Financial Sanctions: Russia

Friday, 11 February 2022

This news release is issued to publicise changes to UK legislation relating to the Russian sanctions regime.

The Russia (Sanctions) (EU Exit) (Amendment) Regulations 2022 came into force on 10 February to toughen and expand the UK’s sanctions regime against Russia. It means the UK can now impose sanctions on Russian businesses and individuals in a wide range of economic and strategically significant sectors, such as the chemical, defence, extractives, ICT and financial services industries.

The UK can now sanction not just those linked directly to the destabilisation of Ukraine, but also Government of Russia affiliated entities and businesses of economic and strategic significance to the Russian government, as well as their owners, directors and trustees.

Island businesses should follow closely current developments in relation to Russia, particularly whether any new persons are designated under the sanctions regime as these also apply in the Isle of Man.  Customs and Excise will publish information on its website when any changes are made.

Further details of the sanctions regime related to Russia and links to other financial sanctions regimes may be found on the Customs and Excise pages of the Isle of Man Government website.

Financial institutions and other persons are required to check whether you maintain any accounts or otherwise hold funds or economic resources for, or provide financial services to, designated individuals. If so, you must freeze such accounts or other funds and, unless licensed by the Treasury, not deal with those funds or economic resources, and suspend the provision of any financial services.  You must also report your findings to the FIU.  

Failure to comply with financial and trade sanctions legislation or to attempting to circumvent its provisions is a criminal offence.

Where a relevant institution has already reported details of accounts, other funds or economic resources held frozen for the designated person, you are not required to report these details again.

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