SANCTION SCREENING Sample Clauses

A Sanction Screening clause requires parties to verify that neither they nor their counterparties are subject to international sanctions or restrictions imposed by governmental authorities. In practice, this means conducting due diligence checks against official sanctions lists before entering into or continuing a business relationship, and often includes ongoing monitoring throughout the contract term. The core function of this clause is to ensure compliance with applicable laws and regulations, thereby reducing the risk of legal penalties and reputational harm associated with dealing with sanctioned entities or individuals.