News
First sanctions penalty relating to Russia
10 October 2024
The Office of Financial Sanctions Implementation OFSI has imposed the first monetary penalty under the Russian sanction's regime.
This related to a concierge company providing services to high-net-worth individuals. They were fined £15,000 after providing property management services to a designated person, which included rent collection, making and facilitating payments.
The most relevant point for firms to note relates to OFSI's policy on voluntary disclosure, which did not happen in this case:
'Lastly, this case emphasises the importance of entities or persons voluntarily disclosing breaches of the regulations to OFSI … OFSI considers voluntary disclosure under Case Factor J as to the enforcement action taken, and if a penalty is imposed, will make up to a 50% reduction in the final monetary penalty amount to a person who gives a prompt and complete voluntary disclosure'.