Sanctioned Entity or Individual

They use cryptocurrencies and other lightly regulated channels to evade restrictions imposed by mainstream financial institutions. These methods circumvent sanctions screening, allowing cross-border transactions to occur undetected by standard AML controls.

Sanctioned entities or individuals under arms embargoes may:

• Continue to procure or distribute weapons despite restrictions, generating illicit proceeds.
• Use financial institutions—often through front entities or hidden ownership structures—to launder funds tied to sanctioned activities, posing severe compliance risks.

Sanctioned entities or individuals use these platforms to:

• Evade restrictions by quickly swapping assets across fiat and cryptocurrencies.
• Sidestep formal screening processes, undermining financial institutions' sanctions controls and enabling cross-border fund movements.

They leverage CBI/RBI programs to evade restrictions by:

• Securing alternate passports or residencies to bypass sanctions screening.
• Obscuring their identity and financial footprint, enabling further movement of illicit proceeds across borders.

Sanctioned entities or individuals utilize OTC and peer-to-peer trading to:

• Circumvent formal financial controls that would normally flag or block their transactions.
• Shift funds across borders surreptitiously, defying sanctions screening by regulated institutions.
• Disguise the provenance of assets through repeated conversions, exploiting limited KYC or weak oversight in certain OTC markets.