A new tool has been launched by third-party risk management platform ethiXbase to help UK corporates check whether their supply chains comply with new government sanctions against Russia.
EthiXbase, a member of the United Nations Global Compact, said its Sanction Risk Instant Questionnaire will allow UK firms to identify directors, ultimate owners and shareholders within their third parties so they can be screened against sanctions lists.
“It’s not only legally, but ethically and morally, important for organisations to ensure their third-party supply chains are free from sanctioned individuals and businesses,” said James Swenson, managing director, research and operations at ethiXbase.
The UK government has sanctioned 1,200 Russian individuals and 115 Russian entities since Russia’s invasion of Ukraine, which puts UK corporates and their directors at risk of fines or imprisonment for non-compliance.
The ethiXbase questionnaire will allow companies to identify third parties that might be associated with a sanction risk. The organisations will receive automated notifications when a sanction risk is identified.
“Do you fully understand your third-party shareholders’ and directors’ structures, and if one of them is associated with the sanctions? Have you considered what this might mean for your business and operations? These are important questions that organisations and leaders need to ask themselves, as the risks are potentially great,” said Swenson.