Sanctions Circumvention
Definition:
Sanctions evasion refers to the act of circumventing or violating economic sanctions imposed by governments or international bodies. These sanctions are typically put in place to restrict trade, financial transactions, or other interactions with specific countries, entities, or individuals due to political, military, or human rights concerns. Evasion can take various forms, such as using third-party countries to conduct transactions, falsifying documents, or employing complex financial networks to disguise the origin or destination of goods and services. Companies or individuals engaging in sanctions evasion risk legal penalties, including heavy fines and criminal charges, and contribute to undermining the effectiveness of international sanctions designed to promote global stability and uphold human rights.
Sanctions Circumvention - So what to Jersey?
It is important for Jersey and its financial services professionals to be alert to sanctions for several reasons:
- Reputation Management: Compliance with international sanctions is essential to maintain Jersey's reputation as a reputable financial center. Violations can erode trust from clients and partners.
- Legal Compliance: Adhering to sanctions laws protects firms and individuals from severe legal penalties, including fines and criminal charges.
- Economic Stability: Avoiding sanctions violations helps preserve Jersey’s economic stability and prevents stricter regulations that could hinder local growth.
- Client Trust: Demonstrating commitment to sanction compliance strengthens client relationships and reassures clients about the ethical integrity of services.
- Global Collaboration: Upholding sanctions supports international efforts against financial crime, reinforcing Jersey's role as a responsible financial hub.
Types of criminal activities linked to illicit finance
As part of the FIU's mission to assist Jersey's regulated sectors, we have created below some criminology examples which explain what they are, and more importantly, the 'So what to Jersey' connection.
Understanding the 'So what to Jersey' connection
As an International Finance Centre (IFC), the Island's products, services or industries could be used by criminals for illicit financial activity. Whilst the criminal activity may not have occurred in Jersey, the funds or derived funds from such criminality might be placed within a Jersey product or structure, or pass through the island's financial system. It is therefore important to understand the 'So what to Jersey' principle in relation to each of the criminology types below.
To help understand the various criminologies better, we have produced fictional typologies (within our knowledge base section), which provide an examples on how they work, and importantly, illustrate the 'So what to Jersey' connection.
