One of the latest excuses used by questionable brokers to delay or deny payouts is the “withdrawal delay due to sanctions review”. This deceptive tactic leverages global regulatory language to create fear and confusion, often paralysing traders who don’t understand how sanctions actually work. In truth, this delay is rarely due to real compliance concerns—and far more often a stall tactic to hold on to your money.

What Is a Sanctions Review?

A sanctions review is a legitimate compliance process where a broker checks whether a client or their transactions are linked to sanctioned individuals, entities, or regions under international law (e.g. UN, OFAC, EU, UK sanctions lists).

Brokers are required to screen new clients and monitor ongoing transactions, but these checks happen during onboarding—not when you withdraw.

How the Scam Works

Here’s how unscrupulous brokers exploit the concept of sanctions:

1. You Request a Withdrawal

After profitable trading or reaching bonus terms, you submit a withdrawal request as normal.

2. Broker Delays with “Sanctions Screening” Excuse

You receive a vague message like:

• “Your withdrawal is under sanctions compliance review.”
• “Due to international restrictions, your account requires further verification.”
• “Funds cannot be released until checks are complete under EU/OFAC guidelines.”

3. Repeated Extensions and No Transparency

When you follow up, you’re told:

• “The review is ongoing.”
• “Our compliance department is working on it.”
• “We’ll notify you once cleared.”

No timeline. No documentation. No clear reason.

4. Psychological Manipulation

The broker hopes to scare you into compliance or silence. Some traders begin to doubt whether they violated rules or inadvertently breached a restriction. Others are pressured into cancelling the withdrawal or continuing to trade.

Why This Is So Dangerous

Withdrawal delay due to sanctions review is a powerful excuse because:

• It sounds serious and official
• Most traders lack legal understanding of sanctions
• It buys brokers time or an excuse to stall payouts permanently

Meanwhile, your funds remain inaccessible, and your legal leverage weakens.

Real Case: Fake Sanctions Check Used to Block Withdrawal

A trader based in South Africa earns $3,800 over a month. Upon requesting a withdrawal, the broker responds that the account is “flagged for compliance review due to potential name match with restricted entities.” After 10 days of delays, the trader contacts the regulator—only to learn that no official investigation exists, and no sanctions apply to the individual.

The broker never responds again.

How to Know If a Sanctions Review Is Legitimate

1. Reviews Happen at Onboarding
Legitimate brokers screen clients during registration and deposit—not at withdrawal time unless there’s a new trigger.

2. You Must Be Informed of the Risk Beforehand
If you were truly on a watchlist or high-risk category, you would not have been allowed to trade in the first place.

3. Legitimate Reviews Come With Documentation
Real compliance teams issue formal notices, not vague emails. If the broker refuses to provide specifics, the review is likely fake.

4. Sanctions Reviews Are Rare for Retail Clients
Unless you reside in or send money from a blacklisted region (e.g. North Korea, Iran), sanctions reviews are highly unlikely.

How to Protect Yourself

1. Demand Specifics and Documentation
Ask:

• What sanctions list is being referenced?
• What part of my profile triggered the review?
• Can I receive written confirmation from your compliance officer?

2. Escalate Quickly
If a broker uses sanctions as an excuse and offers no proof within 48–72 hours, escalate:

• File a complaint with the appropriate financial regulator
• Post detailed reviews on public trading forums to warn others
• Contact your payment provider or bank to initiate a chargeback, if possible

3. Avoid Brokers Without Regulatory Oversight
Unregulated or offshore brokers are far more likely to exploit fake compliance reviews. Always verify the broker’s licence with Tier-1 authorities.

4. Take Screenshots and Document Everything
Every email, chat, and notification should be saved. This creates a timeline you can use in formal complaints.

Conclusion: Don’t Let a Fake Sanctions Review Block Your Funds

The withdrawal delay due to sanctions review is a manipulative stalling tactic, not a real legal process in most cases. Brokers use it to instil fear, delay withdrawals, and pressure traders into giving up their claims. The key to overcoming it is education, documentation, and immediate escalation.

To build your skills in handling broker disputes, identifying manipulation, and protecting your capital, enrol in our expert-led Trading Courses—designed for traders who want to trade smart, win fairly, and keep full control of their funds.