Glossary term
Sanction
A restrictive measure against a country, entity or individual, prohibiting or limiting dealings with them.
A measure imposed by a government or international body restricting trade or financial dealings with a target - a country, sector, entity or named person.
Sanctions bind irrespective of contract and can apply beyond the imposing country’s borders, so a transaction lawful where the parties sit may still be caught. Lists change frequently, which makes screening a repeated obligation rather than a one-off check, and ownership rules mean an unlisted company can be caught through its shareholders.