What is a sanctions evasion typology?

A sanctions evasion typology is a recognized pattern of behavior that designated parties use to circumvent sanctions. OFAC and FATF publish typologies to help compliance officers recognize and block evasion attempts before they succeed.

Common typologies

• Shell companies: Using layered corporate structures to hide beneficial ownership.
• Trade-based evasion: Mispricing invoices, falsifying shipping documents, transshipping through third countries.
• Crypto laundering: Using mixers, privacy coins, chain-hopping, and unregulated exchanges to move funds.
• Front companies: Operating through seemingly legitimate businesses controlled by designated entities.
• Structuring: Breaking large transactions into smaller amounts to evade screening thresholds.