Sanction Violantions in International Trade and Payments- Critical Issues and Recommendations for Vietnamese Exporters, Importers and Commercial Banks

Abstract

International trade and payment contribute positively to the national economic development, however, these
activities associate with high risks. In addition to complying with international regulations, the laws of the
involved countries, these activities are also subject to the supervision of many international organizations
in various management areas. Sanction violations may happen anytime during the process from contract
negotiation, signing contracts for carriage, scheduling for transportation and making payment. However,
sanction violations arebasically often recognized and heavily fined by supervising organizations at the payment
stage through banks. The consequences of violating sanctions are huge in terms of economic aspects,
deteriorating reputation and causing difficulties in business activities of import-export enterprises as well as
commercial banks. The article focuses on contents of sanction violations, consequences of these violations and
preventive measures for Vietnamese enterprises and commercial banks to avoid punishment from organizations
which directly supervise the international sanctions, especially from OFAC due to the fact that Vietnam has
many transactions that are subject to the supervision of this organization