UK concierge services firm fined for breaching Ukraine-related sanctions

The UK’s Office of Financial Sanctions Implementation (‘OFSI’) has imposed a £15,000 penalty on Integral Concierge Services Ltd (‘ICSL’), accusing it of breaching financial sanctions on Russia for providing services to a designated person.

‘The monetary penalty relates to the property management service ICSL provided to a designated person subject to an asset freeze, OFSI said in a statement, 27 September, without identifying the sanctioned person.

‘Between 2022 and 2023, ICSL made or received 26 payments in connection with the services they were providing to the designated person, despite knowing or having reasonable cause to suspect these were in breach of financial sanctions in the UK,’ it said. ‘This case was not reported to OFSI by the subject of the penalty, resulting instead from a proactive investigation,’ it said.

‘This penalty demonstrates OFSI’s clear commitment to pursuing financial sanctions breaches wherever they occur,’ the release added. ‘From the largest institutions to the smallest, everyone has an obligation to comply with the UK’s financial sanctions regime, OFSI said. It warned it is ‘prepared to utilise the full extent of its legislative powers to pursue those who commit serious breaches of financial sanctions.’

Following the introduction of strict civil liability for financial sanctions breaches in June 2022, OFSI is now also able to take action regardless of whether a person knew or had reasonable cause to suspect they would be in breach.

https://www.gov.uk/government/news/penalty-issued-for-breaches-linked-to-russias-invasion-of-ukraine