What types of penalties can entities face for breaching sanctions?

Entities that breach sanctions may face significant consequences, and one of the primary types of penalties is monetary penalties and the freezing of assets. When a party fails to comply with sanctions, regulatory bodies can impose fines which serve both as punishment and a deterrent against future violations. These financial penalties can be substantial, reflecting the severity of the breach and the parties involved.

In addition to monetary penalties, authorities can also take actions such as freezing assets. This means that any assets owned by the offending entity may be immobilized or prevented from being transferred or withdrawn. This action not only incapacitates the entity financially but also serves as a protective measure to ensure compliance with sanctions and to prevent further violations.

This combination of monetary fines and asset freezes is crucial in enforcing sanctions as it directly impacts the financial resources of the offending entity, thereby promoting adherence to international laws and regulations surrounding sanctions.