1. Applicable Financial Sanctions laws: Which national laws bring EU Russia sanctions laws into effect? If EU sanctions laws do not apply, which do?
  2. Does the same framework apply to Financial Sanctions against other countries (e.g. Iran?) If so, please provide link to relevant government website listing these.
  3. Which agency issues “licences” permitting certain activities which would otherwise be prohibited by Financial Sanctions laws?
  4. Link to Consolidated List of individuals and companies subject to Financial Sanctions
  5. Can a breach of Financial Sanctions laws be treated as a criminal offence? Please indicate the relevant law. 
  6. What are the penalties for a criminal breach of Financial Sanctions?
  7. Who investigates criminal breaches of Financial Sanctions laws?
  8. Are there non-criminal (e.g. administrative or civil) penalties and/or fines for a breach of Financial Sanctions?
  9. What are the penalties for a non-criminal breach of Financial Sanctions?
  10. Who investigates non-criminal breaches of Financial Sanctions laws?
  11. Key government guidance relating to the implementation of Financial Sanctions (e.g. FAQs)

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1. Applicable Financial Sanctions laws: Which national laws bring EU Russia sanctions laws into effect? If EU sanctions laws do not apply, which do?

The United Kingdom (UK) imposes financial sanctions, which are implemented through a combination of primary and secondary legislation, being the Sanctions and Anti-Money Laundering Act 2018 (“Sanctions Act”), Counter Terrorism Act 2008 (CTA 2008) Anti-Terrorism, Crime and Security Act 2001 (ATCSA 2001).

The Sanctions Act creates the overarching power for either the Secretary of State or the Treasury to make sanctions regulations (Sanctions Regulations) imposing sanctions, including financial sanctions (Section 3). This power enables the UK to continue to comply with its international obligations and to use sanctions to meet foreign policy and national security objectives after exiting the EU.

The UK has a suite of Sanctions Regulations that apply to each country which is the subject of UK sanctions at any given time.  As an example, the Russian Sanctions (EU Exit) Regulations 2019 impose financial sanctions and other restrictions in relation to Russia. These Regulations entered into force on 01 January 2020 and replace the previous EU sanctions regime relating to Russia’s actions in Ukraine .

Yes. The prohibitions under each financial sanction regime, related to a specific country, such as Iran, North Korea and many others, are detailed in the relevant financial sanctions regulations. Moreover, sanctions are not exclusively nationally focussed – some UK sanctions regimes relate to specific topics of concern including, but not limited to, counter terrorism, cyber security, anti-corruption and Human Rights.

Financial sanctions targets by regime - GOV.UK (www.gov.uk)

3. Which agency issues “licences” permitting certain activities which would otherwise be prohibited by Financial Sanctions laws?

Office of Financial Sanctions Implementation (“OFSI”), part of the HM Treasury

OFSI Consolidated List Search

5. Can a breach of Financial Sanctions laws be treated as a criminal offence? Please indicate the relevant law. 

Yes. Section 17 (4) of the Sanctions Act gives the power to each set of Sanctions Regulations (e.g. Russia (Sanctions) (EU Exit) Regulations 2019, Iran (Sanctions) Regulations 2023, etc.), to create their own criminal offences. In practice these are all expressed in the similar ways in the Regulations which apply to different countries or topics

To take one example among many Regulation 11(3) of the Counter-Terrorism (Sanctions) (EU Exit) Regulations 2019, establishes a criminal offence for contravening the asset-freeze provisions of that Regulation.

6. What are the penalties for a criminal breach of Financial Sanctions?

The maximum sentence for a breach of financial sanctions is currently 7 years’ imprisonment or a fine, or to both (see Section 145 of the Policing and Crime Act 2017).

7. Who investigates criminal breaches of Financial Sanctions laws?

OFSI can refer a suspected criminal investigation to the National Crime Agency’s “International Corruption Unit”. Other law enforcement bodies may investigate and/or prosecute sanctions offences. These include (but are not limited to): HMRC (tax authority); Crown Prosecution Service; and Serious Fraud Office.

8. Are there non-criminal (e.g. administrative or civil) penalties and/or fines for a breach of Financial Sanctions?

Yes.

9. What are the penalties for a non-criminal breach of Financial Sanctions?

“Monetary penalty”. The maximum which can be imposed is the greater of £1,000,000 or 50% of the estimated value of the funds or resources in question (see Section 146, Policing and Crime Act 2017). 

10. Who investigates non-criminal breaches of Financial Sanctions laws?

OFSI will usually conduct the investigation itself, then decide whether to refer to matter to law enforcement (eg. the NCA, SFO) or impose a “civil” monetary penalty. potentially with the assistance of any other part of government, supervisory bodies and regulators, including professional regulators (e.g. The Law Society).

11. Key government guidance relating to the implementation of Financial Sanctions (e.g. FAQs)

Financial sanctions: guidance - GOV.UK (www.gov.uk)

UK Financial Sanctions FAQs - GOV.UK