Statutory guidance

Trade, aircraft and shipping sanctions, civil enforcement: guidance

Updated 19 March 2025

As required by section 43 of the Sanctions and Anti-Money Laundering Act 2018 (‘the Sanctions Act’), the Secretary of State for Foreign, Commonwealth and Development Affairs has provided this guidance to assist in the implementation of, and compliance with, the Trade, Aircraft and Shipping Sanctions (Civil Enforcement) Regulations 2024 (‘the regulations’).

As required by the Sanctions Act, this document contains guidance on the requirements imposed by the regulations and the enforcement of those requirements.

Under the Sanctions Act, ministers can make sanctions regulations when they consider it appropriate to do so for the carrying out of one or more of the purposes set down in the Sanctions Act. Those purposes, which are relevant to the regulations, include, but are not limited to, compliance with UN obligations, furthering a foreign policy objective of the UK government, and to promote respect for democracy, the rule of law and good governance.

The Sanctions Act permits sanctions regulations for trade, aircraft and shipping sanctions to impose prohibitions or requirements, and it further provides that provision may be made for the enforcement of those prohibitions or requirements.

Where the legislation confers powers on the Secretary of State for enforcing trade, aircraft and shipping sanctions and related requirements, it will be the Secretary of State for the Department for Business and Trade (DBT) and the Department for Transport (DfT) respectively who will be responsible for the exercise of relevant enforcement powers. In practice, DBT, through the Office of Trade Sanctions Implementation (OTSI), will lead on civil enforcement in relation to trade sanctions that fall within its remit. DfT will lead on civil enforcement in relation to aircraft and shipping sanctions.

This document is intended to be read alongside more detailed sanctions guidance published by departments including DBT and DfT. This document is current on the date of publication.

1. Requirements imposed by the Trade, Aircraft and Shipping Sanctions (Civil Enforcement) Regulations 2024

The regulations supplement trade, aircraft and shipping sanctions regulations made under section 1 of the Act, for the purpose of enforcing prohibitions or requirements imposed by those regulations.

In order to achieve the stated purposes, the regulations introduce new civil enforcement powers, including the power to impose monetary penalties, for breaches of aircraft, shipping and certain trade sanctions. The regulations also give the Secretary of State the option to publish reports where a breach of sanctions regulations has occurred.

The regulations make it a criminal offence to fail to comply with new reporting obligations and information requests made by the Secretary of State. Further, where a civil monetary penalty can be imposed for a breach of a prohibition or a failure to comply with an obligation, such breaches or failures to comply will be determined on a ‘strict liability’ basis. Regulation 6 in respect of trade sanctions means that any defence that a person did not know and had no reasonable cause to suspect that an offence had been committed under trade sanctions regulations is to be ignored. Regulation 7 in respect of aircraft and shipping sanctions means that any requirement for a person to have known, suspected or believed any matter, or to have acted without reasonable excuse, under aircraft or shipping regulations will be ignored.

The requirements imposed by the regulations apply within the territory of the United Kingdom (UK, including Northern Ireland) and in relation to the conduct of all UK persons wherever they are in the world. UK persons include British nationals, as well as all bodies incorporated or constituted under the law of any part of the UK.

Accordingly, the requirements imposed by the regulations apply to all companies established in any part of the UK, and they also apply to branches of UK companies operating overseas. 

The regulations make it clear that reporting obligations and requests for information do not apply to information to which legal professional privilege is attached. DBT and DfT expect legal professionals to carefully ascertain whether legal privilege applies, and which information it applies to. DBT and DfT may challenge a blanket assertion of legal professional privilege where it is not satisfied that such careful consideration has been made.

If you are unclear about any aspect of the regulations or other sanctions legislation, in particular about whether action you are considering taking could contravene the regulations, you are advised to seek independent legal advice.

2. How will these measures be enforced?

Regulation 5(1) allows the Secretary of State to impose a monetary penalty on a person if they are satisfied, on the balance of probabilities, that the person has breached a prohibition or failed to comply with an obligation imposed by or under aircraft or shipping and certain trade sanctions regulations.

The Secretary of State may, under Regulation 8(2), impose a monetary penalty on a director, manager, secretary, or other similar officer of a corporate body, as well as on the corporate body itself, if that individual is responsible for a breach through consent, connivance or neglect.

The regulations make it a criminal offence to fail to comply with an information request and the reporting obligations detailed below. The associated penalties for these offences are set out in Regulation 22, which provides that on summary conviction a person can receive a prison term not exceeding six months or a fine (in Scotland and Northern Ireland not exceeding level 5 on the standard scale), or both.

Regulation 12 stipulates that a person is not liable to receive a monetary penalty in respect of conduct amounting to an offence if proceedings are ongoing in respect of that conduct or the person has already been convicted of committing that offence. Regulation 12 also sets out that no proceedings may be brought against a person in respect of conduct amounting to an offence if the person has been given a monetary penalty in respect of that conduct.

2.1 Scope of trade sanctions enforcement powers

The regulations give the Secretary of State new civil powers to enforce certain trade sanctions. These are in addition to, and separate from, HMRC’s existing criminal enforcement powers. HMRC will remain responsible for the enforcement of trade sanctions that fall within its remit as the UK’s customs authority and for the enforcement of trade sanctions measures that relate to strategic goods and technology.

Regulation 2 sets out the measures that are considered excluded trade sanctions under the regulations. The Secretary of State may not exercise the powers set out in the regulations for a trade sanctions breach relating to:

• Regulations 46Z9B to 49Z9D (Maritime transportation of certain oil and oil products) of the Russia (Sanctions) (EU Exit) Regulations 2019
• Regulation 54A (Preventing provision of internet services to or for the benefit of designated persons) of the Russia (Sanctions) (EU Exit) Regulations 2019
• Regulation 27P (Preventing provision of internet services to or for the benefit of designated persons) of the Republic of Belarus (Sanctions) (EU Exit) Regulations 2019
• any supplemental provisions relating to the regulations set out above

This is because civil enforcement powers, held by HM Treasury and Ofcom, are already in place for these measures.

Regulation 5(2) and (3) sets out that the Secretary of State may not impose a monetary penalty for a trade sanctions breach where the suspected offence can be investigated by the Commissioners of HMRC, without the suspected offence being referred to them under the trade sanctions regulations concerned, or if the Commissioners decide to treat the suspected offence as having been referred to them. This is because these trade measures either fall within HMRC’s enforcement remit as the UK’s customs authority or because enforcement of the trade measures is reserved to HMRC within sanctions regulations. The latter includes sanctions which relate to certain goods and technology, such as military and dual-use goods and technology, which are subject to strategic export controls.

Regulation 26 extends the exercise of some of the Commissioners’ powers under the Customs and Excise Management Act 1979 (‘CEMA’) for the purpose of determining whether an offence concerning a failure to comply with a reporting obligation, or whether an information offence has been committed, insofar as they relate to trade sanctions.

The regulations set out that any information offence, or one concerning a failure to comply with a reporting obligation, investigated by the Commissioners is to be treated as an assigned matter within the meaning given by section 1(1) of CEMA upon referral to the Commissioners, or any decision by the Commissioners to treat the suspected offence as having been referred to them.

2.2 Calculation of monetary penalties: trade sanctions

The amount of the penalty for a breach of trade sanctions or a failure to comply with an obligation imposed under the regulations will be determined by the Secretary of State, but it may not exceed the permitted maximum set down in Regulation 9. The permitted maximum is the greater of £1 million or 50% of the estimated value of the breach or failure to comply, where it is possible to estimate the value of the breach or failure to comply. In any other case, the permitted maximum is £1 million.

2.3 Calculation of monetary penalties: aircraft and shipping sanctions

The amount of the penalty for a breach of shipping or aircraft sanctions or a failure to comply with an obligation imposed under the regulations will be determined by the Secretary of State, but it may not exceed the permitted maximum set down in Regulation 10. The permitted maximum is the greater of £1 million or 50% of the estimated value of the aircraft or ship used in connection with the breach or failure to comply, where it is possible to estimate the value of that aircraft or ship. In any other case, the permitted maximum is £1 million.

2.4 Disclosure

The Secretary of State, under Regulation 13, may publish reports where a breach of sanctions regulations has occurred. Reports may be published in instances where a monetary penalty has been imposed as well as where one has not been imposed.

2.5 Information sharing

DBT and DfT work with other parts of government, supervisory bodies, regulators, and international partners to consider all cases reported to them. Regulation 27 permits the Secretary of State to share relevant information obtained pursuant to the regulations. DBT and DfT also reserve the right during the course of an investigation to refer the case to the relevant law enforcement agencies for criminal investigation, which could result in a decision to refer a matter for potential prosecution.

2.6 Appeals against penalties

Before imposing a monetary penalty, the Secretary of State must inform the person of their intention to do so. This will take the form of a notice in which the Secretary of State must include an explanation of the grounds for imposing the penalty, the penalty amount, and an explanation that the person is entitled to make representations within any timeframe specified within the notice.

If the Secretary of State’s decision is to impose the penalty after having considered representations, the Secretary of State must inform the person of the decision and explain that the person is entitled to seek a review within a specified timeframe.

If the person seeks a review of the decision to impose the penalty, the Secretary of State may uphold the decision to impose the penalty and its amount, impose a penalty for a different amount, or cancel the penalty.

Following a review and any decision to uphold a penalty, the person may appeal to the Upper Tribunal, on any ground. The Upper Tribunal may uphold or quash the Secretary of State’s decision to impose the penalty. If the Upper Tribunal upholds the decision, it may substitute a different amount of penalty to that determined by the Secretary of State.

3. Information requirements and reporting obligations

The regulations impose new reporting obligations on some persons in relation to suspected breaches of aircraft, shipping and certain trade sanctions. Failure to comply with a reporting obligation is a criminal offence.

DBT and DfT value voluntary disclosure. Voluntary disclosure of a breach of trade sanctions may be a mitigating factor when case workers assess the case. It may also have an impact on any subsequent decision to impose a monetary penalty or the level of that penalty.

3.1 Information requirements

The regulations also provide the Secretary of State with a power to request information if they believe that the person may be able to provide it. Further detail of these powers is set out below in respect of regulations 17, 18 and 19. Failure to comply with requests under these powers is a criminal offence.

Regulation 17 provides that the Secretary of State may request a person to provide information for the purpose of:

• the exercise of functions under the regulations
• monitoring compliance with, or detecting evasion of, sanctions regulations
• investigating a suspected breach of a prohibition, or a suspected failure to comply with an obligation imposed by or under sanctions regulations

A request for information can only be made if the Secretary of State believes that the person may be able to provide the information.

Regulation 20 provides that a request may include a requirement to provide specified documents or documents of a specified description. The recipient of a request for information under these regulations must take reasonable steps to obtain any documents requested if they are not already in their possession or control. The Secretary of State may take copies or extracts from any document produced.

Regulation 21 sets out criminal offences relating to the information provisions within the regulations. It is an offence to:

• without reasonable excuse, fail to provide information within the time and manner specified
• knowingly or recklessly give any false information or documentation
• destroy, mutilate, deface, conceal, or remove any document with intent to evade any provision of regulation 17 to 20
• intentionally obstruct the exercise of powers under regulation 17 to 20

3.2 Reporting obligations: trade sanctions

Regulation 15 introduces a requirement for a “relevant person” to inform the Secretary of State as soon as practicable if, through the course of carrying on their business, they know or have cause to suspect that a person has committed a breach of trade sanctions for which DBT has civil enforcement powers.

The “relevant person” is required to inform the Secretary of State of the basis of the knowledge or suspicion of the breach and any information about the identity of the person who is known or suspected to have committed the breach.

Regulation 15(4) defines “relevant person” as:

• financial services providers: a person that has permission under Part 4A of the Financial Services and Markets Act 2000(a) to carry on a regulated activity
• legal services providers: a firm or sole practitioner that provides legal or notarial services
• money service businesses: a business that operates a currency exchange office, transmits money (or any representation of monetary value) by any means, or cashes cheques that are made payable to customers

To report a suspected breach, use the Report a Breach tool. If you are unable to use this service, contact OTSI.

Regulation 18 provides the Secretary of State with the power to request from a person operating under a trade licence any information to which the licence relates. Requests for information under Regulations 17 and 18 may include, under Regulation 20, a request for the provision of specific documents or documents of a specified description.

3.3 Reporting obligations: aircraft and shipping sanctions

Regulation 16 introduces a requirement for a “relevant person” to inform the Secretary of State as soon as practicable if they know or have reasonable cause to suspect a person has breached a prohibition or failed to comply with an obligation under aircraft or shipping sanctions regulations. The following entities or individuals are considered “relevant persons” under the regulations:

Aircraft	Shipping
Airport operators	Charter companies
Charter companies	Harbour authorities
Operator of aircraft	Master
Pilot in command	Pilot

Airport operators, harbour authorities, and charterers are required to provide this information if it came to them in the course of carrying on their business. Aircraft pilots or operators, and masters and pilots of ships, are required to provide this information should they become aware of or suspect a breach whilst carrying on their activities, whether paid or unpaid and whether for business or leisure.

The “relevant person” is required to inform the Secretary of State of the basis of the knowledge or suspicion of the breach and any information on the identity of the person who is known or suspected to have committed the breach.

Regulation 19 grants the Secretary of State the power to request from a person operating under an aircraft licence or shipping licence any information to which the licence relates. Regulation 19 also provides similar information requesting powers in respect of persons subject to a direction issued under aircraft or shipping sanctions. Requests for information under Regulations 17 and 19 may include, under Regulation 20, the provision of specific documents or documents of a specified description.

To report a suspected breach, email transportsanctions@dft.gov.uk

4. Further information

Further information and guidance on UK sanctions currently in place can be found on GOV.UK.

Sign up to receive Notices to Exporters and view the Notices to Importers for updates on trade sanctions.

Search the UK Sanctions List to find out which people, entities and ships are designated or specified under regulations made under the Sanctions and Anti-Money Laundering Act 2018, and why.

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