According to the Export Control Joint Unit, "This new sanctions body has been established to strengthen the enforcement of trade sanctions and support businesses with compliance. It is part of the government’s commitment to strengthening sanctions implementation and enforcement to maximise the effectiveness of the UK’s sanctions regimes.

"Complementing HMRC’s trade sanctions enforcement role at the UK border, OTSI has new civil enforcement powers in relation to services as well as movement of goods across third country borders, where there is a UK nexus. Financial services firms, money services businesses and legal service providers are now required to report suspected breaches of relevant trade sanctions to OTSI.

"OTSI aims to support businesses properly understand and comply with UK trade sanctions through engagement and providing user friendly guidance. OTSI is also now the licensing body for the provision of services that are not ancillary to the movement of goods."

To find out more about OTSI, to apply for a services sanctions licence and to report a breach, visit OTSI’s website [ http://www.gov.uk/otsi ] on www.gov.uk/otsi [ http://www.gov.uk/otsi

Further information from UK GOV:

New unit to help businesses comply with the UK’s trade sanctions to launch today.
Unit has new and enhanced powers to crack down on businesses in breach and make sure UK sanctions are effective.
Sanctions are helping to defund Putin’s illegal war, depriving Russia of over USD400,000 million of funds since February 2022.

UK sanctions against Russia are set to be strengthened as the Government launches a new unit to help companies comply with trade sanctions and penalise those who do not.

Following Russia’s invasion of Ukraine, the UK implemented its most comprehensive set of sanctions against a major economy, with over £20 billion worth of trade with Russia now sanctioned.

The new Office of Trade Sanctions Implementation (OTSI), launching today, will work with industry to make complying with sanctions obligations as straightforward as possible by issuing guidance and user-friendly online tools.

There has been overwhelming support from business in implementing sanctions against Russia, and the vast majority of businesses comply. For the minority that don’t, OTSI will have powers to publish information about sanctions breaches and impose civil monetary penalties.

Business and Trade Secretary Jonathan Reynolds said:

Sanctions are vital in defunding Putin’s illegal war and only by working hand in hand with business can we make them as effective as possible.

This new unit will help ensure businesses comply with trade sanctions and take decisive enforcement action where needed so that, together with business, we can continue to exert maximum pressure on Putin’s regime.

Sanctions Minister Stephen Doughty said:

This new government is resolutely committed to strengthening our sanctions regime with robust enforcement and penalties for those who fail to comply. From Moscow to Tehran - kleptocrats, aggressors and the enablers who support and facilitate their wealth and malign actions should be on notice.

OTSI will be instrumental in providing vital additional tools not only to help businesses comply with our sanctions, but also to deter and impose costs upon those seeking to breach them.

The new unit is part of the Department for Business and Trade. OTSI will work with businesses to offer guidance, issue licences and investigate reports of trade sanctions breaches.

This launch also sees new reporting obligations introduced for financial services firms, money service businesses and legal service providers. They will now be expected to inform OTSI of suspected breaches of certain trade sanctions.

OTSI’s new enforcement powers for trade sanctions complement those HMRC already has. While HMRC remains responsible for the enforcement of trade sanctions on goods that cross the UK border as part of its customs role, OTSI now has lead enforcement responsibility for sanctioned services leaving the UK, as well as trade in sanctioned goods and services anywhere else in the world where a UK business or person is involved.

Notes to editors:

From today, OTSI takes on responsibility for issuing licences for certain sanctioned activity – specifically the provision of standalone services, including professional and business services. Sanctions licensing for the export of goods and the provision of ancillary services (services related to the export of tangible goods) remain the responsibility of the Export Control Joint Unit (ECJU). DBT’s Import Controls Team continue to be responsible for licensing the import of goods and other activities (including provision of ancillary services) which are prohibited under UK import sanctions. More information is available here: https://www.gov.uk/guidance/import-controls

A full list of the UK’s sanctions can be found here: https://www.gov.uk/government/collections/uk-sanctions-regimes-under-th…

Businesses can visit GOV.UK to submit enquiries or contact OTSI@businessandtrade.gov.uk.