Have questions?

Get in Touch

Or visit the Support Centre.

Contact Info

Address

Bahnhofstrasse 21, 6300 Zug, Switzerland

Telephone

+41 43 50 81 493

Telephone

info@wisscapital.ch

Contact Form

Kindly provide us with any further inquiries or questions regarding our services by filling out the contact form below. We shall endeavor to respond to you promptly.

Frequently Asked Questions

Read the answers to the questions.

What are sanctions lists and why are they important for companies?

Restrictive measures, also known as sanctions, are one of the instruments used to achieve the objectives of the Common Foreign and Security Policy (CFSP). These measures aim to protect the fundamental interests and values of a country, to consolidate and promote democracy, the rule of law, human rights and the principles of international law, to preserve peace, to prevent conflicts and to strengthen international security. Sanctions are not directed against a country or a population as a whole, but against specific policies, activities, the means of their implementation and those responsible. Restrictive measures may be imposed on third country governments, non-state actors such as companies, and individuals such as terrorist groups and terrorists.

Most sanctions regimes target individuals and entities and include asset freezes and travel bans. Sectoral measures can also be adopted, such as economic and financial measures, which include import and export restrictions, banking restrictions and arms embargoes.

The sanctions list is checked to ensure that the client is not prohibited from engaging in certain activities or sectors. The purpose of these sanctions lists is to prevent and detect illegal activities, terrorist financing and other activities considered to be a threat to national security.

What are the consequences if I enter into a contract with a counterparty that is on the sanctions list?

Cooperation with a sanctioned contractor can have serious legal and financial consequences. Violation of international sanctions can result in civil or criminal penalties, fines or even imprisonment, depending on the severity of the violation. In addition, it can limit your opportunities for growth and expansion, as you may be prevented from doing business with other companies or countries.

It is important to note that dealing with a sanctioned contractor can have a negative impact on your reputation and undermine your credibility with customers, partners and investors. Sanctions can also prevent certain types of transactions or activities, which can cause significant financial losses and disrupt your business.

If you are found to have entered into a contract with a sanctioned contractor, your contract may be terminated. This may result in significant losses and damages for which you may be held liable. To avoid such unpleasant results, it is very important to comply with international sanctions.

Moreover, it is important to be aware that breaching sanctions can have far-reaching consequences for global security and stability. Sanctions are often applied as a means of exerting political pressure or promoting human rights and democratic values. Their violation can undermine these efforts and contribute to destabilisation and conflict, which can have devastating long-term consequences.

What goods can be included on sanctions lists and why?

Sanctions can be applied to a wide range of products, depending on the specific circumstances and the objectives of the sanctions regime. In general, sanctions are most often imposed on products deemed to be linked to activities that threaten national security, human rights or international peace and stability. Here are some examples:

Arms and military equipment: Sanctions often apply to the sale or transfer of arms and military equipment to certain countries or groups considered to be a threat to regional or global security.

Dual-use technologies: Sanctions may apply to certain dual-use technologies, such as advanced computer software or specialised equipment, which can be used for both civilian and military purposes and could potentially be used for nefarious purposes.

Energy products: Sanctions can be applied to the sale or transfer of certain energy products, such as oil and natural gas, in order to force countries to change their policies or behaviour.

Precious metals and precious stones: Sanctions may be imposed on the import or export of precious metals and precious stones, such as gold or diamonds, to target countries or groups believed to be involved in illicit activities such as money laundering or terrorist financing.

Humanitarian goods: In some cases, sanctions may also target the import or export of certain humanitarian goods, such as food or medicine, which may have unintended consequences and harm innocent civilians.

It is important to note that the specific products sanctioned may vary widely depending on the specific sanctions regime and the objectives of the sanctions. Companies and individuals should carefully review sanctions lists and seek legal advice before engaging in transactions that may be subject to sanctions.

What are the sanctions lists and how can I find the information I need?

Sanctions lists are usually compiled and updated by the administering authorities, including governments and international organisations. Here are some examples of the most common sanctioning bodies and their lists:

United Nations (UN): This applies to all UN countries.

Office of Foreign Assets Control (OFAC): This applies to all US citizens, persons doing business with or on US territory, persons associated in any way with the US, and persons dealing in US currency.

European Union External Action Service (EU EEAS): This applies to all EU citizens and corporate entities in a Member State.

HM Treasury: This applies to anyone working or carrying on business in the UK. The UK sanctions list is here and is enforced by the Office for Financial Sanctions Enforcement (OFSI).

How often should I check that counterparties and goods are not on sanctions lists?

The frequency with which counterparties and goods should be screened against sanctions lists depends on a variety of factors, including the specific sanctions regime, the nature of the business and the level of risk associated with the counterparties and goods. In general, companies and organisations are advised to carry out regular sanctions list checks as part of their compliance and risk management activities.

Some guidelines to consider when determining the frequency of checks include:
Regular checks: To ensure continued compliance with sanctions rules, it is recommended that companies carry out regular checks of sanctions lists, for example monthly or quarterly.

Event-based: Companies may also conduct sanctions list checks in response to specific events or transactions, such as when entering into a new business relationship or a high-value transaction.

Risk-based checks: Firms may conduct more frequent sanctions list checks on counterparties or commodities that pose a higher risk, such as those located in high-risk countries or engaged in high-risk activities.

It is important to note that sanctions lists are constantly evolving and new sanctions may be imposed or existing sanctions amended at any time. It is therefore important to keep abreast of changes to the sanctions lists and to adjust the frequency of inspections as necessary to ensure continued compliance and risk mitigation.

In summary, companies and organisations should regularly review sanctions lists as part of their compliance and risk management activities and adjust the frequency of inspections based on the specific circumstances and level of risk associated with counterparties and commodities.

What if I learn that my business partner or goods are on a sanctions list?

If you discover that your counterparty or product is on a sanctions list, it is important to take immediate action: suspend all transactions, notify the relevant parties, conduct an internal investigation, identify necessary measures, review and update your sanctions compliance policy and, if necessary, seek legal advice.

What are the methods for checking whether a person is on the sanctions lists?

There are a number of methods to check counterparties and items on sanctions lists, including:

Manual checks: One method of checking compliance with sanctions lists is to manually search the relevant sanctions lists for the names of counterparties and goods. This method can be time-consuming and error-prone, but can be useful for smaller companies or where only a few names need to be checked.

Screening software: Many companies and organisations use screening software to automate the process of checking sanctions lists. Screening software can scan large volumes of data and flag all matches to sanctions lists, reducing the risk of errors and saving time.

API integration: Another method to check compliance with sanctions lists is API integration with third-party screening providers. This method allows real-time screening of counterparties and goods against sanctions lists, thereby reducing the risk of delays or missed matches.

Data providers: Some companies may also use data providers specialised in sanctions screening to obtain up-to-date sanctions lists and conduct regular checks on their counterparties and goods.

Combination: Often companies also use a combination of the above methods to ensure comprehensive and accurate screening against sanctions lists.

Which organisations can use the sanctions lists?

Sanctions can cover a wide range of products, depending on the specific circumstances and objectives of the sanctions regime. In general, sanctions are most often imposed on products deemed to be linked to activities that threaten national security, human rights or international peace and stability. Some examples of such products are arms and military equipment, the sale or transfer of which is often sanctioned if the recipient is considered a threat to regional or global security. It is important to bear in mind that the specific products subject to sanctions may vary considerably depending on the specific sanctions regime and the objectives of the sanctions. Therefore, companies and individuals should exercise caution and carefully study sanctions lists and seek legal advice before engaging in transactions that could potentially be subject to sanctions.

Sanctions may apply to certain dual-use technologies, such as advanced computer software or specialised equipment, which have both civilian and military applications and could potentially be used for malicious purposes. It is important to note that such technologies are generally subject to dual-use export controls because of their potential to be used for a wide range of purposes, both beneficial and malicious.

Sanctions can be imposed on the sale or transfer of certain energy products, such as oil and natural gas, in order to pressure countries to change their policies or behaviour. It should be noted that such measures are usually targeted against countries that are perceived as a threat to international peace and stability.

Sanctions may be imposed on the import or export of precious metals and precious stones, including gold and diamonds. This measure is often taken to target countries or groups suspected of involvement in illegal activities such as money laundering or terrorist financing.

It is useful to note that sanctions may also be applied in certain circumstances to the import or export of certain humanitarian goods, such as food or medicine. This is of serious concern as it may have unintended consequences and cause unjustified harm to innocent civilians.

It is very important to bear in mind that the specific products subject to sanctions can vary widely depending on the specific sanctions regime and the objectives of the sanctions. Both companies and individuals should exercise extreme caution and carefully check sanctions lists and seek legal advice before engaging in potentially sanctioned transactions. Translated with www.DeepL.com/Translator (free version)

What are the benefits of checking that counterparties and goods are not on sanctions lists?

There are numerous advantages to checking counterparties and goods against sanctions lists. One of the main advantages is ensuring compliance with the rules. Given the complexity and ever-changing nature of sanctions laws, checking against sanctions lists can help companies avoid inadvertent sanctions violations and costly penalties.

Another benefit of screening business partners and items on sanctions lists is to identify and mitigate risks associated with entities that may be involved in illegal activities or pose a threat to national security or international stability. Doing business with sanctioned entities can damage a company's reputation and undermine the confidence of stakeholders, including customers and investors. Checking sanctions lists can help companies avoid these risks and protect their reputation.

Dealing with sanctioned entities can lead to financial losses as transactions may be blocked or assets may be frozen. Companies can avoid these risks and protect their profits by screening business partners and items on sanctions lists.

Another benefit of checking counterparties and goods against sanctions lists is the promotion of ethical business practices. This contributes to wider efforts to promote human rights, democratic values and international peace and stability.

Overall, the screening of counterparties and goods on sanctions lists is an important step in managing compliance risks, protecting reputations, preventing financial losses and supporting ethical business practices.

What are the risks if I do not check that counterparties and goods are not on sanctions lists?

What are the possible consequences of failing to check counterparties and goods against sanctions lists? Sanctions screening is an essential measure to protect businesses against many threats, including fraud, cybercrime, money laundering and identity theft. The perpetrators responsible for these nefarious activities are commonly referred to as bad actors or threat actors. These individuals use various technological tools and digital means to obtain sensitive information and engage in criminal activities. By carrying out a thorough sanctions check, companies can effectively detect and prevent these bad actors from accessing their sensitive data and committing identity fraud. Malicious actors can include, for example, black hat hackers, cyber terrorists, organised crime hackers and insider threats such as former or current employees who have gone rogue. If companies do not vet their business partners and goods for sanctions, they risk being exploited by these malicious actors and suffering the severe consequences of their actions.

Problems with sanctions checks?
Contact us!

We will be happy to answer any questions you may have.

Get in touch with us

Frequently Asked Questions

Read the answers to the questions.

What are sanctions lists and why are they important for companies?

Restrictive measures, also known as sanctions, are one of the instruments used to achieve the objectives of the Common Foreign and Security Policy (CFSP). These measures aim to protect the fundamental interests and values of a country, to consolidate and promote democracy, the rule of law, human rights and the principles of international law, to preserve peace, to prevent conflicts and to strengthen international security. Sanctions are not directed against a country or a population as a whole, but against specific policies, activities, the means of their implementation and those responsible. Restrictive measures may be imposed on third country governments, non-state actors such as companies, and individuals such as terrorist groups and terrorists.

Most sanctions regimes target individuals and entities and include asset freezes and travel bans. Sectoral measures can also be adopted, such as economic and financial measures, which include import and export restrictions, banking restrictions and arms embargoes.

The sanctions list is checked to ensure that the client is not prohibited from engaging in certain activities or sectors. The purpose of these sanctions lists is to prevent and detect illegal activities, terrorist financing and other activities considered to be a threat to national security.

What are the consequences if I enter into a contract with a counterparty that is on the sanctions list?

Cooperation with a sanctioned contractor can have serious legal and financial consequences. Violation of international sanctions can result in civil or criminal penalties, fines or even imprisonment, depending on the severity of the violation. In addition, it can limit your opportunities for growth and expansion, as you may be prevented from doing business with other companies or countries.

It is important to note that dealing with a sanctioned contractor can have a negative impact on your reputation and undermine your credibility with customers, partners and investors. Sanctions can also prevent certain types of transactions or activities, which can cause significant financial losses and disrupt your business.

If you are found to have entered into a contract with a sanctioned contractor, your contract may be terminated. This may result in significant losses and damages for which you may be held liable. To avoid such unpleasant results, it is very important to comply with international sanctions.

Moreover, it is important to be aware that breaching sanctions can have far-reaching consequences for global security and stability. Sanctions are often applied as a means of exerting political pressure or promoting human rights and democratic values. Their violation can undermine these efforts and contribute to destabilisation and conflict, which can have devastating long-term consequences.

What goods can be included on sanctions lists and why?

Sanctions can be applied to a wide range of products, depending on the specific circumstances and the objectives of the sanctions regime. In general, sanctions are most often imposed on products deemed to be linked to activities that threaten national security, human rights or international peace and stability. Here are some examples:

Arms and military equipment: Sanctions often apply to the sale or transfer of arms and military equipment to certain countries or groups considered to be a threat to regional or global security.

Dual-use technologies: Sanctions may apply to certain dual-use technologies, such as advanced computer software or specialised equipment, which can be used for both civilian and military purposes and could potentially be used for nefarious purposes.

Energy products: Sanctions can be applied to the sale or transfer of certain energy products, such as oil and natural gas, in order to force countries to change their policies or behaviour.

Precious metals and precious stones: Sanctions may be imposed on the import or export of precious metals and precious stones, such as gold or diamonds, to target countries or groups believed to be involved in illicit activities such as money laundering or terrorist financing.

Humanitarian goods: In some cases, sanctions may also target the import or export of certain humanitarian goods, such as food or medicine, which may have unintended consequences and harm innocent civilians.

It is important to note that the specific products sanctioned may vary widely depending on the specific sanctions regime and the objectives of the sanctions. Companies and individuals should carefully review sanctions lists and seek legal advice before engaging in transactions that may be subject to sanctions.

What are the sanctions lists and how can I find the information I need?

Sanctions lists are usually compiled and updated by the administering authorities, including governments and international organisations. Here are some examples of the most common sanctioning bodies and their lists:

United Nations (UN): This applies to all UN countries.

Office of Foreign Assets Control (OFAC): This applies to all US citizens, persons doing business with or on US territory, persons associated in any way with the US, and persons dealing in US currency.

European Union External Action Service (EU EEAS): This applies to all EU citizens and corporate entities in a Member State.

HM Treasury: This applies to anyone working or carrying on business in the UK. The UK sanctions list is here and is enforced by the Office for Financial Sanctions Enforcement (OFSI).

How often should I check that counterparties and goods are not on sanctions lists?

The frequency with which counterparties and goods should be screened against sanctions lists depends on a variety of factors, including the specific sanctions regime, the nature of the business and the level of risk associated with the counterparties and goods. In general, companies and organisations are advised to carry out regular sanctions list checks as part of their compliance and risk management activities.

Some guidelines to consider when determining the frequency of checks include:
Regular checks: To ensure continued compliance with sanctions rules, it is recommended that companies carry out regular checks of sanctions lists, for example monthly or quarterly.

Event-based: Companies may also conduct sanctions list checks in response to specific events or transactions, such as when entering into a new business relationship or a high-value transaction.

Risk-based checks: Firms may conduct more frequent sanctions list checks on counterparties or commodities that pose a higher risk, such as those located in high-risk countries or engaged in high-risk activities.

It is important to note that sanctions lists are constantly evolving and new sanctions may be imposed or existing sanctions amended at any time. It is therefore important to keep abreast of changes to the sanctions lists and to adjust the frequency of inspections as necessary to ensure continued compliance and risk mitigation.

In summary, companies and organisations should regularly review sanctions lists as part of their compliance and risk management activities and adjust the frequency of inspections based on the specific circumstances and level of risk associated with counterparties and commodities.

What if I learn that my business partner or goods are on a sanctions list?

If you discover that your counterparty or product is on a sanctions list, it is important to take immediate action: suspend all transactions, notify the relevant parties, conduct an internal investigation, identify necessary measures, review and update your sanctions compliance policy and, if necessary, seek legal advice.

What are the methods for checking whether a person is on the sanctions lists?

There are a number of methods to check counterparties and items on sanctions lists, including:

Manual checks: One method of checking compliance with sanctions lists is to manually search the relevant sanctions lists for the names of counterparties and goods. This method can be time-consuming and error-prone, but can be useful for smaller companies or where only a few names need to be checked.

Screening software: Many companies and organisations use screening software to automate the process of checking sanctions lists. Screening software can scan large volumes of data and flag all matches to sanctions lists, reducing the risk of errors and saving time.

API integration: Another method to check compliance with sanctions lists is API integration with third-party screening providers. This method allows real-time screening of counterparties and goods against sanctions lists, thereby reducing the risk of delays or missed matches.

Data providers: Some companies may also use data providers specialised in sanctions screening to obtain up-to-date sanctions lists and conduct regular checks on their counterparties and goods.

Combination: Often companies also use a combination of the above methods to ensure comprehensive and accurate screening against sanctions lists.

Which organisations can use the sanctions lists?

Sanctions can cover a wide range of products, depending on the specific circumstances and objectives of the sanctions regime. In general, sanctions are most often imposed on products deemed to be linked to activities that threaten national security, human rights or international peace and stability. Some examples of such products are arms and military equipment, the sale or transfer of which is often sanctioned if the recipient is considered a threat to regional or global security. It is important to bear in mind that the specific products subject to sanctions may vary considerably depending on the specific sanctions regime and the objectives of the sanctions. Therefore, companies and individuals should exercise caution and carefully study sanctions lists and seek legal advice before engaging in transactions that could potentially be subject to sanctions.

Sanctions may apply to certain dual-use technologies, such as advanced computer software or specialised equipment, which have both civilian and military applications and could potentially be used for malicious purposes. It is important to note that such technologies are generally subject to dual-use export controls because of their potential to be used for a wide range of purposes, both beneficial and malicious.

Sanctions can be imposed on the sale or transfer of certain energy products, such as oil and natural gas, in order to pressure countries to change their policies or behaviour. It should be noted that such measures are usually targeted against countries that are perceived as a threat to international peace and stability.

Sanctions may be imposed on the import or export of precious metals and precious stones, including gold and diamonds. This measure is often taken to target countries or groups suspected of involvement in illegal activities such as money laundering or terrorist financing.

It is useful to note that sanctions may also be applied in certain circumstances to the import or export of certain humanitarian goods, such as food or medicine. This is of serious concern as it may have unintended consequences and cause unjustified harm to innocent civilians.

It is very important to bear in mind that the specific products subject to sanctions can vary widely depending on the specific sanctions regime and the objectives of the sanctions. Both companies and individuals should exercise extreme caution and carefully check sanctions lists and seek legal advice before engaging in potentially sanctioned transactions. Translated with www.DeepL.com/Translator (free version)

What are the benefits of checking that counterparties and goods are not on sanctions lists?

There are numerous advantages to checking counterparties and goods against sanctions lists. One of the main advantages is ensuring compliance with the rules. Given the complexity and ever-changing nature of sanctions laws, checking against sanctions lists can help companies avoid inadvertent sanctions violations and costly penalties.

Another benefit of screening business partners and items on sanctions lists is to identify and mitigate risks associated with entities that may be involved in illegal activities or pose a threat to national security or international stability. Doing business with sanctioned entities can damage a company's reputation and undermine the confidence of stakeholders, including customers and investors. Checking sanctions lists can help companies avoid these risks and protect their reputation.

Dealing with sanctioned entities can lead to financial losses as transactions may be blocked or assets may be frozen. Companies can avoid these risks and protect their profits by screening business partners and items on sanctions lists.

Another benefit of checking counterparties and goods against sanctions lists is the promotion of ethical business practices. This contributes to wider efforts to promote human rights, democratic values and international peace and stability.

Overall, the screening of counterparties and goods on sanctions lists is an important step in managing compliance risks, protecting reputations, preventing financial losses and supporting ethical business practices.

What are the risks if I do not check that counterparties and goods are not on sanctions lists?

What are the possible consequences of failing to check counterparties and goods against sanctions lists? Sanctions screening is an essential measure to protect businesses against many threats, including fraud, cybercrime, money laundering and identity theft. The perpetrators responsible for these nefarious activities are commonly referred to as bad actors or threat actors. These individuals use various technological tools and digital means to obtain sensitive information and engage in criminal activities. By carrying out a thorough sanctions check, companies can effectively detect and prevent these bad actors from accessing their sensitive data and committing identity fraud. Malicious actors can include, for example, black hat hackers, cyber terrorists, organised crime hackers and insider threats such as former or current employees who have gone rogue. If companies do not vet their business partners and goods for sanctions, they risk being exploited by these malicious actors and suffering the severe consequences of their actions.

Problems with sanctions checks?
Contact us!

We will be happy to answer any questions you may have.

Get in touch with us

Wiss Capital GmbH

Copyright © 2023 Wiss Capital GmbH