The U.K. government has established a new office dedicated to ensuring compliance with service-related trade sanctions levied against Russia for invading Ukraine.
According to Jonathan Reynolds, U.K. business and trade secretary, the new office, called the Office of Trade Sanctions Implementation, will help mount pressure on the Russian government. The official said sanctions are critical to preventing Moscow from securing funds to continue its aggression against Ukraine. “Only by working hand in hand with business can we make them as effective as possible,” he added.
OTSI, created under the Department for Business and Trade, will issue guidance on sanctions obligations, grant licenses for certain sanctioned activities, launch related online tools and penalize businesses for violating the restrictive measures.
The new unit complements His Majesty’s Revenue and Customs. HMRC enforces trade sanctions on goods while OTSI monitors sanctioned services leaving the United Kingdom.
Along with the launch of OTSI, new reporting obligations have been introduced for financial services firms, money service businesses and legal service providers, requiring them to inform the office of potential trade sanction breaches.