What operational issues contribute to an effective sanctions compliance program?

• A. Employee onboarding.
• B. Public relations campaigns.
• C. Resolving cases, managing licenses, blocking or freezing assets, rejecting transactions, and record keeping.
• D. Inventory management.

Answer: (C)

Operational controls that enforce sanctions in day-to-day activities are essential. Resolving cases provides a clear, documented process for how to handle potential sanctions hits and determine appropriate actions. Managing licenses ensures that any sanctioned activity is carried out only under the proper permissions or with the right prohibitions in place. Blocking or freezing assets prevents access to funds or property that are subject to sanctions, stopping evasion before it happens. Rejecting transactions stops prohibited flows at the source, avoiding inadvertent violations. Record keeping creates an auditable trail of decisions, licenses, asset actions, and denied transactions, which regulators and internal auditors rely on to verify compliance.

On the other hand, onboarding is mainly about initial training and awareness, not ongoing enforcement. Public relations campaigns don’t address the operational controls needed to prevent or detect violations. Inventory management is unrelated to sanctions enforcement and compliance procedures.