The newly-established Office of Trade Sanctions Implementation (OTSI) will work with industry to make complying with sanctions obligations as straightforward as possible, the Department for Business and Trade has promised, by issuing guidance and user-friendly online tools.
Following Russia’s invasion of Ukraine, the UK implemented its most comprehensive set of sanctions against a major economy, with over £20 billion worth of trade with Russia now sanctioned.
OTSI has new and enhanced powers to crack down on businesses in breach of these obligations and to make sure that UK sanctions are effective.
While HM Revenue & Customs remains responsible for the enforcement of trade sanctions on goods that cross the UK border as part of its customs role, OTSI now has lead enforcement responsibility for sanctioned services leaving the UK, as well as trade in sanctioned goods and services anywhere else in the world where a UK business or person is involved.
Business and Trade Secretary, Jonathan Reynolds, said:“Sanctions are vital in defunding Putin’s illegal war and only by working hand in hand with business can we make them as effective as possible.”
He highlighted overwhelming support from business in implementing sanctions against Russia with the great majority of companies complying with the legal requirements.
For the minority that fail to do so, he warned, OTSI will have powers to publish information about sanctions breaches and impose civil monetary penalties.
The launch of the new unit coincides with new reporting obligations introduced for financial services firms, money service businesses and legal service providers. They will now be expected to inform OTSI of suspected breaches of certain trade sanctions.
