Sanctions list check at a glance

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1. Why do I need a sanctions list check?
2. Legal basis for sanction list checking
3. Who has to check against sanctions lists?
4. Sanctions list check of employees
5. The most frequently asked questions about the sanctions list
6. Which sanctions lists do I have to check against?
7. How can I check automatically in the background with little effort?
8. Free e-book on sanction list checking
9. How can I check against sanctions lists online for free

Introduction to the topic of sanction list checking

Why do I need a sanctions list check?

Regardless of whether your company is active in importing or exporting, management is obliged to carry out a business partner screening. This means that it must be ensured that customers, suppliers, organizations and people are not on a sanctions list or an anti-terror list are listed. In this case, the contact in question may not receive any goods, services or financial benefits. Failure to do so can result in fines and imprisonment. The people affected by this are primarily managing directors and, in some cases, those responsible for exports.
In addition, there are also specific economic risks, particularly in connection with the US lists. For example, if an employee or the company is listed on the SDN list simply because it legally conducts business with Iran under German law, this could result in the company no longer being supplied by American manufacturers. A well-known example is the fate of Ulrich Wippermann and his company.

Legal basis for sanction list checking

In today’s globalized world, companies are faced with increasingly complex legal requirements. One of these requirements concerns the sanctions list check. But what exactly is a sanctions list check and what legal basis is associated with it?

A sanctions list check refers to the process by which names of people, companies or organizations are checked against international sanctions lists. These sanctions lists, also known as embargo lists, contain names of people or companies against whom economic sanctions have been imposed. These sanctions can, for example, be imposed due to terrorist financing, human rights violations or violations of international agreements. Carrying out a sanctions list check is of great importance for companies, as violations of international sanctions can have significant legal and financial consequences. For example, companies can face penalties, fines or exclusion from international business.

The legal basis for checking sanctions lists varies depending on the country and legal system. In the European Union, for example, sanction list checks are regulated by EU regulations and resolutions. These regulations and resolutions determine which persons or organizations are placed on the sanctions lists and which measures must be taken to comply with the sanctions. The responsibility for checking sanctions lists usually lies with the companies themselves, especially those that operate internationally. They must ensure that their business partners, customers and suppliers are not on the sanctions lists. Companies can rely on specialized software solutions that enable automated checking.

Who has to check against sanctions lists?

Every company based or economically active in the EU is obliged under the applicable EU regulations and the AWG to provide an economically and technically justifiable Make every effort to check all business partners against the published European list Common Foreign & Security Policy (CFSP) to check. This means that not only exporting companies, but also companies that only do business in Germany, have to check all business partners, suppliers, customers and employees against the sanctions list.

Sales

No weapons, goods, money or information may flow to people, groups, organizations or companies that are on a sanctions list. Therefore, simply making an offer can result in you violating anti-terror regulations. The offer can theoretically be used to raise funds from e.g. B. to preserve banks and thus promote terrorism.
It is therefore advisable to check new business partners before exchanging information.

Purchasing

Purchasing must ensure that services or goods are only purchased from suppliers who are not on a sanctions list.

HR/Recruiting

In human resources, screening employees is controversial. Because it violates data protection guidelines. However, it must be ensured that no employee who is listed on a sanctions list is allowed to receive money.
Especially when new employees are being sought, it is advisable to check them early in the application phase.

Sanctions list check of employees

The screening of employees against EU sanctions lists has been recognized as a legal basis by the case law Section 26 Paragraph 1 of the Federal Data Protection Act (BDSG). According to this standard, personal data may be processed for the purposes of the employment relationship, in particular if this is necessary for the establishment, implementation or termination of the employment relationship. Further authorization would arise if the screening of employees is based on a law or a works agreement. Regular wage payments by the employer require that the employee is not listed on sanctions lists (particularly not those of the EU). This means that your own employees can be checked accordingly. The same is also recognized for AEO certification, because employees in security-relevant areas in particular must be subject to checks against sanctions lists.

The most frequently asked questions about the sanctions list

We provide an overview of the sanctions lists and answers to the most important questions separately on this page available.

Which sanctions lists do I have to check against?

In our sanctions list overview you will find all sanctions lists (as of March 2019) that a company should check against. Here you will receive a brief overview and explanations of the conditions under which testing must be carried out. The consequences of a hit are also described.

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

We have summarized everything you need to know about sanctions list checks in the EU in an e-book.

The e-book covers the topics:

• Why sanction list checking is so important?
• What exactly is a sanctions list?
• Who has to check against sanctions lists?
• How often does it have to be checked?
• What sanctions need to be checked against?
• …and much more

Get an overview and use the e-book as a reference reading.

How can I check automatically in the background with little effort?

The manual check and the necessary documentation (customs, BAFA) of the processes result in a lot of effort. Thanks to automated queries in the background and connection to the ERP system, software for sanctions list screening can be an attractive solution. Then the address creation, address change or even just the address usage can be checked at any time. SANSCREEN is integrated into SAP ® ERP, SAP S/4HANA®, Dynamics NAV, Dynamics AX, Sage and APplus and many other systems available.