Being on a sanctions list means various restrictions and risks such as asset freezes, travel bans, or trade bans. Please refer below for more details.
1. Asset Freezes
What it means: Any funds, bank accounts, or other financial assets owned or controlled by the sanctioned party are frozen—they can’t be accessed, moved, or used.
Who enforces this: Banks, financial institutions, and companies are required to check if someone is on a sanctions list and freeze their assets accordingly.
Example: A sanctioned individual cannot withdraw money from a bank account in the US, UK, or EU.
2. Travel Bans
What it means: The sanctioned person is banned from entering or transiting through the countries enforcing the sanctions.
Who it affects: This typically applies to government officials, military leaders, or individuals accused of serious crimes like terrorism, corruption, or human rights violations.
Example: A general from a sanctioned regime may be blocked from entering any EU country.
3. Trade Bans / Export & Import Restrictions
What it means:
Prohibition on selling goods, technology, or services to the sanctioned person or entity.
Prohibition on buying goods from them as well.
Who enforces this: Customs authorities, trade departments, and companies involved in international trade.
Example: A company on the list may not be able to buy advanced electronics from European suppliers or sell oil to the US.
4. Financial Restrictions
What it means:
Prohibition on providing loans, insurance, investments, or financial services to sanctioned persons/entities.
Banks may also be restricted from processing transactions involving them.
Example: A bank cannot open an account for a sanctioned individual or process wire transfers for them.
5. Sectoral Sanctions
What it means: These target specific industries (like defense, energy, banking) rather than individuals.
Example: Restrictions on Russian energy companies from accessing Western financing or technology.
6. Arms Embargoes
What it means: Prohibition on selling weapons or military equipment to or from the sanctioned party.
Who it affects: Countries, arms manufacturers, or groups involved in armed conflict.
Example: A country under UN sanctions may not legally purchase fighter jets from other countries.
7. Diplomatic Restrictions
What it means: Cutting off or limiting diplomatic relations—like suspending embassies or official government visits.
Example: A country's officials may not be allowed to attend international summits.