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New Year, new regime – new UK General License

General licence – INT/2020/059
OFSI has the power to issue General Licences for country sanctions regimes under the Sanctions and Anti-Money Laundering Act 2018 (“the Sanctions Act”).
On 1 January 2021, OFSI issued General Licence INT/2020/059 under Regulation 64 of The Russia (Sanctions) (EU Exit) Regulations 2019 (“The Russia Regulations”). Any persons intending to use General Licence INT/2020/059 should consult the copy of the Licence on this page for full details of the permissions and usage requirements.
Under General Licence INT/2020/059 persons may make payment(s) out of non-frozen funds to the State Unitary Enterprise of the Crimean Republic ‘Crimean Sea Ports’ for services provided at the ports of Kerch Fishery Port, Yalta Commercial Port and Evpatoria Commercial Port, and for services provided by Gosgidrografiya and by Port-Terminal branches of the Crimean Sea Ports. General Licence INT/2020/059 also permits persons to be reimbursed out of non-frozen funds for such payments.
The permissions in General Licence INT/2020/059 do not authorise any act which the person carrying out the act knows, or has reasonable grounds for suspecting, will result in funds or economic resources being made available in breach of The Russia Regulations, save as permitted under licences granted under The Russia Regulations.
General Licence takes effect from 1 January 2021 and may be varied, revoked, or suspended by HM Treasury at any time.
Prior notification requirement
Any persons intending to conduct activity permitted under General Licence INT/2020/059 must provide OFSI with written confirmation of such intention prior to making any payments or reimbursements, and provide OFSI with their current, valid contact details. Such notification (which can be sent to ofsi@hmtreasury.gov.uk) does not constitute verification by HM Treasury that activity purporting to be permitted under this licence is permitted.

Reporting requirement

Any activity conducted under General Licence INT/2020/059 must be reported to HM Treasury within 14 days, with details and supporting evidence.

Record-keeping requirements

Persons must keep accurate, complete and readable records, on paper or electronically, of any activity purporting to have been permitted under this licence for a minimum of 6 years.

Office of Financial Sanctions Implementation HM Treasury

This is OFSI’s first General License that I know of – previously, the UK has relied on the limited licenses provided under EU regulation.

Since it’s the very first, I think it’s useful to show the actual text of the license in the blog post…

GENERAL LICENCE
INT/2020/059
1. This licence is granted under regulation 64 of The Russia (Sanctions) (EU Exit) Regulations 2019 (“The Russia Regulations”).
2. Any act which would otherwise breach the prohibitions in Regulations 11 to 15 of The Russia Regulations is exempt from those prohibitions to the extent required to give effect to the permissions in this licence.
3. In this licence:
a “Person” means
An individual, a body of persons corporate or unincorporate, any organisation or any association or combination of persons.
“Crimean Sea Ports” means
State Unitary Enterprise of the Crimean Republic ‘Crimean Sea Ports’, an entity designated under regulation 5 of The Russia Regulations for the purposes of regulations 11 to 15 (asset-freeze etc.) and includes: Kerch Fishery Port, Yalta Commercial Port, Evpatoria Commercial Port, Gosgidrografiya and Port-Terminal branches of the Crimean Sea Ports.
a “Relevant Institution” means
A person that has permission under Part 4A of the Financial Services and Markets Act 2000(3) (permission to carry on regulated activity).
Permissions
4. Under this licence, subject to the conditions in Paragraphs 5-8 below:
4.1 A Person may make payment(s) out of non-frozen funds to the Crimean Sea Ports for services provided at the ports of Kerch Fishery Port, Yalta Commercial Port and Evpatoria Commercial Port, and for services provided by Gosgidrografiya and by Port-Terminal branches of the Crimean Sea Ports.
4.2 A Person may be reimbursed out of non-frozen funds for payments it makes in accordance with paragraph 4.1 above.
4.3 Relevant Institutions may process payments made in accordance with paragraphs 4.1 and/or 4.2 above.
5. Prior Notification Requirement
5.1. Prior to making its first payment(s) in accordance with paragraph 4.1 above a Person must provide written notice (which may be provided by email to ofsi@hmtreasury.gov.uk) to HM Treasury that it intends to conduct activity permitted under this licence and must supply HM Treasury with its current, valid contact details.
5.2. Prior to reimbursing out of non-frozen funds for payments made in accordance with paragraph 4.2 above, a Person must provide written notice (which may be provided by email to ofsi@hmtreasury.gov.uk) to HM Treasury that it intends to conduct activity permitted under this licence and must supply HM Treasury with its current, valid contact details.
5.3. Prior notification provided in accordance with paragraphs 5.1 and/or 5.2 above does not constitute verification by HM Treasury that activity purporting to be permitted under this licence is permitted.
Reporting Requirements
6. Within 14 days of transferring funds in accordance with paragraph 4.1 above, a Person must report to HM Treasury, with details and supporting evidence of:
6.1. The amount(s) transferred;
6.2. The payment route used; and
6.3. The date on which the funds were transferred.
7. Within 14 days of receiving funds in accordance with paragraph 4.2 above, a Person must report to HM Treasury, with details and supporting evidence of:
7.1. The amount(s) received;
7.2. The payment route used; and
7.3. The date on which the funds were transferred.
8. Record-keeping Requirements
8.1. A Person must keep accurate, complete and readable records, on paper or electronically, of any activity purporting to have been permitted under this licence for a minimum of 6 years.
General
9. The permissions in this licence do not authorise any act which the person carrying out the act knows, or has reasonable grounds for suspecting, will result in funds or economic resources being made available in breach of The Russia Regulations, save as permitted under licences granted under The Russia Regulations.
10. This licence permits activity in accordance with paragraph 4 above on the basis of information provided to HM Treasury, and may only be relied upon where such information remains true, accurate and complete.
11. Information provided to HM Treasury in connection with this licence shall be disclosed to third parties only in compliance with the General Data Protection Regulation and the Data Protection Act 2018
12. This licence takes effect from the 1 January 2021 and expires on 31 December 2021.
13. HM Treasury may vary, revoke or suspend this licence at any time.
Signed:
Office of Financial Sanctions Implementation HM Treasury
1 January 2021.
But you should open the actual GL file… check out how they signed the document. I guess it’s official, right?

I assume eventually it will follow what OFAC does – it’ll be signed by the Head of OFSI.

Tee hee, says Sanctions Clause!

Links:

OFSI General License Publication Notice

OFSI General License INT/2020/059

Categories: Licenses OFSI Updates Russia sanctions

eric9to5

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