Economic sanctions sanctions as a foreign policy instruments: operational issues for financial institutions caused by economic sanctions and anti-money regulation

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Mohammed, Ajmal Yusuf
Issue Date
MBA in Finance
Dublin Business School
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Background- Economic sanctions are imposed globally to control over unethical and wrongdoings. However, complications in sanctions compliance is the big issue that impacts on the borrowing ability of individuals and the operational efficiency of the companies. This study is particularly focused on the financial service sector to explore the impact of economic sanctions and operations issues to the companies. Aim and Objectives- This study is aimed to reveal the effectiveness of imposes economic sanctions for policy and security concerns. Additionally, this research more focuses on the operational issues for financial institutions caused by economic sanctions and anti-money regulation. Research Method- Data was collected through the interview method (qualitative information) and secondary studies review (both qualitative and quantitative information). The total of 5 AML analysts/Compliance officers will be interviewed for the data collection based on surveying, and purposive sampling was used to select the respondents. Secondary data in the context of the knowledge of economic sanctions for the financial services explored and further evaluated in the context of the operational issues. Data analysing through thematic analysis method was conducted to address the way, and the extent economic sanctions impacted the financial service companies’ operational efficiency. Research Questions- Main research question addressed in this dissertation to explore new and valuable knowledge of economic sanctions that is “What is the impact of sanctions and anti-money laundering provisions on the operations in the financial services industry?” Findings and Conclusion- Qualitative results in support of the secondary data has been demonstrated that the economic sanctions imposition and compliance is the big challenge for the 5 financial or banking institutions. The issues faced by the financial institutions in managing compliance with different and multiple sanctions; include intense consumption of resources along with time and costs. The wider list of sanctions imposed on the financial services, has absorbed staff efforts and time, along with and senior management time. Also, it has been raised operational costs in terms of training to the staff as per the frequent revisions and compliance with the multiple sanctions imposing in the different states. Keywords- Economic Sanctions, AML, Operational Issues, Financial Services or Financial Service Operations