A Rising Financial Crime: Sanctions Evasion

Sanctions evasion is rising as a major financial crime amid global trade restrictions. We explore key evasion tactics and their impact on businesses, along with practical measures companies can take to avoid sanctions violations.

Introduction

The 2022 invasion of Ukraine resulted in an 816% increase in Russian sanctions.¹ With the significant rise in sanctions imposed on Russia, key actors in many sectors—especially energy, construction, and industrial sectors—are at risk of being designated. However, the potential for increased profits in trade chains has led some companies seeking to continue business with sanctioned parties to find ways to circumvent the sanctions. These methods of sanctions evasion are considered financial crimes.