The most frequently asked questions about the sanctions list

If you’re unfamiliar with the term, a sanctions list comprises individuals, entities, or countries subject to specific economic or trade restrictions. In this guide, we delve into the essentials: understanding what sanctions lists entail, the significance of regularly checking against them, and the entities responsible for their creation. Plus, we’re offering a valuable resource: a free e-book on mastering sanction list checks.

Discover why staying updated with sanctions lists is crucial, learn when and how to conduct checks effectively, and gain insights into the various sanctions lists you need to monitor. Ready to navigate the complexities of sanctions compliance effortlessly? Let’s dive in.

Free e-book on sanction list checking (only in German available)

How do companies check their business partners against sanctions? The free e-book on sanctions list checking helps companies stay safe when doing business with other countries. We make it easy for you to get started with easy, understandable and practical examples.

The eBook explains what sanctions lists are and how companies can use them to ensure they are working with the right people or companies.

You can find the e-book at: https://www.bex.ag/e-book-sanktionslistenpruefung/

Who imposes sanctions?

Sanctions usually have a political background and are in most cases imposed by governments, alliances or organizations. For Germany and Austria, the EU provides the consolidated list EU_CFSP (Common Foreign & Security Policy) online. The SECO list applies to Switzerland.

The sanctions lists in our portfolio are obtained directly from the issuing authorities and integrated into our SANSCREEN audit program. In addition, third parties such as: B. Reguvis can be licensed via SANSCREEN.

Why is it necessary to check against sanctions lists?

The examination of persons suspected of terrorism began in response to the attacks of September 11, 2001. The legal basis for this in the EU is formed by the regulations:

• (EU) No. 2580/2001 (Anti-Terrorism)
• (EU) No. 881/2002 (Al-Qaeda)
• (EU) No. 553/2007 (Al-Qaeda) – Amendments to 881/2002
• (EU) No. 753/2011 (Taliban)

There are also other general or country-specific EU embargo regulations, which list the persons and organizations for which in the appendices Restrictions exist. There are currently export restrictions for certain goods specifically against institutions in Iran, North Korea, South Sudan, Russia and Ukraine. According to Section 4 Paragraph 2 of the German Foreign Trade Act (AWG), the obligations to act resulting from the decisions of the Council of the European Union must be implemented. A violation could result in up to 10 years’ imprisonment and severe fines for managing directors and those responsible for exports.

How can you carry out a sanctions list check?

In order to ensure that no business is done with people or companies that are on sanctions lists, sanctions list checks must be carried out regularly. But who actually needs to be subject to a sanctions list check?

In principle, all companies and individuals must carry out a sanction list check before concluding transactions with other partners. This affects both large companies and small self-employed people or private individuals who, for example, want to rent out an apartment or sell a car.

But how can you carry out a sanctions list check? There are different possibilities for this. One of these is the manual search on the websites of the sanctions list authorities. Here you can find the current lists of affected people and companies. Another option is automated search using special software solutions such as: B. with SANSCREEN. These programs automatically search the sanctions lists and compare the names with the business partners. This means that possible hits can be identified quickly.

If hits are found during a sanctions list check, you should be careful and take further steps. In some cases it is even stipulated by law that you are not allowed to enter into a business relationship with a person or company that is on a sanctions list.

How often must sanctions lists be checked?

There is no binding statement as to how often and in what way tests must be carried out. Economically and technically reasonable efforts must be made to avoid the listed person receiving goods, services or financial support. In the event of a dispute, a judge will decide whether this was sufficient. Most companies check on the following frequency:

• min. Once a month all addresses – address master check
• ongoing when creating or changing address – online check
• ongoing when purely using the address, e.g. for an offer – document check

TIP If an entry cannot be found, it is important to be able to prove with a test report that it has been checked in principle.

Which sanctions lists need to be checked?

Below you will find an overview of all currently relevant sanctions lists and the corresponding explanation as to when which list must be checked.

You can also read about the consequences of being hit on the sanctions lists.

 

What sanctions lists are there? Where can I find the correct sanctions list?

How can sanctions lists be accessed?

There are various ways to access the sanctions lists. One option is to search for the various sanctions lists on the Internet. There are many websites that provide such information. However, it is important to ensure that the information on such websites is current and reliable. Another way to access the sanctions lists is to use software or tools specifically designed for this purpose. Such tools can help companies and organizations quickly and easily check whether their business partners are on sanctions lists.

It is important to emphasize that sanction list screening is of great importance for companies and organizations. The audit helps avoid illegal business practices and minimizes the risk of litigation and penalties.

How can sanctions lists be accessed?

There are various ways to access the sanctions lists. One option is to search for the various sanctions lists on the Internet. There are many websites that provide such information. However, it is important to ensure that the information on such websites is current and reliable. Another way to access the sanctions lists is to use software or tools specifically designed for this purpose. Such tools can help companies and organizations quickly and easily check whether their business partners are on sanctions lists.

It is important to emphasize that sanction list screening is of great importance for companies and organizations. The audit helps avoid illegal business practices and minimizes the risk of litigation and penalties.

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

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

Regulation (EU) 2019/796 against cyber attacks

In order to create a secure cyber space, the EU imposed sanctions against cyber terrorism in May 2019. In our article “New regulation against cyberattacks” we regularly publish updates and summarize the essential points You together.

What needs to be taken into account when a hit occurs?

Companies and individuals on this list are subject to financial sanctions, therefore no economic resources and funds may be made available and the affected person’s assets will be frozen. In exceptional cases, permits can be applied for. In Germany, the responsible authority for approving the supply of economic resources is the Federal Office of Economics and Export Control (BAFA) and for financial resources is the Deutsche Bundesbank.

EU_RUSD – Russia Embargo: Dual-use goods

Regulation (EU) No. 960/2014 newly introduced the ban on the sale, delivery, transfer or export of goods listed in Annex I of the EC Dual-use Regulation to the mixed recipients listed in Annex IV of this regulation (Art .2a). This also applies to technical assistance or financial services that are related to dual-use goods. Excluded from this ban are contracts concluded before September 12, 2014 or if the goods are intended for the preservation and security of existing civil nuclear capacities in the EU or are delivered to non-military end users in the aerospace sector.

What needs to be taken into account when a hit occurs?

Activities related to dual-use goods are prohibited.

EU_RUSK – Russia Embargo: Capital Market

According to Regulation (EU) 833/2014 Article 5 and the new version with Regulation (EU) No. 960/2014, the following prohibitions apply: Another way to access the sanctions lists is to use software or tools specifically designed for this purpose. Such tools can help companies and organizations quickly and easily check whether their business partners are on sanctions lists.It is important to emphasize that sanction list screening is of great importance for companies and organizations. The audit helps avoid illegal business practices and minimizes the risk of litigation and penalties.

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

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

Regulation (EU) 2019/796 against cyber attacks

In order to create a secure cyber space, the EU imposed sanctions against cyber terrorism in May 2019. In our article “New regulation against cyberattacks” we regularly publish updates and summarize the essential points You together.

What needs to be taken into account when a hit occurs?

Companies and individuals on this list are subject to financial sanctions, therefore no economic resources and funds may be made available and the affected person’s assets will be frozen. In exceptional cases, permits can be applied for. In Germany, the responsible authority for approving the supply of economic resources is the Federal Office of Economics and Export Control (BAFA) and for financial resources is the Deutsche Bundesbank.

EU_RUSD – Russia Embargo: Dual-use goods

Regulation (EU) No. 960/2014 newly introduced the ban on the sale, delivery, transfer or export of goods listed in Annex I of the EC Dual-use Regulation to the mixed recipients listed in Annex IV of this regulation (Art .2a). This also applies to technical assistance or financial services that are related to dual-use goods. Excluded from this ban are contracts concluded before September 12, 2014 or if the goods are intended for the preservation and security of existing civil nuclear capacities in the EU or are delivered to non-military end users in the aerospace sector.

What needs to be taken into account when a hit occurs?

Activities related to dual-use goods are prohibited.

EU_RUSK – Russia Embargo: Capital Market

According to Regulation (EU) 833/2014 Article 5 and the new version with Regulation (EU) No. 960/2014, the following prohibitions apply:

• Purchase and sale of securities and money market instruments with a maturity of more than 90 days issued by an entity listed in Annex III to the Regulation by September 12, 2014.
• Purchase and sale of securities and money market instruments with a maturity of more than 30 days issued after September 12, 2014 by an entity specified in Annexes III, V and VI of the Regulation.
• Re-issuance of loans or credits with a term of more than 30 days to the entities listed in Annexes III, IV and VI to the Regulation, unless these are intended to fulfill the financing of permitted imports and exports between the EU and Russia.

What needs to be taken into account when a hit occurs?

The bans only apply to financing instruments with a term of more than 30 days. For terms of more than 30 days, the above prohibitions apply.

According to Regulation (EU) 2022/345 Article 5h of March 1, 2022, the following ban applies from March 12, 2022:

• Use of specialized payment messaging services used for the exchange of financial data for the legal persons, organizations or bodies listed in Annex XIV or for legal persons, organizations or bodies established in Russia whose ownership rights exceed 50% % lie directly or indirectly with an organization listed in Annex XIV.

What needs to be taken into account when a hit occurs?

It is prohibited to use specialized messaging services to exchange financial data with the listed legal entities, organizations or entities.

EU_IRAN – Iran Embargo

The sanctions list Iran no longer plays a major role after the agreed easing as part of the nuclear deal, but the sanctions have not been completely lifted. The lists of people have been minimized, but are still there. It should be noted that when the Iran sanctions were added, the consolidated EU list was expanded with a delay. In some cases, no business may be conducted with the people listed. Some entries only have a ban on the delivery of dual-use goods or investment restrictions at certain banks. This must be checked in the Embargo Regulation. When doing business with Iran, checking against the US lists is also strongly recommended, 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 needs to be taken into account when a hit occurs?

In some cases, no business may be conducted with the people listed. Some entries only have a ban on the delivery of dual-use goods or investment restrictions at certain banks. This must be checked in the embargo regulation.

JP_METI – End User List

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

 What needs to be taken into account when a hit occurs?

Licensing requirements apply to goods intended for the development or production of weapons of mass destruction. Shipments to listed companies or organizations must be approved by METI.

GB_HMT – Consolidated list of Financial Sanctions Targets in the UK

The former Bank of England list is managed by HM Treasury, the UK’s finance ministry. HM Treasury publishes this list to combat money laundering and prevent terrorist financing. This list contains financial sanctions decided by the EU and national additions by Great Britain. Since the European financial sanctions are included in the EU_CFSP list, this list is expanded to include the national additions.

What needs to be taken into account when a hit occurs?

A: Company based in UK jurisdiction: You should report the hit to HM Treasury. It is decided there whether the goods/services or money can be passed on to the recipient. B: Company headquarters in the legal area of ​​the EU Since European law is implemented on the sanctions list, the consequence, as with the EU list, is that no economic resources or finances may initially be transmitted. For national additions that are not also on the EU list, coordination with HM Treasury may make sense.

 

CH_SECO – Consolidated List

The Swiss State Secretariat for Economic Affairs (French: Secrétariat d’État à l’économie – SECO) provides the Swiss sanctions list. The measures were 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 have commercial relationships with Switzerland.

What needs to be taken into account when a hit occurs?

A: Company headquarters in the legal area of ​​Switzerland: Who benefits from measures under the Swiss Embargo Act (EmbG, https: //www.admin.ch/opc/de/classified-compilation/20000358/index.html) is directly or indirectly affected must provide the Swiss State Secretariat for Economic Affairs with the information and submit the documents necessary for a comprehensive Assessment or control is required. B: Company headquarters in the legal area of ​​the EU: Since SECO is participating in the European sanctions, no economic resources or finances should initially be transferred here. For national additions that are not also on the EU list, coordination with the Swiss State Secretariat for Economic Affairs should take place.

 

US lists

Which US lists are relevant for me?

The US authorities now provide many different address lists, which companies must check before initiating business. Various programs have been issued, 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 just a permit is needed. Essentially, countries outside the USA must also pay attention to the following lists, as these must be taken into account from the perspective of US authorities worldwide – especially by European companies.

 

US_SDN – Specially Designated Nationals And Blocked Persons List

Here you can find natural or legal persons who are involved in activities that endanger the security of the USA. Unfortunately, German entrepreneur Ulrich Wippermann also had to suffer this learned when his company was targeted by the American authorities. He was not guilty of anything under German law.

What needs to be taken into account when a hit occurs?

If a hit occurs here, this trading partner must apply for approval from the American authorities for the exchange of goods that are subject to the Export Administration Regulations (EAR). This applies to US persons and worldwide to all entries with the following designations: NPWMD, SDGT, SDT, FTO, IRAQ2, BURMA.

US_DPL – Denied Persons List

The consequences of this list are harsher. Natural and legal persons who have violated US export law are listed here. The Bureau of Industry and Security (BIS) has issued a denial order against these individuals. These people are subject to a comprehensive ban on trading in US products.

What needs to be taken into account when a hit occurs?

Companies that violate this ban are violating U.S. export rules. This can lead to penalties and you can also be listed on the DPL yourself. Therefore, do not do business with people listed there.

US_EL – Entity List

People who pose a risk of being involved in the proliferation of weapons of mass destruction are listed here.

What needs to be taken into account when a hit occurs?

The list entry found indicates what ban exists and what authorization is required to make US products available to that person. It should be noted that EAR99 goods are often not subject to approval.

US_UL – Unverified List

People can be included on this list if there is any doubt as to whether they are suitable for purchasing US products. It is a kind of warning list.

What needs to be taken into account when a hit occurs?

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

US_LSDP – List of Statutorily Debarred Parties

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

What needs to be taken into account when a hit occurs?

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

US_LADP – List of Administratively Debarred Parties

The Assistant Secretary of State for Political-Military Affairs may exclude certain persons or organizations from trading in military equipment.

What needs to be taken into account when a hit occurs?

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

US_NPL – Nonproliferation List

The Bureau of International Security and Nonproliferation is responsible for compliance with various nonproliferation programs of materials, technologies and expertise in the field of nuclear, biological, chemical or radiological weapons of mass destruction and their delivery technology. Nonproliferation is implemented in various programs*, which are different Provide for sanctions against individuals and governments.

What needs to be taken into account when a hit occurs?

If you get a hit, you need to determine which program is sanctioning the person or government. You can determine this using the sanctions list. Depending on the program, you will need to check whether your activity is covered by the sanctions and, if so, apply for approval from the relevant department. *Programs: 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

US-NONSDN – Consolidated Sanctions List

To facilitate compliance with the Office of Foreign Assets Control (OFAC) sanctions regulations, there is a consolidated list of all non-SDN sanctions lists. The consolidated list includes:

• Foreign Sanctions Evaders ( FSE) List,
• Sectoral Sanctions Identifications ( SSI) List,
• Palestinian Legislative Council ( NS-PLC) list,
• The List of Foreign Financial Institutions Subject to Part 561 (the Part 561 List),
• Non-SDN Iranian Sanctions Act (NS-ISA) List and
• List of Persons Identified as Blocked Solely Pursuant to Executive Order 13599 (the 13599 List).

Although the included lists are not part of the SDN list, the entries can be included in both lists.

What needs to be taken into account when a hit occurs?

If you get a hit, you must determine which of the above lists the corresponding entry is on and whether your activity is covered by the sanctions. If this is the case, you will need permission from OFAC.

 

Instructions for sanction list checking

With the right application, sanctions list checking can be easily integrated into your processes. On the page sanctions list checking we offer instructions for checking your business partners and even show how you can check against sanction lists online free of charge .