On Monday, 5 SEP 22, on New Paradigms with Sargis Sangari, Episode #114, Irene Kenyon, Director of Risk Intelligence for FiveBy Solutions, joined me to discuss if sanctions are relevant in a multipolar world as we talk through the future of compliance as a deterrent.
Sanctions are #War by other means, to misquote #Clausewitz.
As Irene Kenyon points out, sanctions are effective #foreignpolicy when done intelligently. They work when goals are specific, and the #implementation and #enforcement strategies are focused and multilateral. In coordination with our #partners and #allies, sanctions are most effective against #illicit actors and #states.
Irene also states that sanctions compliance in our volatile environment is getting more complicated and expensive, especially since the sanctions against #Russia are of primary importance to the current administration.
However, the best compliance solutions don’t have to be expensive, especially given the managed services cost. A mix of #automation and #human-driven #analysis to interpret what is sometimes vast reams of data is the best option to implement a robust compliance program.
During our discussion, we also talked about U.S. #TreasuryDepartment sanctions against #crypto mixing firm #tornadocash limit use of privacy software and the issues tied to sanctioning #code, which may be a possible conflict against the U.S. First Amendment.
Irene also notes that sanctions are a long game, and depending on the target, they can take a long time to work. Russia cannot keep propping up the #ruble indefinitely. It cannot continue to fund its welfare programs to prop up people who cannot work even if it continues selling #energy to #China and #India. Those significantly discounted sales put money in #Putin’s pockets; however, Russia remains cut off from the #global #financialsystem.
In closing, Irene Kenyon asks, what good is #money if you are limited in where you can spend it?
As I pointed out in our discussion, before the world used the same international system that the U.S. built after WWII, nations used their military to coarse other countries to abide by what most agreed to be # international laws and norms. Sanctions allowed us to lessen the use of military force and rely on economic means to enforce national standards. However, suppose the world is moving away from the international system the U.S. built; likely, we will again have to go back to the old world system and begin using more military force structures to address our international disagreements.
Join us for this important show on the future of sanctions in a world that is becoming more multipolar. #compliance #risk #terrorismfinancing #fincen #crypto #AML #antimoneylaundering #regulatory #supplychain #inflation #taiwan #sanctionsscreening #sanctionscompliance
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