Sanctions inflation, a major theme over recent years, could be nearing its end in 2025—but the broader landscape of compliance remains as volatile as ever. This is one of the key findings from LSEG’s latest Global Sanctions Index (GSI) report, which offers a snapshot of worldwide sanctions trends up to March 2025.
The report, which draws on extensive sanctions data, finds that uncertainty is now the defining feature of the global sanctions environment. While the pace of sanctions inflation appears to be slowing, other macro-trends are likely to persist—and in some cases intensify.
The GSI was first introduced in 2022 to highlight the concept of sanctions inflation—the rapid growth in the number of sanctioned individuals and entities worldwide. Designed to help compliance teams better navigate an increasingly complex regulatory landscape, the index also tracks changes in enforcement dynamics across key jurisdictions.
As of March 2025, nearly 80,000 individuals are under sanctions globally. The GSI has risen to 446, representing a 446% increase from its base level in January 2017. Annual sanctions inflation currently stands at 17.1%, down slightly from 18.9% a year ago. The report also notes a slowdown in inflation across several key sanctions authorities, suggesting a moderation in overall momentum.
However, the report emphasises that several global mega-trends remain deeply embedded. These include hyperinflation in the number of sanctions targets, increasing regulatory divergence, greater complexity in enforcement, the rise of extra-territorial measures, and the privatisation of enforcement responsibility. Uncertainty, a newly identified trend in 2025, now frames much of the compliance conversation.
One trend drawing particular attention is “hyper-divergence”—the accelerating fragmentation of global sanctions policy. In contrast to the post-9/11 era of coordinated action, consensus-based sanctions are in retreat, it explained. UN sanctions, which once formed a significant portion of international regimes, now account for just 1.25% of total sanctions as of March 2025.
For compliance officers, legal teams, and risk managers, the 2025 GSI serves as both a warning and a guide. Sanctions inflation may be easing, but the next phase will likely require even more vigilance, coordination, and adaptability.
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