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Although there is nothing that can be done about the ever-changing nature of sanctions, enforcement suites can help their bank in a variety of ways to ensure that transactions are processed as quickly as possible.
Fremont, CA: For bank customers, the change in banks' attitudes toward sanctions means a slew of new enforcement issues, longer transaction processing times, denial of some goods and services, additional contract languages, relationship termination, and a slew of other issues that didn't exist before. Many clients, especially individuals and small businesses, are negatively impacted as a result of the banks' increased compliance with economic sanctions-related restrictions.
Here are four ways to improve the relationship with financial institutions:
When it comes to sanctions, it's important to be completely honest with your bank. In certain situations, banks would consider what you're intending to do if it's linked to a sanction goal and the operation has been exempted from the sanctions' reach. However, if you try to conceal details, banks will find it challenging to work with you. First, there is a breach of trust; second, they could be legally obligated to take action if they discover that information has been hidden.
Banks communicate with regulators
Banks are required to disclose some events to their regulators. The scope of such information-sharing varies by jurisdiction, but it is generally extensive. It's important to remember that the bank that records a transaction or operation to its regulator does not have to be your bank. It might be a bank in which your bank has a relationship. Such reports may prompt a regulator to take a closer look at the reported behavior.
Explain the business to banks
Banks aren't aware of your business model or what you're doing or planning to do. Make it transparent for them to prevent delays or irrelevant questions. The more you articulate your business and transactions to them, the easier it will be for them to determine the risk associated with your transactions and operations, resulting in faster processing of your transactions.