Financial trade compliance can be an onerous and labor intensive task. It is also one where mistakes are costly. In 2014, a global bank made headlines for all the wrong reasons. This bank has the unlucky honor of being the recipient of the largest ever penalty issued by the US Treasury Department’s Office of Foreign Assets Control (OFAC). The amount? A cool $8.9 billion for violating sanctions against Cuba, Iran and Syria.
Banks that work internationally are subject to a host of complex financial compliance requirements. This is because they must ensure that they are not financing terrorism, supporting criminal activity or helping proliferate nuclear weapons. Financial institutions that do not comply with sanctions as well as denied party lists, or who contravene anti money laundering laws can face hefty penalties. Here we look at the three key areas of risk for financial trade compliance. For an in-depth report, please click here.