Sanctions

A sanction check is a screening process that verifies whether a person or organization appears on a national or international sanctions list, such as those maintained by OFAC (U.S.), UN, EU, or the UK Treasury. These checks are critical in ensuring companies do not do business with prohibited parties.

Sanctions may be imposed by individual countries (e.g., the United States, Canada, UK), coalitions (e.g., the European Union), or international bodies like the United Nations. Each body has its own lists and enforcement mechanisms, and businesses must often comply with multiple jurisdictions.

Violating sanctions laws can result in severe penalties including multi-million-dollar fines, loss of banking access, reputational damage, or criminal prosecution. In regulated industries like banking or crypto, violations may also lead to license revocations or restrictions on business operations.