What do you need to know about sanctions and how to avoid risks

Alexandra -

The tense international situation provoked the introduction of new sanctions restrictions. A natural question that arises for every entrepreneur is how to find alternative solutions. How can they continue working given the current situation?

To answer these questions, it will be necessary to consider several important innovations that will help find a way out of this situation. To brush aside possible sanctions isn’t real now. This is evidenced by the history of the current record holder for restrictions. To get some results, you should familiarize yourself with the available options and rules

Latest news: how’s the sanctions record holder

Many countries around the world have announced new restrictive measures related to the activities of Russian officials and businessmen. The situation is quite complicated, because business owners are far from having enough resources that will allow them to get away with it. This has already affected the lives of many ordinary citizens: the unemployment rate has risen and will continue to rise, food shortages, rising prices, inflation, and so on.

A difficult time has come for business sector representatives because of the departure of large brands from the market.

Today we already know about the following sanctions, which may become an obstacle to doing business by Russian entrepreneurs:

  1. The impossibility of selling luxury goods. Automobiles, high-fashion and art goods became the first area to be affected by restrictive measures. On the territory of Russia there is an increase of prices for the listed items. The ban on exports concerns every inhabitant, although this opinion seems far-fetched.
  2. Ban on oil and gas imports. Russia is the main importer of energy resources, but more and more partners refuse to cooperate. The development of alternative supplies suggests that soon the world will no longer need Russian gas and oil.
  3. Freezing of financial assets. Today, Russia has been cut off from the world in various ways. Thus, the Central Bank’s finances of $630 billion were frozen. The inability to transfer money suggests that a default may occur after a while.

It is still too early to talk about the final results of all the sanctions imposed, especially since new and new packages of sanctions continue to be developed. You can always google the current situation. However, the fact is that this is so far the most unusual and large-scale sanctions policy in history.

Consequences of sanctions for business

The use of restrictions on the target country implies the suspension of the development of the economy. The lack of external investment and other financial support has a negative impact on the economic situation within a particular country.

In the case of Russia, it is assumed that the introduction of restrictions is supposed to help stop the full-scale war it has started on the territory of a sovereign state. Many citizens think that the geopolitical situation won’t affect them, but this is another delusion.

The withdrawal of major brands from the Russian market leads to an increase of unemployment. Despite the assurances of the leaders, the number of unemployed will increase exponentially. It will be possible to fight this consequence through the creation of new jobs (which is difficult) or by returning to payment for service through the exchange of goods.

The inability to purchase raw materials for own production is also acute. Foreign suppliers don’t want to continue working with the companies affected by the sanctions.

Therefore, it is important to understand who your client is, so as firstly not to be involved in cooperation with companies and individuals from the sanctions list, and secondly, use ongoing monitoring the introduction of new restrictions.The Kycaid platform will help you with this.

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Types of sanctions: what restrictions do affect business

Restrictive measures affect not only financial or political areas, but also social and other activities. The emergence of new restrictions implies a greater complexity for companies. The need to comply with sanctions appears not only among representatives of the aggressor country, but also among partners.

Restrictive measures are divided into several main categories, among which the following deserve special attention:

  • economic – commercial and financial responsibility for the transactions conclusion and cooperation with certain companies;
  • diplomatic – measures aimed at demonstrating attitude to the situation (closing embassies, etc.);
  • military – a rare type of restrictions that involves the imposition of an arms embargo and/or targeted strikes;
  • sportive – the introduced restrictions don’t allow athletes to take part in international competitions.

Some restrictions may apply to certain individuals in the form of blocking accounts and property seizure, while others may apply to personal security. Not all types of sanctions directly affect business, but most of them put this goal on the list of priorities.

Difficulties that arise after the introduction of measures tend to become more complicated. For entrepreneurs, this means that it will cost much more if they keep working and the amount of profits will be difficult to predict. The destabilization of the economy makes it possible to stop military aggression and motivates to come to a peace agreement.

How to avoid risks associated with restrictions

Kycaid specialists help to get the necessary support and find a way out of this situation. Here, entrepreneurs will be able to chat with an experienced agent who will ensure compliance with regulatory requirements and will help launch an effective KYC/AML and KYB. In this way, it’s possible to take your business to the next level and comply with every letter of the law.

It falls to the experts to build the reputation of companies. The company’s policy is to develop safe and effective steps to continue operations.

A wide range of services will allow you to find those offers that suit your business. The company attracts the trust of potential customers due to:

  • high-quality data protection and verification to increase loyalty;
  • confirmation of the absence of illegal money laundering or concealment of profits;
  • ensuring the security of each user through verification.

Compliance with international laws and regulations in force on the territory of a particular country is one of the main advantage of cooperation.

Preventing fraud and protecting the interests of the client is possible thanks to the well-coordinated work of the company. The creation of a new program to deal with difficult situations allows you to maintain your status and confirm your reputation. Quality verification and support guarantee successful continuation of work.