Contractual Strategies to Mitigate Risks Arising from the Application of Economic Sanctions in the Payments Industry

EDITORIAL: Fundación Universitaria San Pablo CEU
ISBN: 9788419976697
FECHA DE EDICIÓN: 2/28/2025 12:00:00 AM
Nº DE EDICION: 1

Libro Impreso
Nº PAGINAS: 32
DIMENSIONES: 295x210

DIRECTORES, AUTORES Y COLABORADORES

Autor: Agarkova, Diana

MATERIAS

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In the current geopolitical context, economic sanctions imposed by governments or International Organizations pose considerable challenges to companies in the payments industry. The global payments industry is also highly regulated, making compliance with economic sanctions a critical aspect of risk management in business transactions. This thesis aims to provide a broad overview of the restrictive measures that particularly affect companies in the payments industry. Additionally, the paper proposes contractual strategies for mitigating risks associated with sanctions non-compliance. Through a qualitative analysis of the legal regime of economic sanctions, as well as standard contractual terms in B2B agreements, this study identifies key áreas of risk and potential liabilities. The research highlights the significance of proper compliance clauses and continuous contractual monitoring to ensure adherence to sanctions regulations. The findings determine that a proactive contract drafting strategy, including defined compliance obligations, indemnity clauses and audit rights, can effectively mitigate the risks associated with this complex regime. This thesis provides practical guidelines for legal and compliance professionals and offers companies in the payments industry a framework for developing resilient contractual mechanisms to mitigate the risk of non-compliance with international economic sanctions. The proposals provided in this thesis may also be used by companies of other industries.