Q&As

What are the consequences for pension scheme trustees if pensions are paid to members on the ‘Consolidated List of Financial Sanctions Targets’ issued by the Office of Financial Sanctions Implementation? What obligations do pensions trustees have to carry out due diligence to safeguard against pensions being paid to such individuals?

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Published on LexisPSL on 14/11/2019

The following Corporate Crime Q&A provides comprehensive and up to date legal information covering:

  • What are the consequences for pension scheme trustees if pensions are paid to members on the ‘Consolidated List of Financial Sanctions Targets’ issued by the Office of Financial Sanctions Implementation? What obligations do pensions trustees have to carry out due diligence to safeguard against pensions being paid to such individuals?
  • UK sanctions regime
  • Breach of UK sanctions regime
  • US Sanctions
  • US comparison
  • Screening in general
  • Screening in a pensions context

UK sanctions regime

Financial sanctions in the UK may be imposed by the UN Security Council, through UN Security Council Resolutions. These are implemented in the EU through common positions and regulations, which have direct effect in the UK.

The Office of Financial Sanctions Implementation (OFSI) may also designate domestic (UK resident) individuals or entities as targets, usually under counter-terrorist financing legislation—see Terrorist Asset-Freezing etc Act 2010 (TAFA 2010). Therefore, in the UK, financial sanctions are set out in EU Regulations and UK Statutory Instruments.

For further information, see Practice Note: Understanding the sanctions regime—a guide for businesses [Archived].

Organisations and individuals should have a clear understanding of both financial and trade sanctions (where appropriate to their business) and be able to identify risks raised by particular customers, services, products and transactions in high risk jurisdictions.

HM Treasury, through the OFSI, administers and implements international financial sanctions in the UK and is responsible for domestic designations under TAFA 2010 and, post Brexit, the Sanctions and Anti-Money Laundering Act 2018 (SAMLA 2018). For further information, see Practice Note: Designation of sanctions targets under the UN sanctions, EU sanctions and UK terrorist asset-freezing regimes. It is also responsible for authorising licenses relating to financial sanctions, see Practice Note: Licences and Exemptions in Financial Sanctions. OFSI also provides regular guidance on compliance with sanctions and brings enforcement proceedings in the event of

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