The Background
International Trade, Transport and associated Financial Services (trade finance, payments, factoring, insurance) all carry increased risks because every movement of goods and involvement of parties necessitate the consultation of new watchlists, including sanctions, export controls, law enforcement most wanted, and more.
Most shippers and freight forwarders, as well as some government customs offices, do their own checks while others do not or are themselves watchlisted. Penalties for not complying are increasingly being imposed on both logistics services providers and financial institutions. At the same time, financial institutions must have anti-money laundering policies and procedures in place to prevent the financing of terrorism and proliferation. They must not only examine sanctions lists, but they must also grasp the nature of the commodities involved in a transaction. Is a dual-purpose item involved?
