Sanction lists
Sanctions lists show which individuals, companies, and countries are prohibited or restricted from doing business with. They are an essential part of compliance, KYC, and CDD processes for organizations that must comply with laws and regulations.
What is a sanctions list?
A sanctions list is an official list of individuals, companies, and/or countries with whom it is prohibited or restricted to conduct financial transactions or trade. Organizations use sanctions lists to comply with laws and regulations such as AML or local sanctions laws. Failure to comply with sanctions lists can result in heavy fines and reputational damage.
What sanctions lists are there?
- EU sanctions list: The European Union sanctions list of blocked or restricted countries, individuals, and companies
- Russia sanctions list: List of Russian persons, companies, and entities subject to EU or national sanctions
- National sanctions lists: specific lists per country, for example Belgium and the Netherlands.
Sanctions list Belgium: What do you need to know?
In Belgium, sanctions lists fall under anti-money laundering (AML) legislation and related regulations. The Belgian government publishes sanctions lists that companies must use in addition to international lists. Key points
- Application: Financial institutions and certain service providers must screen customers against Belgian sanctions lists.
- Source: The Belgian government publishes lists of persons and entities for whom financial transactions are prohibited.
- EU and Russia: Belgian sanctions lists often contain EU sanctions, including measures against Russian individuals and companies.
- Control process: Organizations must screen existing customers during onboarding and periodically to check whether they appear on a sanctions list.
Practical example
A company subject to AML regulations that accepts a new customer always performs a check against:
- The Belgian national sanctions list
- The EU sanctions list, and
- Specific high-risk countries such as Russia.
Sanctions lists within KYC and CDD processes
Sanctions lists are an integral part of every KYC and CDD process.
Screening during onboarding.
When entering into a new business relationship, organizations must:
- The organizations monitor
- Screening the UBOs (Ultimate Beneficial Owners)
- Checking against EU, UN, and national sanctions lists
Continuous automated monitoring
Sanctions screening remains necessary even after onboarding. New sanctions can suddenly cause an existing relationship to pose an increased risk.
Automated monitoring helps organizations to:
- Remaining continuously compliant
- Respond quickly to changes
- Preventing manual errors
