Since 2014, the United States imposed economic sanctions on increasingly specific targets - including sophisticated sanctions against countries like Russia and Venezuela - in order to restrict their leaders' political influence and access to the global financial markets. Against the backdrop of a changing sanctions landscape, this white paper aimed to provide insights on how to keep pace with expanding risks from sanctioned targets through the following analyses.
First, the white paper explored industry trends in the sanctions space from regulators’, banks’, and vendors’ perspectives in order to identify the comprehensive sanctions imposition landscape and sanction types. Second, the Capstone team studied the evolving sanctions evasion methods by specially designated nationals and blocked persons (SDNs) and sanctioned targets to understand the evolution of risks. In doing so, the paper discovered various efforts made by banks and other entities to assess evolving risks. Third, the paper explored challenges associated with sanctioned securities and suggested new approaches to screen for them. Fourth, the paper investigated challenges related to other emerging trends in the sanctions space. Lastly, this paper provided recommendations to be considered when enhancing the financial institutions' sanctions screening programs.