The UK Office of Financial Sanctions Implementation recently announced new financial sanctions reporting obligations that will go into effect of August 30, 2022 and extend to cryptoasset businesses in the UK. On August 15, 2022, OFSI conducted a webinar on the new reporting obligations that will require “relevant firms” to inform OFSI of suspicious activity as soon as practicable provided that the suspicious activity is learned by the relevant firm during the course of its business. A failure to comply with reporting obligations may result in criminal prosecution or a fine.
The new reporting obligations will apply to all UK financial sanctions regimes. OFSI emphasized that on August 30, 2022 the term “relevant firm” will include cryptoasset exchange providers and custodian wallet providers. Relevant firms will obligated to report to OFSI, 1) that a person is a designated person, 2) that a customer is a designated person, and 3) that a person committed a financial sanctions offense – this includes information on which your knowledge is based; information that can be used to identify the designated person; and, if the report involves a customer, the amount of funds or economic resources held.
OFSI encourages UK persons and entities to make reports using a form available on GOV.UK and asks that completed forms be sent to ofsi@hmtreasury.gov.uk.