Economic sanctions are restrictive measures imposed by governments or international bodies to target specific countries, organisations, or individuals. These sanctions aim to influence political or economic behaviour by limiting access to financial resources, trade, or specific goods. Sanctions can take various forms, including asset freezes, trade restrictions, and travel bans, and are often used as a tool to combat human rights violations, terrorism, and other illicit activities. 

In the financial crime compliance space, ensuring compliance with economic sanctions is a key responsibility. Financial institutions must screen transactions, customers, and business relationships to ensure they do not engage with sanctioned entities. Violating sanctions can result in severe penalties, including hefty fines and reputational damage. Therefore, compliance teams must have robust systems in place to monitor for sanctioned entities and adhere to global sanctions regimes, helping prevent illicit financial activities tied to criminal networks or hostile states.