Sanctions compliance refers to the process by which individuals, businesses, and financial institutions ensure adherence to international sanctions laws and regulations imposed by governments or organizations such as the United Nations Security Council (UNSC), His Majesty's Treasury (HMT), the European Union (EU), or the Office of Foreign Assets Control (OFAC) in the US. These sanctions target countries, individuals, or entities involved in illicit activities such as terrorism, money laundering, human rights abuses, or nuclear proliferation. 

In the realm of financial crime compliance, sanctions compliance is crucial to preventing prohibited financial transactions with sanctioned parties. Financial institutions are required to screen customers, transactions, and business dealings against sanctions lists like the HMT Sanctions List or the UNSC Consolidated List. Failure to comply can result in severe legal, financial, and reputational consequences, including fines and asset freezes. Robust sanctions compliance programs help institutions avoid facilitating financial crimes and ensure alignment with global regulatory frameworks.