UK Has Multiple Russia-Related Sanctions Penalties in 'Pipeline, ' Official Says
The U.K. opened a record number of sanctions-related investigations during the 2023-24 fiscal year and is expecting to soon issue multiple Russia-related penalties, the country’s Office of Financial Sanctions Implementation said in its annual report published March 21.
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Giles Thomson, OFSI director, said the U.K.’s $20,000 fine in September against a property management company (see 2409270048) “is the first of several cases in our pipeline which are linked to Russia’s invasion of Ukraine.” The agency “plans to continue to hold accountable those who breach financial sanctions,” he wrote in the report.
OFSI said it opened more investigations last year than in any year in its history while closing 242 cases, more than triple the number of closed cases from the previous year. “A number of enforcement cases are expected to result in a public outcome in 2025,” the report said.
OFSI also said it hired more staff last year and now has 135 full-time employees. It also increased “resources across all functions, with a particular focus on licensing and enforcement,” adding that its licensing and enforcement teams “increased fourfold.” That helped OFSI assess more license applications, the report said -- the agency said it made decisions on 1,401 licensing cases during 2023-24, a sharp uptick from 503 the previous year.
OFSI also said it created a “Return Without Action” option for its licensing team, whereby licensing officers can send incomplete applications back to applicants, allowing them to focus on “applications which could be progressed.” It also began allowing some licenses to be adjudicated without approval from senior officials, “allowing for faster resolution.”
In 2023-24, OFSI:
- approved 379 licenses, an increase from 283 the previous year;
- denied 55 licenses, an increase from nine the previous year;
- issued 252 specific licenses involving Russia, an increase from 164 the previous year;
- closed 242 enforcement cases, an increase from 74 the previous year;
- recorded 396 reports of suspected sanctions violations, with 347 of them involving Russia.