP_METI End User List, Published by: METI Ministry of Economy, Trade and Industry Link
US_SDN Specially Designated Nationals And Blocked Persons List, Published by: Office of Foreign Assets Controls, U.S. Departmet of Treasury Link
US_DPL Denied Persons List, Published by: Bureau of Industry and Security, U.S. Department of Commerce Link
US_EL Entity List, Published by: Bureau of Industry and Security, U.S. Department of Commerce Link
US_UL Unverified List, Published by: Bureau of Industry and Security, U.S. Department of Commerce Link
US_LSDP List of Statutorily Debarred Parties, Published by: U.S. Department of State, Directorate of Defense Trade Controls Link
US_LADP List of Administratively Debarred Parties, Published by: U.S. Department of State, Directorate of Defense Trade Controls Link
US_NPL Nonproliferation List, Herausgeber: U.S. Department of State, Bureau of International Security and Nonproliferation Link
US_NONSDN Consolidated Sanctions List, Published by: Office of Foreign Assets Controls, U.S. Departmet of Treasury Link

 

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EU_CFSP – Consolidated list of persons, groups and entities subject to EU financial sanctions (EU sanctioned party list)

Sanctions are implemented in the form of EU regulations that apply to all EU countries. Many of these regulations are in turn based on decisions of the United Nations Security Council, such as the measures against Russia, North Korea, Syria or Libya. The consolidated sanctioned party list European Union (EEAS) – Common Foreign & Security Policy (CFSP) is available for download in XML format under this link. This collection of addresses contains all persons, organisations and associations subject to financial sanctions by the EU. All EU-wide lists of names, which are published in the European Official Journal as a result of regulations, can be found on this consolidated list collection. The entries are therefore made with different backgrounds on the fight against terrorism, the implementation of country embargoes, the fight against torture and on political and economic sanctions.

What must be attended to in case of a hit?

Financial sanctions are applied to companies and persons on this list, therefore no economic resources or funds may be made available and the assets of the person concerned are frozen. In exceptional cases, permits may be requested. In Germany, the competent authority for authorising the supply of economic resources is the Federal Office of Economics and Export Control (BAFA) and for financial resources the Deutsche Bundesbank.


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EU_RUSD – Russia Embargo: Dual-use goods

Regulation (EU) No 960/2014 added a new prohibition on the sale, supply, transfer or export of items listed in Annex I to the EC Dual-use Regulation to the mixed-use receivers listed in Annex IV to that Regulation (Art. 2a). This also applies to technical assistance or financial services related to dual-use items. Excluded from this prohibition are contracts concluded before 12.09.2014 or if the goods are intended for the maintenance and safeguarding of existing civil nuclear capabilities in the EU or are supplied to non-military end users in the aerospace sector.

What must be attended to in case of a hit?

Activities involving dual-use goods are prohibited.


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EU_RUSK – Russia Embargo: Capital Market

Article 5 of Regulation (EU) 833/2014 and its recast by Regulation (EU) No 960/2014 provide for the following prohibitions:

  • Buy and sell securities and money market instruments with a maturity of more than 90 days issued until 12 September 2014 by an entity listed in Annex III to the Regulation
  • Purchase and sale of securities and money market instruments with a maturity of more than 30 days issued after 12 September 2014 by an entity referred to in Annexes III, V and VI of the Regulation
  • New loans or credits with a maturity of more than 30 days to the entities listed in Annexes III, IV and VI of the Regulation, unless they are used to finance permitted imports and exports between the EU and Russia.

What must be attended to in case of a hit?

The prohibitions apply exclusively to financial instruments with a maturity of more than 30 days. For maturities of more than 30 days, the above-mentioned prohibitions apply.


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EU_IRAN – Iran Embargo

The sanctioned party list Iran no longer plays a major role after the agreed relaxation in the course of the nuclear treaty, but the sanctions have not been completely lifted. Although the lists of persons have been minimised, they still exist. It should be noted that when the Iranian sanctions were included, the consolidated EU list was extended with a time lag. In some cases, business may not be conducted with the listed persons. For some entries, only a ban on the supply of dual-use goods or investment restrictions at certain banks apply. This must be checked in the embargo regulation. In the case of business with Iran, it is also urgently recommended to check against the US lists, as the US government’s sanctions against Iran have been extended and even expanded. We make this recommendation because almost every German company is economically dependent on the USA.

What must be attended to in case of a hit?

In some cases, business may not be conducted with the listed persons. For some entries, only a ban on the supply of dual-use goods or investment restrictions at certain banks apply. This must be checked in the embargo regulation.


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JP_METI – End User List

The METI list is published by the Japanese Ministry of Economy, Trade and Industry. The list contains companies and organisations suspected of developing weapons of mass destruction or missiles or associated with terrorism.

What must be attended to in case of a hit?

Licensing requirements exist for goods intended for the development or production of weapons of mass destruction. Consignments to listed companies or organisations must be approved by METI.


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GB_HMT – Consolidated list of Financial Sanctions Targets in the UK

The former list of the Bank of England is managed by HM Treasury, the Treasury of Great Britain. The HM Treasury publishes this list to combat money laundering and prevent the financing of terrorism. This list thus contains financial sanctions adopted by the EU and national supplements by Great Britain. Since the European financial sanctions are included in the EU_CFSP list, this list is extended by the national supplements.

What must be attended to in case of a hit?

A: Registered office in the UK:
You should report the hit to HM Treasury. There it is decided whether the good/service or the money may be passed on to the recipient.

B: Registered office in the legal territory of the EU:
As European law is implemented on the sanctioned party list, the consequence, as with the EU list, is that initially no economic resources or finances may be transferred. In the case of national supplements that are not also on the EU list, coordination with HM Treasury may be useful.


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CH_SECO – Consolidated List

The Swiss State Secretariat for Economic Affairs (French: Secrétariat d’État à l’économie – SECO) provides the Swiss sanctioned party list. The measures have been adopted to enforce sanctions decided by the Organization for Security and Cooperation in Europe or by Switzerland’s main trading partners. The legal basis for this is the Embargo Act (EmbG). The SECO list should be checked by companies that are subject to Swiss law or maintain trade relations with Switzerland.

What must be attended to in case of a hit?

A: Registered office in the legal territory of Switzerland:
Anyone directly or indirectly affected by measures under the Swiss Embargo Act (EmbG, https://www.admin.ch/opc/de/classified-compilation/20000358/index.html) must provide the Swiss State Secretariat for Economic Affairs with the information and submit the documents required for a comprehensive assessment or control.

B: Company headquarters in the legal territory of the EU:
Since SECO is participating in the European sanctions, no economic resources or finances should be transmitted initially in this case either. In the case of national supplements which are not also on the EU list, coordination with the Swiss State Secretariat for Economic Affairs should take place.


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US lists

Which US lists are relevant for me?

The authorities in the USA now provide many different address lists, which companies must check before starting a business relationship. Various programs have been enacted, which can be found in the so-called OFAC list collection (see below). Important difference to the EU list: Not every hit in a US list automatically leads to a ban. Sometimes only one approval is required. In essence, countries outside the US must also comply with the following lists, as the US authorities believe that these must be taken into account worldwide – especially by European companies.


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US_SDN – Specially Designated Nationals And Blocked Persons List

Here you will find natural or legal persons who are involved in activities that endanger the security of the USA. Unfortunately, the German entrepreneur Ulrich Wippermann also had to experience this painfully when his company came under the scrutiny of the American authorities. According to German law, he had done nothing wrong.

What must be attended to in case of a hit?

If a hit is made here, the trading partner must apply to the American authorities for a permit to exchange goods subject to the Export Administration Regulations (EAR). This applies to US persons and worldwide for all entries with the following identifiers: NPWMD, SDGT, SDT, FTO, IRAQ2, BURMA.


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US_DPL – Denied Persons List

The consequences of this list are harsher. Here, natural and legal persons are listed who have violated US export law. The Bureau of Industry an Security (BIS) has issued a denial order against these persons. These persons are subject to a comprehensive ban on trade in US products.

What must be attended to in case of a hit?

Companies that violate this prohibition are in breach of US export regulations. This can lead to penalties and they can also be listed on the DPL themselves. Therefore, do not do business with persons listed there.


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US_EL – Entity List

Here persons are listed who represent a risk of being involved in the proliferation of weapons of mass destruction.

What must be attended to in case of a hit?

In the respective list entry found, it is indicated which prohibition exists and which permission is required to make US products available to this person. It should be noted that EAR99 goods are often not subject to approval.


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US_UL – Unverified List

This list may include persons for whom there is only a doubt as to whether they are suitable to purchase US products. It is a kind of warning list.

What must be attended to in case of a hit?

It must be ensured that the goods are not used for a prohibited end-use.


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US_LSDP – List of Statutorily Debarred Parties

This is preceded by a violation and a conviction under arms export control law for the natural or legal person.

What must be attended to in case of a hit?

The listed persons are excluded from trading in US military equipment.


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US_LADP – List of Administratively Debarred Parties

The Deputy Secretary of State for Politico-Military Affairs may exclude certain persons or organisations from trading in arms.

What must be attended to in case of a hit?

The listed persons are excluded from trading in US military equipment.


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US_NPL – Nonproliferation List

The Bureau of International Security and Nonproliferation is responsible for ensuring compliance with various programmes on non-proliferation of materials, technologies and expertise in the field of nuclear, biological, chemical or radiological weapons of mass destruction and their means of delivery. Nonproliferation is implemented in various programmes* which provide for different sanctions against individuals and governments.

What must be attended to in case of a hit?

In case of a hit you have to find out by which program the person or government is sanctioned. You can determine this using the sanctioned party list. Depending on the program, you must check whether your activity is covered by the sanctions and, if so, request approval from the relevant department.

*Programmes:

  • Executive Order 13382
  • Executive Order 12938
  • Missile Sanctions laws
  • Iran, North Korea, Syria Nonproliferation Act Sanctions
  • Iran Nonproliferation Act of 2000
  • Chemical and Biological Weapons Control and Warfare Elimination Act
  • Nuclear Proliferation Prevention Act
  • Export-Import Bank Act
  • Iran and Syria Nonproliferation Act
  • Transfer of Lethal Military Equipment
  • Iran-Iraq Arms Nonproliferation Act of 1992 Section 231 of CAATSA

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US-NONSDN – Consolidated Sanctions List

In order to facilitate compliance with the sanction regulations of the Office of Foreign Assets Control (OFAC), a consolidated list of all non-SDN sanctioned party lists is available. The consolidated list contains:

Although the contained lists are not part of the SDN list, the entries may be contained in both lists.

What must be attended to in case of a hit?

In case of a hit, you have to find out on which of the above mentioned lists the corresponding entry is on and if your activity is covered by the sanctions. If this is the case, you will need an approval from OFAC.


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