New Infographic Reveals Significant Speed and
Scale of Regulatory Activity, Creating a Historical
Compliance Challenge
ATLANTA, June 29,
2022 /PRNewswire/ -- LexisNexis® Risk
Solutions released the findings from a special edition of its
Sanctions Pulse infographic focused on the sanctions that have
emerged because of the Russia
conflict against Ukraine.
LexisNexis Risk Solutions analyzed sanctions data from core issuing
regulators, the European Union (EU), Office of Foreign Assets
Control (OFAC) and Office of Financial Sanctions Implementation
(OFSI, UK), to measure how significantly the sanctions landscape
has changed through increased global sanctions on Russian entities,
as well as current and future implications for compliance
professionals.
Unprecedented sanctions activity over the past few months in
response to the ongoing situation in Ukraine has spurred regulators to apply new
sanctions and update and expand pre-existing regulations. It is the
speed and scale of activity that shows no sign of ending anytime
soon that constitutes a challenge for compliance professionals.
With data analyzed from February 21,
2022, to March 31, 2022, there
were 40 total updates to the EU, OFAC and OFSI lists, with a
+2,384-net count of added destinations relating to Russia alone, compared to 150 net designation
additions for all sanctions programs over the same period last
year.
The findings show that regulators issued significant list
updates across the six-week period, many concentrated towards the
beginning of the conflict and sometimes several times in one day.
This has had considerable implications for compliance professionals
facing a combined challenge of scale, speed and complexity as they
contend with a higher stack of alerts, additional pressures on the
sanction list update processes and burdensome alert
remediations.
Sanctions trends observed over the past several years
accelerated in a matter of weeks in response to the situation in
Ukraine. The United States, EU and United Kingdom led a common front, followed by
countries like Canada,
Australia and New Zealand. Many European countries aligned
with the EU including Ukraine,
Georgia, Switzerland, Norway, Iceland and the Balkan states, excluding
Serbia. This activity extends beyond the West, with Japan, South
Korea and Singapore
implementing similar sanctions.
"No one can predict how the sanctions landscape will evolve in
the coming months, but the scope of regulator activity concerning
the situation in Ukraine has
already made for a perfect sanctions storm, deploying virtually all
typologies of sanctions to restrict dealings with certain
individuals, companies, aircraft, ships, items or locations," said
Vincent Gaudel, financial crime
compliance expert, LexisNexis Risk Solutions. "While governments
are imposing these sanctions and restrictions to fulfill certain
foreign policy objectives, the onus is on private companies to
abide by them, resulting in massive compliance challenges which are
unlikely to disappear anytime soon. The impact of this European
conflict is global and will have an ongoing effect on global trade
and economics, with supply chains and international relations
experiencing disruption in the longer term."
View the infographic that details how the sanctions landscape
has evolved between February 21,
2022, to March 31, 2022
here.
About LexisNexis Risk Solutions
LexisNexis® Risk Solutions harnesses the power of data
and advanced analytics to provide insights that help businesses and
governmental entities reduce risk and improve decisions to benefit
people around the globe. We provide data and technology solutions
for a wide range of industries including insurance, financial
services, healthcare and government. Headquartered in
metro Atlanta, Georgia, we
have offices throughout the world and are part of RELX (LSE:
REL/NYSE: RELX), a global provider of information-based
analytics and decision tools for professional and business
customers. For more information, please visit
www.risk.lexisnexis.com and www.relx.com.
Media Contact:
Marcy Theobald
678.232.0948
marcy.theobald@lexisnexisrisk.com
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SOURCE LexisNexis Risk Solutions