Financial Sanctions Reform

Financial sanctions are EU and UK regulations which prohibit or restrict the giving and receiving of funds and other resources for the benefit of a person or entity that is on the EU or UK's sanctions list, usually subject to obtaining a licence. Sanctions may also take the form of financial market restrictions to prevent trade in financial instruments issued by specific persons or entities.

Last year, the Treasury dealt with over 100 suspected breaches of financial sanctions. Breaches varied significantly: the most expensive breach of financial sanctions was worth around GBP 15 million although the authorities' enforcement options were limited to pursuing a formal criminal prosecution or sending a warning letter. Authorities lacked an alternative means to impose fines or penalties, unless a criminal prosecution was of sufficient public interest.