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TeachMeFinance.com - explain Sanction Sanction -- 1. A punitive act taken by one or more nations against another nation which has violated a treaty or international law. 2. A proviso in a law to secure its enforcement by imposing a penalty for its violation or offering a reward for its observance. Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.