Financial Crime World

UK Financial Sanctions: Who Must Comply and How

In the fight against financial terrorism and other illicit activities, the UK has established a list of designated persons and entities subject to financial sanctions. These lists are maintained by HM Treasury and include individuals and organizations suspected of involvement in terrorist activities, money laundering, or other criminal offenses.

Who is a Designated Person or Entity?

A designated person or entity is one listed on the Consolidated List, which is maintained by the UK Office for Sanctions Implementation (OFSI). The list includes information to help identify individuals and organizations subject to financial sanctions, including:

  • Aliases
  • Date of birth
  • Passport details
  • Nationality
  • Last known address
  • Employment or role

Who Must Comply with Financial Sanctions?

Financial sanctions apply to all persons within the territory, overseas territories, and territorial sea of the UK, as well as to any person or organization that provides financial services to a designated person or entity. This includes:

  • Banks
  • Financial institutions
  • Other organizations that engage in business activities with individuals or entities suspected of involvement in terrorist activities or money laundering

Key Responsibilities

To comply with financial sanctions, you must:

  • Screen the names of customers, including beneficial owners, against the Consolidated List before engaging in a business relationship or providing a financial service
  • Check the Consolidated List against existing customers on an ongoing basis to ensure that no designated person or entity is inadvertently doing business with your organization
  • Report any suspicious transactions or activities related to designated persons or entities to the relevant authorities

Designations by the Governor of Anguilla

The Governor of Anguilla has been designated as the competent authority for making domestic designations pursuant to the Counter-Terrorism (Sanctions)(Overseas Territories) Order 2020. Designations are made on an objective consideration of facts and information, taking into account national security and the need to protect the public from terrorism.

Keeping Updated

The UK Office for Sanctions Implementation (OFSI) publishes notices describing changes to financial sanctions on its website and notifies subscribers by email whenever a new notice is published. Stakeholders can subscribe to receive alerts at https://public.govdelivery.com/accounts/UKHMTREAS/subscriber/new.

Conclusion

Financial sanctions are an essential tool in the fight against terrorism and money laundering. It is crucial that organizations understand their responsibilities under these regulations to prevent their services from being used for illicit activities. By staying informed and complying with financial sanctions, we can help keep our communities safe and secure.