Britain is set to strictly enforce the country’s economic sanctions next week after legislation passed in the wake of Russia’s invasion of Ukraine.
From 15 June, the UK’s Financial Sanctions Implementation Office will no longer be required to prove that companies or individuals violating the country’s sanctions measures must have known or known they were in breach of regulations.
Instead, violations of sanctions will be assessed by OFSI on a strict liability basis – meaning the agency only has to prove that sanctions have been breached, not what a company or individual knows about the breach. was.
The UK government’s change to an economic offenses bill passed in March brings UK governance closer to the model used to enforce sanctions in the US.
The change applies to civilian enforcement of all sanctions imposed by the UK, including those imposed on Russia after its invasion of Ukraine. According to the Director of OFSI, there is no corresponding change in the threshold required for officers to bring a criminal case related to the violation of sanctions.
“This change will strengthen OFSI’s ability to take appropriate enforcement action against individuals …
The Economic Offenses Bill allows OFSI to begin making public the details of sanctions violations even in cases where the agency decides not to impose monetary penalties.
Mr Giles said the agency would decide to publicize such cases on a case-by-case basis, and would do so by providing a summary of the case and the offending perpetrator.
He added that the ability to provide such summaries would help raise awareness of the UK’s sanctions program and prevent future violations.
The new stricter liability standards and the ability to publicize cases that do not involve financial penalties are relatively minor changes to OFSI’s enforcement powers, according to lawyer Matthew Byrne of the law firm Kingsley Naples LLP in London.
The main goal of the changes appears to be to remove any incentives a company may have for avoiding transactions in an effort to protect itself from civil penalties, he said.
“The aim is to encourage all types of companies to have some sort of restrictions due diligence,” Mr Byrne said. “It makes it clear that covering your eyes will achieve nothing.”
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