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

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

Making digital learning accessible for all

As companies become more mature about the use of digital learning for engaging employees, their priorities are shifting from visuals and animation to more fundamental features, such as ...

Read More
Compliance Essentials News - January 2019

In this first update of the year, we have for you an analysis of Google's GDPR fine as well as several other compliance developments and points to ponder. This blog is dedicated to bringing you the ...

Read More
A refresh on the need for new Data Protection Officers in light of GDPR

Editors note: This post was originally published in April 2018 and has been refreshed to provide additional information. Today, 28th January, is Data Privacy Day. The purpose of Data Privacy Day is ...

Read More
FCA Compliance News - January 2019

With Brexit preparations continuing apace, the financial services regulators have been busy through December and January. Our mission is to bring you these items of news that touch upon the people ...

Read More