UK – Office of Financial Sanctions issues guidance on sanctions

This month, the 
Office of Financial Sanctions Implementation

(OFSI), a part of HM Treasury, which is the competent authority for the implementation of financial sanctions in the UK, issued a document entitled, 
Financial Sanctions: Guidance

(the Guide). Most financial sanctions are made through EU law which has direct effect under UK law. OFSI works closely with the EU Commission and other member states in implementing sanctions and developing EU guidance in this area. Other financial sanctions are put in place by UK laws. OFSI cannot issue definitive guidance as to how an EU or UK court might interpret these laws.

The guide document provides a guide to the approach which OFSI will take when issuing licences and considering compliance, taking into account case law and EU guidance as at the date of publication. It does not represent legal advice.

The Guide is prepared in two parts. Part A provides a general overview of the financial sanctions framework which applies in the UK. Part B provides practical examples of how OFSI will generally approach licencing and compliance questions, although each case will be considered on its own facts and the specific legal requirements applying to the relevant financial sanctions regime.

References to ‘a person’ throughout the Guide include natural people, as well as entities and bodies of any type. References to a ‘designated person’ are to persons who are subject to an asset freeze, and references to the ‘listing’ of a person means their inclusion on the list of designated persons.