<img src="https://certify.alexametrics.com/atrk.gif?account=b2hlr1ah9W20em" style="display:none" height="1" width="1" alt="">
    Login
    Get started

    From April 2017, companies breaching financial sanctions may be hit with a £1 million penalty

    are you compliant with sanctions laws

    Following new powers under the UK Policing and Crime Act, the UK's Office of Financial Sanctions Implementation in the UK (OFSI) can impose civil penalties of up to £1 million for breaches relating to financial funds, or 50% of the estimated value of those funds (whichever is highest).

    According to an article by GOV.UK;

    • There are currently over 27 UN, EU and domestic financial sanctions in place covering 1,900 individuals, groups and countries
    • Sanctions may be imposed on individuals, terrorist groups (such as ISIS), business sectors and countries
    • £15 million was the value of the highest monetary breach of financial sanctions in 2016 – under the new regime, this would have netted £7.5 million for the Treasury
    Are you ready?
    are you compliant with sanctions laws
    Follow these top tips to be compliant with sanctions laws:
    1. Provide information and training – Your staff need to be clear about the rules and know what they must do to comply. You can do this by making it compulsory for your employees to complete an e-learning training course on Economic Sanctions.
    2. Conduct adequate due diligence – To ensure that you don't do business with designated persons (i.e. individuals and entities subject to sanctions).
    3. Don't conduct any business that you know or suspect will breach sanctions.
    4. Check the specifics - Sanctions don't just apply to financial transactions and the freezing of assets. There may also be restrictions on the supply of services (such as giving advice) and trade (such as the supply of arms, diamonds, etc).
    5. Don't do anything to circumvent company controls or assist clients to evade sanctions - Make sure all payment processing is transparent. UNDER NO CIRCUMSTANCES should you remove material information from payment instructions (wire stripping), or arrange payment or supply through third parties.
    6. Promptly report any matches to the Sanctions compliance team - For further action, even if you think they may be false positives.
    7. If you've made a mistake or suspect a breach has occurred, report it quickly - Credit may be given for voluntary disclosures.
    8. Don't be complacent - Ignorance of the law is no excuse! Companies who are fined will be publicly named by OFSI.

    Leave a comment

    Tick

    eBook: Essential Uncovered

    Skillcast Essentials is our best-selling library and there's a reason for that. Essentials library provides comprehensive coverage of the key compliance / conduct issues that companies in the UK face today.

    Request now

    9 ways to reduce the risk of bribery and corruption

    Corruption affects all countries, rich and poor. It causes instability, inequality, and poverty, eroding national wealth. Despite the UK Bribery Act coming into force in 2011 as one of the toughest ...

    Read More
    Highlights from the GDPR 2019 Summit

    Almost a year on from the implementation of the GDPR, Skillcast held a breakfast forum for its clients at South Place Hotel. During this session, Skillcast gave a breakdown of the new GDPR Library of ...

    Read More
    Compliance Essentials News - May 2019

    Here's a selection of the most informative compliance news stories this month - regulatory announcements, market studies, and stories about compliance lapses and downright disregard of ...

    Read More
    FCA Compliance News - May 2019

    Here's a selection of news stories from the last month that touch upon the people dimension of regulatory compliance. Select the links or scroll down for more details. 3 firms and 5 individuals are ...

    Read More