General Licence

Sanctions rules ban certain dealings, but regulators know some must go on, such as winding down existing contracts, paying for basic needs, humanitarian aid, or routine legal services. A general licence covers these categories openly. Anyone who meets its terms may rely on it, though it often has an expiry date, reporting duties or limits on amounts and parties. It differs from a specific licence, which is issued to a named applicant after a request. The United States Treasury, the UK and the EU all use versions of the tool, though names vary (the EU speaks of authorisations). Compliance teams monitor new and expiring licences, because one can open or close a business line overnight. Expiry dates and conditions decide whether a payment is allowed, so teams read each licence in full before relying on it.

A sanctions authority bans dealings with a large foreign bank but publishes a general licence allowing wind-down transactions for 30 days. A commercial bank checks the terms, confirms its pending payments fit the conditions, and completes them within the window. On day 31 the licence expires, and the bank blocks any further payments.