Sanctions Enforcement

In financial regulation sanctions are penalties or enforcement levied against individuals or companies which forbid entities within a jurisdiction from engaging in contracts or new financial transactions with the sanctioned entity. Sanctions are a form of statecraft that allow nation states to exercise their controls over foreign nationals and individuals in the interests of advancing the foreign policy of the state.

Crypto assets are a means of evading sanctions enforcement by permitting illicit financing through regulatory arbitrage.

See also money laundering, KYC, and illicit financing.

References

  1. Cumming, Douglas J., Sofia Johan, and Anshum Pant. 2019. ‘Regulation of the Crypto-Economy: Managing Risks, Challenges, and Regulatory Uncertainty’. Journal of Risk and Financial Management 12 (3): 126. https://doi.org/10.3390/jrfm12030126.
  2. Ferrari, Valeria. 2020. ‘The Regulation of Crypto-Assets in the EU – Investment and Payment Tokens under the Radar’. Maastricht Journal of European and Comparative Law 27 (3): 325–42. https://doi.org/10.1177/1023263X20911538.
  3. Finck, Michèle. 2018. Blockchain Regulation and Governance in Europe. Blockchain Regulation and Governance in Europe. Cambridge University Press. https://doi.org/10.1017/9781108609708.
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