UAB Magazine Issue October 2026

90 Study Union of Arab Banks - October - 2026 Table 2. How sanctions-related risks can affect banking activities Banking activity Potential consequence Practical response Dollar payments Delays, rejection, or loss of access to correspondent services Strengthen screening and investigate unusual payment patterns Trade finance Delayed letters of credit or difficulties verifying counterparties Check beneficial ownership, trade documents, and the commercial purpose Corporate banking Customer losses and higher compliance costs Review customer risks regularly and maintain clear records Remittances Disruptions affecting individuals and businesses Apply proportionate controls and identify lawful alternative channels where available Correspondent relationships Additional scrutiny or termination of services Maintain transparent communication and demonstrate effective controls Source: Union of Arab Banks – Research Department based on U.S. regulatory guidance and banking-sector analysis.