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On October 17, 2022, the UK HM Treasury’s Office of Financial Sanctions Implementation (“OFSI”) and the US Treasury Department’s Office of Foreign Assets Control (“OFAC”) issued a joint statement (OFSI statement here, OFAC statement here) to reiterate the close working relationship between the two agencies, explaining the rationale behind increased OFSI-OFAC co-operation and how this will manifest in practice. The statement follows a technical exchange attended by OFAC and OFSI in London, which concluded on 13 October 2022.

Rationale for increased co-operation

The joint statement highlights the common ground between the two organisations (focusing on structure, functionality and tools), stating that increased co-operation will facilitate effective sanctions implementation as well as helping to boost the organisational capabilities of both OFSI and OFAC. The statement also emphasises the importance of financial sanctions in supporting the foreign policy and national security aims of the United States and United Kingdom, whilst recognising that the growing scale of such sanctions has increased the complexities in their implementation.

Increased co-operation in practice

The joint statement outlines that such co-operation will build on the existing collaboration between OFSI and OFAC (for example, in the context of addressing shared priorities including cyber threats and the misuse of virtual assets). Therefore, as part of this increased coordination, OFSI and OFAC shall continue to exchange best practices and strengthen their working relationship.  The joint statement specifies that OFAC and OFSI officials working on implementation and enforcement will be further exchanging best practices and strengthening working relationships at all levels.  The statement makes clear that collaboration is expected not only in relation to the sanctions imposed in response to Russia’s invasion of Ukraine, but also across other common sanctions regimes. The statement also envisages wider collaboration with additional allies and partners on a global scale, with a view to maximising the desired effect of the sanctions, minimizing unintended consequences, and easing the burden of compliance for business.

Author

Kerry Contini is a partner in the Firm's International Trade practice and Global Sanctions Investigations group, specializing in sanctions and export controls. She helps multinational companies navigate these ever-changing rules and guides them through investigations when compliance issues occur. Kerry provides strategic advice on related geopolitical risks, human rights, and supply chain issues.
Kerry has been ranked by Chambers Global and Chambers USA, with clients highlighting that "her advice and solutions are business-focused" and that she is "very practical and easy to work with." Legal 500 reported a client as stating that "Kerry is thoughtful, practical, efficient, and has really invested in getting to know our business and our team."
Kerry has been quoted by the Wall Street Journal, Global Investigations Review, Bloomberg Law, the National Law Journal and Asian Legal Business. She is an editor of the Firm's Global Supply Chain Compliance Blog and is a regular contributor to the Firm's Global Sanctions & Export Controls Blog.
Kerry is passionate about inclusion and diversity and is involved in the BakerWomen DC and regional leadership. She has maintained an active pro bono practice throughout her career at Baker McKenzie, primarily focusing on public international law, animal advocacy and election protection.
Kerry has been with Baker McKenzie since she was a summer associate in 2005. She started as an associate in 2006.

Author

Ben Smith is a Partner in Baker McKenzie’s London office and a member of the firm’s Compliance & Investigations and International Trade practice groups. Both these practices are ranked Tier 1 by Legal 500 UK. Ben joined the London office of Baker & McKenzie in September 2007. He has also worked in Baker McKenzie's San Francisco and Brussels offices, as well as on secondment to the legal and compliance teams at three FTSE 100 UK plcs. The Legal 500 UK ranked Ben as a “Rising Star”, noting “Ben Smith is a pleasure to work with. Professional, knowledgeable and always ready to assist with practical solutions.”

Author

Lise Test is an of counsel in the Firm’s International Trade Group in Washington, DC and practices in the area of international trade regulation and compliance — with emphasis on US export control laws (Export Administration Regulations (EAR) and International Traffic in Arms Regulations (ITAR)), trade sanctions, and anti-boycott laws. Ms. Test advises clients on issues relating to product classifications, licensing, regulatory interpretations, risk assessments, enforcement actions, internal investigations and compliance audits, as well as the design, implementation, and administration of compliance programs. Ms. Test works regularly with companies across a wide range of industries, including the pharmaceutical/medical device, telecommunications, manufacturing, and technology sectors. She joined the Firm as a summer associate in 2007 and became a full-time associate in 2008. Prior to joining Baker McKenzie, Ms. Test served as a lawyer at the Danish Ministry of Defence.

Author

Kirsty Mccarron is an Associate in Baker McKenzie, London office.

Author

Iris Zhang is an associate in the Firm's International Commercial & Trade Practice Group. Iris regularly assists multinational companies on sanctions, customs and export control compliance as well as other international trade matters. Before joining the Firm, Iris worked in a Chinese law firm in Beijing on regulatory compliance and risk controls relating to Chinese anti-bribery laws and US Foreign Corrupt Practices Act.

Author

Iman Jamil is a Trainee Solicitor in Baker McKenzie London office