Trade Finance Forum › Forums › Market Regulations › Laws and Bills › In what ways do embargoes and sanctions hinder the operations of trade finance firms? › Reply To: In what ways do embargoes and sanctions hinder the operations of trade finance firms?
In my opinion, the effectiveness of sanctions and embargoes may have a major influence on trade finance firms’ operations. Some of them are:
1. Restricted access to the market
2. A larger burden of regulatory compliance
3. Possible incurrence of fines
4. The liquidity that is significantly reduced
5. Potential for Default
6. Creating difficulties for the correspondent banking system
7. Challenges in determining which organisations are sanctioned.