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  • UK Office of Financial Sanctions Implementation Able to Impose Penalties for Serious Financial Sanctions Breaches

    04/03/2017

    The UK HM Treasury's Office of Financial Sanctions Implementation can impose penalties for serious financial sanctions breaches under the Policing and Crime Act 2017. Penalties can be up to £1 million or 50% of the breach, whichever is higher. The monetary penalties regime created under the 2017 Act is an alternative to criminal prosecution for breaches of financial sanctions, which are punishable upon conviction by up to seven years in prison. The UK Government ran a consultation from December 1, 2016 to January 26, 2017 on the process for imposing monetary penalties for breaches of financial sanctions. The Treasury has since published guidance which gives an explanation of its powers to impose penalties, a summary of its compliance and enforcement approach, an overview of how the OFSI will assess whether to apply a monetary penalty and what factors the OFSI will take into account in doing so, an overview of the process that will decide the level of penalty and an explanation of how the OFSI will impose a penalty, including timescales at each stage and rights of review and appeal. 

    View HM Treasury's Guidance.