Financial sanctions Enforcement
Currently the UK enacts domestic statutory instruments to make it a criminal offence to breach financial sanctions. However a licence or authorisation from HM Treasury can be granted to permit an action that would otherwise be prohibited.
	The European Communities Act 1972 ("1972 Act") limits the maximum penalty for offences created by regulations made under section 2(2) of the Act, including offences related to breaching of financial sanctions, to two years’ imprisonment (upon conviction on indictment in the Crown Court (or equivalent)) and three months (upon summary conviction in a magistrates’ court (or equivalent)).
	This is inconsistent with penalties for similar offences in other sanctions regimes, for example, offences under TAFA carry a maximum penalty of seven years’ imprisonment.
	Enforcement measures available for a breach of financial sanctions are currently limited to criminal prosecution or an administrative warning letter.
	In the Summer Budget 2015 (HC264), the Chancellor announced the creation of a new Office of Financial Sanctions Implementation, which was established within the Treasury on 31 March 2016. The Budget report stated the following:
	"The Office will provide a high quality service to the private sector, working closely with law enforcement to help ensure that financial sanctions are properly understood, implemented and enforced. This will ensure financial sanctions make the fullest possible contributions to the UK’s foreign policy and national security goals and help maintain the integrity of and confidence in the UK financial services sector. The government will also legislate early in this Parliament to increase the penalties for non-compliance with financial sanctions."
	To support the work of the new unit, and ensure that financial sanctions are properly enforced, Part 8 of the Act:
	Provides for an uplift of criminal penalties for EU financial sanctions by applying a gloss to section 2(2) of the 1972 Act, and amending the Anti-Terrorism, Crime and Security Act 2001 and Counter-Terrorism Act 2008. The changes will enable the maximum custodial sentence for a criminal breach of financial sanctions to be increased from two to seven years for conviction on indictment and from three months to six months (12 months in Scotland) on summary conviction.
	Creates a monetary penalties regime for breaches of financial sanctions regimes.
	Includes financial sanctions in the list of offences to which Deferred Prosecution Agreements ("DPAs") and Serious Crime Prevention Orders ("SCPOs") apply.
	Enables the temporary implementation of UN Security Council Resolutions by UK legislation until their implementation via EU law.