Germany is one of the many countries in the European Union and around the world that has enacted sanctions against Russia in response to military activity in Ukraine. In September, Germany even circulated a proposal to prohibit financing to metal and rare-earth Russian mines, ban uranium imports from Russia, bar the export of the special coal Russian oil refineries rely on, and tighten existing sanctions against both individuals and banks.
Sanctions restrict how you can interact with the sanctioned entity, and failure to comply can result in severe consequences, not limited to financial penalties and even criminal prosecution.
If you have any doubts, concerns, or suspicions about a customer or supplier, follow the established procedures for reporting to the proper authorities. Before you process any transactions or offer your services to a business partner, confirm they are not on the sanctions list.
It might be illegal for your company to process or handle any funds that have been frozen or to continue business. You also may not make resources available to an individual or entity who is sanctioned.
Considering continuing escalations, it is reasonable to expect that the list of individuals and entities subject to sanctions will continue to grow. It is vital you always know if any of your clients or customers are subject to sanctions. Trustnet.Trade® is the most comprehensive compliance and due diligence tool for small and medium businesses. Performing automated compliance checks via Trustnet.Trade® before entering into a new business partnership can help you ensure that no entity or individual you will be working with is subject to sanctions, embargoes, or asset freezes.