Financial Crime World

Financial Sanctions: Maximum Sentence of 7 Years’ Imprisonment or Fine

Breach of financial sanctions is a serious criminal offense with severe consequences. The UK’s Office for Financial Sanctions Enforcement (OFSI) has warned that individuals and companies must comply with the sanctions regime to avoid punishment.

Penalty for Non-Compliance

The maximum sentence for breaches of financial sanctions on indictment is seven years’ imprisonment or an unlimited fine.

Compliance Required

To avoid severe consequences, it is essential to understand and comply with the sanctions regime. The OFSI has emphasized that individuals and companies must adhere to the regulations to ensure their operations are not disrupted by financial sanctions breaches.

Trade Sanctions: Licences Required for Certain Activities

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The Department for Business and Trade (DBT) is responsible for trade sanctions licensing. Licenses may be issued for certain activities that would otherwise be prohibited, including:

  • The supply of small arms and light weapons to the UN or authorized missions in Haiti

Overlap with Strategic Export Licensing

Certain goods transiting the UK are still subject to control, even if they do not require a licence under the strategic export licensing regime. A license is required for:

  • Goods that need to be transited through the UK
  • Goods that need to be re-exported to Haiti

Immigration Sanctions: Travel Ban Exceptions

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The UN Security Council’s sanctions committee has provided exceptions to the travel ban for individuals who need to enter or transit a country for humanitarian reasons, including:

  • Religious obligations

Visa Requirements

Individuals must apply for a visa to travel to the UK if an exemption is approved.

Further Information

To stay up-to-date with changes to financial and trade sanctions, sign up for:

  • Notices to Exporters
  • OFSI’s e-alerts

The UK government has also provided guidance on:

  • Making export declarations
  • Obtaining visas for travel to the country

Conclusion

Financial sanctions breaches can result in severe penalties, while trade sanctions require licenses for certain activities. Understanding the regulations is crucial for individuals and companies operating in these areas.