About a-team Marketing Services

A-Team Insight Blogs

Rate of Annual Sanctions Growth Nears 15%, According to Refinitiv Report

Subscribe to our newsletter

The Russia-Ukraine war has caused rapid sanctions inflation since March in several autonomous sanctions programs, contributing to a sanctions inflation rate of 14.6% year on year, compared with 11.2% rate six months ago, according to London Stock Exchange Group’s Refinitiv Global Sanctions Index.

Refinitiv’s annual Global Sanctions Index white paper, the second edition of which was released last week, measures and analyzes rising hyperinflation of autonomously issued sanctions programmes.

The latest white paper, Understanding sanctions worldwide with the Global Sanctions Index (GSI), examines data from the Refinitiv World-Check Risk Intelligence database on every major sanctions regime, and the net change in the amount of sanctioned persons and entities (52,000+ as of August 2022). The index has identified sanctions hyperinflation, epitomized by a steady, yet rapid increase of 270% in the issuance of explicit sanctions since 2017.

The GSI now contains sub-indices for specific sanctioning bodies, notably the European Union (EU), Japan’s Ministry of Finance (MOF), the U.S. Office of Foreign Asset Control (OFAC), Australia’s autonomous sanctions programs run by the Department of Foreign Affairs and Trade, and the United Nations (UN). Annual sanctions inflation listed in the white paper stands at 131% for Australia (DFAT-AS), 80.1% for Japan (MOF), 55% post-Brexit for the United Kingdom (UKHMT), and 49.6% for the EU.

According to Michael Meadon, Director of Customer and Third-Party Risk Solutions – Asia-Pacific and author of the white paper, “This year’s response to the Russia-Ukraine war and the ever-changing geo-political landscape has highlighted the shift to autonomously issued sanctions inflation while the fracturing of the UN’s consensus-driven sanctions mechanism has led its share of the GSI to stay flat at 2% of the global total listed since 2017.”

This rapid inflation since March in several autonomous sanctions programs marks what Refinitiv describes as a major shift in the volumes of those autonomously issued by national governments or regional bodies. The once-prevalent consensus-based sanctions mechanisms created under the aegis of the UN are an increasingly minor component of the GSI, representing just 2% of overall sanctions.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Meeting the challenges of regulatory change

Regulatory change is constant, complex and challenging, calling on financial institutions to attend to details of change whether relatively minor or large scale. Recent regulatory changes include MiFID II post-trade transparency requirements, including ESMA’s increase in data continuity checks that brokers must prepare for, and trading venues must make, when reporting instrument reference and quantitative...

BLOG

Compliance.ai Plans Market Growth and Expansion on Back of $6 Million Funding Round

Compliance.ai, a provider of regulatory change management solutions, has secured $6 million of funding, which it will use to promote market growth and expansion. At the same time, the company has brought in a new CEO, Asif Alam, who will replace Kayvan Alikhani, who will continue innovating Compliance.ai products as co-founder and chief product/strategy officer....

EVENT

TradingTech Insight Briefing New York

TradingTech Insight Briefing New York will explore how trading firms are innovating and leveraging technology as a differentiator in today’s cloud and digital based environment.

GUIDE

Regulatory Data Handbook 2022/2023 – Tenth Edition

Welcome to the tenth edition of A-Team Group’s Regulatory Data Handbook, a publication that has tracked new regulations, amendments, implementation and data management requirements as regulatory change has impacted global capital markets participants over the past 10 years. This edition of the handbook includes new regulations and highlights some of the major regulatory interventions challenging...