Policy background Sanctions Enforcement
Sanctions are an important foreign policy and national security tool. They are restrictive measures which are designed to be temporary and can be used to coerce a change in behaviour, to constrain behaviour, or to communicate a clear political message to other countries or persons. The UK currently implements over 35 sanctions regimes. These include country-specific sanctions regimes, including in relation to Russia, North Korea and Iran, as well as regimes targeting Da’esh, Al Qaida and other terrorist groups. Like all other UN states, the UK is obliged under international law to implement UN sanctions. There are currently over 2,000 individuals, entities and ships subject to sanctions implemented by the UK.
	The Office of Financial Sanctions Implementation (OFSI), part of HM Treasury, is the UK’s competent authority for financial sanctions and performs HM Treasury’s functions in respect of implementing financial sanctions, including issuing licences; imposing monetary penalties for breaches of these sanctions; issuing guidance and engaging with stakeholders.
	OFSI’s current powers are contained in different places. Specific financial sanctions regimes are contained in regulations made under the Sanctions and Anti-Money Laundering Act 2018 ("the Sanctions Act"). These regulations contain the obligations and prohibitions specific to each sanctions regime. OFSI’s ability to impose monetary penalties for breaches of these prohibitions is contained in the Policing and Crime Act 2017.
	The sanctions measures will strengthen enforcement by providing for:
A more robust legal test that will support compliance and help OFSI to impose monetary penalties for breaches of financial sanctions.
Greater flexibility in how the Treasury manages the review process for monetary penalties.
Enhanced intelligence and information sharing powers to give OFSI better tools to do enforcement through greater access to information from other agencies.
A statutory power to publicly censure for financial sanctions non-compliance even if a decision is made not to impose a monetary penalty for the breach.