Proliferation Financing is a whole area of risk that organisations often fail to assess as part of their overall sanctions and terrorist financing risk management.
Sectors at particular risk include electronics or computer equipment as a result of high risk ‘dual use’ items. Dual-use items are goods, software, technology, documents and diagrams which can be used for both civil and military applications. They can range from raw materials to components and complete systems, such as aluminium alloys, bearings, or lasers. They could also be items used in the production or development of military goods, such as machine tools, chemical manufacturing equipment and computers.
For high risk organisations it is essential to conduct effective due diligence on customers as well as suppliers in order to avoid breaching UK Sanctions regime, Export Control Act (2002) and the Export Control Order (2008) as well as Terrorism Act 2000.
To learn more about this type of risk why not check out our training module
Further guidance is also available from the UK government website.