Economic Sanction: An Intimate and Unfettered View

Hello, friends! I'm Ruben Aguila, and today I want to talk to you about a topic that, although it sounds boring, can affect us all: the economic penalties. Yes, those fines that make us scratch our pockets for not following the rules. But don't worry, here I tell you everything from my personal experience, with a light-hearted touch and a lot of authority.

What is an Economic Sanction?

An economic sanction is a punitive measure that involves the payment of an amount of money as a consequence of having breached certain rules or regulations established in the economic sphere.

In simple words, it is a fine imposed on you for being too smart. These sanctions can come from different sources:

• Governments: When you violate state laws or regulations.
• International Organizations: If your country or company misbehaves on the global stage.
• Private Entities: As clauses in contracts between companies.

Types of Economic Sanctions

Throughout my life, I have seen and experienced several types of economic sanctions. Here is a list of the most common:

Administrative Penalties:

• Example: Fines for not complying with work safety regulations.
• My experience: Once, in my company, we were fined for not having certain permits up to date. What a headache and a pain in the pocket!

Criminal Penalties:

• Example: Fines or even imprisonment for economic crimes such as fraud.
• My experience: I knew a colleague who, for evading taxes, ended up facing criminal charges. A golden lesson.

Civil Penalties:

• Example: Compensation for damages to third parties.
• My experience: We had to compensate a client for a mistake on a project. We learned to be more careful.

Tax Penalties:

• Example: Fines for late filing of tax returns.
• My experience: One year, due to an oversight, we filed our taxes late and wham, we were fined. Since then, calendar in hand.

Trade Sanctions:

• Example: Restrictions to operate in certain markets.
• My experience: We tried to expand to a country with trade sanctions and ran into a bureaucratic wall. Lesson learned.

Why Are Economic Sanctions Imposed?

Economic sanctions seek to maintain order and fairness in the economic sphere. Some reasons include:

• Protect fair competition: Prevent companies from cheating to gain an advantage.
• Ensure compliance with laws: Ensure that everyone plays by the same rules.
• Deter misconduct: Make you think twice before doing something illegal.

Consequences of Economic Sanctions

It's not just the hit to the pocketbook. Sanctions can affect:

• Reputation: A fine can damage your company's or your own image.
• Operations: Some sanctions can limit your business activities.
• Finances: In addition to the fine, additional costs may arise from legal proceedings.

My Personal Reflection

After years of dealing with financial penalties, I have learned that it is best to:

• Be informed: Know the laws and regulations that affect you.
• Follow the rules: Better safe than sorry: Better safe than sorry.
• Get good advice: Have experts to guide you in legal and tax matters.

I hope my experience will serve as a guide and, above all, that you avoid falling into financial penalties. See you next time!