Understanding international sanctions regimes and exposure risks
A multinational chemical company
The client approached Control Risks to better understand its exposure to international sanctions regimes to strengthen its global compliance activities. Because of the global extent of its exposure, the client was concerned about unwittingly failing to comply with its obligations with regards to sanctions, and therefore incurring significant financial or reputational costs.
We developed a bespoke database that detailed key global (UN, EU and US) and third country sanctions regimes on dozens of countries of commercial interest to the client. This database was delivered to the client at regular and pre-established intervals, with higher risk country reporting occurring at a greater frequency, and additional ad hoc analysis in short reports or verbal briefings following significant developments or upon request. We supplemented this service by monitoring and providing alerts of significant political or legal developments which could impact sanctions risk. Such developments included international conflict, unrest, human rights violations, or indeed proposed or pending legislative changes. We used this to assess the sanctions outlook.
As a result of the combination of regular reporting as well as ad hoc updates and alerts, the client was able to gain a much broader understanding of the global sanctions regimes relevant to its operations. It was also able to identify potential red flags that required further investigation or additional third-party legal advice. This allowed the client to navigate its obligations more effectively and prioritise its compliance actions, reducing the operational and reputational risks it was facing .