The Office of Financial Sanctions Implementation (OFSI) is the authority for the implementation of financial sanctions in the UK. As a part of HM Treasury, OFSI works on enabling ‘financial sanctions to make the fullest possible contribution to the UK’s foreign policy and national security goals’.
What is the UK Sanctions List?
The UK government publishes the UK Sanctions List which lists those individuals and entities subject to UK sanctions. All individuals and financial institutions within the UK are expected to comply and act in accordance with the UK Sanctions List. As a member of the United Nations, the UK is also obligated to implement sanctions imposed by the UN Security Council.
Performing due diligence and screening individuals and companies against sanctions lists is critical because a sanctions breach can result in a large fine and criminal prosecution
In 2021, OFSI issued their largest fine to date of £20.5m to Standard Chartered Bank following their alleged breach of sanctions. It was reported that the bank had provided more than 100 loans to a sanctioned entity.
This highlighted that inadequate compliance measures were in place that did not prevent the breaches. The fine was later reduced by 30%, following Standard Chartered’s voluntary disclosure and cooperation throughout the investigation.
Want to learn more about maritime sanctions compliance?
Further details of the areas discussed within this article can be found within our latest report ‘Maritime Compliance – The rapidly changing maritime sanctions compliance landscape’. This guide to industry includes discussion on the landscape as well as sanctions compliance measures and how best to mitigate against the many associated risks.