On May 22, 2023, the UK Office of Financial Sanctions Implementation issued a new general license under Regulation 64 of the Russia (Sanctions) (EU Exit) Regulations 2019 and Regulation 32 of the Republic of Belarus (Sanctions) (EU Exit) Regulations 2019 to address certain contracts between a UK Person and Designated Person (“DP”) that were signed before the DP was designated. OFSI issued General License INT/2023/3024200 to temporarily authorize a DP to transfer funds and a UK Person to receive payments in satisfaction of a contractual obligation, provided that the payment obligation arose before the date on which the DP was designated; the payment is for the benefit of a UK Person; the value of the payment does not exceed £200,000 including VAT (allowing for market currency fluctuations); and the payment is not made to another DP. This general license also enables Relevant Institutions to process payments made in accordance with these requirements. This license expires on November 21, 2023.
General License INT/2023/3024200 also requires any Person that utilizes the license to provide the HM Treasury with transaction details within one month of receiving payment, including 1) information related to the contractual obligation between the UK Person and the DP; 2) any document or communication that describes the obligation for which the payment is made and received; 3) the invoice being paid; 4) the amount received; 5) the date that funds were transferred and received; and 6) confirmation that no other UK Person will use the license to receive funds arising from the same contractual obligation. Persons that utilize this license are also required to keep accurate, complete and readable records regarding the activity that was purportedly permitted under this license for a minimum of 6 years.