Sanctions Evasion

Definition ∞ Sanctions evasion involves circumventing economic restrictions imposed by governments or international bodies against specific entities or nations. This unlawful activity seeks to bypass prohibitions on financial transactions, trade, or asset transfers. Methods often include using shell companies, complex financial arrangements, or undeclared digital asset transfers. Governments impose sanctions to achieve foreign policy and national security objectives.
Context ∞ The use of cryptocurrencies for sanctions evasion is a frequent subject in geopolitical and financial news, drawing significant attention from regulatory authorities. Governments are increasingly monitoring blockchain transactions to identify and disrupt illicit financial flows. Debates continue regarding the effectiveness of current measures and the need for enhanced global cooperation to combat this practice.