UK Law and Practice Contributed by: John Binns, BCL Solicitors LLP
in policing the compliance efforts of lawyers and accountants. Reports (submitted to OFSI and often also to the National Crime Agency under money laundering legis - lation) and licence applications from these businesses also play a significant part in sanctions enforcement, alerting the authorities to the location of relevant funds and economic resources, as well as potential breaches. OFSI and its trade sanctions counterpart, OTSI then play what has hitherto been a relatively small part in enforcement against sanctions breaches, compared with the resource-intensive but relatively low-profile licensing function. Civil and Criminal Processes For appropriate cases, OFSI and OTSI can impose monetary penalties on any person (individual or busi - ness) it considers responsible for breaching financial sanctions. These penalties can be severe and also carry the risk of reputational damage from public cen - sure. For trade sanctions involving goods, the seizure and potential forfeiture of improperly imported products are often the preferred enforcement route. The more serious breaches (or alleged breaches) of sanctions are criminally investigated by the NCA and prosecuted independently by the Crown Prosecution Service. Proceeds (or alleged) breaches can also be subject to civil recovery processes under the Proceeds of Crime Act 2002 (POCA), which do not require a criminal con - viction. In theory, any law enforcement agency can drive these processes; however, in practice, the NCA would likely take the lead where assets are said to derive from a breach of sanctions. 2.2.2 Breaching Sanctions Breach of the prohibitions in sanctions regulations constitutes a criminal offence. Where the breach relates to financial sanctions, the maximum term of imprisonment is seven years; where it relates to trade
sanctions, the maximum term is ten years. Unlimited fines can also be imposed. 2.2.3 Civil Enforcement Action In the last three years, OFSI has imposed monetary penalties against: • Integral Concierge Services Limited, in the sum of GBP15,000 (for sums received for property man - agement services provided to a DP) on 29 August 2024; • Herbert Smith Freehills CIS LLP (HSF Moscow), in the sum of GBP465,000 (for payments made to sanctioned banks, ironically in the context of a winding-up of the firm’s Russian office) on 20 March 2025; • Svarog Shipping and Trading Company Limited, in the sum of GBP5,000 (for failing to respond to an information requirement) on 11 April 2025; • Markom Management Limited, in the sum of GBP300,000 (for making funds available to a person designated under the EU’s Russia regime (pre-Brexit)) on 31 July 2025; • Colorcon Limited (a pharmaceutical company), in the sum of GBP152,750 (for making funds available to a person designated under the Russia sanctions regulations) on 30 September 2025; • Bank of Scotland plc, in the sum of GBP160,000 (for processing payments for an individual custom - er who was designated under the Russia sanctions regulations) on 26 January 2026; • Apple Distribution International Limited (the Irish subsidiary of the US tech giant, Apple), in the sum of GBP390,000 for making funds available to a per - son designated under the Russia sanctions regula - tions) on 30 March 2026; • Deutsche Bank AG London Branch, in the sum of GBP165,000 (for making funds available to a per - son designated under the Russia sanctions regula - tions) on 19 May 2026; and • Sabre Global Technologies Limited, in the sum of GBP1,000,920 (for offences arising from its provi - sion of travel services to Ural Airlines, a designated entity under the Russia sanctions regulations) on 26 May 2026. OFSI also made public statements, though without imposing monetary penalties, against:
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