The most common and most likely answer to this crossword clue is the 8 letter word LICENSES
I've seen this crossword clue in The Times
L
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Buddy explains!

The straight part
We know that "Sanctions" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case sanctions = licenses.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does LICENSES mean?
LICENSES noun- A legal document giving official permission to do something; a permit.
- The legal terms under which a person is allowed to use a product, especially software.
- Freedom to deviate deliberately from normally applicable rules or practices (especially in behaviour or speech).
- Excessive freedom; lack of due restraint.
- Short for driver's license.
- To give a formal (usually written) authorization.
- Authorize officially.