WHITE PAPER

Why You Need Business Partner & Sanctions Screening in SAP - and How to Set it up

What CAN YOU expect?

WAS ERWARTET DICH IM White Paper?

Sanctions are measures implemented by governments to restrict or prohibit trade with parties involved in illegal activities, while sanctions screening is a process that detects potential matches between organizational operations and global sanctions lists.

The text highlights the complexity of sanctions, distinguishing list-based or smart sanctions, which target particular persons, entities, and organizations, and secondary sanctions, targeting third-party actors. Additionally, challenges include the increasing use of sophisticated sanctions evasion techniques, such as the use of Virtual Assets, and a rapidly changing geopolitical environment.

The text highlights that all businesses, not just those in the financial services and fintech industries, need to comply with sanctions regulations and screening requirements. Non-compliance with sanctions can lead to hefty fines; in the U.S alone, OFAC‘s enforcement penalties reached $1.2 billion in 2019.