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What do sanctions mean for Insurance Brokers?

Given the current situation in Ukraine, it’s likely you will have heard a lot of talk about ‘Sanctions’. Sanctions aren’t a new thing. We have adhered to cross-checking the sanctions list against war criminals and terrorists for years.

However, the broadening of the sanctions regime against Russia has brought about an amendment to the definition of ‘involved person’, which gives the UK the ability to impose financial sanctions on new targets at short notice.

How do Sanctions checks work?

At Riviera, our robust systems automatically screen new customers, payments and existing customers against the most recent UK Consolidated Sanctions List to ensure that we can identify any sanctions exposure.  

A percentage match score is given if any part of your information matches that on the sanctions list, including your date of birth, first name, last name or part of your address.

As you can imagine, many people in the world have the exact date of birth or first name, so it is not unusual for details to flag on the Sanctions List.

If a match is made, a percentage score is given. If it is at 90% or above, the case is escalated to a senior manager to assess. They then manually check against the details on the register. Should it be deemed a match, we would refuse to continue offering any services to this individual, and existing services would be frozen or terminated.

We are then legally obliged to alert the OFSI (The Office of Financial Sanctions), where we know or suspect that a breach of financial sanctions has occurred or that a person we are dealing with, directly or indirectly, is a designated person.

The purpose is to make it extremely difficult for these individuals and organisations to administer day-to-day activities and live comfortably in the UK. 

Find out more about Riviera Insurance here.