Enhancing Sanctions Compliance: Addressing the Challenges and Proposing Solutions

Improving the Effectiveness of EU Sanctions Against Russia

As the EU prepares to unveil its 17th sanctions package against Russia, the effectiveness of these measures remains a critical concern. Despite the comprehensive nature of previous sanctions, compliance and enforcement have fallen short. This article explores the current challenges and proposes actionable solutions to improve the effectiveness of sanctions, drawing insights from experts in the field.

Current Challenges

1. Lack of Compliance and Enforcement: The gap between policy and practice is significant. Many EU operators fail to fully comply with sanctions regimes, often due to biases and a lack of understanding of financial crime. This issue is compounded by insufficient education and resources for compliance officers and supervisory authorities.

2. Cultural Issues within Organizations: The tone from the top is crucial in shaping compliance cultures. Unfortunately, senior management often circulates between companies without facing consequences for past failures, perpetuating a culture of minimal compliance. This lack of accountability undermines the effectiveness of sanctions.