Company Compliance

 

The terrorist attacks carried out in 2001 and 2002 changed the world for ever. Far-reaching international measures were adopted especially in the area of monitoring business partner addresses: the so-called sanctions regulations. The objective of these measures is to prevent business dealings with persons, organisations or companies that have been included on these lists by individual states. It is forbidden to have business dealings and/or business contacts with people, companies or organisations appearing on such lists.

 

Violations and infringements – whether intentional or negligent – are severely punished in every country. Long prison sentences and substantial fines have been established in every country in order to enforce the observance of sanctions.

 

Managing directors and board members, as well as those acting directly, are held to be personally responsible under criminal law in the event of violations or infringements against such sanctions rules.

 

Future forecast: Governments and politicians have realised that laws of this kind represent a simple and cost-neutral way for governments to impose sanctions against persons and organisations, and that is why lawmakers have expanded such legislation in recent years and will further expand it in the next few years. The fact that these regulations result in high costs and risks to companies is of little concern to lawmakers.

 

The strictest sanctions regulations can currently be found in EU countries as well as in European and non-European countries, such as Switzerland, the United States, Japan and Australia. It is possible to detect the trend that more and more countries will follow suit in designing serious sanctions regulations, not least as a result of binding resolutions passed by the United Nations..

 

 

Conclusion: Nowadays each and every company has to check out all its business contacts, whether at home, inside the EU internal market or abroad, to ensure its business partners are "sanction-free".