HM Treasury Sanctions List - What You Need To Know

As one of the world’s largest economies and business hubs, the UK plays an important role in the global fight against money laundering and terrorism financing. Accordingly, the UK imposes financial sanctions against a variety of foreign targets that are engaged in those types of criminal activities. This article covers everything you need to know about the HM Treasury Sanctions List.

What is the HM Treasury sanctions list?

The HM Treasury Sanctions List contains the names (and other identifying information) of individuals and entities currently subject to the United Kingdom sanctions list. Those sanctions take the form of asset freezes and market access restrictions – measures in line with UK AML/CFT policy and designed to curb criminal behavior from regimes around the world. The HM Treasury list incorporates the sanction targets of international organizations, including the United Nations and the EU.

The Office of Financial Sanctions Implementation (OFSI) is responsible for enforcing the list. Money laundering and the financing of terrorism are the main criminal threats that the list is designed to address but it also combats international weapons proliferation, narcotics trafficking, treaty violations and human rights violations.

Who has to comply with the HM Treasury sanctions list?

All financial institutions in the UK are forbidden from doing business with entities on the HM Treasury Sanctions List – at the risk of criminal penalty. In more detail, sanctions regulations apply to:

• Banks, financial institutions, NGOs, or similar obligated entities operating in the UK, or established under UK law.
• British citizens and citizens of British overseas territories, or persons protected by Britain.
• Any individual in the UK or subject to UK law.

Serious UK sanctions violations are punishable by fines of £1 million or 50% of the breach (whichever is greater) and specific criminal charges against management personnel. Firms should ensure the HM Treasury Sanctions List is included in their AML/CFT program to remain compliant: when new customers or clients are onboarded, a list search will verify whether or not sanctions are in place against them.

Why is it important to have a sanctions screening tool?

International sanctions lists change constantly so it can be challenging for financial institutions to keep up with the latest additions. Automated AML sanctions screening tools allow financial institutions to achieve ongoing compliance and avoid penalties: integrated as part of a risk-based AML/CFT program, a sanctions screening tool can be used to check the relevant lists quickly, and identify sanctioned customers immediately.