21st August 2019
HM Treasury Sanctions List
What You Need To Know
What is the HM Treasury Sanctions List?
The Office of Financial Sanctions Implementation (OFSI) is responsible for enforcing the HM Treasury Sanctions List. Money laundering and the financing of terrorism are the main criminal threats that the list is designed to address but it also combats international weapons proliferation, narcotics trafficking, treaty violations and human rights violations.
All financial institutions in the UK are forbidden from doing business with entities on the HM Treasury Sanctions List – at the risk of criminal penalty. In more detail, sanctions regulations apply to:
- Banks, financial institutions, NGOs, or similar obligated entities operating in the UK, or established under UK law.
- British citizens and citizens of British overseas territories, or persons protected by Britain.
- Any individual in the UK or subject to UK law.
Serious UK sanctions violations are punishable by fines of £1 million or 50% of the breach (whichever is greater) and specific criminal charges against management personnel. Firms should ensure the HM Treasury Sanctions List is included in their AML/CFT program to remain compliant: when new customers or clients are onboarded, a HM Treasury Sanctions List search will verify whether or not sanctions are in place against them.