In a significant move, the Japanese government has announced fresh sanctions targeting three senior members of Hamas. Chief Cabinet Secretary Yoshimasa Hayashi revealed on Tuesday that the sanctions would include the freezing of assets and restrictions on payments and capital transactions involving the specified individuals. The decision comes in response to their alleged involvement in the October 7th attacks by Hamas on Israel, with concerns about their ability to use funds to finance further terrorist activities. The government believes that these individuals hold positions enabling them to utilise funds for supporting terrorist activities.
Meanwhile, just a few days later, the US Treasury Department imposed sanctions on individuals and groups accused of facilitating the flow of Iranian financial assistance to Houthi rebels in Yemen. These sanctions target key figures such as the head of the Currency Exchangers Association in Sana’a, Nabil Al-Hadha, and three exchange houses in Yemen and Turkey. These actions come in response to the Houthi rebels’ targeting of Israel and international shipping lanes since October 7. The measures, blocking access to US property and bank accounts, are part of a broader strategy to curb the illicit flow of funds to the Houthis, who have been conducting dangerous attacks on international shipping, further destabilising the region. The US, along with its allies, emphasises its commitment to targeting facilitation networks supporting the Houthis and their backers in Iran.
7 tips for staying compliant with sanctions in the new year
As the international landscape continues to evolve, staying compliant with sanctions and regulations is imperative for organisations to avoid legal and reputational risks. The beginning of the new year presents an opportune moment for businesses to reassess their sanctions compliance obligations and readiness. Here are some key considerations for organisations to ensure they remain up to date and compliant:
Regularly Review Sanctions Lists:
Stay informed about sanctions imposed by various countries and international bodies. Regularly review updated lists to ensure that your organisation does not inadvertently engage with sanctioned individuals or entities.
Risk Assessment:
Conduct a thorough risk assessment of the countries in which your firm operates or conducts business. This assessment should consider various factors, including political stability, economic conditions, legal and regulatory environment, corruption levels, and the presence of high-risk industries or sectors.
Enhance Due Diligence Procedures:
Strengthen your due diligence processes to identify any potential exposure to sanctioned individuals or entities. This includes robust screening of clients, partners, and suppliers against relevant sanctions lists.
Invest in Employee Training:
Educate employees on the importance of sanctions compliance and provide training programs to enhance their understanding of the regulatory landscape. This will empower them to recognise and report any suspicious activities.
Update Compliance Policies:
Regularly review and update your organisation’s compliance policies to reflect changes in sanctions regimes and regulatory requirements. Ensure that policies are accessible to all employees and that they understand their responsibilities.
Engage Legal Counsel:
Consult with legal experts to navigate complex sanctions regulations. Having legal counsel can help your organisation interpret and implement compliance measures effectively.
Utilise Technology Solutions:
Leverage technology solutions such as compliance software and screening tools to automate and streamline the process of identifying and mitigating potential risks.
Japan’s recent sanctions against Hamas members and the United State’s sanctions on the network responsible for financing Houthi rebels highlight the global commitment to combating terrorism. Organisations should use this moment to assess their own compliance measures and take proactive steps to navigate the increasingly complex field of international economic sanctions. By staying informed, implementing robust compliance strategies, and engaging with legal expertise, businesses can position themselves to operate responsibly and ethically in the new year.
VinciWorks’ sanctions compliance solutions
The field of economic sanctions has been growing increasingly complicated in recent years. As events in Russia, Iran, China and other countries grab global headlines, businesses are struggling to stay on top of changes. Our resources include a library of free guides, policy templates, on-demand webinars and blogs to help your organisation get to grips with the latest sanctions.
Online training
All businesses are required to screen for sanctions compliance when conducting due diligence, but in particular, regulated entities should make sure everyone is up to speed on the new sanctions rules. Our courses will teach users to understand global sanctions regimes for different jurisdictions and how they affect your business. Users will learn how to apply processes for customer screening, to identify red flags and report them, and how to make sense of recent sanctions changes.
Online sanctions compliance training
