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Sanctions

Sanctions are generally defined by a list of administrative or criminal offences (noncompliance with the legal requirements) by companies or government authorities. Sanctions could include monetary sanctions, imposing actions such as limitations to or ending of the activities of the company or for serious offences incarceration. Administrative sanctions are based on a decision of a competent authority for compliance monitoring. Appeals to this decision should be possible. Sanctions through the legal system are normally based on findings of control authorities.

To reduce possible resource intensive conflicts such as court cases with industry during appeals against sanctions and to improve compliance one should inform industry clearly about its obligations and allow for reduction in  the monetary sanctions if the company implements an efficient internal scheme to ensure compliance.

 


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