UK National Security: Financial and Trade Sanctions Licensing
Preventing Proliferation of Terrorist Financing and Malicious Activities
Her Majesty’s Government has implemented robust financial and trade sanctions regimes to prevent the proliferation of terrorist financing and other malicious activities. As part of these efforts, the Office for Financial Sanctions Implementation (OFSI) and the Department for Business and Trade (DBT) issue licences to exempt certain individuals or entities from these restrictions.
Financial Sanctions Licensing
Designated persons subject to asset freeze measures may apply for a licence to use their frozen funds or economic resources. OFSI grants individual licences for specific purposes, including:
- Basic needs
- Reasonable professional fees for legal services
- Reasonable expenses associated with maintaining frozen funds and economic resources
- Extraordinary expenses
- Prior obligations
In some cases, OFSI may need to notify or seek approval from the relevant United Nations Sanctions Committee before issuing a licence. This process may lengthen processing times and potentially prevent a licence from being issued.
Trade Sanctions Licensing
The DBT has overall responsibility for trade sanctions licensing, with the Secretary of State for Business and Trade ultimately responsible for granting or refusing licences on a case-by-case basis. The Export Control Joint Unit administers the licensing provisions, seeking advice from other government departments where necessary.
Licences may be issued to permit certain trade activities that would otherwise be prohibited by the Regulations. In making decisions, the Secretary of State will consider each application in light of the stated purposes of the sanctions regime and relevant international law obligations.
Exceptions and Licensing Grounds
Further information on exceptions and licensing grounds can be found in OFSI’s guidance. Licence applications and forms are available on OFSI’s GOV.UK licensing webpage.
Transit Control and Strategic Export Licensing
Certain goods transiting the UK remain subject to control, including those destined for Haiti. Article 17 of the Export Control Order 2008 provides a transit and transhipment exception in most cases, but not for goods bound for Haiti.
Directions in Respect of Immigration Sanctions
UNSCR 2653 allows for travel bans to be waived where entry or transit is necessary for the fulfilment of a judicial process. The 2653 Sanctions Committee may also grant exemptions on humanitarian grounds, including religious obligation, or if an exception would further the objectives of peace and stability in Haiti.
Individuals seeking to travel to the UK despite being subject to a travel ban should apply for a visa and consult GOV.UK for further information on travelling to the UK.
Further Information
To stay up-to-date with changes to trade sanctions, sign up for Notices to Exporters. For financial sanctions updates, subscribe to OFSI’s e-alert.
In all cases, it is essential to seek independent legal advice if you are unsure whether an exception applies in your circumstances.