Sanctions and Export Controls | UK Regulatory Outlook November 2023

FCDO and OFSI guidance on ownership and control in UK sanctions regimes

On 17 November 2023, the Foreign Commonwealth and Development Office (FCDO) and the Office of Financial Sanctions Implementation (OFSI) issued joint guidance clarifying the government's approach to ownership and control under UK sanctions regimes.

This follows on from the Court of Appeal judgment in Mints & others v PJSC National Bank Trust & another, handed down in October 2023, where the court took the view that it might be argued that President Putin controlled everything in Russia – in which case it might be argued that no trade could be permitted with Russian entities.

The newly issued guidance from the FCDO and OFSI clarifies that "ordinary" private companies in Russia are not deemed to be subject to the control of a designated public official simply because they are based in, or incorporated in Russia. For further information, see our Insight.

NECC red alert on abuse of gold to evade sanctions

On 8 November 2023, the National Economic Crime Centre (NECC), a multi-agency unit within the National Crime Agency, OFSI and the FCDO (together with the Joint Money Laundering Intelligence Taskforce) issued a red alert with the aim of increasing awareness over Russia's use of gold as a means of undermining UK sanctions.

The alert provides information on common techniques used to evade gold-related sanctions which financial institutions and other members of the regulated sector should be aware of as part of their due diligence and sets out guidance on making reports of suspected gold-based financial and trade activity.

See the press release.

Ongoing commitments as part of OFAC-OFSI enhanced partnership

The US's Office of Foreign Assets Control (OFAC) and the UK's OFSI have committed to ongoing collaboration with the aim of aligning financial sanctions implementation between the two countries as part of its enhanced partnership.

The statement was released in honour of the one year anniversary of the partnership, and follows joint industry guidance issued by OFAC and OFSI to provide greater clarity on UK and US Russia-related humanitarian assistance. See more in our previous Regulatory Outlook.

UK Export Control Joint Unit strategic export controls guidance

The UK Export Control Joint Unit has published new guidance for those exporting goods, software or technology which might be subject to strategic export controls. The new guidance can be found here.