Geo-Restrictions & VPN Access Control: A Guide for Businesses

Businesses have many reasons to control who can access their websites. They might need to comply with international sanctions like the OFAC regulations or the EU’s Regulation 2018/30, prove legal compliance for restricted products or services in specific countries or U.S. states, protect their site from hackers and other malicious actors, or even tackle all these challenges at once. Effective access control helps businesses safeguard their operations while staying on the right side of the law.

Geo-restrictions and VPN access control are important tools for these businesses as they help companies comply with regulations, protect content, and prevent fraud.

In this article we are discussing why geo-restrictions and VPN access control matter, how to implement them, and how they support a business’ compliance and safety efforts.

Free Data Privacy & Accessibility Scanner

Scan My Website

What Are Geo-Restrictions and VPN Access Control?

Geo-restrictions are a way for websites to limit access to their online content based on the user’s location by identifying their IP address.

For example, an online store may restrict access to its website for users in sanctioned countries in order to comply with international regulations like OFAC by blocking the IP of users located in those countries. 

IP blocking, as a component of geo-restrictions, allows businesses to deny access to users from specific countries, regions, or US states, where restrictions are required. This helps businesses mitigate potential legal risks by not engaging in unauthorized transactions with individuals in sanctioned areas.

VPN access control allows businesses to prevent users from using a VPN (Virtual Private Network) to bypass geo-restrictions. 

A VPN allows users to mask their true location, which can be problematic for businesses aiming to comply with regulatory requirements. By integrating VPN detection tools, businesses can identify and block users attempting to use VPNs, which helps geo-restrictions be effectively enforced. 

For example, a financial services company may use VPN access control to verify the identity and location of users accessing its website, and in doing so, it reduces fraud risks in line with regulatory requirements.

Now let’s see an example where both geo-restrictions and VPN access control may be used. 

Consider an e-commerce website that sells products internationally. Due to international sanctions, such as those imposed by OFAC, the company is required to restrict access from certain countries. To comply with these regulations, the platform implements geo-restrictions by blocking IP addresses from sanctioned regions. 

However, some users may attempt to bypass these restrictions using VPNs. To prevent this, the website also uses VPN access control so that only legitimate users from approved regions can access the website. This helps the company comply with international sanctions, avoid legal penalties, and protect its reputation by preventing unauthorized transactions with restricted regions.

Who Needs Geo-Restrictions and VPN access control?

Companies operating in regulated industries must adhere to strict compliance requirements that mandate access control to specific regions. Here are some examples of businesses that need to consider geo-restrictions and VPN access control: 

• E-Commerce Websites: E-commerce businesses must comply with international sanctions, such as those by the Office of Foreign Assets Control (OFAC). Geo-restrictions help control access from restricted regions and avoid penalties. For instance, an online retailer selling electronics might need to prevent users from sanctioned countries from purchasing restricted goods to comply with OFAC regulations. 
• Content Providers: Streaming services and publishers use geo-restrictions to comply with licensing agreements that limit content to specific regions. For example, a streaming platform may have licensing rights to show a movie only in the United States. 

• CBD Sales and Online Gambling: Companies selling CBD products or running gambling websites must restrict access to comply with regional laws, prevent underage access, and meet regulatory requirements.

• Financial Services: Financial companies face strict regulatory requirements to verify user identities and prevent fraud. Blocking VPNs helps these businesses check that users are accessing services from approved locations. For example, a bank might use VPN access control to prevent users from accessing online banking services from high-risk regions, reducing the likelihood of fraudulent transactions and enhancing compliance with financial regulations.

Implementing Geo-Restrictions and VPN Access Control

Here are a few steps you can take to implement geo-restrictions and VPN access control effectively:

• Identify Requirements: Determine which countries or regions you need to block and whether you need to block VPNs. It's important to know the specific rules affecting your business and decide how much control over access you need.
• Use a Geo-Location API: A geo-location API is a tool that helps identify where your website visitors are coming from by using their IP addresses. This tool helps you determine if users are accessing your content from restricted areas, and it applies the necessary restrictions. Using a geo-location API helps make it so that only users from approved regions can access your services.
• Integrate VPN Detection Tools: VPN detection tools are used to block users who try to hide their real location using VPNs. These tools check users' IP addresses and behavior to spot any suspicious activity. Adding VPN detection helps prevent users from bypassing geo-restrictions, which is especially important for businesses that need to follow regulations or licensing agreements.

Partner with Compliance Solutions: Partnering with compliance-focused solutions, like Clym, can greatly simplify the implementation process. Clym simplifies the process of managing geo-restriction and VPN access control by handling all the technical and regulatory complexities, allowing your businesses to manage access efficiently and mitigate legal risks.

Geo-Restrictions and VPN Access Control for Compliance

Across the globe there are many regulations that require businesses to implement solutions related to geo-restrictions and VPN access control, and which include strict requirements and penalties for non-compliance. Some of the most familiar ones include the following:

• OFAC Regulations: The Office of Foreign Assets Control (OFAC) prohibits transactions with users from sanctioned regions, such as, for example, Iran or North Korea. Companies that fail to comply with OFAC regulations can face significant penalties, including heavy fines, restrictions on business activities, and reputational damage. Penalties can be as high as millions of dollars, depending on the severity of the violation. Businesses must implement effective geo-restrictions and VPN access control for the purpose of compliance and avoid inadvertent transactions with sanctioned entities.
• Specially Designated Nationals (SDNs): OFAC also maintains a list of Specially Designated Nationals (SDNs), which includes individuals, entities, and organizations that are prohibited from conducting business with U.S. persons and companies. Businesses must make certain that they do not engage in transactions with SDNs, which requires implementing strict access controls such as geo-restrictions and VPN blocking to prevent unauthorized users from accessing services. Non-compliance can result in severe financial penalties, reputational damage, and legal actions.
• EU Regulation 2018/30: requires businesses to control who can access their products or services based on their location. This means that same as with the OFAC sanctions, transactions with users from specific regions aren't allowed, especially for products like organic goods that have strict standards. If a business allows a business transaction with someone from unauthorized regions it can face severe consequences. These consequences could include large fines, restrictions on accessing the market, or even suspension of business activities within the EU.
• Council Regulations: Several Council Regulations, including EU No 36/2012 (sanctions on Syria), 2022/263 (measures on Belarus), and No 359/2011 (measures against Iran), require businesses to implement geo-restrictions to comply with specific sanctions. Non-compliance with these regulations can lead to significant financial penalties and operational restrictions. For example, violations of EU No 36/2012 can result in substantial fines, restrictions on accessing the EU market, and potential legal consequences for businesses that engage in unauthorized transactions with sanctioned regions.

• Industry-Specific Regulations: Beyond sanctions, industry-specific regulations impose additional compliance demands. In the gambling sector, laws such as the UK Gambling Act, the Unlawful Internet Gambling Enforcement Act (UIGEA) in the U.S., and EU gambling directives strictly prohibit offering services in certain jurisdictions. Geo-restrictions and VPN blocking help businesses meet these legal obligations and avoid penalties.

Clym: Simplifying Compliance with Geo-Restriction & VPN Control

Clym streamlines compliance by combining geo-restrictions, VPN access control, age gating, data privacy, accessibility, and legal document integration into one powerful tool.

Say goodbye to juggling multiple platforms—Clym’s all-in-one digital compliance solution is customizable, easy to integrate, and cost-effective, saving you time and hassle while ensuring compliance with regulations like OFAC and EU sanctions. Simplify your compliance, cut costs, and maintain a seamless user experience—all with Clym.

Clym provides the ONLY solution on the market to combine website accessibility, data privacy, age gating, geo-restriction & VPN access control, legal document  integration and more, for an easy and cost-effective way to manage your business’ needs—all within a single, streamlined tool.

Benefits of Clym’s Geo-Restriction & VPN Access Control Solutions

• Compliance Support: Clym helps businesses’ compliance efforts with regulations like OFAC and EU laws.
• Enhanced Security: Prevent unauthorized access and reduce security threats for your website.
• Optimized User Experience: Limit access to relevant audiences, minimizing disruptions.
• Flexible Customization: Customize geo-restriction and VPN settings as needed.
• Granular Geo-Blocking: Set precise rules to manage website access.
• VPN access control: Detect and block VPN usage for an improved security of your website.
• Reduced Unwanted Traffic: Minimize spam, improve performance, and focus on legitimate users.

Key takeaway 

Geo-restrictions and VPN access control help businesses who need to comply with various regulations, they improve the security of websites, and they enhance the users’ experience. 

Clym provides an all in one solution for managing, among other things, geographic access and VPN access control, helping businesses navigate regulations and protect their operations.

Our comprehensive approach enables you to focus on growing your business, knowing that your needs are expertly managed.

Ready to take the next step? 

Learn more about how Clym can help your business.

Book a demo or sign up for a free 14-day trial today.