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Implications of EU sanctions for EU SMEs

EU SMEs willing to engage in business activities in Iran or with Iranian companies are advised to conduct due diligence checks to ensure that their planned activities do not violate EU restrictive measures (sanctions), which they are bound to comply with by EU law. For example, there is an increased risk of interference with EU sanctions when dealing with dual-use goods, including in the transportation and telecommunications sectors, among others.

Without carrying out effective due diligence checks, EU SMEs would find it difficult to meet the stringent requirements of financial institutions, including of EU banks. Financial institutions are unwilling to provide credit to business projects if they identify any risk of non-compliance with EU sanctions. Due diligence checks are therefore crucial for EU SME planning to conduct business in Iran.

The Due Diligence Helpdesk on EU Sanctions provides free-of-charge due diligence checks on EU sanctions compliance for specific business projects. This allows EU SMEs to correctly assess whether their initiatives in Iran are in accordance with EU law. Moreover, they can use the due diligence compliance reports to reassure financial institutions of the legitimacy of their business projects, enabling them to obtain funding and carry transactions.