Mandatory reporting for suspected breaches of trade sanctions
Providers of legal or financial services have a legal obligation to report suspected breaches of trade sanctions.
This guidance relates to the Office of Trade Sanctions Implementation (OTSI). OTSI will be able to exercise enforcement powers under The Trade, Aircraft and Shipping Sanctions (Civil Enforcement) Regulations 2024 when it comes into effect on 10 October 2024. UK persons and businesses will need to comply with the new legislation from that date.
Who has reporting obligations
If you’re a provider of financial or legal services, or a money service business, you have a legal obligation to report suspected breaches of trade sanctions. This obligation applies whether you’re a business or a sole practitioner in the regulated sector.
This is set out in the Trade, Aircraft and Shipping Sanctions (Civil Enforcement) Regulations 2024, which provide further details about whom the legal obligation to report a breach falls upon.
When you should report
You should only report when you have knowledge, or reasonable cause to suspect, that a breach of trade sanctions has occurred. This knowledge or reasonable cause to suspect must be acquired in the course of carrying out your business.
You are not required to follow specific methods or systems in conducting your due diligence.
Timescales for making your report
You must make a report of having the knowledge or reasonable cause to suspect there has been a breach. You must make an initial report as soon as practicable. You may then supplement it with further information afterwards.
Information you must include in your report
When you make a report, you must give:
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details of the information or other matter that your knowledge or suspicion is based on
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any information you hold about the business or person suspected of breaching trade sanctions, by which they can be identified
If you fail to comply with your legal obligation to report: committing a reporting breach
You might be committing a reporting breach if you fail to comply with your reporting obligation.
Failing to comply with reporting obligations is an offence which could result in a civil monetary penalty or a criminal prosecution.
How OTSI can share information you supply
OTSI may share information you supply, including sharing with other departments, agencies and international partners, in accordance with the disclosure of information regulation, as given in the Trade, Aircraft and Shipping Sanctions (Civil Enforcement) Regulations 2024, data protection legislation and the DBT Personal information charter.
Get help
For enquiries, contact OTSI using the enquiry form.