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HMRC internal manual

Money Laundering Regulations: Compliance

Legislation: Financial Sanctions

The UK imposes financial sanction on certain proscribed persons and entities following decisions made by the United Nations or European Community. The UK also operates a domestic counter-terrorism regime, where the Government decides to impose financial sanction on certain persons and entities.

Financial sanction in the UK are governed by various pieces of legislation (e.g . Terrorist Asset-Freezing etc. Act 2010). In all circumstances where an asset freeze is imposed, it is unlawful to make payments to or allow payments to be made to designated persons. If you know or have reasonable cause to suspect that a designated person subject to sanctions has committed an offence or if they try to use your services, you must report this to Office of Financial Sanctions and Implementation (OFSI) as soon as possible.

A list of all financial restrictions currently in force in the UK is maintained by the OFSI at Treasury. The Consolidated List of persons designated as being subject to financial sanctions can be found on the OFSI website , you can also report a suspected breach, sign up for free email alerst and obtain information on the current consolidated list of asset freeze targets and person subject to restrictive measures.

Businesses need to have appropriate policies and procedures in place to monitor transactions in order to prevent breaches of the financial restrictions legislation.