Russia-related risks take hold

Sanctions compliance risks multiply and intensify

Geopolitical conflicts, led by Russia’s attack on Ukraine, have created considerable new sanctions compliance risks for financial institutions across the globe.

The depth and breadth of Russia-related sanctions and the pace at which they are being rolled out make sanctions risk management a significant challenge.

Grant Thornton LLP’s global sanctions compliance survey reveals that:

• Regulators increasingly are focusing on sanctions compliance and have a significant enforcement appetite.
• The cost of sanctions compliance has been increasing and is expected to continue rising.
• The unprecedented number of sanctions imposed has created unique challenges for continuing with “business as usual.”
• A necessary focus on agile and flexible sanctions risk assessment and management is emerging.
• Despite global differences, financial institutions appear to face similar challenges with sanctions compliance, particularly managing their counterparty risk.

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