Financial Crime World

BREAKING: Two-Year Jail Sentence Looms for Breach of Trade Prohibitions

Warning Issued for Individuals and Businesses

A stern warning has been issued by HM Revenue and Customs (HMRC) to individuals and businesses who breach trade prohibitions, with a maximum sentence of two years’ imprisonment or a fine (or both) hanging over their heads.

Consequences of Breach

According to officials, serious offences associated with breaching transport sanctions can carry a maximum sentence on indictment of seven years’ imprisonment or a fine (or both). Meanwhile, those found guilty of breaking the conditions on which a port entry licence has been issued can face up to two years in prison, a fine, or both.

Enforcement Agencies

The Department for Transport (DfT) is taking a lead role in enforcing transport sanctions, with assistance from other agencies such as:

  • Maritime and Coastguard Agency
  • National Air Traffic Services (NATS)
  • Airport operators
  • Harbour authorities

Anyone aware of a breach of the transport sanctions is urged to report it immediately by calling DfT on 020 7944 5999 or emailing transportsanctions@dft.gov.uk.

Exceptions to Sanctions Prohibitions

The regulations also provide for exceptions to certain sanctions prohibitions, including:

  • Financial sanctions
  • Transport sanctions

Examples of exceptions include:

  • An aircraft that is normally prohibited from overflying or landing in the UK can do so if failing to land would endanger lives.
  • Prohibitions are not contravened if conduct is authorised by a licence issued under the law of the Channel Islands, Isle of Man, or any British Overseas Territory.
  • “Relevant activity” necessary to ensure the timely delivery of humanitarian assistance or support basic human needs.

Prevention and Reporting

Individuals and businesses are urged to familiarise themselves with the regulations and report any breaches to HMRC or DfT as soon as possible to avoid severe penalties. If an individual discovers they have breached any of the trade prohibitions or licensing provisions, they are advised to report the irregularity to HMRC as soon as possible.

Key Contacts