On 16 March 2023, the UK’s Office of Financial Sanctions Implementation (OFSI) updated its guidance on monetary penalties and enforcement. This revised guidance aims to clarify OFSI's enforcement approach in cases involving ownership and control by designated persons.
In this guidance, OFSI sets out:
- An explanation of the powers given to the Treasury in the Policing and Crime Act 2017
- A summary of the compliance and enforcement approach
- An overview of how OFSI will assess whether to apply a monetary penalty, and what will be taken into account
- An overview of the process that will decide the level of monetary penalty
- An explanation of how OFSI will impose a monetary penalty, including timescales at each stage and rights of review and appeal
The updated guidance provides useful information on how the OFSI will approach enforcement action in cases where a designated person has ownership or control over a company or organisation.
Companies that have dealings with designated persons should take note of this guidance to ensure they comply with sanctions regulations. The OFSI has the power to impose monetary penalties for breach of sanctions regulations and can take enforcement action against companies that fail to comply with these regulations.
While the OFSI has no official role in the UK Overseas Territories (UKOTs), guidance it issues is still of practical relevance to the position taken by the UKOT competent authorities in sanctions enforcement cases.
The guidance can be found here.