Which of the following is NOT typically a penalty for sanctions breaches?

Study for the BAFT Certificate in Principles of Payments Test. Utilize flashcards and multiple-choice questions, with hints and explanations for each query. Prepare thoroughly for your exam!

The reason for selecting the option related to eliminating all business activities as the answer is that while sanctions breaches can lead to severe consequences, complete elimination of all business activities is not a typical immediate penalty. Generally, penalties for breaches of sanctions include measures that are more targeted in nature, such as freezing assets, imposing monetary fines, and placing restrictions on financial business operations. These measures aim to restrict or penalize specific actions without necessarily shutting down all business activities outright.

Freezing assets is a common enforcement action taken against individuals or entities that violate sanctions, effectively preventing them from accessing certain financial resources. Monetary fines can be levied as a form of punishment and deterrence against those who breach sanctions and are a usual method for regulatory authorities. Restrictions on conducting financial business further serve to limit the operations of those found in violation, often tailored to specific areas instead of eliminating all business activities completely. As such, option C reflects a more extreme and less common consequence of sanctions breaches.

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