Sanctions and Export Control | Regulatory Outlook September 2022

OFSI updates guidance to reflect expanded reporting obligation on crypto-firms

On 30 August 2022, the Office of Financial Sanctions Implementation (OFSI) updated its guidance for financial sanctions under the Sanctions and Anti-Money Laundering Act 2018 to reflect expanded reporting measures coming into force.

Mainstream financial institutions which are regulated by the Financial Conduct Authority (FCA) already have a duty to inform OFSI if they become aware of suspected sanction breaches or a person subject to financial sanctions (a designated person) in the course of their business.

Since 30 August 2022, this has now been expanded to include all crypto-asset exchange providers and custodian wallet providers who are registered with the FCA. Please see our Insight for further analysis.

Deadline for the OFSI annual frozen

The deadline for the OFSI annual frozen assets review is 11 November 2022. Anyone holding or controlling funds or economic resources belonging to, owned, held or controlled by a designated person/entity must report details of those frozen assets by that date. A report must also be completed by anyone who has previously reported frozen assets to OFSI. The report covers only assets which have been frozen under the UK sanctions regime. The report must include the value of the frozen assets as at 30 September 2022.

OFSI publishes blog outlining reporting obligations

On 30 August 2022, OFSI published a blog outlining what companies' reporting obligations are and how they can be met. UK financial sanctions legislation sets out specific reporting obligations which requires certain individuals and entities (relevant firms) to report to OFSI. The blog helpfully sets out examples of issues a firm should report.