Global Sanctions: Information Page
Last update 30 September 2024
OFX is committed to complying with the sanctions laws and regulations of the United Nations as well as sanctions legislation applicable in the jurisdictions in which we operate.
Economic and trade sanctions are restrictions put in place by countries and international organisations in order to apply policy pressure and maintain security. Restrictions may be targeted at individuals, organisations, geographical locations, or specific goods and services. Undertaking a transaction with a sanctioned party, or paying for goods and services which are prohibited, can result in substantial financial penalties or criminal prosecution. In some cases, governments can remove licenses to operate from businesses which have breached sanctions.
Sanctions legislation covers all businesses and individuals in a jurisdiction, not just banks and payment service providers. Importers/exporters, businesses purchasing supplies from overseas, investors, mining companies, the agricultural sector – all have faced legal action for sanction breaches. OFX encourages all customers to understand how they may be affected by their local sanctions regimes as well as the regulations in countries that they are interacting with.
Example: An American wheat farming business has been selling grain to Asia for many years; Amongst increasing political tension, the US government adds a number of import companies in Asia to their sanctions list, making it illegal for US companies to transact with them. The wheat exporter does not check before their next shipment – and the payment for the shipment is now coming from a sanctioned entity and the money must be frozen, leaving the farmer out of pocket for the goods supplied.
In order to help our customers comply with international sanctions, OFX has controls in place which ensure we do not facilitate payments contrary to sanctions laws and regulations:
- We screen customers, connected parties, and transactions against relevant sanctions lists, and may use data mining, artificial intelligence, and relationship mapping tools
- We may use tools to identify geographic locations of customers accessing our services
- We reserve the right to prohibit or restrict activities which we believe may generate risk of a breach of applicable sanctions law
- We may block or reject transactions where OFX is required to do so under applicable sanctions laws or regulations, or where we are awaiting additional information
OFX would encourage all customers to read their local sanctions agency public material, to help minimise risk of sanctions matters arising for their businesses. We would also encourage customers to keep up to date with export and import controls on goods and services which apply to their industries.
Further information about sanctions can be found HERE