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 B. Contini
Kerry Contini is a partner in the Firm's international trade practice in Washington, DC. She advises companies on export controls, sanctions, and related human rights and supply chain compliance issues. She has been with Baker McKenzie since she was a summer associate in 2005 and started as an associate in 2006.
Kerry has been ranked in the Up and Coming categories for Export Controls & Trade Sanctions by Chambers Global (2022) and Chambers USA (2021), with clients highlighting that "her advice and solutions are business-focused" and that she is "very practical and easy to work with." Kerry has been recognized as a “standout” member of Baker McKenzie’s international trade team by Legal 500. 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 was recognized in the Who's Who Legal 2021 as a Global Leader in Trade & Customs - International Sanctions.
Kerry has written on export controls and trade sanctions issues for a number of publications, including WorldECR, The Export Practitioner, and Ethisphere. She has presented on pandemic-related supply chain issues to the US International Trade Commission. Kerry has been quoted in a number of publications, including Global Investigations Review and Asian Legal Business. She is an editor of the Firm’s Global Supply Chain Compliance blog and is a regular contributor to that blog as well as the Firm’s Sanctions & Export Controls Update blog. Kerry is a co-chair of the Export Controls and Sanctions Section of the Association of Women in International Trade.
Kerry is part of the diversity and inclusion leadership for the Washington DC office and is a member of the BakerWomen Steering Committee. She has maintained an active pro bono practice throughout her career at Baker McKenzie and is co-chair of the Washington DC office pro bono leadership team. Kerry has worked on a wide range of pro bono matters, primarily focusing on public international law, animal advocacy, and election protection. She is an active member of the Animal Law Committee of the Environment, Energy, and Natural Resources Community of the DC Bar.
Author
Lise S. Test
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.
