What are the main changes:
- For breaches of financial sanctions that are committed after 15 June 2022, OFSI will be able to impose civil monetary penalties on a strict civil liability basis. This means that going forward OFSI will not have to prove that a person had knowledge or reasonable cause to suspect that they were in breach of financial sanctions. OFSI will continue to have the burden of proving that the financial sanctions breach occurred.
- There will be greater flexibility on challenging OFSI’s decisions to issue monetary penalties for sanctions violations. This means that reviews of OFSI’s decisions requested after 15 June 2022 may now be undertaken by someone other than a minister. This change does not in any way change or weaken the ability to further challenge OFSI’s monetary penalties at the Upper Tribunal.
- OFSI will now have the power to publicise details of financial sanctions breaches in cases where a breach has been found, but it has not imposed a monetary penalty. In such instances, OFSI will consider publication on a case-by-case basis and will notify persons prior to publication to provide an opportunity to make representations. This applies to financial sanctions breaches committed after 15 June 2022.
These changes are introduced by the SI 2022/638 – The Economic Crime (Transparency and Enforcement) Act 2022 (Commencement No. 2 and Saving Provision) Regulations 2022.
OFSI has updated its monetary penalties guidance to reflect these changes. The updated guidance applies to sanctions breaches where the potential breach took place on or after 00:00 15 June 2022.