Financial Crime World

SPECIAL REPORT: UK Government Takes Action to Prevent Sanctions Evasion

The United Kingdom government has recently introduced new measures to regulate the use of funds and economic resources by designated individuals in order to prevent sanctions evasion and maintain national security.

New Regulations for Designated Individuals

Under these regulations, individuals who are subject to financial sanctions can apply for a licence from the Office of Financial Sanctions Implementation (OFSI) to access their frozen assets. The licences will be granted on a case-by-case basis, taking into account various factors such as:

  • Basic needs
  • Reasonable professional fees
  • Prior obligations

Trade Sanctions Licensing Requirements

In addition to these measures, the UK government has also introduced trade sanctions licensing requirements to prevent the export of goods that could potentially destabilize Haiti or undermine its peace and stability. Licences will be granted only where it is deemed necessary for humanitarian purposes, such as:

  • Supplying small arms and ammunition to UN-authorized missions in Haiti

Transit Control Measures

The government has also emphasized that transit control measures are in place to prevent the unauthorized export of goods through the UK. Individuals or companies found to be in violation of these regulations could face severe penalties, including fines and imprisonment.

Key Takeaways

  • Designated individuals can apply for a licence from OFSI to access their frozen assets.
  • Licences will be granted on a case-by-case basis, taking into account various factors.
  • Trade sanctions licensing requirements are in place to prevent the export of goods that could destabilize Haiti or undermine its peace and stability.
  • Transit control measures are in place to prevent the unauthorized export of goods through the UK.

What You Need to Know

  • If you are unsure whether an exception applies in your circumstances, seek independent legal advice.
  • Licences will not be granted for activities inconsistent with EU sanctions restrictions on goods applying in Northern Ireland via the Windsor Framework.
  • Individuals may need to submit an electronic export declaration to HMRC when exporting goods.

Stay Informed

  • Sign up to receive Notices to Exporters for updates on trade sanctions.
  • Subscribe to OFSI’s e-alert for changes to the consolidated list of financial sanctions targets.

By staying informed about these new measures, individuals and businesses can help ensure compliance with regulations and avoid potential penalties. The UK government is committed to maintaining national security and preventing sanctions evasion.