Sanction Evasion Techniques

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(Edited)

Sanction Evasion Techniques are used by affected entities to circumvent economic sanctions. They are part of the broader concept of sanctions. The Office of Foreign Assets Control is the main US body that slaps sanctions on foreign countries, organizations and individuals. However, if the OFAC has put sanctions on countries like North Korea, Iran and Russia, how are these countries still able to partake in the trade of goods and move money outside of their borders?

Common techniques for evading Sanctions

Following are the Sanction Evasion Techniques:

Creating Shell Companies

This is probably the easiest and most common way for organizations to bypass sanctions. Criminals usually use shell companies as fronts for money laundering operations. When countries want to move funds from one country to another without detection, it is essentially a form of money laundering. They set up shell companies to transfer money to the sanctioned entities under the cover of anonymity. The sanctioned countries set up shell companies in quick succession.

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