New Era of UK Financial Sanctions Regime – Policing and Crime Act 2017
On 1 April 2017, HM Treasury implemented a new US-type financial sanctions enforcement framework, The Policing and Crime Act (the Act), that can potentially fine UK and non-UK companies EUR 1 million or more for breaches of financial sanctions. Part 8 of the Act gives the Office of Financial Sanctions Implementation (OFSI), which is part of HM Treasury, power to offer deferred prosecution agreements and impose civil monetary penalties for infringements of UK, EU and United Nations financial sanctions. In effect, the Act, which received Royal Assent on 31 January 2017, marks the era of a new UK financial sanctions regime with significant monetary and criminal penalties for breaches.
Businesses should take note that OFSI has recently published new guidance on monetary penalties for breaches of financial sanctions, a response to its consultation on this guidance, as well as a press release.