Syedur Rahman and Ulrich Schmidt consider the UK sanctions enforcer’s approach to dealing with its workload.
The UK’s civil financial sanctions enforcer OFSI (the Office of Financial Sanctions Implementation) has made it known it is using outside help to manage its increasing caseload.
In its annual report, “OFSI Annual Review 2024 to 2025: Effective Sanctions’’, OFSI - which is part of the Treasury - states that it has looked beyond the Treasury for legal expertise in an effort to “strengthen and accelerate” the growing enforcement workload it faces.
OFSI argues that seeking outside help enables it to progress cases (and any resulting penalties) quicker. It says that this acts as a powerful deterrent to those who would breach UK sanctions and emphasises the need for sanctions compliance.
Counsel
There are many risks associated with seeking outside legal counsel. However, this is certainly not an extraordinary occurrence. Many government agencies and departments rely on external counsel to assist during periods where their workload is heavy or where expertise is required that is not available in-house. These situations often involve the Government Legal Department (GLD), which provides advisory services to in-house legal teams at other departments.
The Crown Prosecution Service (CPS) and the Foreign, Commonwealth & Development Office (FCDO) regularly use external services. The FCDO has an Expert Advisory Call Down Service (EACDS) to commission external technical and specialist expertise, including legal advice.
Better recruitment may be viewed as a more appropriate option than the approach OFSI has taken. But recruitment, especially for government agencies and departments, can be a time-consuming process. And if OFSI expects that its caseload will not stay as high as it currently is for too long, then the approach it has taken may be the most efficient course of action. In addition, external experts can provide in-depth expertise quickly, ensuring that cases are handled efficiently.
Changes
The annual report also details other changes that have helped “transform OFSI’s operational capability and strengthen its functions, enabling OFSI to transition to a more stable, standardised operating model and to effectively meet the current and future needs of the UK’s sanctions policy.’’
It points to positive developments, including:
- Enhancement of OFSI’s data management and protection practices.
- Increased international collaboration.
- The creation of a licensing aftercare service, making the process clearer and more responsive to applicants’ needs.
- Improved OFSI monitoring of licences.
- Exploration of new ways to detect and prevent the circumvention of financial sanctions, particularly relating to UK exports of high-risk goods.
- Increased numbers of proactive investigations into potential breaches of novel sanctions, such as the oil price cap (OPC).
