Cases like this are an example of a company trying to cover their ass leads to a customer getting kicked in the ass.
Sanctions, compliance, etc. is a messy ordeal to manage (both technically and operationally), and the ways laws are written with so many intricacies and dependencies doesn't make it easier.
Because only 1 instance of violation could lead to fines equivalent to a person's salary, often the systems are made to be overly sensitive and less investigative to figure out whether a 'hit' is actually a false-positive because that also takes time/money and still carries potential risk.
Sanctions, compliance, etc. is a messy ordeal to manage (both technically and operationally), and the ways laws are written with so many intricacies and dependencies doesn't make it easier.
Because only 1 instance of violation could lead to fines equivalent to a person's salary, often the systems are made to be overly sensitive and less investigative to figure out whether a 'hit' is actually a false-positive because that also takes time/money and still carries potential risk.