Office of Financial Sanctions Implementation (OFSI)

Definition

The Office of Financial Sanctions Implementation (OFSI) is part of HM Treasury and is tasked with ensuring that financial sanctions are properly understood, implemented, and enforced in the UK.

OFSI maintains the UK Consolidated List of sanctioned individuals, entities, and ships, and provides the framework for freezing assets, blocking transactions, and preventing financial dealings with designated parties.

Why it matters

Failure to comply with UK financial sanctions is a criminal offence, punishable by significant fines and imprisonment.

OFSI issues guidance for businesses and individuals, processes applications for licences to carry out otherwise prohibited activities, and enforces compliance — including imposing civil monetary penalties for breaches.

How OFSI operates

1. Maintains the sanctions list – Publishes the UK Consolidated List, updated whenever sanctions are imposed or lifted.
2. Provides guidance – Issues sector-specific and general compliance guidance for businesses.
3. Processes licence applications – Allows certain activities involving sanctioned persons where legally justified.
4. Enforces compliance – Investigates breaches and imposes penalties where appropriate.
5. Engages internationally – Works with global partners to coordinate sanctions policy.

Examples and use cases

• Sanctions screening – Businesses check clients against the OFSI list to comply with UK law.
• Licence applications – A firm applies for OFSI permission to receive payment from a sanctioned entity.
• Reporting – A bank reports a frozen account belonging to a listed individual.

Mini-FAQ

Q: Where can I find the UK sanctions list?
A: On the OFSI section of the UK government website - the UK Consolidated List.

Q: How quickly must I report a sanctions match to OFSI?
A: Immediately, as soon as you identify a confirmed match and freeze the relevant assets.