The Office of Financial Sanctions Implementation (OFSI) is the part of HM Treasury responsible for implementing and enforcing UK financial sanctions. OFSI maintains the UK consolidated list of sanctioned persons and entities, provides guidance to regulated firms on their obligations, considers licence applications for exceptions, and investigates and enforces breaches. Every regulated firm with exposure to cross-border transactions must ensure it screens against the OFSI consolidated list and other applicable UK sanctions regimes.
Why OFSI matters
Breaching UK financial sanctions is a criminal and civil offence. The regime can apply on a strict-liability basis, meaning the firm may be in breach even without intent. OFSI has the power to impose significant civil monetary penalties. The Russia-related sanctions designations since 2022 have dramatically expanded the scope of practical sanctions compliance for UK firms.
Who it applies to
All UK regulated firms, with the most acute obligations on those with international operations, cross-border payments or relationships with non-UK entities.
Related terms
PEP, EDD and beneficial ownership.