Saudi Press

Saudi Arabia and the world
Saturday, Jun 21, 2025

Companies Need to Prepare for U.K. Sanctions Regime Rollout, Lawyers Say

Companies Need to Prepare for U.K. Sanctions Regime Rollout, Lawyers Say

Companies need to be aware of likely changes to the U.K.’s sanctions regime as the end of the Brexit transition period approaches, sanctions compliance attorneys said.

During the transition period, which is set to end on Dec. 31, individuals and companies in the U.K. have been required to comply with the European Union’s sanctions regimes. After the transition, the U.K. would have the freedom to implement its own sanctions regimes.

The U.K. and EU on Thursday announced a post-Brexit agreement over their future relations, covering issues such as trade sharing information in security databases and law enforcement.

Some companies would have to navigate at least three different sanctions regimes after the transition—the U.K.’s, the U.S.’s and the EU’s—adding to compliance complexity, according to lawyers who advise companies.

“[Companies] need to recognize there will be differences coming soon and make sure their monitoring picks up what’s going on in the U.K. regime with regard to the U.S. and EU sanctions,” said Chris Warren-Smith, a partner at law firm Morgan, Lewis & Bockius LLP.

Where do things stand?


The U.K. government has been laying regulatory groundwork for its own sanctions regimes in anticipation of the transition. The U.K. in 2018 passed the Sanctions and Anti-Money Laundering Act, which provides the foundation for the government to impose sanctions autonomously. The sanctions would be in the form of asset freezes, visa bans or trade sanctions.

The Foreign, Commonwealth and Development Office, the agency that determines the U.K.’s sanctions policy, has already laid out regulations for more than 30 sanctions regimes, according to the Office of Financial Sanctions Implementation, which implements and enforces the U.K.’s financial sanctions.

“While these regulations are intended to deliver substantially the same policy effects as the existing regimes, you should not assume that they are identical,” a blog post by the enforcement agency said.

Under the new system, the U.K. government in July issued sanctions against 49 individuals and organizations, including dozens of Russian and Saudi nationals, for alleged human-rights abuses.

What’s next?


The consolidated lists of financial sanctions targets the OFSI maintains would be updated on Dec. 31 to reflect all the financial designations made under the U.K.’s regulations, the agency said. The agency issued a bridging document last week to help entities process the changes to the consolidated list, especially if they conduct automated sanctions screening.

Individuals and companies should expect a significant number of changes across multiple fields from the update, the OFSI said.

What should companies do?


While the U.K. sanctions list would inherit most of the EU list, companies need to pay attention to changes introduced in the U.K. that may conflict with sanctions regimes outside the U.K., Mr. Warren-Smith said. “They need to be proactive,” he said.

This may include reviewing processes and monitoring sanctions-screening software. That also means reviewing business activities such as those related to Iran and Cuba, where the U.S. and EU have significantly different approaches, according to Mr. Warren-Smith.

It is important for companies to identify and disclose potential U.K. sanctions violations to regulators as early as possible in an effort to get coordination credit in possible enforcement actions, Mr. Warren-Smith said.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
Black Box Recovered from Air India Crash Site
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Syria to Reconnect to Global Economy After 14 Years of Isolation
Israel Confirms Arming Gaza Clan to Counter Hamas Influence
Global News Roundup: From Ukraine's strategic military strikes and Russia's demands and Tensions Escalate in Ukraine, to serious legal issues faced by Britons in Bali and Trump's media criticism, the latest developments highlight a turbulent landscape
U.S. Reduces Military Presence in Syria
Trump Demands Iran End All Uranium Enrichment in Nuclear Talks
Iran Warns Europe Against Politicizing UN Nuclear Report
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
×