The Policing and Crime Act 2017, as amended by the Sanctions and Anti-Money Laundering Act 2018, (2017 Act) creates powers for HM Treasury to impose monetary penalties for breaches of financial sanctions. The Office of Financial Sanctions Implementation (OFSI) is the part of HM Treasury that applies these powers.
On 28 January 2022, the OFSI issued guidance setting out an:
- explanation of the powers given to HM Treasury in the 2017 Act and a summary of its compliance and enforcement approach;
- overview of how HM Treasury will assess whether to apply a monetary penalty, and what it will take into account;
- overview of the process that will decide the level of penalty; and
- explanation of how they will impose a penalty, including timescales at each stage and rights of review and appeal.
The guidance applies from 28 January 2022 and replaces guidance for all cases where OFSI becomes aware of a potential breach after 28 January 2022.