Financial Crime World

UK Implements New Sanctions Against Russia: Updates to Consolidated List, Guidance, and Regulations

The Office of Financial Sanctions Implementation (OFSI) has published a notice regarding new regulations implemented under the Russian Sanctions Regime. This regime sets out new restrictions on the provision of financial services for foreign exchange reserve and asset management.

Latest Developments

  • Red Alert Issued: OFSI HM Treasury issued a Red Alert on Exporting High Risk Goods in December 2023, warning businesses of the risks associated with exporting goods that could be used in conflict.
  • Russia (Sanctions) (Overseas Territories) (Amendment) Order 2024: This order came into force on March 14th, 2024, and applies to the Virgin Islands.

New General Licences

  • General Licence [No. 5] 2023: Allows for the payment of reasonable professional legal fees and expenses.
  • General Licence [No. 6] 2024: Also permits the payment of such fees and expenses.

Reporting Requirements

If you are using these general licences, you must report in writing to the Governor, preferably by email, to [email protected]. Reporting forms are available on the hyperlinks provided.

Guidance and Regulations

The UK government has issued various guidance documents and regulations to support businesses operating under the new sanctions regime. These include:

  • Russia (Sanctions) (EU Exit) Regulations 2019
  • Republic of Belarus (Sanctions) (EU Exit) Regulations 2019
  • Russia (Sanctions) (Overseas Territories) Order 2020

Consolidated List

The Consolidated List of persons subject to financial sanctions has been updated to reflect the new sanctions against Russia. Businesses are advised to check this list regularly for updates.

Resources

For more information on the UK’s response to Russian sanctions, please visit the following resources:

  • Office of Financial Sanctions Implementation (OFSI)
  • HM Treasury
  • The Governor’s Office (Virgin Islands)

By staying up-to-date with the latest developments and guidance, businesses can ensure compliance with the new regulations and avoid any potential penalties.