OFSI has published an updated version of its guidance on monetary penalties for breach of financial sanctions, which will apply from 1 April and will apply for all cases where OFSI becomes aware of a potential breach after that date. The guidance:
- reminds firms of the potential for imprisonment of up to 7 years;
- sets out the powers to impose monetary penalties;
- explains what “breached a prohibition” and “failed to comply with an obligation” mean;
- explains who a penalty can be imposed on;
- sets out OFSI’s compliance and enforcement approach;
- gives a detailed overview of how OFSI assesses cases and the steps it can take – including how it assesses “knowledge” and “reasonable cause to suspect”, and all the factors it takes into account when coming to its decision;
- the penalty-decision process – how OFSI arrives at the penalty amount and the process for imposing it;
- the right to Ministerial Review and appeal;
- paying penalties; and
- publication of penalty details.