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Introduction

This guidance is about the financial, director disqualification and immigration sanctions imposed by (‘the Regulations’).

About the Regulations

The Regulations were made to give effect to the United Kingdom’s obligations under United Nations Security Council Resolution 2374 (2017), as they had effect when they were in force. The UN Mali sanctions regime expired on August 31, 2023. The UN obligations therefore no longer apply and references to that regime are redundant. We have amended the Regulation to remove these provisions.

The Regulations also give effect to the UK’s autonomous regime, which continues to apply notwithstanding the expiry of the UN regime.

As a whole, this sanctions regime is aimed at promoting peace, security and stability in Mali.

For more details see .

The legislation.gov.uk webpage tells you if the Regulations are up to date or if there are outstanding amendments. You can also view previous versions using the timeline and a list of the , which includes:

• .

About this guidance

As required by section 43 of the Sanctions and Anti-Money Laundering Act 2018 (‘the Sanctions Act’), the Secretary of State for Foreign, Commonwealth and Development Affairs has provided this guidance to support compliance with the Regulations.

This guidance is designed to give an overview of the prohibitions and requirements, the enforcement of these, and the circumstances in which exceptions and licences may be used. Where appropriate, it directs you to further detailed guidance to read alongside. See all updates to check this guidance is current.

1. Prohibitions and requirements

Sanctions regulations apply to: 

• any individual, business or organisation undertaking activities anywhere in the UK (including the territorial sea)
• any business or organisation incorporated or constituted under the law of any part of the UK undertaking activities anywhere in the world
• any UK national, wherever they are in the world

For full details see .Ìý

It is prohibited to intentionally participate in any activities if you know that the object or effect of them is directly or indirectly to circumvent the prohibitions imposed by the Regulations or to enable or facilitate a breach of those prohibitions.

If you are unclear about any aspects of the Regulations, in particular about whether action you are considering taking could breach the Regulations, you are advised to seek independent legal advice.

1.1 Designation of persons

Designation of persons provisions are contained in Part 2 of the Regulations.

The Regulations provide that the Secretary of State may designate persons for the purposes of financial and/or director disqualification and/or immigration sanctions if they are, or have been, involved in a relevant activity (as defined in ).

The UK Sanctions List contains the names of all designated persons (DPs) and the sanctions that have been imposed on them. Checking the UK Sanctions List is an essential part of due diligence for many firms and other organisations.

1.2 Financial sanctions

Financial sanctions provisions are contained in Part 3 of the Regulations.

Asset freeze and making available provisions

The Regulations impose financial sanctions through a targeted asset freeze on designated persons and prohibitions on making funds or economic resources available. This involves the freezing of funds and economic resources (non-monetary assets, such as property or vehicles) of designated persons and ensuring that funds and economic resources are not made available to or for the benefit of designated persons, either directly or indirectly.

These prohibitions also apply in relation to entities owned or controlled by a designated person.

If you find out that a person or organisation you are dealing with is subject to the financial sanctions detailed in the Regulations, you must immediately:

• stop dealing with them
• freeze any assets you are holding for them
• ¾±²Ô´Ú´Ç°ù³¾ÌýOFSI as soon as possible

The Office of Financial Sanctions Implementation (OFSI) is the authority responsible for implementing the UK’s financial sanctions on behalf of HM Treasury. OFSI helps to ensure that financial sanctions are properly understood, implemented and enforced in the UK. See more about how OFSI implements financial sanctions.

1.3 Director disqualification sanctions  

Director disqualification provisions are contained in Part 3A of the Regulations.

Persons designated under regulation 5 for the purpose of director disqualification sanctions under regulation 17A are disqualified from:

• being a director of a UK company
• directly or indirectly taking part in or being concerned in the promotion, formation or management of a UK company
• being a director of a foreign company that has sufficient connection to the UK, even if it is not registered, for example, if it carries out business or has assets in the UK

under the provisions of:

Companies House and the Department for the Economy (Northern Ireland) are responsible for recording information about director disqualification sanctions in their respective Disqualified Director Registers. Companies House is responsible for annotating the Companies Register and preventing registration of a disqualified director’s appointments.

See more information about director disqualification sanctions.

1.4 Immigration sanctions

Immigration sanctions provisions are contained in Part 4 of the Regulations.

The effect of the Regulations is to impose a travel ban on persons who are designated by the Secretary of State for the purposes of being made subject to immigration sanctions under the Sanctions Act. Such persons are excluded persons for the purposes of section 8B of the Immigration Act 1971.

Individuals designated under the Regulations will be refused leave to enter or remain in the UK. Any applications they make for a visa to travel to the UK, including for transit purposes, will be refused. Any foreign national who is subject to a travel ban under the Regulations, and who is currently in the UK, will have their permission to stay in the UK cancelled and steps will be taken to remove them from the UK.

If you are the subject of an immigration sanction and try to travel to the UK, carriers are required to deny you boarding.

See more information on how the Home Office deals with those who are subject to a travel ban.

1.5 Information and record keeping

Information and record keeping provisions, including financial sanctions reporting obligations, are contained in Part 6 of the Regulations.

For the purpose of the financial sanctions, the Regulations place obligations on to report information to HM Treasury (in practice to the Office of Financial Sanctions Implementation (OFSI), part of HM Treasury) about known or suspected designated persons or about persons who may have breached a prohibition or failed to comply with an obligation under specified provisions of the Regulations.

OFSI has powers to request information from, among others, a designated person, including powers to request the production of documents. It is an offence to fail to comply with these requests or provide false information.

If you are unclear about your obligations or responsibilities, you are advised to seek independent legal advice.

See more guidance about OFSI’s reporting obligations.

2. Enforcement

Enforcement provisions are contained in Part 7 of the Regulations.

It is a criminal offence to breach sanctions, or to enable or facilitate a breach of, or to circumvent sanctions. The Regulations set out the mode of trial and penalties that apply to such offences.

2.1 Financial sanctions enforcement

A breach of the main financial prohibitions or licensing provisions in the regulations is an offence that is triable either way and carries a maximum sentence on conviction on indictment of 7 years’ imprisonment or a fine, or both.

Offences under the reporting obligations are summary offences and carry a maximum sentence of 6 months’ imprisonment or a fine, or both.

The Office of Financial Sanctions Implementation (OFSI), part of HM Treasury, is responsible for monitoring compliance with financial sanctions and for assessing suspected breaches. It also has the power to impose civil monetary penalties and refer cases to law enforcement agencies for criminal investigation and potential prosecution.

OFSI’s approach to compliance and enforcement is outlined in section 7 of OFSI’s general guidance.

For more information about how OFSI assesses suspected breaches and the possible enforcement outcomes, see OFSI’s enforcement guidance.

2.2 Director disqualification sanctions enforcement

A breach of the main prohibitions or licensing provisions is an offence that is triable either way and carries a maximum sentence on conviction on indictment of 2 years’ imprisonment or a fine, or both.

It is also an offence to provide misleading information to obtain a licence, act outside of permissions given or ignore conditions contained within a licence. A licensing offence carries a maximum sentence on conviction on indictment of 2 years’ imprisonment, or a fine, or both.

The Insolvency Service is responsible for investigating suspected breaches and licensing offences. It has the power to bring prosecutions for breaches and refer cases to other law enforcement agencies for criminal investigation and potential prosecution..

3. Exceptions and licences

Exceptions and licensing provisions are contained in Part 5 of the Regulations.

3.1 Exceptions

An exception gives an automatic exemption to an activity that would otherwise be prohibited under sanctions. It means you can carry out that activity as long as certain defined circumstances, set out in the Regulations, apply to your activity.

An exception applies automatically so you do not require a licence to carry out the proposed activity, but some exceptions have notification obligations.

To check the full legal wording of an exception, go to the regulations listed in Part 5.ÌýIf you are unsure whether an exception applies in your circumstances, you are advised to seek independent legal advice.

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Exception for authorised conduct in a relevant country (regulation 20)

This exception relates to prohibitions in regulations 12 to 16.

The exception applies if:

• conduct is authorised by a licence or other authorisation that is issued under the law of the Channel Islands, Isle of Man or any British Overseas Territory for the purpose of disapplying a prohibition in that jurisdiction which corresponds to the relevant prohibition

Exception for acts done for purposes of national security or prevention of serious crime (regulation 21)

This exception can be used in relation to any prohibition or requirement imposed by the regulations.

The exception applies if:

• a responsible officer has determined the relevant actions to be in the interests of national security, or the prevention or detection of serious crime in the UK or elsewhere

Financial sanctions exceptions

Exceptions for crediting a frozen account (regulation 19)

These exceptions relate to the prohibitions in regulations 12 to 14 about dealing with the funds or economic resources of designated persons and making funds available to them. The exceptions permit, in certain circumstances, frozen accounts to be credited by and transfers made to ’relevant institutions’ – those with permission to carry out regulated activities under the Financial Services and Markets Act 2000 part 4A.

³§±ð±ðÌýsection 6 of OFSI’s general guidance for details about how to use these exceptions and the related reporting obligations for relevant institutions.

Exception for required payments (regulation 19ZA)

This exception relates to the prohibitions in regulations 12 and 14 about dealing with the funds or economic resources of designated persons and making funds available for their benefit.

The exception permits certain required payments to be made by, or on behalf of, designated persons to various specified UK public bodies.

³§±ð±ðÌýOFSI’s FAQs on required payments for details about how to use these exceptions and the related notification obligations.

3.2 Licensing for financial sanctions

A licence is a written permission from OFSI that allows an act that would otherwise be in breach of the financial sanctions prohibitions set out in the regulations.  

OFSI has issued general licences that may be used under this regime. For details see OFSI’s general licence page.

In circumstances where there are no applicable exceptions from the prohibitions or general licences, any person (including a designated person) may apply for a licence from OFSI enabling them to deal with the frozen funds or economic resources of the designated person, or to allow these to be made available to or for the benefit of a designated person.

You should not assume that a licence will be granted or engage in any activities prohibited by financial sanctions until your licence has been granted.

Licensing grounds for financial sanctions

OFSI can only issue individual licences where:

• there is a relevant licensing ground
• the conditions set out in that licensing ground have been met, and
• OFSI considers it appropriate to issue a licence for that purpose

The purposes and activities for which OFSI may grant an individual licence are set out in . In summary these are:

• basic needs
• reasonable professional fees for or reasonable expenses associated with the provision of legal services
• reasonable fees or service charges arising from the routine holding or maintenance of frozen funds or economic resources
• extraordinary expenses
• judicial decisions etc
• peace and national reconciliation in Mali etc
• prior obligations
• humanitarian assistance activities etc
• diplomatic missions etc
• extraordinary situations
• insolvency

See section 6.6 of OFSI’s general guidance for the approach OFSI takes when deciding whether to grant a licence for each of these licensing grounds.

³§±ð±ðÌýOFSI’s licensing page for licence application forms and guidance.

3.3 Licensing for director disqualification sanctions 

The designated person, or their authorised representative, can make an application for a licence to the Insolvency Service.Ìý³§±ð±ðÌýmore details about how to apply.Ìý 

The Insolvency Service will assess and grant or refuse licence applications on behalf of the Secretary of State.ÌýCompanies House is responsible for updating the Companies Register when a licence is granted.Ìý 

You should not assume that a licence will be granted or act as the director of a company – or directly or indirectly take part in or be concerned in the promotion, formation or management of a company – until your licence has been granted.

3.4 Directions in respect of immigration sanctions

If you are subject to immigration sanctions the Home Office may direct, on a case by case basis, that the sanction does not apply in particular circumstances, such as for travel to, or through, the UK for a UN sponsored meeting. You can check how to apply for a UK visa, and find further information about travelling to the UK on °Ç¸ç³Ô¹Ï.

4. Further information

°Õ³ó±ðÌýUK sanctions hub page is a central point for all sanctions content, including links to introductory guidance, sector-specific guidance, reporting obligations, blogs, and email alert services.

You can report a suspected breach of sanctions if you think you, or someone else, may have breached sanctions, or be attempting to circumvent sanctions.

For specific queries about this sanctions regime, email: fcdo.correspondence@fcdo.gov.uk

For other contact details, see Government departments and agencies responsible for sanctions.